As well as American’s favourite holiday destination, Florida ranks as a long-term top spot for property investment. When it comes to those all-important supply-demand factors, the Sunshine State ticks all the boxes. Read on to discover 10 compelling reasons to invest in Florida this year.
Why invest in Florida? Thriving economy
Top of property investment considerations comes the local economy and here, Florida stands out in the US. The Q1 2018 Florida Metro Forecast reported that the state is on track for 3.7% GDP growth this year, 0.7% ahead of the rate expected for the US as a whole. Furthermore, 4.3% is forecast for 2019.
Real income growth has seen a marked increase too. It’s expected to rise by 3.4% this year (0.5% ahead of the rest of the US) and by a massive 5.6% in 2019.
Did you know? The Florida economy is expected to top US$1.030 trillion in 2018.
Why invest in Florida? Strong job creation
Job creation is another vital component in an economy and an important factor in creating demand for property. When it comes to employment, Florida also outpaces the US. An increase of 2.8% in available jobs is expected this year – 0.8% more than the country average – with another 3% forecast for 2019.
Did you know? Florida hotspots for job creation are Jacksonville, Orlando and Tampa.
Why invest in Florida? Growing population
Population growth spurs on demand for property and the best investment destinations show consistent increases in population. This is definitely the case in Florida – the state added 430,000 new residents in 2017 and a further increase of 4.7% is expected this year. Analysts forecast a rise of almost 11% in the Florida population by 2023 when the Sunshine State will be home to 23.3 million people.
Did you know? Fort Myers, Orlando, Jacksonville and Tampa currently register the highest population growth rates in Florida .
Why invest in Florida? Booming tourism
Tourism forms the backbone of the Florida economy and the state ranks as one of the world’s most popular holiday destinations. After record years in both 2016 and 2017, the Sunshine State registered its strongest quarter ever for tourism between January and March this year. An estimated 32.3 million visitors chose to holiday in Florida, 7.4% more than the same period in 2017. Domestic visitors rose by 8.5%.
Strong tourism acts as a compelling reason to invest in the state. Holiday rentals offer excellent potential for return, particularly in vacation hotspots such as Orlando or anywhere on the stunning Florida coastline.
Did you know? Florida ranks as the most popular place for a holiday in the US with Orlando taking the lion’s share of tourists.
Why invest in Florida? Strong property market
In March this year, Florida registered its 75th consecutive month of property price increases. Single-family homes went up by 8.2% in the year to reach a median of US$250,800 while condo and townhouse properties in Florida rose by 7% to US$183,000.
Strong demand continues and has put considerable strain on inventory levels. In March, they stood at 3.8 months’ supply for single-family homes and at 5.9 months for condos and townhouses. The average time for a property to spend on the market fell by around 10%, a further indication of the buoyant interest in buying homes.
Did you know? Florida no longer stands at the top of the foreclosure table. In the year to March, sales of foreclosure homes fell by 53%.
Why invest in Florida? Great choice of property
Another compelling reason to make Florida your property investment destination comes in the choice of property. The state offers a wide range of homes from condos in resort developments to luxury villas in beachfront locations. Single-family homes tend to be the most popular choice for homebuyers, particularly in the suburbs of the major metro areas. Or you can buy land in Florida and build a property on it.
Did you know? BRIC Group offers investors buy-to-let property in prime Florida locations with guaranteed 2 years of rental income.
Why invest in Florida? Affordable property
One of the big benefits of buying property in Florida as opposed to other areas of the US comes in the lower property prices in the state. While some areas of the country have seen prices soar beyond their 2007 highs, in most parts of Florida property remains at below its pre-crisis peak.
Florida land too represents good value. According to the 2018 edition of the Lay of the Land Market Report published by Coldwell Banker, “the Florida land market is strong as the state continues to be a great place to own land”. It concludes that “the market to find and develop land for new residential communities will continue to be strong and owning land in the path of growth will prove to be a great investment”.
Did you know? Sarasota County registered the highest price increase for luxury property (top 5% of market) in May 2018 as buyers from the north flocked to the area to take advantage of better value investments.
Why invest in Florida? Big rental market
While Florida offers very affordable prices to investors, the same can’t be said for homebuyers themselves. Because of stringent mortgage regulations and/or lack of savings, many first-time buyers are unable to enter the market. Add to this the strong trend to relocate to areas with the best job markets and you’ve got a strong market for rentals.
Long-term rental properties are currently in big demand in Florida generally and in prime metro areas – Orlando, Tampa, Jacksonville – specifically. As a result, buy-to-let investment in Florida offers excellent potential for returns.
Did you know? The bi-annual Freddie Mac survey on renting published in April found that 74% of Baby Boomers (aged 53 to 71) said renting was a better option than buying, a 15% increase in 18 months.
Why invest in Florida? Great all-rounder
With a pleasant year-round climate, miles of beaches and a strong economy, Florida appeals to everyone. In 2018, Chief Executive magazine voted it the second-best state to do business in the US for the second year in a row. And Kiplinger’s 2018 Where to Retire index placed Florida in 8th position. This something-for-everyone factor translates to strong demand for property across the board.
Did you know? BRIC Group publishes a comprehensive list of downloadable brochures on Florida property investment. All bang up-to-date and free of charge. Download your free copies here.
Why invest in Florida? Easy to get to
And last on our list of reasons to invest in Florida (but just as important) is easy access. The state has numerous airports with regular services to both international and domestic destinations. This boosts the state’s tourism and by extension, the holiday let market and also makes it easy to get to if you’re investing in a second home to use yourself.
Did you know? BRIC Group has a range of Florida investments in prime locations within the state. Prices start at just US$26,500 and include finance options. All are owned by the BRIC Group so are tried and trusted investments offering solid potential for return. Get in touch for more information on which suits you and your portfolio.