Investing Tips for Buy and Hold Florida Real Estate
My Florida real estate investing tips may surprise you a bit - even though I am a hard boiled, numbers driven investor, this location of choice real estate investing opportunity is near and dear to my heart. I say it every day: "Live where you wish and invest where it is best."
Having moved to moved to Florida about 17 years ago now and absolutely loving it here, I have seen both ends of the buying spectrum. Upon arriving in Florida in 2003 it was a massive Seller’s market. Buyers were competing with 2,3 and often many other buyers over one house. It was crazy and definitely not the best time to invest in Florida.
Then the pendulum changed direction and real estate rapidly became a Buyers’ market. The new lower price points brought on by the bubble and global economy had given new opportunities that many thought were gone forever. The rapid price increase that was happening in the early 2000’s was a sure dream buster in many people's eyes.
We now are enjoying a more balanced market, more of a fair market that can be appreciated by both buyers and sellers. As investors wanting to make prudent buying decisions you want to be more diligent when investing in balanced markets. you want to watch for sustainable investments to insure your investments are secure for the long haul.
Looking for sustainable Buy and Hold investments
Many people desire Florida as a place to own a second home or vacation property and there are many awesome reasons to do so. Anywhere you live in Florida you are within about an hour’s drive to some kind of activity. We have some of the best golfing, best weather and more entertainment options than probably any area in the country and possibly the world.
There are many reasons people want to invest here in Florida. Based on the numerous phone calls and conversations I have daily, I thought I would share a few tips to consider when making your Florida real estate investment:
Know exactly what you want to get from your investment or purchase before looking at any Florida investment property for sale. Most people decide they want to invest in Florida for the great attractions it offers and then immediately start shopping houses. They find a great house only later to learn the best place for them to live is actually in another area of the state.
Start by making a list of what you will do with the property and, if it is a second home, what do you like to do, what attribute does the immediate location need to provide to make you happy. Consider things like activities, lifestyles, do you want close proximity to airports, beaches, golfing, etc. The more you know about what you want the easier it is to find the right property. All decision makers should be involved in this process.
Now, armed with this info, you can better determine where within the state of Florida will accommodate your wishes. But you are only at the beginning, next the investment aspect.
If this is a home you will retire to in the long term, the investment aspect may not be so important. But, if you plan to liquidate someday, you will want to focus on the value play. With your specific areas identified, you now want to determine which of those areas can sustain growth the best.
For example:
Metro areas where employment is growing will have a much higher probability of generating higher returns on resale. So do your diligence on job growth.
Population growth.
Areas that are the most undervalued (these areas have the furthest to grow).
Areas that are not highly consumed by investors. These areas become more volatile during economic uncertainties.
Areas that have enough population to generate enough job diversity to sustain economic security during hard times.
Homes with 3 bedrooms and 2 baths are the largest demand and represent the best capital growth when selling.
The short of it is, if this is not your primary residence, look at it like an investment. Shopping for the property should not happen until you and your fellow decision maker identify exactly what you want, and how it will sustain itself in the long term.
If indeed you plan to live in this property someday then this is more of a lifestyle investment. I have a lot of personal experience in this area. Feel free to give me a shout I would be happy to help you strategize your next move
Happy investing!