Earlier in May, the New York Post reported that over 33,000 New Yorkers had exchanged their NY driver’s licenses for Florida ones. San Francisco’s Local 10 reported that over 80,000 people had moved out of the Bay Area — most making their way to the Sunshine State and Texas. Countless families are relocating to Florida as parents look to get their kids back in school full time. The plot twist? They want a private paradise where summers last all year long and their kids will have access to incredible education and future opportunities.
Thousands more will call Florida home in the coming months, drawn south not only by all-year-round summer weather, but also by new opportunities that are springing up all around. Starting in 2022, Formula One cars will begin racing in Miami after the announcement of a 10-year deal to host a Miami Grand Prix. Various reports have mentioned that billionaire Elon Musk has his eye in Miami as well, speculating a proposed tunnel underneath the Miami River to alleviate traffic gridlock. Not to mention the big tech companies that are establishing their hubs in the area as well.
The economic expansion happening in Florida will continue to cause a demand for residential real estate. The state is becoming the land of opportunity and financial freedom. We’re still living in days when those seeking to purchase property (as an investment or as their own home) are willing to pay above asking price to secure a piece of this American oasis. I’ve observed that the big surge is happening in the counties of Palm Beach, Miami-Dade and Broward — places that, since last year, have experienced a staggering rise in demand.
Investors are taking advantage of the low mortgage rates offered during this time, eyeing the incredible potential for profit in the near future. As more events, companies and investors begin to call Florida home, interest in the economic benefits of the state have captured the interest of many currently living abroad seeking to pursue their American dream.
But those looking to acquire real estate for investment purposes shouldn’t wait much longer. Demand is bound to keep on rising as more companies announce their prominent expansion in Florida. More career opportunities will bring an even higher influx of people in the next five years. Despite the incredible adventures South Florida has to offer, it is not the only area of the Sunshine State benefitting from this market.
According to the Orlando Business Journal, toward the end of 2020, housing demand in Orlando was so high, its inventory depleted in the region’s most popular price range in less than a month. Tourism and the continuous search for vacation homes and short-term rentals are driving forces in the area. My advice is that investors should seize this opportunity for both short- and long-term rentals in the area — especially those who want to bet on Central Florida’s ever-expanding tourism.
There are two main options for investors to maximize their investment right now.
If you’re looking to acquire an investment property that will give you immediate return, purchase one within an area that allows short-term rentals. Tourists are flocking south. You may manage the property yourself or list it on apps such as Airbnb. You can even hire a local realtor to manage it for you. In my experience, short-term rentals will normally give you twice the return compared to yearly leases.
If you are a long-term player, I recommend buying a triple net commercial property that is leased to an A-rated national tenant (example: Starbucks, Walgreens, FedEx, etc.). You’ll have no headaches because the tenant is responsible for all maintenance expenses, insurance and property taxes. Such leases are unbreakable and will normally range from 15 to 30 years. Such an opportunity will surely provide investors with peace of mind.
I’ve been incredibly vocal and optimistic with our clients when it comes to today’s market in Florida. As more and more people move in a post-pandemic world where homes have become offices, I predict Florida’s market will continue to be a stable and sound investment in the near future. I encourage all property investors to jump at the opportunity while they can.
The market is hot. The opportunity is here. The time is now!
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