The term "real estate" refers to investments in tangible assets. Nowadays, the term has been used to refer to aspects of real estate market.
Investment models have diversified greatly over the years as a result of technological advances. But one thing certainly hasn't changed: the profitability of real estate investments. Historically, real estate investment has been and continues to be a very profitable and safe option for diversifying investment portfolios.
Within this scenario, Florida has been one of the most profitable places to invest in real estate. Read on and find out how investing in real estate in Florida could be an excellent option for you.
Advantages of investing in Real Estate
In any region of the planet, what you can expect from real estate investment is short- and long-term profitability, mainly due to the following 3 aspects:
1- Valorization
Properties in fast-growing areas, with tourist potential or with a high turnover of people (such as university areas) are synonymous with appreciation and profitability. This is because these are areas where there is always an audience for the investment.
In the state of Florida, real estate appreciation has been hovering around 4.2% per year. It's worth noting that in Orlando alone, property value growth has reached 10%. The figures are from Forbes and NAR. In other words, buying a house in Florida today is doubly profitable: in the short term with the rent and in the long term with the appreciation of the investment.
2- Income
It's always good to remember that real estate is a great source for generating passive incomeIn other words, it is possible to earn a monthly income from them effortlessly. It's worth remembering that not only long-term residential rentals can be profitable. Renting out commercial premises, plots of land and holiday homes (such as on Airbnb) also has a high potential for profitability.
Vacation Home Income
Vacation homes, as the name suggests, are vacation homes for short-term rental. With one of these properties, you can use the house during your own vacations and, throughout the year, leave it in the hands of a specialized manager to rent out to other families visiting the area.
It is worth noting that average annual occupancy rate of a Vacation Home property is 67% to 80%according to the properties managed by our partner company. In other words, it's the kind of investment that generates a return throughout the year.
3- Low risk for this investment
Real estate investment in a strategic location, i.e. one designed for a specific purpose, has very little risk to consider. What's more, the house remains yours and can be enjoyed by you and your family whenever you want.
That's why even those who are adept at more aggressive investments, such as those in the stock market, always have real estate in their investment portfolios, as it is well-established.
Florida's Real Estate Market
As we've said, real estate has a tradition of being a good investment anywhere on the planet. But, if you want to dollarize your investment, Florida is the ideal place. With its pleasant climate, record-breaking tourist attraction and good economic conditions, the region has been the most recommended for investing in a house. Check it out here 10 good reasons to invest in Florida.
REMITTANCES
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profitability calculator
Thinking about investing in real estate? Calculate the profitability of a Vacation Home with the help of our calculator.
So let's get started on your dream, shall we?
Count on The Florida Lounge's 360º consultancy to understand the entire process involved in real estate investment in the Florida region.
Did you like the article? Keep an eye on our blog! Looking to live or invest in real estate in Florida? See the list of houses for sale in Florida we've selected for you!
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Leo Martins
My role is to create an environment for people to connect with Real Estate in Florida