If one wants to make money long term, then real estate is always the preferred investment option. Investing in real estate in Florida, an investment hot spot, is a different ball game altogether. There can be returns of up to 30% on investment in properties and given that this state lies at the very pinnacle of the real estate food chain, things are bound to look up even more.
The key to being successful in such an investment is to know what you are getting into before you are knee deep in it. So arm yourself with all relevant information about Florida real estate to educate yourself. Investment seminars, books, websites offering tips on how to go about this are good ways to start. Then there are the testimonials of successful investors. Most importantly there are the rules and regulations, real estate laws and the current market conditions to deal with.
Study the value and market price of any piece of real estate in Florida. Hire a real estate evaluating official or appraiser if you are unsure of how to go about this. Once you know the current market value of land it will be easier for you to negotiate with the seller. This could be the key to a great deal.
Some investors will advise you to invest in bargain property where the seller may be willing to sell the piece of land for a price which is at least 20% less than the market rate. Sometimes there are properties with concealed potentials. These can be easily revealed and the property value can then get enhanced. For this to work, you need to unlock all such hidden potentials within the first six months of purchase.
There are certain other factors which determine whether it is really worth investing in Florida :
Location : This is crucial. There are high and low demand areas. Florida and Las Vegas are two of the states most in demand now. The returns can be tremendous on purchase but be prepared to do your homework before deciding.
Amenities : These lubricate the real estate market. Florida real estate flourishes because of proximity to some hotspots like beaches, amusement parks, nature trails, and resort towns. The cost of real estate is thus directly linked to the availability of such amenities.
Cost of living : How expensive the region is, is a question you will forever mull on before making up your mind. Vacation rentals in cities like Orlando for example will have a greater demand because of the lower cost of living. Taxes, normal necessities, organization fees and real estate if too highly priced may often make investments of this nature seem undesirable.
History : If an area has been profitable in the past, chances are it will continue to be so in future. A typical instance is South Florida, an area with a solid past and a tremendous future. Though quite developed, it is expanding frontiers at double speed given its strong real estate investment history.