If you’ve got your mind on the future, you might be thinking of different ways to make some extra income. Owning real estate is a tried and trued method of investing that can pay off majorly in the years to come.
There are few better places to pick up property these days than down South in the Sunshine State. If you’re interested in investing in Florida real estate, now is the time to act.
Of course, there are certain elements you’ll want to consider and research before diving headfirst into Florida property ownership. What do you need to be aware of before signing on any dotted line? Read on and we’ll walk you through what you need to know.
The Upsides of Investing in Florida Real Estate
Let’s start first with the positives. There are many fantastic reasons to consider investing in Florida’s glorious properties. There are many benefits to turn over in your mind.
The biggest advantage at the current moment is that despite high demand, the price of investment properties in Florida is not too crazy. Most homes are being listed at what would be considered generally reasonable prices.
There are also huge opportunities for development. There are so many different ways to potentially own and operate your property in Florida. You could run it as a vacation home for those looking to head down South to travel, for example.
You could also run things more traditionally by renting it to long-term tenants or simply holding onto the property as the value rises.
The housing market has been on the rise in Florida over the past few years and there’s no indication that things are going to be slowing any time soon. If you act fast, you might be able to ride the rising tide of home prices as Florida becomes a more and more popular destination.
You can discover more about Florida as a real estate possibility and decide if the state provides the right benefits for you.
What To Know About Homeowner’s Insurance
What do you think of when you think of Florida? Perfect blue skies, sunny beaches, and not a care in the world? While this may be true some of the time, don’t fool yourself into thinking that those who own property in Florida don’t have a number of obstacles to face.
Plenty of natural disasters impacts the people of Florida and the properties that they own and maintain. The state is constantly in the path of major hurricanes and tropical storms, meaning the risk of flooding for a large number of properties is quite high.
These ever-present storms often mean that getting homeowner’s insurance for a property in Florida can be quite expensive.
When you’re looking at potential homes to purchase, make sure to add an additional sum to your potential mortgage purchase. You will be kicking yourself later if you end up leaving all of this out of your budget.
Older homes will require even more in insurance premiums than newer ones due to a lack of updated safety features and protections. It’s important to get accurate quotes about what insurance might cost you before agreeing to take on any property of any sort.
Deed Protected Communities
Across the state of Florida, many properties are part of neighborhoods that operate as deed protected communities. This means that the neighborhood in question is governed by a homeowner’s association.
Homeowners within the jurisdiction pay certain fees to the association and in return, the association helps maintain certain rules and provides maintenance and public goods for the community.
There are pros and cons to being part of a deed protected community. First and foremost, you’ll need to get familiar with the laws that the community seems intent to enforce. Many communities have very restrictive laws about what one can and can’t do with their property.
These rules could govern the appearance of your home, your ability to rent, what kind of pets you can have, and so on. In some instances, a homeowner’s association may even have the right to foreclose on your home.
It’s important to take into consideration all the possible benefits and drawbacks of joining such a community. There are properties throughout Florida that won’t require you to join this kind of community if it is not something you’d be interested in.
Location is Key
It’s easy to get really focused on the qualities of a property itself. Yes, the nature of the property you’re interested in is of course very important. However, you don’t want to undervalue the importance of location.
In Florida, location is essential to the value of a property. Even a poor-quality property might be able to provide an immense amount of value if it is located, for example, close to the beach.
Those close to major tourist destinations such as Disney World might also provide massive amounts of value. Always look at what is close to the property that you are considering — and also what is far away! Distance and proximity matter in this state a great amount.
Investing in Florida Real Estate
Florida has a fantastic real estate market that remains on the rise. If you’re interested in getting a property in the state, it’s important that you understand the ins and outs of investing in Florida real estate. The above information can help.
Need more real estate advice, tips, and tricks? Keep scrolling our blog for more information.