As the title suggests, now is a great time to invest in South Florida residential real estate. Here are 5 reasons why (in no particular order of importance):
1) According to statistics from the Florida Association of Realtors®, in the last year, prices have dropped more than 20%…that means affordable home prices for homeowners and investors alike. In South Florida specifically, prices have dropped at an even faster rate. For many South Florida real estate investors, this is the first time they have been able to generate cash flow of more than $300 per month in rental properties as part of their long-term buy and hold strategy. Many who were investing 5 years ago were actually spending money each month to maintain their rents and speculating on a rapid appreciation that did materialize but only for a short period of time).
2) Speaking of long-term buy-and-hold strategies, it’s smart because the US Census Bureau estimates that Florida is one of three states that will account for nearly half of total US population growth. between 2000 and 2030. The Bureau also estimated that by 2011, Florida would be the third most populous state in the country! Let’s face it: People are still moving to South Florida and will continue to do so year after year, families and retirees alike. These people will need houses to rent and houses to buy.
3) Foreclosures, particularly in South Florida, are rife and there seems to be no quick end in sight. According to public records, new foreclosures in Miami-Dade and Broward counties are on track to surpass last year’s in substantial numbers. While this is indeed a crisis and an unfortunate series of events, from an investor perspective, there is an opportunity for rehabbers to buy distressed homes at low prices, fix up the homes, and resell them on the market at a competitive price. for a quick sale. to the new owner. foreclosures in
4) Interest rates are low, which translates into more purchasing power for homebuyers. Low interest rates combined with government programs, such as the American Recovery and Reinvestment Act, which provide tax credits, help increase the pool of eligible homebuyers.
5) With the economic problems, the perspective of the majority may be that there is a limit of funds available to invest in real estate. While it is true that available capital and funding have declined at traditional institutions, the fact remains that there is substantial funding available through private investors, many of whom are of or near retirement age and are seeking opportunities. to avoid running out of money and diversify assets. after receiving a huge black eye in the stock market. Rehabbers and homeowners have the opportunity to find such private investors and start building wealth for themselves and provide a more secure return on investment for the private lender.
I think these 5 reasons alone provide a compelling case for why those who have been considering investing in South Florida real estate should step aside. An investor with integrity and good intentions should see this current market as an opportunity to build wealth and also help many struggling homeowners who have faced foreclosure and need affordable housing options while they rebuild credit.
