8 MUST KNOW Florida Property Buying Tips
You know why you want to buy Florida property.
Now you want to make sure you make the right real estate investment – for you.
Today you will learn 8 key investment strategies. Florida property buying tips to help ensure you get the results you are looking for in your next investment.
8 MUST KNOW Florida Property Buying Tips
1 Location | Choose a neighborhood -for now, and for later
The popular saying “location is everything” has never been more true.
Yet, we often neglect to do a thorough analysis of long-term market trends. The opportunities and strengths of the property location can become weaknesses over time, threatened by better opportunities in other locations.
So, for best mid to long-term gains, the chosen location must display a variety of characteristics that encourage stable and sustained economic growth. It’s not just about the view or the weather. The aesthetics count – of course! But they must be backed by a diverse economy and favorable investment climate, to ensure the property value grows at an attractive rate in perpetuity.
2 Buy short term | Flip a fixer-upper
This strategy works for the individual who doesn’t mind getting their hands dirty.
The profits can be large especially if purchased in an up-and-coming neighborhood.
However, the skill, time & experience needed is high to ensure success. This investment tactic is not for the faint of heart, as renovation expenses can easily spiral out of control.
3 Invest to diversify | Use as a vacation or retirement home
Florida is well-known worldwide as a premier retirement and vacation location.
To get the best results from your capital invested, it’s wise to familiarize yourself with the prime cities and neighborhoods, along with the surrounding infrastructure and supporting economy.
Don’t be caught out buying an attractive dream property in the middle of nowhere, with no neighborhood amenities or services.
Think of the vacation or retirement property first as an investment, and less as a fantasy fulfilled. This way you will make more rational choices that will benefit you later when you decide to sell.
4 Become an insider | Be ready to learn all the purchase options, details, and costs.
The list price of a property can often be quite attractive – then you discover, often too late, about all the extra fees and costs.
You will most likely purchase via an agent or developer. But, to get the best contract, think like an insider with insider knowledge.
Become familiar with the associated expenses, mortgage rates, and purchasing options. Budget them into your strategy to avoid the discomfort of fiscal mismanagement, and to obtain maximum gain.
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5 Purchase to earn rental income | Take advantage of favorable Florida landlord laws
Florida is a hotspot in the United States for leveraging property ownership into rental income.
The landlord laws in Florida significantly favor the owner. What this means is that as an out-of-country investor – or American owner -, it is relatively easy to manage your tenants from abroad.
Many property management companies offer services as a liaison between the landlord and tenants, providing the owner with a stable way to offset the mortgage, or better yet, gain income while owning substantial US equity.
6 Invest as a partner in development | Gain fixed returns as a project equity partner
Partnering with reputable development companies is an innovative way to gain returns while maintaining a hands-off share in the property.
In exchange for investing in the development project, partners receive annual fixed returns on top of a share in the profits when the development is sold at a later date.
Additionally, in some agreements, partners can also elect to purchase individual units and remain as an owner to suit their portfolio needs.
7 Buy a unit in pre-construction | Purchase at discount, pay throughout construction
Savvy investors look for the greatest gain in unusual places. Buying a property before it is built results in lower prices, and best model choices.
Additionally, the purchase agreement usually involves segmented payments throughout the construction build.
For investors in no rush, these purchase options can offer significant savings and better choices. The staggered payments optimize investment cash flow, lowers the mortgage, all while building the invaluable US equity.
and Finally,
8 Know Florida Real Estate Laws | Learn your property and landlord laws
Every state, country, and county have their own specific property ownership laws, regulations and taxes.
Buying property in a new area without knowing these specifics is like buying a car blindfolded. You just won’t know what you are getting unless you are familiar with the associated ongoing costs.
2 financial factors that make Florida stand out for property investment are:
• Low property, sales, corporate and income taxes. Florida ranks 4th nationwide for best structure tax climate.
• Favorable landlord laws
Today’s Takeaways
Florida has so much to offer the investor and property owner. The economy is diverse, the taxes low, the weather superb. Get your foot in the door with knowledge and confidence to make the right choice. Use the essential Florida property buying tips to make the right choice.
At BAI Capital, we have a range of attractive mid-range and luxury properties for sale. We offer already built, and pre-construction units in several key Florida locations. Also available are fixed return investments as equity partners in project developments. Our options include both residential and retail.
Find out how you can watch your capital grow in Florida, with BAI Capital.
