In last weeks article LINK one of our featured immigrant entrepreneurs was Billionaire Jorge Perez, the Condo King of Florida. Quite naturally, one wonders of any multi-millionaire:
How lucrative are their industry and investments?
Well, in Mr. Perez’s case, quite so. Very much so.
So to find out the answer, let’s dive into the unique Florida real estate market landscape.
Today we are going to detail 5 reasons why Florida is such a high value investment environment- particularly for real estate. And, we will share some Florida investment tips to help you with your next play.
5 reasons Florida is unique for investing in real estate
- The high value investment environment
- High demand for property from buyers and renters alike
- Better than average rental stats and demographics
- Landlord friendly environment
- Steady growth economy
“When you look around the world and you consider the factors of the environment, climate, amenities, risk and appreciation, Miami ranks way high up there.”
The overall high value investment environment
Florida has it all: Diverse economy; year round warm weather; excellent access to higher education; high tourism; conducive business environment; low taxes; and proximity to other countries.
According to Norada Real Estate
“The World Cities Study Group classified Miami as an alpha city based on the level of business activity, human capital, and cultural activity.”
Here are some vital Florida Stats, compiled by this Floridian investment firm:
- 3rd fastest population growth in US
- 2nd in Best States for Business according to ChiefExecutive.com
- 1st in Nationwide Tax Climate according to Tax Foundation
- 5th in High Tech employment
- Ranks 17th in World Economies.
High demand for property from businesses, buyers, renters and tourists alike
People flock to Florida, and not just for one reason. The unique geographical and demographic makeup attracts a wide range of people: to live, study, work, vacation, retire and invest. In fact it’s hard to imagine another American location with such investment diversity.
- 1st in Higher Education Ranking
- 3 of Top 25 US Tourist Destinations (Miami, Key West, Orlando).
- 4 of Top 20 US Real Estate Markets to watch (Ft. Lauderdale, Miami, Orlando, Tampa)
Florida, better than average rental stats and demographics
With so many seasonal and student residents, Florida holds a high renter percentage than national average along with the high rent rates that are so favorable for residential landlords. Two-thirds of Miami residents rent, a rental rate approaching that of New York City.
From Rent Jungle
“One bedroom apartments in Miami rent for $1906 a month on average (a 0.21% increase from last year) and two bedroom apartment rents average $2435 (a 1.15% decrease from last year).”
From Dept of Numbers
In 2019, average rent in Florida in total was $1238, vs $1097 for the nations average.
Landlord friendly environment
It’s safe to say the state laws favor the landlord in Florida. From an investment standpoint, they help reduces risk and allow for a more worry-free income strategy.
- Low property taxes (0.98% avg)
- No rent control
- No late fee limits
- No security deposit limit
- Lax eviction regulations
“Florida is one of only seven states that has no personal income tax.
“Property tax: Cannot increase by more than 3% of the previous year’s assessment or the Consumer Price Index, whichever is less
“The state’s overall tax burden has ranked among the nation’s lowest for decades, according to the Tax Foundation, a non-profit and non-partisan educational and research organization.”
Steady growth economy
The economy in Florida keeps on chugging along. Frankly, the Coronavirus has deeply affected the tourism industry in spring 2020. But, summer 2020 saw the economy slowly reopen with social distancing protocols in place in many locations.
- 12th largest GDP in USA.
- 5th Fastest growing economy in the US
- 2nd in Fiscal Stability
From Norada Real Estate:
“Over the 5 years ending in 2016 the Florida economy grew in real terms by 12.69% at a compound annual growth rate of 2.42% per year. Real Florida GDP, at $815.073 bn in 2016, is at the highest level recorded to date.”
“Florida GDP was $815,073,000,000 in 2016 according to BEA data. Florida GDP represents 4.99% of US GDP which made it the 4th largest state economy in the nation in 2016. Real dollar values expressed in 2009 chained dollars.”
*** The upcoming election results could bring a wave of change, or, more of the same.
In any case, as an international investor you should know where your best options for US real estate investments are to be found. ***
How to invest in Florida Real Estate
Now that we know a bit more about the money making potential in Florida we can make some evaluations.
Florida, as shown here today, offers unparalleled real estate investment options, in both already built or development projects.
Whether it’s commercial or residential, and with investment as an outright owner, time share, equity partner, fixed loan and/ or landlord, there’s probably something for you.
Several of our development projects offer our investor partners just exactly this range of opportunities to suit their profile.
One such project is Archer Place Condominium Residences in Gainesville Florida, which is ideally located beside the University of Florida.
Why invest in Archer Place?
- In the same Equity Fund, private investors can expand their capital in US dollars with the option to apply for an American Green Card via the EB5 Visa Program.
- Also, investors looking to own residential property titles in America, as well as the adjacent commercial retail opportunities can benefit from the transparency of the ownership process.
- And, to make money the easy way, investors can buy units and gain passive rental income by taking advantage of the stability of the student housing market.
You are looking to expand your wealth while managing your risks.
Life is full of uncertainty, but one investment that has proven its worth many times over, is how Florida can help you with your portfolio, by investing in the “bricks”.
To make your next move, feel free to contact one of the investment experts at BAI Capital today.