Florida is all about the picturesque beaches and the adventurous theme parks, making it one of the best holiday destinations in the world. Little do people know that it is indeed a burgeoning economy and a very attractive real estate location for investors. The desirable climate paired with unique location offers the best bargains to people seeking various business opportunities.
In the past few years, Florida has seen an economic boom that has taken real estate prices to sky-high. Given that the Sunshine State is a mix of retirees, foreign capital, and snowbirds, it is a heaven for making some real-time investments. To top it all, the taxation policies make it a breeze for investors to choose this state for their ventures.
Here are some of our reasons to let you know how lucrative Florida real estate is:
Booming Economy
A growing economy that consistently shows signs of growth is a very promising reason to start your business in a certain area. Florida shows a strong potential for various investment opportunities and lies amongst the top-performing states in the United States. Its 3-year GDP growth has been more than 3.1%, and there’s a buffet of profitable properties in Kissimmee, FL real estate and other cities including Miami, Tampa Bay, Palm Beach, and Jacksonville.
Tax-Friendliness
The fear of taxes is enough to stop any budding entrepreneur to step into the world of real estate. Florida stands tall here as the most desirable state for individuals and businesses since the tax rates are very favorable as compared to other states. It is one of seven states where there’s no personal income tax, and because of this, 20% of the US export businesses are located in this region.
High Employment Rate
As already mentioned, the progressive economy of the state creates financial stability and increases job opportunities for individuals. Since 2010, the unemployment rate has declined steadily after reaching the highest of 11.2%. The Bureau of Labor Statistics says that Florida stands 0.5% less than the national average when it comes to unemployment. The state promotes the modern employment landscape and ranks 5th in high-tech employment.
Growth in Population
The growing population in the region shows people’s confidence in it. Employment opportunities and improved quality of life compel the people to move to Florida. In 2017, the population increase in Florida was 2nd in the nation, with only Texas surpassing it. For any person looking for Clermont, FL real estate investment, or in any other city of the state, the increased population means more chances of business development and amplified revenue.
Foreign Investments in CRE Market
The state’s real estate market, especially the commercial sector, is heavily influenced by foreign investments that come from different parts of the world, including Canada, Asia, Europe, and South America. Florida offers many non-stop direct international flights from key global markets and this helps in reinforcing the stability and strength of the state. In 2018, the Chinese inquiries went up 199% for Orlando and 894% for Fort Lauderdale on a Chinese website named Juwai.com, which is for overseas property buyers.
Declining Vacancy Rates
There is a very healthy demand for commercial real estate throughout the state as the vacancy rates are dropping in different cities. In Q4 of 2017, Miami’s rate dropped to 3.5% and Orlando’s reached 10.7%. The continuously decreasing rates depict the increasing demand of the consumers and establish the fact that real estate is indeed a very lucrative business option in Florida for investors.
Impressive ROIs for Landlords and Investors
While selecting a real estate property, the major concern of investors is the return on their investment. Who doesn’t want their investment to bring about futile results? In Florida, ROI on commercial or residential real estate property will never disappoint. The demand is fueled by the population that prefers to rent, giving rental property owners a great chance to earn maximum revenue.
The Thriving Tourism Industry
There is no denying that Florida receives immense tourism because of the numerous attractions throughout the state. Millions of people visit every year either to enjoy the fun activities at Miami Beach or have the time of their life in Orlando. These people need a place to live and that is the reason that the Airbnb industry is continuously on the rise. By owning a real estate property in Florida, the revenue generation will never come to an end.
Connectivity and Infrastructure
The strong infrastructure of the state and well-established transportation facilitates the residents to move from one place to place. Seaports, highways, airports, and railways make the domestic and international travel readily available, and all this causes Florida to stand at 11th position for the best infrastructure. Given that the opportunities never end in this state; it would be unwise to invest anywhere else in real estate.
Quality of Life
Whether it’s about climate, lifestyle, education, or tax benefits, Florida is one of the best places to live in the United States. It is sunny all year round, providing people with numerous entertainment opportunities. The phenomenal beaches, entertaining theme parks, and outstanding shopping places give people a chance to enjoy life outside the house. The education sector is also going strong that helps in attracting long-time residents who settle to enjoy the numerous perks.
Conclusion
When considered an autonomous entity and not a part of the United States of America, Florida ranks 18th in world economies. This shows the true potential and thriving power of the state. The investments made now will keep giving you returns for many years to come. Given the increasing population and dynamic tourism of the state, there is no looking back for real estate investors.
When considering all the above-mentioned factors, it is obvious that in any city including Davenport FL, real estate will indeed make a very promising investment option. However, one should always keep in mind the current economic circumstances and consult the real estate pundits before making any kind of move.
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