If you’re looking to invest in real estate, this might be the right time to do so. Home prices are projected to go up over the next few years, and several counties are key in offering profits for either residential or commercial investments. The demand for Florida housing has been going up, presenting opportunities for investors and also risk when measured with the supply. In several counties such as the Palm Beach, Broward, and Miami, there is great potential in real estate investing based on the following factors:
The Palm Beach
The percentage of rental homes in Palm Beach is over 18%, presenting an opportunity of attracting future retirees and probably South American investors. It also presents a risk because oversupply causes competitive home prices which in return result to a downturn. The demand is growing quickly for restaurants and retail businesses in this county, meaning as an investor you can get into this space. The average income recorded is high, and the growing number of health care workers are a good sign that the demand is already there. Investors interested in renting out restaurant and retail spaces can consider the Palm Beach County as a good place to start.
In Miami-Dade, apartment developments are the way to go, since almost half the population is for renters. Investors can buy single family homes and split it into rentals with the right price. Due to the high demand in rentals, a return on investment in guaranteed. The risk with Miami is that home prices are already high, making mortgages an unfeasible option right now. Homes in Miami-Dade are already facing high prices, and may go higher so lenders are a bit hesitant to give high loans. Cash buyer investors can take this opportunity to buy for the long-term since the projection is prices will continue to go up, but a short-term investment is not advisable at the moment.
There is great potential for single-family residential rental properties in this county. Like Miami, home prices remain to be high and are speculated to go higher by demand. Rent prices have held up higher, meaning investors can concentrate more on buying a property to rent. Most jobs are paying low wages, giving a higher population of house renters than buyers as mortgage risks get higher.