Still An Investor’s Paradise
One of the first things you realize when you decide you want to invest in real estate is that you don’t need a national focus, but a local one. Because it’s your money, your risk, and will be your asset, all that will really matter to you is the market you’re buying in. Thinking of buying a home? Where? Why? How long do you plan to stay in the home? A long term investment usually pays off better. Real estate is a tangible asset that has historically appreciated. If you improve the property, you can force appreciation even higher.
Some investors begin real estate investing by purchasing raw land or improved/vacant land because they believe it is less risky. Raw land is a piece of property that has not been developed and remains in its natural state. Most agree that vacant land is unoccupied and has no structures on it. According to the IRS, you can construct some improvements on the land and they will still consider it to be vacant land. For example, land that includes a road or a parking lot may still be vacant if it doesn’t include electricity or gas hookups necessary for you to use it for business purposes.
The most important consideration each investor must carefully consider before purchasing land is what is the reason for the purchase? What ultimate purpose do you have in mind for the land? Are you acquiring it to build a new home, purchase a lot for retirement or for investment purposes? Are you trying to sell considerable acreage for farming or for a subdivision? Are you looking for commercial, residential, recreational or agricultural? All investments have a level of risk whether you are buying lots, pre-construction, new construction, retail, short sale or foreclosure. Always do plenty of research and work with an experienced local real estate professional before making a decision to buy real estate.
Another excellent reason to use the services of a local professional is that you make your money on the front end (in the buy). How you structure the deal can be complex. You must purchase at the right price; if you do not know or understand the current market trends, you will not be able to accurately identify opportunities that you come across. The three most popular types of real estate investments include residential flipping, commercial acquisitions, and the establishment of rental income vehicles.
When it comes to prime investment opportunities, Florida has always proven to be an excellent place to invest in real estate. With a thriving tourist industry fueled by hundreds of miles of white sandy beaches, our favorable year-round climate, Florida is a top destination for millions. It is no wonder that people flock to live here and invest here.
Many investors purchase homes for a second or vacation home. They are able to enjoy the use of the home and the benefits from gradual appreciation and often tax benefits as well. Also, with the population growth and many people needing rental housing, there are always new commercial ventures available. You can enjoy profits from both long-term rentals and seasonal rentals. For the savvy investor, there are many ways to profit from investing in Florida.
Due to the current economic climate in southwest Florida, there are even more great opportunities than usual. Many properties are still available with the purchase prices well below building costs. As more people move here, housing needs remain strong. The need for new housing will bring today’s under-valued pricing up substantially. Since our market is in transition, your knowledge and research of the area you target to invest in is very important when deciding the right location of your investment! There many different factors involved in a real estate investment. Be sure to always seek advice from a local real estate professional before finalyzing your purchasing decision! (Just call me!)