Why Florida is the Perfect Area!
If you are looking for a way to make passive income for retirement or simply want a safe way to invest your money, purchasing and maintaining a Florida vacation home may be one of your best bet out there. Small-time real estate investors choose Florida because of its popularity as a vacation destination. People from all over the world travel to the Sunshine State for family theme park vacations, romantic beach getaways, and urban adventures in cities like Jacksonville.
Take a look at these tips from Kashmiri Realty & Property Management on how to make your dreams of owning a Florida investment property a reality.
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Kashmiri Realty & Property Management focuses on helping you find your perfect home or investment opportunity. We listen to your needs and concerns and make the best available search for properties under your criteria. Call us today at (904) 644-7006 to learn more about the Kashmiri Realty Experience in Jacksonville Florida and Orange Park. We provide services in property management, home purchase and selling.
Why Invest in Real Estate?
Real estate is one of the best methods of acquiring money and wealth for a few reasons:
- When you find a property under market value, you have a better opportunity of turning a profit.
- If you turn your investment into a rental property, the passive income it generates becomes a great source of revenue.
- There are various tax benefits on interest and improvements, especially in the state of Florida.
- You are increasing your personal equity with each mortgage payment.
- There is nearly a guaranteed 15% return on investment when you rent your property out based on its full value.
- When you buy an investment property in Florida, you get the benefits of a warm weather getaway available for you and your family, ready and waiting!
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Buying Investment Property in Florida
Florida is a top destination for retirees and other small-time real estate investors. With the current migration rate from other states to Florida, you will have little trouble finding single individuals and families needing rental properties. The average annual high is a comfortable 79.5 degrees Fahrenheit and the lows rarely dip below 50 degrees F.
Recent United States migration patterns show that Florida has an influx of 1,000 people moving to the state each day. Additionally, during 2019 it was estimated that over 500,000 people moved to Florida from the State of New York alone. This influx from coastal states are showing a trend that may define the next 5 years in the U.S. It is because of this rapid growth that property prices in the state of Florida have seen a spike, especially when you break it down to regions like
- South Tampa bay
- West Palm Beach
- Miami and many other popular destinations.
Florida is also home to some of the most affordable beach towns in the United States. Jacksonville, Clearwater, West Palm Beach, Daytona Beach, Fort Pierce, Sarasota, and even Miami all make the cut.
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Get Your Business Affairs in Order
If your goal is to rent out your investment property as a way to generate passive income, you’ll want to take safety measures to protect your assets. Setting up a formal business structure for your rental business in the form of an LLC, or limited liability company, is a great way to keep your personal and business assets separated. Plus, LLC’s offer tax benefits come tax time, which will help keep more profits in your pocket. You may even benefit from purchasing your property under your LLC, so if you’re planning to start a rental business with your investment property, you should consider registering your LLC before purchasing your home.
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Finding the Best Type of Vacation Home
While it may be tempting to buy whatever real estate deals you stumble upon, in the end, it’s important to buy a property that reflects your lifestyle and needs. Not only will you be able to enjoy your vacation property yourself, but you’ll be better able to cater to the people who eventually rent it.
Think about it: would you be better able to answer the questions of a group of young renters who are there to party for spring break or would you be better off working with a couple in town for rest and relaxation? The answer depends on you!
Buying a place that suits your lifestyle is more likely to attract renters with similar lifestyles and needs. Since rental income is the major difference between an investment property and a vacation home, you have to work with what you already know if you want to be successful.
How to Know When You’re Ready to Invest in a Vacation Home
If you think investing in Florida real estate is a good option for you, ask yourself these questions:
- Is the location best for you? How easy will it be for you to get to a rental property?
- Do you have income available for financing, insurance, and ongoing maintenance?
- Is investing in real estate the right choice concerning your personal finances?
- How will your taxes change after investing in Florida real estate?
- Are you going into this alone?
Investing in real estate isn’t for everybody– you should only do so if it’s right for your financial situation. However, for many people it’s a great option for a high return on investment and a lifestyle upgrade.
If you’re ready to buy a vacation home in the Jacksonville area, contact Kashmiri Realty & Property Management! In addition to helping you purchase your dream investment property, we offer property management services that will be an invaluable part of your rental business. Call us today at 904-644-7006 for a property evaluation consultation!