Now the colder weather and darker days have arrived in the UK, there’s no surprise that many people become interested in purchasing either a vacation home in a warmer, sunnier climate or investing in a property where they can see some return on investment. By having an investment property or vacation home readily available, seeking the sun in winter has never been easier! For many people, Florida is the most popular choice of location.
Fondly referred to as The Sunshine State, Florida boasts warm and dry weather; offering a much-welcomed break from the bitter cold of a British winter. Not only this, but some Florida investment properties are situated close to Disney World, ideal for families looking for the perfect base for their dream holiday.
If you’re considering buying property in Florida, we are here to help. Alistair Brown International Real Estate have years of experience in helping people find their perfect property in Florida, giving us valuable insight into the Florida real estate market. Keep on reading to discover some of the main things you should know about investing in Florida property.
1. The Florida Housing Market is Hot
It isn't just the weather in Florida that is sizzling. In fact, the Florida real estate market is one of the most profitable investment markets to date. There are many factors to suggest that purchasing Florida investment properties is a rewarding experience. For example, the state offers people with a lucrative return on investment on their properties. This means while you may spend more initially on your chosen property, your return on investment will be worthwhile.
There are currently many options to choose from, with a selection of properties in key areas such as Miami, Orlando and the Gulf Coast. Ensure that these options match up with the investment goals that you wish to achieve from your Florida property and you'll be left with great results and rental income.
This is mainly due to the area being one of the most famous tourist attractions in the world, combined with the weather and attractions available for holidaymakers and sunseekers. If investing in Florida properties is something you're interested in, now is a better time than any to invest.
2. Location is Just as Important as the Property
It's too easy to become entirely focused on the property. Whilst the property itself is, of course, the important thing to consider, you must also keep location in mind. There are many resorts and neighbourhoods in Florida, each one with its own charm and advantages. The location you go with will determine your long-term financial potential so it’s important to choose wisely.
For those wishing to have an investment property in Florida, think about your rental strategy. If you're looking to be close to some of the main tourist destinations such as Disney World, consider areas in Central Florida. Don't forget about personal enjoyment - it still needs to be somewhere you enjoy going to.
3. Who will take Care of Property Maintenance and Management?
When stepping into the world of Florida investment properties, you need to factor in things such as property maintenance and management. Will you be taking this on yourself, or will you hire an external company to take on some of this responsibility for you? This decision will come down to whether you choose to live in Florida or not.
If you're choosing to rent your investment property out to tenants, you will be responsible for any questions or queries they may have for the duration of their tenancy. It also means you'll be responsible for ensuring the property remains in good condition. This is particularly the case for properties that feature private or communal pool areas.
4. There are Different Types of Contracts
As with any property investment will come contracts. However, you need to be aware that there are two different types of contracts in Florida property purchases. Firstly, the standard contract. This states that any problems found within the property should be dealt with by the seller.
Alternatively, there is the "As-Is" contract. This contract works in a way that if there are any issues with the property found in the report, the seller is not obligated to fix these. This means the buyer has more flexibility to pull out should they wish.
The contract will include information such as:
- The price you’re paying for the property.
- The percentage or value of the pre-deposit you will put down, and the value of the full deposit due at the end of due diligence.
- Proposed closing date. In Florida, this is around 30 to 45 days of going to contract.
- Number of days allotted for due diligence. The default amount in the standard contracts is 15 days.
- Financing contingency and time frame. It should be stated in the contract that the sale will only go through if your mortgage gets approved, and specify the maximum interest, and terms of the mortgage that are acceptable to you.
- Inventory of items included in the purchase.
Understanding contracts of your Florida investment property can be complicated, especially if you're a first-time buyer. Ensure you're fully confident with your contract before signing any paperwork.
5. Consult an Expert
With so many factors to consider when investing in Florida investment properties, it's important that you seek the services of professional real estate experts. The person you choose to help you find your perfect property may be one of the most important decisions you make in this journey. With the right partner, you can successfully navigate the Florida property market and find the best property for you.
As a boutique real estate consultancy agency, Alistair Brown International Real Estate are able to put some of the most distinguished Florida investment properties at the forefront of your search, streamlining the buying process.
If you're looking to find the perfect Florida investment property and you'd like the support of an established agency, please feel free to get in touch. Our team of experts will be able to listen to your needs to devise the best possible plan for your investment journey.