Currently, only 15% of Americans are investing in real estate property that they don’t currently live in.
However, while only a small percentage are investing, a larger percentage say that they think it’s a great way to make money.
And they’re not wrong!
Florida is a popular location for second homes and other real estate investments. Learn the benefits of Florida real estate investment now.
1. Great Prices
Florida has great prices for homes to purchase depending on what city you are looking at.
Great prices mean that it’s a good opportunity for investors to buy a property and then sell it later when the house can be worth more.
Many people are concerned about the housing market crash of 2008, but since then, the market has become much more stable.
2. Opportunity Zones
In Florida, The Opportunity Zone promotes long-term investments.
The Tax Cuts and Jobs Act of 2017 helped enact this. There are certain parts of Florida that are designated Opportunity Zones, like Palm Beach, Polk, Orange, and Miami-Dade county.
Check to see if your property is in one of these zones before you buy; you could enjoy more benefits.
3. No Distinct Tax on Sole Proprietorships and Partnerships
If you own a business by yourself, you are a sole proprietorship.
That means that in Florida, you won’t have any targeted business or corporate taxes. You won’t have any income tax as well, so that means you can invest in real estate without having to pay the state income tax.
4. No Individual Income Tax
Only seven states in the United States don’t have an income tax in 2019, and thankfully Florida is one of them.
That means the overall income tax is lower as well, and by investing in real estate, you will earn so many benefits from this.
5. High Levels of Inventory
There are so many homes for sale in Florida from people coming and going all the time, which means that homebuyers have a chance to find their dream home.
And it means you have a chance to find the perfect property to invest in.
The high levels of inventory offer so many different options that you’re bound to find one that suits your needs and budgets. Make sure you start doing research now because that dream investment could be gone in an instant.
6. Job Growth
Florida is one of the most popular states for job growth. There are so many jobs opening up in all kinds of different jobs, from construction to education to hospitality to transportation to health services.
With more jobs opening up in Florida, that means more homeowners will be moving there. That means that if you have properties, you will be able to seel them easily without having them sit there while you take a loss.
7. International Buyers
Florida is a tropical paradise that attracts all kinds of potential visitors and home buyers, including a lot of international buyers.
Because of Florida’s geography and having access to both the Gulf of Mexico and the Atlantic Ocean, foreign investors may want to have a vacation home here.
In addition to that, foreign investors have always enjoyed investing in homes in the United States because of the stable economy and the political system. The housing market in the United States offers unique characteristics that investors love.
Investors flock to Florida from all over the world, including places like Germany, Sweden, Australia, France, China, Italy, and the United Kingdom.
All of these investments and purchases all help to drive Florida’s economy and create more of a demand and a competition.
8. Economic Growth
As we touched on earlier, Florida is a state that has a great economy. And that growth is only growing.
Experts suggest that Florida will continue to prosper and grow. The market looks stable, which means that it should be safe for you to invest in some real estate there.
Tourists love coming from all over the place to visit this state which helps the economy grow as well. This means that you could also invest in a vacation rental property and make money off of that as well.
Florida was affected by the recession in 2008, but a lot of industries in the state have helped to create jobs and provide more stability for the state.
Florida is a very unique and diverse place, which can make investing in real estate there fun and interesting.
People from all around come to live in Florida which, along with the tourists, creates an interesting dynamic.
The state has beautiful beaches, sunny weather, lots of attractions and landmarks, and, again, no income tax.
There are so many things that will attract people to Florida, which means that there will always be people to buy your real estate investment once you decide to sell.
10. Other State Incentives
In addition to the tax breaks, the state also offers other incentives to invest in real estate.
There are local and state programs like the American Recovery and Reinvestment Act. This will help increase tax credits if this is the first time someone is purchasing a home. The programs will also connect them with a mortgage broker who can help them navigate this process.
Learn More About Florida Real Estate Investment
Florida real estate investment can be daunting to get into at first, but there are so many benefits to doing it.
On top of all of those benefits, you get to be your own boss and control how you manage your money. Who doesn’t want that?
To help you get started on buying your first property, make sure you check out some of our other tips on our website!