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Should You Invest In South Florida Real Estate?

Are you looking to invest in real estate in the South Florida area? Good news is that the market in this area is likely to be rising over the next few years. We look at this area of investment in more detail below.

Why should I consider real estate in South Florida?

South Florida is already a popular area, packed with second homes and condo complexes. This makes it an area more then used to seeing booms and busts in their real estate cycles, usually driven more by ambition and hope then actual housing need.  The area is always growing- between a growing Latino population and being a popular retirement destination- but the perks for investment come in considering if the supply and demand are in sync or not.

Palm Beach in particular is an area that represents all the hope and the despair of Florida’s Real Estate. The fact that there are always empty properties in the area is difficult in a downturn, but it’s also an area that’s always in demand with people. Miami offers a very diverse economy, particularly in finance, and there’s a booming healthcare need throughout the Florida area.

How does that work out in figures?

Over the last few years, Florida’s real estate is up 40 percent. It’s expected to keep growing by 10% a year. But, some people caution that this is likely to be a slightly artificially enhanced boom, making the prospects for someone looking for a long term investment much better than those who are hoping to use the property as a short-term investment. Remember that experience has told us that during the big recession, rental prices held up better then property prices. There’s a ton of renters in Miami, especially in urbanized areas. Mortgages are a more tricky investment, with a high risk of default at the moment. If this is the type of investment you are looking for, being careful and avoiding high loan-to-value ratios are probably the key to getting it to work best for you. If you are looking to get in on construction of new property, the same caution should be borne in mind. Make sure projects are very carefully and thoughtfully financed at every stage. more details in our post here: http://www.realestateinvestorsgroup.net/5-real-estate-markets-2016/

How is population growth in the Florida area?

Of course, the main key to making the right Florida Real Estate investment is figuring out how, where and in what economic category population growth is expected. Miami is likely to have the slowest growth, with expansion further up the coast and with Palm Beach an area of particular growth. This will particularly hold true if you are looking for retail or restaurant real estate. Healthcare office space is also growing in the area, and it boasts the highest income of the Florida area on average.

Real estate in the Florida area is a slightly trick field, but as long as you do your research and invest intelligently it’s a great area to focus your future growth on.

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