I know a number of people who, lucky enough to maintain their wealth during the pandemic, have snapped up houses at a fraction of what they would normally pay. It makes sense that the housing market is struggling – fewer people are moving than ever, and even those who want to buy homes do not have the money.
This is why it is strange that this has not been the case in Florida at all. On the contrary, the Florida property markets are booming. In South Florida in particular, houses are now selling for more than they were before COVID-19.
There are a number of reasons for this. Americans are leaving states with higher taxes, and many South Americans are choosing Florida as a more stable place to settle.
But it goes beyond what people are looking for right now. Many savvy investors have recognized that fewer people are going to be leaving Florida or moving home. Coupled with the increased demand for property, the impending lack of supply means house prices are likely to rocket sometime in 2021. Investors are getting in early.
Here is why Florida’s property markets might offer a better return on investment than any other right now.
Rental opportunities in Florida
Yes, now might be the perfect time to invest in property in Florida because you will be able to sell it relatively soon at a good profit. However, that is not the only reason to invest. Rather, you can make a lot of money from renting out property in Florida for the same reason.
There is likely to be less supply available in the near future, meaning there will be high demand for homes for rent. Now, rent in Florida already costs more than the American average. While not nearly as high as it is in cities like New York and San Francisco, rent in cities in Florida is high enough to be a good income source.
With supply going down, rent prices are set to rocket as well. By investing in rental properties now, you stand to make a good return on investment in the very near future.
It also helps that it is becoming easier to be a landlord. With products like landlord insurance, you are more protected than ever before. You can see a definition of what it is to find out more.
Relative security
It is never possible to fully predict the property markets. Things can change in an instant, and those of us who made foolhardy assumptions are left red-faced. However, when buying a property in Florida in 2021, you have more security in your investment than in most other places.
This is not just because of the predicted boom in property prices. Rather, we have seen firsthand that Florida’s property markets can withstand (and even flourish) during a crisis that negatively impacts almost every other market.
COVID-19 is one of the biggest events for which we were totally unprepared. It hit the entire world incredibly hard. And yet, housing in Florida has remained hot property. This is not to say it will always be so, but that in comparison to other states, there is evidence of the market’s solidity.
Florida is always attractive
Florida is often the butt of the joke for many Americans. However, that belies the reality that Florida is always attractive to a number of communities. Parts of Florida are sought by retirees from around America. People looking for lower taxes and a reasonable cost of living come over as well.
Florida’s proximity to South America also makes it a popular destination for people looking for a more stable life. And while all of these groups have their own economic impact on the state of Florida, their interest is constantly driving up property values.
If you’ve been considering investing in property in Florida, COVID-19 is not going to make it easier. You won’t find cheap houses like you can in some other states. However, this does mean it is a good investment even as the world faces incredible instability.
