Many investors are always on the lookout for the best places across the country to invest in real estate. One popular area that most consider is the South Florida area. If you think you are interested in buying a home down south, now is the time while prices are low and expected to climb in the next few years. In Broward County, single-family homes are a good investment opportunity. In the Miami area, apartments have the best potential. Mortgages may have the highest risk. However, they are expected to go up in the next couple of years.
South Florida, specifically Miami, has a large and growing number of second homes for investors from all around the country and world. This area is also very prone to having bust and boom cycles that stem from investments more than the need for housing. With the expanding Latino and Spanish populations in the area, you will find that there are both plenty of opportunities and risks for investing in the area. The demand for housing in Florida is always growing. However, it is worth noting if it is growing faster or slower than the supply.
Second Home Increases
The amount of second homes in the area of Miami and Hialeah is on the rise. The huge amount of empty properties around the South Florida area is a major factor in the swing vote of home prices. It is able to swamp the supply during an economy downturn but can also represent the amount of future retirement individuals to buy while they are able to. The economy in Miami is very diversified. It has an important financial sector. As you make your way up the coast, you will find that more of the jobs that are available are in the services and retail sector. In all three South Florida counties, however, healthcare is the largest job creator and is continuing to grow quickly.
Home Prices Strong
The prices for homes in the Miami area have been strong over the last few years. It went up recently by as much as forty-percent and is expected to grow by around ten-percent each year going forward. There is much speculation, however, about whether much of this growth will be because of investment purposes or because of demand for housing in the area. There are some strong reasons why many feel that the prices of homes in the area are higher than they really should be. It has many fearing that this current “mini-boom” will fizzle out in a few years and leave many with homes that aren’t worth what they used to be. If you are wanting to purchase real estate for the long-term, you should do it now. If you are wanting to buy investment property in the Miami area for the short-term, you should be very careful in your decision-making process.
Rent Or Buy
During the recession, rentals held up much better than home prices in the Miami and South Florida area. Purchasing a property to rent out is a much more attractive option. Even with rent prices increasing recently, renting seems a much less risky venture. Most of the new healthcare jobs offer low wages. This, in addition to the low pay from retail and sales jobs, has caused the need for rentals to increase. In the areas that are more urban, it would make more sense to invest in single-family homes and split them into rental units to put on the market.