Florida offers great investment opportunities in real estate. Investment in Florida real estate promises good returns with high growth rate. Banks endorse that investment in Florida realty is one of the safest sources for asset building, with minimum risk. There are a number of valid reasons that attract an investor towards real estate in Florida. Some of them are the lucrative investment value, leverage and minimum risk of investment, good educational facilities and tax advantages.
Lucrative return value- Investors are highly benefited by investing in Florida realty since it accounts for addition of a substantial amount to the assets, in the form of an equity. Buyers get great investment satisfaction as the value of the property increases by approximately 6% to 7%. Statistics reveal that an average home value in Florida has had an appreciation of a whopping 27%. Florida offers 6% of home mortgage loans for a period of 30 years. This is the lowest rate of interest offered in US.
The realty market offers pre-construction investment programs, where investors can invest in properties that are still in the process of construction. Investment is made on the property as per the existent price. The value meets good appreciation over time. There is a considerable difference between the cost of property under construction and one that is ready for possession.
An equity of investor grows over time, with appreciation in the value of the asset. The mortgage debt reduces with time.
Buyers greatly benefit by investing in pre-construction realty programs in Florida since:
. It reaps good profit.
. Demands low commission.
Some of the real estate investment properties in Florida are:
. Single-family houses.
. Luxury condominiums.
. Penthouse condominiums.
. High rise developments.
. Pre-construction properties.
. Early-phase projects.
Buyers should research before making a suitable choice.
The local law of Florida does not support passive investment and hence investors are expected to intelligently pick a good property. People can make use of properties for comfortable living or they can opt for giving it out on lease.
Minimum risk involved resulting in leverage- Banks are very interested in providing loans to buy assets in Florida realty. This bears a direct 10% gain on the investment made and is the most secure way to get immediate returns in a short time. There is good risk management and banks practice leverage for investments in Florida realty.
The goal of leverage is to boost the returns on equity, by using loans.
Banks have their credits safe in Florida realty investments. If there is any case of default in re-payment, the bank can sell the property to get the money back.
Tax advantages- The US government offers low rate of interest on investments made in solid asset building. Investors and buyers are not required to pay huge amounts of tax for investments made in Florida realty. The amount of interest paid for a loan taken to purchase a property in Florida is tax deductible.