Ten Reasons Why You Should Still Purchasing In South Florida
Posted by Admirals Cove Homes on Dec 27, 2012 in Home | 0 comments
South Florida Real Estate Investing – Ten Reasons Why You Should Still Purchasing In South Florida
Even with the decline nationally and in the South Florida area, real estate is still considered a solid long term investment.
Ten points why:
- Baby Boomers! National census demographics indicate a growing and aging U.S population. The aging Baby Boomer population in the U.S enjoys and craves the wonderful warm sunny weather and fabulous amenities that South Florida has to offer. Baby Boomers are
considered to be one of the most economically advantaged demographics in the country and are always listing South Florida in the top retirement destinations. - Retirement Mecca! A recent U.S Census stated that Florida, California and Texas will have 46% of the entire U.S population growth by 2030. This is due to the warm tropical atmosphere these states offer to retires.
- No Income Tax! Florida is one of the only nine U.S states that do not have an income tax. Florida has an annual invasion of vacationers the produce much of the tab for locals through a variety of sales and use taxes. This is extremely attractive to potential South Florida residents, especially with the cloud of a federal income tax hike looming.
- Growth! The University of Florida’s Bureau of Economic and Business Research stated that Florida added more than 21,000 residents between 2009 and 2010. This growth creates a demand for more real estate and thus greater resale values on homes in the South Florida area.
- Affordability! South Florida real estate had seen an adjustment of roughly 50% in value, making real estate more affordable to a wider range of buyers.
- Interest Rates! Currently interest rates are at historic lows thus creating an opportunity to borrow at a long term value and creates a highly affordable market.
- Potential Huge Value Increases! A long term demand paired with declining housing should create upward pressure on prices and values. There is also inflationary pressures created by historically low Federal Reserve Funds rates that should force prices even higher.
- Restrictive Lending Standards! Due to the sub-prime mortgage situation numerous banks are restricting lending, that is believed to increase future price appreciation after the current markets are depleted without further hiccups.
- Waterfront Lifestyle! Location Location Location South Florida has has some of the best waterfront values in the entire country. However there is a limited supply of waterfront real estate and it is constantly in high demand.
- Portfolio Diversification! Historically real estate has been a great diversification tool for an investment portfolio. But the real profit is made by those who buy the right home, at the cost, and with the perfect location like South Florida.