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Florida
Investment Real Estate Considerations
Before Buying
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by:
sharona murvin
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Investment
Real Estate, First Things First
Considering investing in property? What are some pertinent things to
consider before taking this leap? Of all the investment possibilities,
investment in land generally produces the most positive results. It is
vital, however, to carefully investigate the pros and cons, benefits
and deficits of real estate investment. Most people look at investment
real estate as risky and feel woefully inadequate to tackle this form
of investing. They feel lost, not knowing where to even begin! A
multitude of information is available and knowing how to search can
seem daunting. A web site search will produce boatloads of information,
some valuable and some not. Some key words to search are real estate
investment, investment property, and investing in real estate. This
will begin the process for you. Not all available information is worth
your time, however. Beware when the site promises high return for
little down. Also beware of sites whose main goal is to solicit your
money. Web searching is one form of research. Another is talking to a
reputable real estate broker or real estate lawyer. One of the best
sources of information is a friend you trust who has done real estate
investing. A trustworthy friend who started as a novice and progressed
to real investing is probably your best source of reliable information.
Their voice of experience rings the loudest since they are a layman
like you who had to discover for themselves each step of the way how to
make successful investments.
Investment Real Estate, Rental Units
Let’s look at some sound reasons for investing in real estate. Real
estate generally appreciates at a greater rate than the rate of
inflation and offers great tax benefits. Selecting real estate in a
desirable location will prove to be profitable especially in burgeoning
areas, usually in suburbs which are a reasonable commute to city jobs.
Of course the old adage, location, location, location is a very
pertinent piece of advice to take to heart. Think of the most expensive
housing markets today. If you have lived in an expensive housing
market, or have visited there, you will notice that along with
exquisite homes offered for sale at exorbitant rates, small, older
homes you would never consider buying in another market are being
offered for huge dollars. Why? Location, of course. When a housing area
becomes desirable, even those small dumpy homes will sell for a
considerable amount of money. Let’s stop for a moment and look at the
advantages of investing in rental units as opposed to purchasing
property for resale. One of the largest factors to consider in
purchasing property for resale is finding properties that will resell
at a higher rate than purchase, of course. Finding these properties is
not as easy today as it may have been in the past. It used to be that
fixer-uppers and foreclosures were avoided by homeowners and investors
alike. Not so today, those same homes are being feverishly snatched up
in the current booming housing markets.
Florida Investment Real Estate – Why Florida Is a Good Choice
Finding homes to purchase and turn over quickly for cash is becoming
more and more difficult, leading many to consider purchasing property
for the purpose of renting. What are some advantages to renting and
what locations would be most desirable for purchase with a rental goal
in mind? Owning rental property provides some unique advantages. If you
have the time as well as the finances to invest, rental property could
end up paying for itself in the long term. In order for this to be
true, the most important thing to search for is property in a great
location for renters. You don’t want to be searching for renters for
months on end while you are being drained of capital. Those mortgage
payments never stop, even when the list of renters has been exhausted.
Buying rental investment property in a college town is a good bet for
the possibility of continual renters and also buying in transient areas
and tourist areas. Of all the above, tourist areas tend to be your
surest source of consistent renters. Numerous high density tourist
areas exist across the nation, but one of your best bets for purchase
and consistent renters would be a sun-drenched spot with a year-round
temperate climate. California and Texas would fit the bill, but as we
all know, the most desirable locations in California may be out of
reach due to the high cost. Texas may be considered a good choice, but
only one state ranks as the premier tourist destination in the world
and that would be Florida, the sunshine state.
Florida Investment Real Estate – The Orlando Area
With Florida’s burgeoning population, Florida investment real estate is
a great option. Florida ranks 4th in population behind California,
Texas and New York. Florida has one of the fastest rates of growth in
the nation, making Florida investment real estate a very attractive
option for investors. In the 1990’s, Florida grew by 23.5 percent with
five counties increasing by more than 60 percent. Projected state
growth would bring the population to over 19 million by 2010. An
increasingly higher population obviously increases the need for
housing. The increasing resident population being a great reason to
pursue Florida investment real estate; let’s not neglect another face
of increasing housing need. Florida has a tourism rate of almost 77
million visitors in 2004, making it the top travel destination in the
world and producing $57 billion of income. Tourists flock to all parts
of Florida, the beaches being one of the most attractive destinations.
However, Orlando pulls in the most visitors, with 2.6 million
international travelers, not including the steady stream of domestic
tourists. This alone would offer sufficient reason to purchase rental
property. But considering that the grand total of tourists visiting
Orlando in 2004 was 48 million people, what great housing investment
potential for investors! The biggest drawing card in the Orlando area
is, of course, Walt Disney World. The area surrounding Disney has a
hotel rate occupancy of about 80 percent. It’s obvious why the Orlando
area is considered one of the most desirable tourist destinations in
the world.
Florida Investment Real Estate – What are Reasons Tourists Come to the
Orlando Area
Owning Florida investment real estate will give vacationers who visit
the Orlando area a place to stay while you collect the rent. Theme park
attractions are one of the biggest reasons Orlando has become a #1
tourist destination. The three most popular are Disney, which includes
Disney World, Epcot, Animal Kingdom and MGM Studios, Sea World and
Universal. Each attraction holds an appeal for people of all ages with
families and singles alike enjoying each. Kissimmee is the town closest
to Disney where families especially enjoy a few of the more laid back
sights including Green Meadows Farm. Green Meadows is in an idyllic
country setting with tours of the farm and more than 300 farm animals
to touch and see. Also in the Kissimmee area is Horse World Riding
Stables. The 750 acres of open pasture beckons horse lovers to enjoy a
ride beneath the open sky. The Orlando Science Center beckons science
buffs both young and old. Learning happens as a by-product here through
the realistic, interactive and just plain fun exhibits. Fabulous night
life is to be found both in Kissimmee which boasts two very popular
dinner attractions, Medieval Times and Arabian Nights. Both serve
delectable large portions of food with fabulous jousting and medieval
type entertainment. For the shopper, Shopping and dining abound in the
Orlando area also as do all sorts of natural environmental experiences.
Real Estate Investment in Florida – Bimini Bay Resort Florida
A well-kept secret but one located just 5 miles from Disney, in the
center of Florida is Davenport, a treasure of a town close to the major
attractions, yet a world away. On 80 acres of land in the Davenport
area, you will find Bimini Bay Resort, Florida. A grand investment
opportunity awaits you at Bimini Bay Resort, Florida where the investor
participates in property appreciation but is not affected by negative
cash flow during the off season. At Bimini Bay Resort, Florida you will
find a planned community of luxurious town homes, offering 3 bedroom
two baths that are fully furnished and equipped. Bimini Bay Resort,
Florida is unique in that the investor can stay in the purchased unit
while on vacation for a minimum fee while renting the unit the rest of
the year. Management staff at Bimini Bay Resort finds the renters while
you enjoy a guaranteed rental income each month. Planned amenities at
Bimini Bay Resort include two major restaurants, a grocery, deli and
food court and a sports bar restaurant. Bimini Bay Resort will also
include a spa and exercise facility. A large business conference center
and twin theaters are also planned at Bimini Bay Resort. Peace of mind
will be yours at Bimini Bay Resort with its gated access with security
cards. A fantastic real estate investment in Florida at Bimini Bay
Resort awaits the investor who desires a consistent income without the
headaches of day-to-day management. Bimini Bay Resort is worth
investigating.
Our Featured Orlando Properties: You have an opportunity to join one of
the fastest growing trends in the United States and the world. Orlando
is one of the most explosive markets in the country and the Disney
resort area has an average hotel occupancy of around 80%. Orlando is
known as the vacation capital of the world and the top rated short term
rental market, one that shows tremendous potential for real investors.
Tourism - with 76.8 million visitors in 2004 (a record number), Florida
is the top travel destination in the world. The tourism industry has an
economic impact of $57 billion on Florida’s economy. Click here for
additional tourism facts and statistics.
City Population Rank (2000):
(Rounded to the Nearest Thousand)
1.Jacksonville - 736,000
2.Miami - 362,000
3.Tampa - 303,000
4.St. Petersburg - 248,000
5.Hialeah - 226,000
6.Orlando - 186,000
7.Ft. Lauderdale - 152,000
8.Tallahassee - 151,000
9.Hollywood - 139,000
10.Pembroke Pines - 137,000
11.Coral Springs - 118,000
12.Clearwater - 109,000
13.Cape Coral - 102,000
14.Gainesville - 95,000
15.Port St. Lucie - 89,000
16.Miami Beach - 88,000
17.Sunrise - 86,000
18.Plantation - 83,000
19.West Palm Beach - 82,000
20.Palm Bay - 79,000
21.Lakeland - 78,000
Most Populous Metro Areas (2000):
(Rounded to the Nearest Thousand)
1.Tampa/St. Petersburg/Clearwater - 2,396,000
2.Miami - 2,253,000
3.Orlando - 1,645,000
4.Ft. Lauderdale - 1,623,000
5.Jacksonville - 1,100,000
6.West Palm Beach/Boca Raton - 1,131,000
7.Sarasota/Bradenton - 590,000
8.Daytona Beach - 493,000
9.Lakeland/Winter Haven - 484,000
10.Melbourne/Titusville/Palm Bay - 476,000
11.Fort Myers/Cape Coral - 441,000
Home to 11 of the country's 100 fastest-growing counties, a Florida
investment property has high potential as a profit-maker, unlike most
other areas. Port St. Lucie, Miramar and Cape Coral are the fastest
growing cities in Florida. It’s unlikely you will make a mistake
investing in Florida real estate considering the vast number of
tourists and new residents flocking to the land of sun and surf. The
most difficult decision to make will be which location in Florida to to
the bureau's figures, the number of South American visitors have
dropped substantially in recent years, from 659,000 in 2000 to fewer
than 300,000 last year.
Other signs point to a recent upswing in international traffic,
however. Orlando International Airport officials said in June that the
airport recorded a 20 percent increase in international passengers
compared with the same month last year.
On International Drive, a tourism corridor that benefits heavily from
overseas travelers, merchants are noticing the difference.
"It's maybe picked up," said Zach Marino, manager of Texas de Brazil
restaurant on International Drive. "In this area it's hard to tell
because this is the spot to be. We have a strong international
clientele."
Asian visitors increased by nearly 40,000 in 2004, and about 100,000
more Canadians traveled to Orlando last year than in 2003.
The visitors bureau noted that it has stepped up its national and
international marketing of Orlando, having pulled back on such
advertisements after 9-11.
"Our plan is more back-to-normal in terms of marketing thrust," Peeper
said.
New York remained the No. 1 source of domestic out-of-state vacationers
to Orlando last year. Experts are predicting that 2005 will exceed last
year in terms of both international and domestic visitors.
Earlier this month, Walt Disney World reported percentage growth in the
low double digits among international tourists, while the number of
domestic customers remained relatively flat during one of the rainiest
Junes on record.
About the Author
Florida investment real estate expert
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