Florida is one of the most popular states in the country. Migration to Florida is at its highest rate ever recorded.
More than 359,000 people moved to the Sunshine State from April 2022 to April 2023. This is a great sign for landlords looking to generate passive income. There will be a steady demand to rent out investment properties.
Florida is also doing well from a vacation perspective. In 2022, nearly 138 million people came to visit. This bodes well for short-term rental property owners looking to book up their calendars.
Read on for home buying tips to help you capitalize on this market. Explore real estate investing strategies that will start you off on a good foot.
Mortgage Options and Rates
Mortgage rates and inflation are the hottest topics in real estate. To combat inflation, the U.S. Federal Reserve has been raising borrowing rates. As a result, mortgage rates went as high as 7 to 8%.
Higher rates worked to suppress a lot of real estate activity in 2023. Many would-be sellers stayed on the sidelines as they wanted to keep their low interest rates. Inventory declined accordingly, allowing upward pressure on home prices to continue.
Moving into 2024, the real estate industry expects mortgage rates to decline. The anticipation is that the Fed will slash rates several times over the course of the year.
Home Prices
Few real estate experts see home prices declining in 2024. Instead, pent-up real estate demand will reignite the market and push prices even higher.
Many agents recommend buyers marry the house and date the rate. What this means is that you should not put off your instinct to invest any longer.
You can buy an investment property now at a lower price and refinance the mortgage rate later. Then, reap the benefits as your new home appreciates in value.
Location
Real estate location is one of the most important attributes of a good investment. You do not want to invest in an area that is in decline.
Instead, you should look for a town or city in which the population is rising. Also important is that there are development dollars flowing into the location to bolster the community.
Your investment goals will heavily influence your preferred location. If you want to become a long-term rental property owner, consider factors like the education system, local job market, and crime.
On the other hand, short-term rentals will have a different priority list. They will favor attributes such as proximity to the beach or local golf courses. For example, in Destin, vacationers look for properties near the Gulf of Mexico's beaches.
Home Buying Tips for Investment Properties
You are now ready to start shopping for investment properties. Today's real estate market is challenging and professional help can guide you through the process.
PMI Destin-30A has more than a decade of experience in the local market. They can help you find and manage a short or long-term rental property in Destin. If you want to learn more home buying tips, contact us at PMI Destin-30A to speak with an experienced professional.
