Why Buy A Home In Florida And Why Now?
By Patricia Tan
Here we are in the middle of winter and enjoying balmy weather with temperatures in the 70s. Need I say more?
While our climate is a big attraction to those thinking about purchasing a home for retirement, or a vacation property, it may not be enough on its own to persuade home buyers to write a sizable check. Recent world events and volatility in the stock market have led many home buyers to pay more attention to the potential returns that their second home can provide. I thought it would be interesting to examine some of the factors that may persuade savvy investors to part with their money and make a real estate investment here in Florida.
Florida’s population is growing rapidly. Our population now stands at 20 million, and we are the second fastest growing state after Texas. In 2015, 841 people moved to Florida every day. 2016 predictions set this number at more than 1,000 people per day. This creates a demand for homes, and high demand with limited supply usually leads to rising prices. Buy now and enjoy price appreciation in the future.
Many of our new residents discover the beauty of Florida as tourists. During 2015 we set new records for the number of visitors to our state – in excess of 100 million people, and they keep coming! Whether drawn here by Mickey Mouse or the opportunity to sail and play golf in the winter, many of these tourists set their sight on making Florida their winter retreat or year round home, and they will fuel our population growth for years to come.
To support a larger population, we need to have infrastructure, industry and jobs to build wealth locally. Our unemployment rate is now in line with the national rate for unemployment after lagging behind for a few years. Florida’s financial stability will also be secured by continued investment in our ports to deal with increased traffic generated by the widening of the Panama Canal. Further development of the hi-tech corridor between Tampa and Orlando will also boost our local economy.
Many of our new residents will be baby boomers. Newly retired and looking to create a new life in the sun. They may also be beneficiaries of what has come to be known as “the greatest transfer of wealth in human history”. Analysts estimate that up to $16 trillion will transfer from one generation to the next over the next 30 years. Some of that wealth will inevitably find its way into investment properties as well as homes to provide their owners with a certain lifestyle.
Small adjustments to the interest rate have still left us with very low rates to encourage investment in real estate. Rising rents will encourage more investors to enter the market, as we can see by the large number of new rental apartments springing up in our area, but there is still room for the private landlord – Florida is home to some of the hottest rental markets in the country. Rising rents and availability of mortgages also encourage tenants to become homeowners.
It is hard to dispute that Florida offers an attractive lifestyle to those who seek to make their home here, whether full or part time residents, but Florida is also drawing other kinds of investment that will continue to build the financial and economic strength of our state. Making this a great place to invest as well as to call HOME!
[1]Patricia Tan was born in England, and her career in international sales and marketing led her to live and work in many countries around the world before moving to Sarasota in 1997. Patricia is a Certified International Property Specialist (CIPS), Graduate Realtor Institute (GRI), and Transnational Referral Certified (TRC). She is involved in global activities of the Sarasota, Florida and National Association of Realtors, and currently serves as NAR President’s Liaison to U.K. Her real estate business operates from Coldwell Banker on St Armands Key, where her focus is to bring international buyers to the local market. She regularly makes marketing trips to Canada, Asia and Europe, to promote Florida’s Gulf Coast and the Sarasota area in particular. Patricia may be reached at 941-504-9232 or Pat@PatriciaTan.com [2].
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