Property Investment in Florida

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Property Investment in Florida

The Florida real-estate market has had its share of ups and downs, however, at the moment is one of the most important, vibrant and powerful ones in the United States. The pre-crises boom saw a large number of condominiums and apartment buildings being built. Investors actually had to participate in lotteries in order to get a chance to buy an apartment. Prices were soaring; however, to the dismay of many investors the market collapsed leaving them with expensive apartments and no buyers. Any attempt to sell their property would lead to a seriously negative balance for a long period of time.

Today the market has changed completely and an investment in Florida condos can be one of the best choices to make nowadays. Even with a minimum investment, apartments and condos can bring in a steady cash flow or a good profit when reselling.

To put things in perspective, units that used to cost around the $150,000 mark pre-conversion and sold at the height of the market at $225,000 can now be purchased at $85,000. They are generally situated in good neighborhoods and can bring a steady income of over $1,000 when renting.

Beachfront property has also dropped in value and can be purchased at a steal. Depending on the area a large beachfront apartment can be anywhere between $235,000 and $375,000. This is an almost 50 percent reduction from the height of the market when $750,000 was considered a fair price.

While condos are sometimes ignored by investors due to having to deal with associations, a careful investor can avoid this problem by purchasing condos in association that are run by other investors. If the environment is right, investing in a condo can prove to be a great choice, particularly as it is easy to manage and leaves you little to do with the exterior of the building being handled by the association.

Here are some tips to ensure a good investment in the rich Florida market:

  1. Always choose property in a desirable, vibrant market. This can include beachfront property and downtown areas as well as recently reconverted parts of the city. There are numerous deals out there.
  2. When a building is converted look for more than a fresh paintjob. Structure improvements, roofing if needed and new appliances are more important.
  3. Make sure the association or other legal problems don’t prevent your new property from being rented or modified.

Try to be involved in the association – this is a sure way of having control over your investment and it keeps you informed.