Around 90% of the world's millionaires are currently invested in real estate. Most people also agree that buying real estate, especially a luxury investment house, is one of the most stable and sought-after investments.
1. Tax Benefits
Florida is one of the few U.S. states that don't impose personal income tax on its residents. The lack of income tax is probably the main reason wealthy people with disposable income from various states, such as California (with up to a 13.3% levy on disposable income) are flocking to Florida to take advantage of these tax benefits.
2. State Incentives
You'll have many choices in Florida when it comes to state incentives. Here, you can enjoy motivations such as:
Federal, state, and local housing programs
Grants and other types of loans
Tax refunds and tax credits from the American Recovery and Reinvestment Act
3. Vast and Fast-Growing Tourism Market
Florida's tourist industry is booming annually. According to a tourism handout, Florida welcomed 30.9 million tourists between October and December 2021. This marked the second consecutive quarter that the total visitation beat the 2019 pre-pandemic numbers. In 2021, Florida had the highest level of domestic visitation in state history, with nearly 118 million local visitors.
4. Population Growth
Photo courtesy of Mansion Global
According to U.S. News & World Report, more than 2.7 million new residents have relocated to Florida since 2010. This makes Florida the third most populous state after California and Texas. The state's current population is 22 million, a 14.6% growth from the past decade.
5. Growth in Economy and Job Market
According to a Department of Economic Opportunity report, Florida has experienced 20 consecutive months of job growth and 14 consecutive months of increase in the labor market. For example, Florida has become a forerunner for nationwide high-tech employment, ranking 5th among other states.
6. Unique Lifestyle
Most high-end real estate buyers prefer locations with unique and luxury lifestyles. Florida's year-round sunshine and its picturesque beaches all contribute to a lush lifestyle. The closeness to several top-notch vacation destinations also presents exciting opportunities for people.
7. Vibrant Real Estate Market
According to a Florida Realtors report, property sales and prices rise while inventory decreases. There is also a notable increase in buyers purchasing single-family homes in cash. Additionally, most regions in the state have seen real estate prices increase 21.1% since last year, with the current median price for single-family homes at $381,481.
8. High Inventory
In the past few years, the real estate market in Southeastern Florida has been on fire. Looking at the temperature gradient map of the continental United States simplifies the decision to invest in this region. A place that offers an opportunity to enjoy outdoor life without wearing snow boots and chipping ice sounds too good to be true if you deal with this each winter.
9. Low Mortgage Rates
Mortgage rates in Florida have historically been fairly low for the last few decades. The average mortgage rate in the current economic climate has climbed somewhat – for a 30-year fixed in Florida it’s now 5.4%. The current average mortgage rate for a 30-year fixed in the U.S. is 5.2%.
10. Plethora of Choices
Florida will spoil you with choices regarding the type of property in which to invest. Options range from resort developments to beachfront villas and luxury villas. Luxury communities, such as Gun Club Colony, Hamilton Bay, Banyan Estates, Banyan Lakes, Briar Bay, Lake Calm Estates, and Sun Terra, are just a few places where you can find various luxury properties you can buy. These also have high-end amenities such as spas, fitness centers, water sports, and even private airports incomparable to others.
11. A Big Rental Market
A significant population comes with a high rental market. As an investor, you can opt to rent your property and earn extra income from it. With the booming businesses around Florida, no other place promises a more robust rental market. There is even a demand for long-term properties. Therefore, a buy-to-rent investment would offer an excellent platform to earn an income from your property.
And guess what? With the availability of home-sharing sites like Airbnb luxe, you don't have to depend on long-term renters for your property. This option offers the easiest opportunity, especially with Florida's growing tourist market.
12. Great Climate
Nothing beats the pleasant year-round climate that Florida has to offer. To add the icing on the cake, its miles of beaches and booming economy make it even more appealing. The climate has always been Florida's most luminous aspect, reflecting its nickname, the "Sunshine State."
13. Low Unemployment Rate
Florida boasts a low unemployment rate, currently standing at 3.2%, below the national average of 3.8%.
14. Best Destination for Foreign Commercial Real Estate
Florida's commercial real estate depends on foreign investments. It's ranked as the number one U.S. destination for commercial real estate. This ranking is heavily influenced by factors such as being an ideal tourism destination and having non-stop direct international flights to key global markets.