Tag Archive: Florida real estate

1. Exploring the Sunshine State: Affordability and Safety in Florida Real Estate

   November 22, 2023 2:32 pm

   When it comes to desirable destinations for real estate investment, Florida often tops the list. The Sunshine State’s beautiful beaches, warm climate, and diverse communities have long attracted homebuyers and investors alike. However, two crucial factors weigh heavily on the minds of potential property buyers: affordability and safety. In this comprehensive article, we’ll delve into these key aspects of the Florida real estate market to help you make an informed decision about where to invest.

   Introduction to Florida Real Estate

   Florida is renowned for its stunning coastal cities, vibrant culture, and numerous attractions. With a growing population of approximately 21 million residents, it’s no surprise that real estate in Florida is a hot commodity. The combination of a favorable climate and a robust economy has drawn individuals and families from all over the country, making Florida one of the fastest-growing states in the United States.

   Affordability in Florida

   Housing Market Overview

   While Florida offers a wide range of housing options, affordability can vary significantly depending on location. Major metropolitan areas like Miami and Orlando tend to have higher property prices, while rural areas offer more budget-friendly options. To understand affordability in Florida, it’s essential to consider both housing prices and the cost of living.

   Housing Prices

   Florida’s housing market is diverse, with options ranging from luxurious beachfront properties to modest suburban homes. As of September 2022, the median home price across the state of Florida was around $295,000. However, prices have seen fluctuations, so it’s crucial to check current market trends for the most accurate information.

   Cost of Living

   The cost of living in Florida can vary depending on your chosen location. While some cities might have a higher cost of living due to factors like higher property taxes, others offer a more affordable lifestyle. Consider your budget and lifestyle preferences when selecting a Florida location.

   Safety Considerations

   Crime Rates

   Safety is a top priority for anyone considering a move or investment in a new location. Florida, like any other state, has areas with varying crime rates. Researching the specific neighborhoods you’re interested in is crucial to ensure you’re making a safe choice for your investment.

   Hurricanes and Natural Disasters

   Florida is prone to hurricanes and tropical storms, which can impact property and safety. However, the state has stringent building codes and emergency response systems in place to mitigate these risks. It’s essential to factor in the potential impact of natural disasters when considering property in Florida.

   

   Affordability vs. Location

   Balancing Your Budget

   When looking for a property in Florida, striking the right balance between affordability and location is key. While you may find more affordable options in inland areas, you’ll miss out on the coastal lifestyle. Consider your priorities and long-term goals to make an informed choice.

   Up-and-Coming Areas

   Some areas in Florida may offer a more affordable entry point with the potential for future growth. Researching emerging neighborhoods can be a savvy way to invest in a location that combines affordability with the promise of increasing property values.

   Investment Potential

   Vacation Rentals

   Florida is a popular vacation destination, making short-term rental properties a lucrative investment opportunity. Cities like Miami and Orlando attract millions of tourists each year, making vacation rentals a potentially high-yield investment.

   Long-Term Rentals

   If you’re looking for a more stable rental income, long-term rentals in Florida can also provide a steady cash flow. With the state’s growing population, there is a consistent demand for rental properties.

   Wrap Up About Affordability and Safety in Florida

   Florida’s real estate market offers a diverse range of opportunities, from luxurious beachfront condos to affordable suburban homes. To make an informed decision, consider your budget, priorities, and long-term goals. While affordability can vary, Florida’s favorable climate and economic opportunities make it an attractive destination for real estate investment.

   Safety is another crucial consideration, with factors like crime rates and natural disasters needing careful assessment. Researching specific neighborhoods and their safety records is essential for peace of mind.

   In the end, balancing affordability and location is the key to a successful Florida real estate investment. Whether you’re interested in vacation rentals or long-term rental properties, the Sunshine State’s growing population and tourism industry offer promising investment potential.

   Remember that the real estate market is dynamic and can change rapidly. Stay informed about the latest trends and consult with local real estate experts to make the most informed decision for your investment in the beautiful state of Florida.

   Florida’s real estate market presents a unique blend of affordability and opportunity. As you explore the diverse regions within the Sunshine State, keep in mind that affordability and safety should be at the forefront of your decision-making process. By carefully considering these factors and conducting thorough research, you can find the perfect investment property that aligns with your goals and lifestyle. Florida’s allure as a vibrant and dynamic state continues to attract real estate investors, making it an exciting and promising destination for those seeking both value and safety in their property investments.

2. The Ultimate Guide to Hurricane Preparedness for Florida Real Estate Investors & Property Managers

   August 22, 2023 7:11 pm

   As a Florida real estate investor or property manager, hurricane season poses major risks to your properties, residents, and transactions. Proactive planning is essential to reduce storm damage threats and keep tenants safe when hurricanes threaten the Sunshine State. This extensive guide covers everything owners and managers need to know to fully prepare for hurricane season. We’ll provide tips to secure rental properties, protect commercial buildings, handle real estate transactions during storm season. We will also explore reviewing insurance policies, documenting pre-storm conditions, assessing damage, and more to aid owners in hurricane preparedness.

   Follow this comprehensive advice to safeguard your investments and safely guide tenants through any storms ahead. Let’s dive in!

   Why is Thorough Hurricane Preparedness So Important for Florida?

   Florida’s unique vulnerability to hurricanes and tropical storms makes preparation absolutely vital:

   • Located on a peninsula surrounded by warm tropical waters, Florida faces hurricane threats from both the Atlantic Ocean and the Gulf of Mexico.
   • The peak months of August through October bring heightened risks. These risks include destructive winds, flooding rains, tornadoes, and storm surge to coastal and inland regions.
   • Florida real estate like residential rentals, commercial buildings, and investment properties, are highly exposed to hurricane damage. Factors like high velocity winds, flooding, storm surges and more can cause this damage.
   • Lack of adequate structural protections, preparedness plans, and insurance can lead to extensive physical and financial damage.
   • With advanced planning, investors and property managers can significantly reduce hurricane risks and recover faster after storms.

   When Does the Hurricane Season Peak in Florida?

   • June 1st through November 30th is the official Atlantic hurricane season.
   • During this 6 month period, Florida faces threats from tropical storms, Category 1-5 hurricanes, flooding, tornadoes, and powerful winds.
   • The peak window for hurricane activity is August, September, and October. During this period, sea surface temperatures are warmest in the Atlantic and the Gulf of Mexico.
   • According to historical weather data, approximately 95% of all tropical cyclone activity happens within the official June to November hurricane season time frame.

   How Should Owners Prepare Florida Rental Properties Before Hurricane Season?

   Rental property owners and managers should complete key preparation steps before peak hurricane season:

   • Provide tenants with a written hurricane preparedness plan detailing how to properly secure the rental home, potential evacuation routes, and emergency contact information.
   • Schedule an inspection to identify and trim back any unhealthy trees or excessive vegetation on the rental property that could damage the home if high winds hit.
   • Thoroughly survey the roof to check for any repairs needed to prevent water intrusion during heavy rains and ensure it is in good condition without loose tiles or vulnerable openings.
   • Install hurricane shutters constructed from tested, high-wind-rated materials like steel or impact-resistant aluminum over all windows and doors to protect them from wind damage and flying debris.
   • Review all insurance policies in depth early to guarantee adequate dwelling and flood insurance coverage levels are in place for each rental property before peak storm season begins.
   • Encourage tenants to stock up on essential emergency supplies like food, water, flashlights, batteries, a radio, medications, a first aid kit, and other necessities in the event utilities are interrupted after the storm passes.
   • Clearly remind tenants to closely monitor local evacuation orders for their zone and provide any needed guidance and resources to help coordinate transportation or temporary lodging if an evacuation of the rental home is ultimately required.

   

   What Safety Measures Should Investors & Managers Take When a Hurricane Approaches?

   When a hurricane or tropical storm is approaching here are a few methods for hurricane preparedness.

   • Closely monitor weather alerts and projected path forecasts from official sources like the National Hurricane Center and local emergency management agencies.
   • For properties in vulnerable coastal or flood zone areas, advise tenants to evacuate to identified safer shelter well away from the approaching storm based on evacuation orders.
   • Secure outdoor objects like patio furniture, garbage cans, and cycling racks that could become dangerous flying projectiles in high wind speeds.
   • Avoid any unnecessary travel or outdoor activities once tropical storm-force winds arrive and conditions begin deteriorating.
   • Advise tenants to remain indoors once winds reach hurricane strength, staying in an interior room like a bathroom or closet without any windows or glass exposure.

   How Should Real Estate Transactions Be Handled During Hurricane Season?

   If buying or selling investment property, take these added precautions during hurricane season:

   • Thoroughly photograph/video record the full exterior and roof of the property before peak hurricane season to document pre-storm condition from all angles.
   • Closely review sales contracts for any clauses related to hurricane damage, insurance claims, delays in closing dates, or termination rights.
   • Consider pausing showings and open houses if a hurricane is projected to impact the property or surrounding area.
   • Delay final walkthroughs until after the hurricane passes and the property’s post-storm condition can be fully verified and documented.
   • Be prepared to postpone closing dates or signings scheduled close to projected hurricane landfall to allow for post-storm assessment.
   • Discuss needed extensions of closing timelines proactively with real estate agents and buyers early on so preparations can be adjusted.
   • Secure an insurance binder/coverage for your property before a hurricane has a predicted path, as most insurance carriers stop writing insurance policies when there is a hurricane with a planned landfall anywhere in the state of Florida. This is a great hurricane preparedness practice to help recover after a hurricane damage.

   What Insurance Tips Help Investors Recover Quickly from Storm Damage?

   Having adequate insurance coverage in place is the key to recovering quickly after hurricane damage occurs:

   • Review all policies carefully prior to peak hurricane season to ensure dwelling coverage limits are high enough to fully cover potential rebuilding costs after major storm damage.
   • Identify any upgrades, renovations or additions to the property that may not be reflected in current coverage limits and account for them.
   • Request an updated replacement cost estimate from insurance providers based on the latest construction costs in the region.
   • Evaluate separate hurricane or wind damage policies to supplement homeowners or commercial building coverage.
   • Verify that comprehensive flood insurance is in place as most standard property insurance policies do not cover flood losses.
   • Take ample time to fully photograph and video document a property’s pre-storm condition inside and out for comparison with post-storm damage documentation.

   How Should Investors & Managers Assess Property Damage After a Storm?

   Once conditions are completely safe following a hurricane’s passage:

   • Thoroughly inspect all structures, exterior areas, landscaping, and roofs to identify any storm-related damage that requires documentation and repairs.
   • Look for issues like roof leaks, window or door damage, flooding, foundation shifting, debris that requires removal, downed fences or trees.
   • Photograph/video record all identified damage to submit the necessary insurance claims and secure contractor repair estimates.
   • Contact insurers as soon as possible after documenting damage to begin the claims process promptly.
   • Verify contractor licensing and check ratings/reviews before hiring any companies for repairs like roofing, siding, debris removal.
   • Consult with qualified building inspectors or structural engineers if major structural damage is suspected before allowing tenants to re-occupy the property.

   Key Takeaways for Hurricane Preparedness for Florida Real Estate Investors

   • Take time to prepare properties and tenants before hurricane season peaks fully.
   • Stock extra supplies of food/water in case tenants can’t evacuate before landfall.
   • Pause showings, open houses, and closings if a storm is approaching.
   • Videotape/photograph home exteriors and interiors to document pre-storm condition.
   • Thoroughly assess and record any damage that occurs for insurance claims.
   • Carefully vet and hire reputable contractors to make repairs after storms pass.

   There’s a lot to understand about how to navigate the storm season in Florida. If you have any questions and would like to speak with an expert simply give us a shout.

3. A Closer Look at Institutional Investment in Florida’s Housing Market. According to the trends, Orlando, Florida Real Estate is bound to see some changes.

   August 16, 2023 1:43 pm

   Recent headlines in 2023 have highlighted major global investment firms like BlackRock and others buying up single-family homes across Florida. This has raised concerns among some policymakers and housing advocates about the potential impacts on the affordability and availability of homes, especially for first-time buyers. However, the full picture is more complex. This article will examine the key investors and REITs involved in Florida’s real estate market, questioning the future of Orlando homes for sale, what’s driving the trend, where purchases are happening, how it will impact listings on the MLS, and views on both the potential benefits and risks.

   Who are the major institutional investors?

   Several large asset management companies have become actively involved in acquiring rental homes, either directly or through affiliated real estate investment trusts (REITs). Key institutional investors include:

   • Invitation Homes – Owned by Blackstone Group, this REIT has spent over $5 billion on single-family rentals, with a significant Florida presence.
   • American Homes 4 Rent – One of the largest single-family rental REITs, with over 52,000 properties nationwide who is expanding significantly across Florida.
   • Progress Residential – Manages over 40,000 rental homes for various investment funds and is an active buyer in Florida markets.
   • Tricon Residential – Toronto-based firm that owns and operates over 30,000 U.S. single-family rentals with growing Florida holdings.
   • Pretium Partners – Hedge fund that owns thousands of rentals across the U.S. through funds like Progress Residential and other vehicles.

   While exact data is limited, some estimates suggest institutional investors account for 5-10% of Florida’s single-family housing transactions in recent years – a noticeable but not dominant market share.

   What’s attracting institutional investment to Florida? Florida possesses many qualities that make it attractive for major real estate investors:

   • Strong population growth and inward migration, fueling housing demand.
   • A popular destination for retirees and buyers of vacation/second homes.
   • Lower property taxes and no state income tax.
   • A warm climate and coastal amenities are appealing.
   • Strong job growth and economic prospects going forward.
   • High rates of single-family detached housing.

   With low mortgage rates also helping drive demand for yield, these factors have led investment funds to expand their presence.

   

   Looking at a home in Orlando? Where are investors buying up properties? Institutional investors have been active across many Florida metro areas, but some key markets stand out:

   • Tampa – One of the hottest rental markets, with key purchases in suburbs like Tarpon Springs.
   • Jacksonville – Recent upswing in institutional activity with major REITs like Invitation Homes moving in.
   • Miami – Strong demand and tight supply have led investors to acquire rentals across Miami-Dade.
   • Orlando – A major destination for new residents and tourists, attracting buyers.
   • Cape Coral / Fort Myers – Popular with retirees, drawing investors seeking rental returns.
   • Port St. Lucie – Fast-growing region of central Florida, is seeing its share of institutional investment.

   While not yet driving overall sales, increased activity by investment firms has added competition in several mid-to-large-sized Florida cities.

   What are the potential benefits? How will this impact Orlando Real Estate? Proponents argue institutional investment can support housing markets in several ways:

   • Increase rental supply – More owned-and-operated single-family rentals can provide tenants with more options.
   • Reduce vacancies – Institutional owners have the resources to renovate and maintain properties that may otherwise be neglected.
   • Provide movable rental stock – Units operated by large investors can offer renters flexible medium-term housing, especially in growing regions.
   • Contribute tax revenue – These companies typically pay property taxes that help fund local communities.
   • Support prices during downturns – Institutional buyers helped stabilize home values in the aftermath of the subprime mortgage crisis.

   Critics, however, dispute the scale of these benefits and note potential downsides.

   What are the risks and concerns? While recognizing the above factors, critics raise several concerns about growing institutional investment in single-family housing and home prices in general:

   • Fewer homes available for first-time buyers – Investor purchases can reduce the inventory of entry-level owned homes.
   • Risk of overpayment – Institutional buyers may pay above-market rates, inflating prices.
   • Neighborhood homogenization – Concentration of owned rentals can degrade community feel and lower prices.
   • Limits on future appreciation – Rental REITs may be less likely than owner-occupants to renovate properties over time.
   • Loss of opportunity for residents to build equity through ownership.
   • Possible upward pressure on rental rates from oligopolistic ownership.

   More research is needed to weigh the potential tradeoffs of increased institutional investment activity.

   What are experts and advocates saying? Housing analysts hold a range of views on the rise of large investment funds in the single-family market:

   • Supportive: Industry groups argue that increased rental supply benefits renters. Analysts cite positives like occupancy rates and renovation spending.
   • Cautious: Some experts note benefits but want more data on impacts on ownership rates and housing costs. They emphasize the need to boost the overall housing supply through new construction. 
   • Critical: Affordable housing advocates express concern about the effects on availability and affordability, especially for lower-income families hoping to buy their first home. They call for homeowners to be prioritized over investors.

   Perspectives often depend on the perceived impact on one’s own interests – renters, buyers, communities, or investors. Speak with an expert?

   Can regulators influence institutional investment? State and local authorities have a few potential levers they could employ, if desired, to shape investment activity:

   • Zoning reform – Allowing greater density and more diverse housing types could improve overall supply and absorb investment demand.
   • Taxes on vacant properties – Levying added taxes on unoccupied investor-owned homes could deter bulk purchases.
   • First-time buyer incentives – Subsidies, down payment assistance, and related programs could counterbalance investor advantages.
   • Limiting non-primary residences – Measures restricting the purchase of second homes could reduce outside investment.

   So far, most jurisdictions have yet to directly target institutional buyers. But the policy debate continues.

   Conclusion

   The growth of large private equity firms and real estate investment trusts (REITs) in Florida’s housing sector raises complex questions. While these institutional investors still represent a fairly small share of the overall market, their increasing activity has generated concerns about potential effects on home availability and ownership rates. However, they also provide valid benefits, like expanding rental stock. There are reasonable arguments on both sides of this issue – more objective analysis and data is required to fully understand the tradeoffs involved. 

   The state’s continued population growth means demand will likely remain strong across rental and owned properties. But regulators may eventually need to examine policy options if access to affordable housing meaningfully tightens.

   If you’re in need of support with purchasing your next home, or simply looking to sell, we are here to help. Simply visit www.oldetownbrokers.com 

4. Rent vs Buy in Central Florida: Unraveling the Orlando Real Estate Conundrum

   August 9, 2023 1:05 pm

   Are you torn between renting and buying a house in Central Florida? You’re not alone. Many people are considering Orlando Real Estate. This article is worth reading as it sheds light on the benefits of renting vs buying a house, providing in-depth insights to help you make an informed decision based on your circumstances. Whether you’re a first-time homebuyer or looking to relocate, understanding these aspects can guide you to the option that suits your lifestyle, financial situation, and long-term goals the best.

   Rent vs Buy: Is Renting the Way to Go?

   The Advantages of Renting

   As a renter, you have less financial burden upfront. You typically only need to worry about your rent payment and a security deposit. While a mortgage payment may be similar to a monthly rent payment, buying a house comes with added costs such as the down payment, closing costs, and potentially homeowner’s insurance and property tax.

   Another significant advantage of renting is the lack of maintenance responsibility. When you rent a home, if something breaks, your landlord or property management company usually handles repairs. You also don’t have to worry about the fluctuating real estate market, as the landlord bears the risk of falling property values.

   The Disadvantages of Renting

   On the downside, your rent price could increase over time, and you’re not building any equity despite making monthly payments. Unlike homeowners, renters don’t get the chance to recoup their housing costs or make a profit from the appreciation of the property. Also, you could be limited in customizing your rented house to turn it into your dream home.

   Should you buy a house?

   The Advantages of Buying a Home

   The benefits of buying a house can be significant, especially if you’re considering buying a home in a vibrant real estate market like Central Florida. When you buy a home, every mortgage payment brings you closer to owning the property outright, and you’re building home equity with every payment. The mortgage interest and property taxes you pay may also come with tax benefits.

   Purchasing your own house provides the freedom to create your dream home without needing approval for every change you wish to make. Over time, home prices tend to rise, giving you the opportunity to make a profit if you decide to sell.

   The Disadvantages of Buying a Home in Central Florida

   However, homeownership comes with a lot of responsibilities. The maintenance and repair costs that your landlord would cover if you were renting now fall on you. And unlike renting, where costs are relatively predictable, unexpected expenses can pop up anytime with home ownership.

   Another point to consider is the upfront costs of buying a house. You’ll need to save for a down payment, closing costs, and potential home-buying fees. Depending on your financial situation and the current state of the housing market, these initial costs can be a significant barrier.

   

   Assessing Your Financial Situation

   Whether it’s better to rent or buy is largely dependent on your personal financial situation. Buying a house in Orlando, or anywhere else in Central Florida, may be right for you if you’re financially ready and plan on settling in the area for a while. Renting, on the other hand, might be a good option if you prefer flexibility or if you’re saving for a substantial down payment.

   Remember, if you’re thinking of buying, a real estate agent can help guide you through the process, but it’s ultimately your decision to make.

   Central Florida’s Real Estate Market: Rent or Buy?

   Understanding the current state of the housing market in Central Florida can greatly influence your decision to rent or buy. Orlando real estate is fast moving and a local real estate agent can provide in-depth knowledge about home prices, rent costs, and market trends.

   What’s the Best Choice For You?

   Ultimately, the decision to rent or buy a house in Orlando or any other part of Central Florida comes down to your lifestyle, financial readiness, and future plans. Weigh the pros and cons of renting vs buying, and take your time to make the best decision for you.

   Wrapping Up: Key Takeaways

   • Renting offers flexibility and fewer responsibilities, but does not build equity.
   • Buying a home may have higher upfront costs, but offers the opportunity to build equity and potentially profit from property value appreciation.
   • Your financial situation, the state of the housing market, and your lifestyle and future plans should all play a role in your decision.
   • Consider seeking advice from an Orlando real estate agent to guide you through the process.

   In the end, only you can decide whether it’s time to buy or if you should continue to rent. It’s a big decision, and it’s okay to take your time and do your research.