Monday, 2 July 2012

Why to Invest in Florida July 2012

Why Florida ?

While Florida has always been a popular vacation and retirement destination, a number of far more practical reasons exist to invest there:
Record Low Prices – Florida real estate was extremely hard-hit by the 2008 meltdown. Properties were off over 50% - 70% from peak value vs 30% in the broader US market. Newer properties are available well below replacement (construction) cost.

Cash Flow – Our rentals produce between 6-9% cash-on-cash return after expenses in addition to any capital appreciation on the property.

Solid Recent Price Increases – The Florida market charts show a bottom in January of 2011. Since the beginning of 2012 the median condo price in Tampa has shown double-digit year over year gains.

Declining Inventories – Active listings and months of supply are down between 30%- 40% from May 2011. (see May 2012 Tampa Statistics From above link – Price Increases.

Active Distressed Market – Even though things are now improving, the prevalence of mortgage defaults is still working its way through the system, providing a good supply of distressed properties at below market price for the foreseeable future.

Rapidly Improving Economy / Fundamentals – Florida’s economy in one of the fastest improving in the U.S. and has recovered from one of the worst unemployment rates in the country to come in line with national averages as of late
Strong net migration – Florida has always experiences strong net migration and is regarded as one of the most desirable places to work and live as well as vacation and retire.

High rental demand – The effects of the crash on credit and public sentiment towards homeownership make renting either a necessity or the preferred choice of many Floridians. Rental demand is high.

Tax benefits – Real estate benefits from favourable tax treatment both here and in the US. Redeveloping foreclosures is particularly attractive as most of the development costs are immediately deductible.

Why RealEquity ?

We Act for You –We are not agents acting for developers trying to offload product in Canada. We represent our investors to find the best deals that suit their criteria.

Fully managed Investment - RealEquity clients enjoy all the benefits of a fully managed investment while retaining individual title to the properties for ultimate liquidity and control. While most clients will travel to Florida to see their portfolio, the entire process goes on without the clients ever having to leave Ontario.

Experience – RealEquity has been acting for Canadian investors in Florida for over a 18 months. We have successfully redeveloped dozens of distressed properties for clients, turning them into top performing rental investments or in some cases selling them for substantial profit.

Specialization – Acting for clients in Canada, Asia and South America, we are specifically focussed on issues applicable to non-resident investors. We offer basic information on tax and cross border issues as well as referrals to qualified professional advisors.

Proven Results – While past performance does not guarantee future results it remains one of the better indicators.

View some of our recent projects