Investing In Sunny Florida Beach Property

Written by Posted On Tuesday, 19 June 2018 22:01

Investing In Florida Beach Property

Florida has long been hailed as a great place for real estate investors. The lack of taxation on personal income greatly increases the profitability of holding these properties in boom times. It also hedges against the burden of holding these titles in recessions. You only need to take care if you are buying these properties through a corporate structure.

When you invest in property as a sole proprietor or ordinary home buyer, you are essentially set for smooth sailing. This is true unless you have residency in another state that may count the income. Always consult with a tax specialist, just to be safe.

Other Reasons to Invest in Florida

There are additional benefits if you choose to become a verified resident of Florida: no state death tax, homestead creditor protection, expansive tenancy by the entirety, homestead exemptions; and the protection of assets, life insurance, IRAs, and annuities. These protections are legal abstractions that require a bit of skill and training to fully understand. This is why Florida is also the home to many top wealth strategists, estate planning gurus, and tax advisers. They can help you maximize your investments and protect your purchases.

Becoming a Florida Resident

The hardest part of becoming a full-fledged Florida resident is cutting off your ties to your former state of residence. If you any streams of income or investments there, you must demonstrate that you no longer live there and should not be taxed.

The Florida Real Estate Market

Panama City Beach, FL is a really booming real estate market for investors. It may, in fact, be the best place to purchase a rental property in the entire nation. This is because the weather is idyllic all year and the rental properties are relatively cheap to purchase. When you consider the latest trends in vacation rentals, you can earn as much as $40,000 annually on AirBnB and similar online vacation booking apps.

Vacation Rentals

Home selling can happen anywhere in the country and receive little growth for your time and investment. Vacation rentals have become extremely popular for investors. When you target a key segment of the vacation app market, you are building a large revenue stream overnight with little to no work.

The snowbirds that fly down to Florida every summer are also looking for beautiful well-accommodated private abodes to relax in. Hotels themselves have become relatively passe. The trend is moving rapidly toward having all of the conveniences of home when you are on vacation.

Short Term Rentals

You can buy a home anywhere in the country and run an AirBnB-style rental. But, when you buy premium beachfront property, you are more likely to haul in the big bucks. There is more and more competition every day as the AirBnB business model grows. If there is one trend to invest in, this is it. If you can capitalize on it with boardwalk property, then you are winning the Monopoly game.

Florida Weather

Florida is known for awesome weather. The rain falls down in warm buckets, hot enough to shower in. Then, before you can pull out the umbrella, the water vanishes, sucked back up into the atmosphere. The tropical storms here are something that you can use as a point of negotiation when searching for the best deal on a property.

Recent studies show that the duration of hurricanes retaining their structure over land is increasing. Florida has historically been hit with multiple hurricanes every year. When you consider the potential to lose your home overnight due to a bad storm, there is certainly reason to be nervous about holding on to unkempt properties.

Insurance in Florida

Florida's subsidized homeowners' insurance structure has the potential to collapse virtually overnight if the number of claims ever grows to the point of toppling the assets and revenue. Right now, the fund is well endowed to settle any claims.

The Florida Beachline if full of condos and vacation rentals The Florida Beachline if full of condos and vacation rentals[/caption]

The number of privately-held insurance policies is still higher in Florida than in other Gulf Coast regions with similar programs. This reflects the fear of many homeowners of catastrophic loss, should the program's success prove itself inadequate for Mother Nature.

What the market relies upon at this moment is a false peace that the current measures in place are sufficient to weather the storm. This is the same type of mindset that infected New Orleans before Hurricane Katrina battered the city.

As a smart investor, you will likely be able to invest a great deal into your Florida property to reinforce it for hurricanes. The building quality has diminished in recent years. Other properties are aging and becoming less capable of holding up to the stronger storms scientists are predicting.

You will be able to obtain much lower insurance rate if you are able to prove that your home is reinforced to off-set storm damage. With all of these in's and out's in mind, it is important to be optimistic and to carefully consider how each property will retain itself in any event. Having a good Realtor and some profound understanding of the factors trending today will make you poised for smart decisions tomorrow.

Rate this item
(0 votes)
Dean Cacioppo

Dean Cacioppo Credentials

Dean has worked as a real estate agent, real estate instructor and has years of experience working on the technology side for major Real Estate Brokers, Agents and MLS’s.  Dean has sat on the Board of Directors for multiple MLS’s including being elected to President.  Years of serving on a number of MLS Committees for multiple boards, served on the Strategic Planning Committee for Louisiana REALTORS and participated in many task forces and committees for the benefit of all Real Estate Agents in Louisiana.

Work in Real Estate Technology

Dean has provided live training on technology, direct IT and Technological Support to thousands of Real Estate Agents for over 16 years.  With years of being the go-to guy on technology strategy, training and support for Brokers and MLS’s across the country, you can now have direct access to Dean for your personal technology needs. 

Real Estate is extremely competitive on the web and we specialize in Real Estate Websites and Digitial Marketing for Realtors, Search Engine Optimization for Real Estate and Social Media Marketing for Real Estate.  Please don’t be confused, we are happy to work in all business verticals and have quite a bit of experience in a variety of markets.

For 2019, we have seen an expoetional increase in the ability to generate leads from local SEO for the real estate industry.  This has Google My Business taking a larger share of buyers and sellers looking for real estate online.  We understand that there is a real estate sales cycle that determines how "ready to act" the lead is.  Leads that are aquired for search phrases such as "Realtor around me" or "top realtor in my city" have a much better chance of converting than the indevidual searching for a generic real estate term.

Agent Resource

Limited time offer - 50% off - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.