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[/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.