Florida can be a great place to invest in real estate because it is a location where many people want to move. If you have the properties they want, then you can be in control of how much people pay to move to their dream home.
Home prices in Florida have reached highs because of the number of people wishing to move there. Some include retirees, business people, foreign investors and snowbirds. All of these people have to have somewhere to live, and investors who purchased homes early could benefit significantly from the influx.
The recession took a toll on home prices throughout Florida, dropping their values by around 60 percent in 2008. Today, they're on the rise again, which is wonderful news for those who purchased and who have been waiting to sell.
Is Florida a great place to invest now?
It depends on how you intend to invest. If prices are at a high now, there is a potential for the housing bubble to burst, causing you to lose on your investment. However, since Florida's housing demand is still going strong, growth in pricing is suspected to continue for some time.
To make the best investment, you need to look at the individual housing markets along with incomes in the area. If a market is overpriced, the likelihood is that it's going to burst suddenly, which could mean a loss. Instead, look for up-and-coming neighborhoods and areas where jobs can keep up with housing costs, since those may continue to grow in value and give you the best return on your investment.