What Should I Look Out For As A Florida Real Property Investor?
2021 has been a tumultuous year for those who invest in Florida real estate. As of this writing, the market is in good shape for sellers, but the current low interest rates favor buyers. However, there is so much more that an investor needs to be aware of before dipping into the somewhat volatile market for Florida real property, for good or ill. If you have your eye on a piece of property, it is crucial to familiarize yourself with the market and the other variables you might encounter on the ground.
Positives & Negatives
Many people are drawn to Florida’s real estate market because it seems to be constantly changing, and mostly for the better. If you are investing in real estate as a business, Florida will seem particularly attractive to you and your company because of its lack of an income tax and its many laws surrounding benefits for small businesses. In addition, Florida sees countless visitors (tourists and businesspeople both) year round, so there is always demand for rental housing and commercial space.
While the market is generally attractive to investment at the current moment, there are always going to be pitfalls surrounding buying and selling real property. A major one is location – much more than in some other states, the location of your chosen rental property or vacation home is extremely important, because so much investment is going on. If your location is, for example, slightly louder than another rental property where street noise is muffled, it will, in the long run, cost you time and money to get that property rented.
Potential Problems
Two more specific issues that Florida real estate investors often face are changing state regulations and difficulty getting loans. Loans in particular can be hard to obtain, particularly if you have no other nexus to Florida – lenders often fear that small business clients with no ties to the state may simply default and leave them holding the proverbial bag. Very often, the market will experience a downswing because fewer people are getting loans with which to buy property – but in turn, more property may go unpurchased, implying less demand than may actually be there.
In terms of regulations surrounding rental properties, Florida is very welcoming in many regards. However, some communities have been trying to regulate or outright ban short-term rentals (generally, those of less than 6 months’ duration). Changes signed into law in July 2021 resulted in the right of community associations to set rental terms that may not be in keeping with your goals, citing concerns about noise pollution and increased wear and tear on the property. That said, if your property is not under the aegis of a condo board or homeowners’ association, the rules surrounding short-term rentals may not have changed for you at all.
Contact A Tampa Real Estate Attorney
While the market is very reactive to current events, Florida’s real estate climate is still highly advantageous to those looking to invest, and if you have the adaptability to roll with the punches, you and your company can profit significantly. If you have questions or concerns, a Tampa real estate attorney is a vital person to have in your corner. Attorney Alicia Seward has her finger on the pulse of the Tampa real estate market, and the Seward Law Office is ready and willing to try and assist you with your case. Call us today to schedule a consultation.
Resources:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0718/0718.html
flsenate.gov/Laws/Constitution#A7S05
