Northwest Florida homes have a lot of desirable qualities, one of which is location along white sandy beaches and cool ocean waters. With this location comes ample opportunity to rent a home to vacationers escaping to the south, or people who wish to relocate to a warmer climate. Either way, rentals rates are on the rise for both groups.
2011 saw a 64.5% increase in investment property home sales from the year before – that’s 12.3 million units sold in 2011, versus 749,000 in 2010.
“Investors have been swooping into the market to take advantage of bargain home prices,” said Lawrence Yun, NAR’s chief economist. “Rising rental income easily beats cash sitting in banks.”
Foreclosures have largely contributed to this boost in second-home purchases. In fact, half of the above mentioned investment home sales from 2011 were distressed properties. Many investors are attracted to the long-term rental income, versus the short-term profits from a flipped home. This is good logic since the national rental average is expected to increase by 5%-10% each year.
Renting has always been more expensive than buying due to the tax benefits, but now it is becoming even more so. As inflation looms in the distance, we can expect to begin seeing cost of living increases across the board, and housing expenses will be no exception.
If you would like to begin your home search, or are thinking about selling your home in Northwest Florida, contact Kerry Veach online or call 1.800.879.0309. Kerry’s experienced team has closed more than 1000 transactions and specializes in providing their clients with the highest quality service possible.