Newcomers to the Florida real estate investing scene often make a big mistake when they rush out to buy properties in an attempt to maximize how fast they can build their solar plexus chakra [wealth]. Buying into a market that is not even in a recovery period, hold on to your hat! It might feel great emotionally to build wealth fast, but the risk is high, and the reward may be far less than if they would have just patiently waited. It is essential to consult with a real estate professional with a solid track record in the market you are considering. This article will discuss the Ft Lauderdale Real Estate investment market and what to look out for and avoid. Interested in Investing in Fort Lauderdale Real Estate? Keep Reading.
For a while now, the Ft Lauderdale real estate investing market has been in recovery mode after many years of having been gutted from inflated prices during the housing bubble. As with any increase in demand, it’s bound to have bubble periods that will continue. Presently, the largest bubble is in the land, which it always has been and will be. In my opinion, the market, in general, is much wiser now than it was during the last bubble. Many investors have been burned from buying into hot markets for all the wrong reasons, only to have prices come back down again.
What To Focus on And How to Win When Investing in Ft Lauderdale Real Estate
The Business aspect of real estate investing has changed. When purchasing a home, you should buy it because it has long-term value. Single-family homes are in high demand. Over the past year, thousands of new residents have flocked to the newly formed promised land of South Florida to escape some of the lockdown and restrictions elsewhere throughout the country.
One of the most significant decision-making factors for buyers relocating to Fort Lauderdale is education and schooling. The problem is that many investors aren’t willing to take the time or spend the money on being educated to learn how to be a successful investor. The number one question we get from families relocating to the Fort Lauderdale area is ” how are the schools”. That’s a tricky question to answer given the vast disparity of public-school education from the Northeast to South Florida. Rest assured, here is one rule of thumb that can help an investor make an insightful buying decision. Only purchase single-family homes in neighborhoods that are zoned for ” A” rated elementary schools. Zoned means that the school provides bus transportation to the children zoned for that school. This is one of the factors that hold equity regardless of the swing in the market. It can bulletproof your investment.
The other thing to focus on is an area that provides as many amenities as possible. It has to be a place where people like to live. Recreational facilities, golf courses, and beaches are good examples. Don’t try to beat the market by just focusing on one of these things. Look for a combination of amenities that will attract people and businesses.
If you can afford to invest in new or under construction property, then luxury homes are your best bet. Rentals of these properties and surrounding areas bring in a pretty penny, and the investment will yield more significant profits for those willing to do their due diligence and make the right decisions. We see many families moving from their large mansions in New Jersey and New York, and they are looking for modern turnkey homes that provide safety, security, and peace of mind. For that product, buyers and renters will pay a premium because the supply for pre-construction homes is limited due to land and supply chain issues. We also see a lot of foreign investors investing in pre-construction homes, which has become an increasingly lucrative option for all parties involved.
Waterfront Homes in Fort Lauderdale
There is only so much waterfront land available to build homes along the Intracoastal and beaches in Fort Lauderdale. That is why waterfront homes are in high demand, especially those located on the Intracoastal deep canals. Boating in South Florida is a way of life, and being able to keep your boat docked in the backyard of your home is a luxury that home buyers will pay a premium. When looking to invest in a waterfront home, you want to take a hard look at the integrity of the sea wall that supports the home’s land. Sea walls can be costly repairs.
In some cases, it could cost as much as $1k per square foot. Most waterfront homes worthy of investing in will have 50 – 60 feet of water frontage. The linear feet of the sea wall will determine the size of the boat that can dock in the backyard. Boating enthusiasts looking to purchase new homes on the water are looking for at least 50-60 feet of water frontage.
Beachfront homes are another type of waterfront property you would want to invest in. These homes are usually located directly on the sand and can provide an extremely rich ROI as a seasonal rental or an Air BNB investment. Even though owning a beachfront or waterfront home sounds exciting and prosperous, there are high maintenance and repair costs to consider. But with any investment opportunity, you have to consider whether the juice is worth the squeeze! Working with a real estate professional that has experience buying a selling waterfront home will be invaluable.
The fact is that if you are interested in investing in Fort Lauderdale real estate, whether it be the condos, houses, or land- there are ways to make a profit out of your investment even if you have purchased at the top of the market. Are you able to handle the stress that comes with investing in real estate, dealing with tenants, contractors, property managers? There is a hassle way solution: to contact DOTOLI Group for all of your Fort Lauderdale real estate investment needs.
It matters who you work with when investing in Fort Lauderdale Real Estate. It’s imperative to work with someone you can trust and who has proven success in the marketplace. Let’s chat about how we can make this process easier by taking A Modern Approach to Real Estate. Contact DOTOLI Group by email at Info@DotoliGroup.com or call 954-296-9931 for showing information and listing details.