In Florida, over 90% of real estate transactions are executed with the expertise of Real Estate Agencies.
Property can be a worthwhile investment for the long-term, and many investors look to property since it is a stable and tangible asset. In recent years, Tampa investment property has become highly desirable because of the high investment potential. Below are some of the key things to understand when it comes to investing in property.
Basics of Investment Property
Investing in property can have short-term or long-term goals, and these goals need to be clear before a person starts taking a look at the market. Income can either come from attaining rent or from reselling the property for a higher price. The property may be under direct ownership, or it may be purchased through a group of investors.
A property is considered as a form of investment when it isn’t used for residence by the owner. Investors put a lot of research into the local area to find the ideal properties to invest in, and to maximize the returns. Some properties may be more suited for long-term rent collection, whereas others may be viable to resell after renovations. Market conditions will play a key role in how successful reselling is, and investors will take comparables into account before closing the deal.
Types of Investment Properties
There are three main types of investment properties, and in Tampa, Florida, there are many exceptional properties that are well worth considering.
Residential property can be ideal for collecting stable income in the form of rent. Additionally, it can be used for reselling through making renovations. In Tampa, FL, there are a variety of residential properties viable for investment. These include condos, apartments, townhomes, and other types of properties. The flexibility in the market makes it easy for buyers to find the property that matches their specific investment goals.
Commercial property can also provide significant profits for investors. Tampa, FL, has a number of excellent newly developed commercial properties that are attractive for investors. These investments are usually favored by larger corporations and investment groups because of the larger potential returns. There are higher costs of maintenance involved, but the long lease lengths which tend to be over five years provide a stable income for the investors. The rents also tend to be higher for commercial leases.
Some properties can be used for both residential and commercial purposes. An example is an apartment where the ground floor is used for retail or for a restaurant, and the other floors may be used for residential use. This provides an investor with the opportunity to take advantage of commercial leases and tenant rents. There are many types of multiple-use properties available for investment in Tampa.
Attaining Finance for Investment Properties
In general, it tends to be easier to attain finance for properties that are intended to be the primary residence. There are a variety of programs in Florida that help home-buyers with the upfront payment costs. For investment properties, it can be more challenging to gain access to finance. Investors will usually need a 20% upfront payment in order to access financing from banks and lenders. Credit scores are also checked, which means it is important to check these yourself before bidding on a property. Lenders may also ask for proof that an investor has the required savings to afford the various expenses on the property for at least six months. Lenders want to make sure that an investor can afford a property, and if you pass these checks, then you will be able to the financing to invest in the property.
Benefits of Investing in Tampa Property
There is a range of key factors that make Tampa property a highly desirable investment option. The close proximity to military personnel means that properties can be rented out by these servicemen taking advantage of the housing allowance. The unemployment rate of 3.6% is low by national standards and makes the location attractive for investment. It also has a population growth of around 10.34% since 2010, which is nearly double the national rate; and is providing a significant boost to the economy.
Additionally, many major companies are moving their offices to Tampa. This brings in the need for commercial properties, and it also provides a further economic boost to the area, which can increase rent prices. The Tampa real estate market ranks highly for profitability, but the trends in price increases means that it is important to get in soon.
Tampa real estate investment is fast becoming an attractive option for many buyers. When navigating investment property in Tampa, it is crucial to pick a professional real estate team that has an excellent understanding of market conditions. Viewpoint Realty works closely with you to understand your specific investment goals, and we can secure your ideal investment for the right price. Contact us on 727.584.7355 or send an email to viewpointrealtyinternational(at)gmail(dotted)com.