Retiring and moving to Florida is the dream for millions of Americans, but the Sunshine State’s benefits extend far beyond its beautiful year-round weather and pristine golf courses. Florida is a good place to live for many reasons, which means it’s also a great place to invest. It’s also one of the hottest markets in the US – as many pockets of the state are even starting to see home values rise despite declines across the country.
When it comes to real estate investments, Florida has some locations that can really pay off. If you’re considering a property down here, here are some of the advantages:
1. There Are Many Tax Advantages
Florida is a tax-friendly state for numerous reasons. First, there is no state income tax, which means those who live and work in Florida will take home a larger chunk of their income. There is also no estate tax, which means those living in the state are free to transfer their estates to others after they pass away with no tax penalty.
There are also property tax benefits associated with declaring your home as your primary homestead or the primary homestead of one of your dependents, which allows you to reduce your home’s taxable value by up to $50,000. The state also has a Save Our Homes cap, which limits assessed property value increases to 3% or less for homestead properties.
2. The Local Housing Market Is Strong
The Florida housing market has been strong for a long time, and even during downturns, the local market performs much better than other areas of the country. Even now, while home values are declining in many areas, Florida home values are up 8.9% year over year. For comparison, national home prices are only up 3.1%. Homes in this state tend to drive a higher resale value than many other parts of the US.
3. There Is Plenty Of Demand
Florida’s population seems to grow every year, and thanks to a shift towards remote work, it’s jumped significantly since the pandemic. Florida isn’t just a popular vacation destination, it’s also a place where people move to raise a family, start a career, or retire. As a result, buyer demand is always higher in Florida than in other areas of the country, which means your property value is more likely to appreciate faster.
4. There Is No Shortage Of Amenities
White sandy beaches, beautiful countryside, nationally-recognized amusement parks, and booming cities – Central Florida has a little bit of something for everyone. It’s a popular vacation and retirement destination for people all over the world. As a result, if your Florida property isn’t your primary residence, it’s easy to leverage it for short-term and long-term rental revenue.
5. Florida Has A Hot Labor Market
Florida’s job market ranks as one of the best in the country year after year. In addition to travel and hospitality, numerous tech, healthcare, finance, and manufacturing companies call Florida home. There are around 20 Fortune 500 companies that are headquartered in Florida. A hot job market means many people move to the Sunshine State for work every year.
Real estate is a great investment, especially during an economic downturn. A Florida rental property can appreciate over time and generate short-term rental income. If you’re thinking about investing in a Florida property, contact Palmetto Realty today.