With so many people looking to rent or lease now, the opportunity is ripe for investors.
Over 50% of all residential real estate purchases in South Florida are cash transactions… And, by buying in cash, and not paying a mortgage, you may well be looking at a higher return on investment (ROI) …
The Miami real estate market has been getting stronger … especially for income producing property… (Consult with a knowledgeable accountant or Real Estate Attorney though … as to the benefits of buying in cash vs carrying a mortgage)
And, given recent real estate trends, aim toward a long term return on investment … ( not short).
That said though, short term investments have been gaining in popularity … We’ve seen a rise in the number of investors this past year not only “covering their costs” but making a profit … Many of them had no mortgage … true … but because of a diminshed supply of prime rental units in South Florida, there has been an upswing in rental pricing.
The strategy for investing is normally to buy and hold on to real estate… for 5-10 years … (as opposed to ‘flipping’ – which was popular in the boom years) … Building equity over time … allowing property value to appreciate … is where investors tend to make money. The idea is to cover most of your costs … write off some of them … and then make your big money on the sale.
Investors who are buying in cash though … with no mortgage… have done surprisingly well in 2011 . South Florida properties in good locations and priced-well tend to rent out quickly. And there seem to be more investors now who are profiting from rental income alone … an added benefit to long term investment. Nevertheless, the real benefit to investment property often lies in the eventual sale of that investment… several years down the road.
If you are considering buying, selling, leasing or building we will be happy to assist you. Contact the Restivo Team at EWM Realtors … firstname.lastname@example.org Vicki Restivo at 305 793-1365 … Alexandra Restivo at 306 632-0164 or send us a note here