That, of course, is the 64 million dollar question, and the one we get asked most often by our clients. What you choose to invest ultimately comes down to three things: what investment capital you have available, what return you need to achieve, and what lifestyle you’re looking for.
The most common misconception out there is that buying an investment property in Sarasota is a privilege of the wealthy. Nothing could be further from the truth, as there are incredibly affordable entry points for different investment categories. And in buying a Sarasota property, you are guaranteed title, a secure asset in U.S. dollars, and a transparent, safe, and easy real estate buying process.
At Investments In Sarasota, we find it pertinent to separate potential investors according to their ideal outcomes. Firstly, there are what we call lifestyle investors. They’re looking for an idyllic lifestyle and a vacation home that provides an investment that will grow long-term, rental income to offset their costs and pay for their vacations in the short-term.
The second group we call straight investors. They are looking for a real estate investment that offers them the maximum return on their investment (ROI). They’re not going to use the property themselves, and mainly care that it’s highly rentable for the right price. These savvy investors are usually interested in achieving both appreciation and cash flow returns and having their money in U.S. assets.
So How Much Can You Get In For?
The straight investor may be able to find a property which suits their needs for an entry point price of $100,000 in Florida. This could be a single family home, or apartment/condo, and for the most part you will be looking at renting it out year round to achieve a steady cash flow return.
If you’re looking at this price point you’ll find that you will be looking at areas away from the tourist hotspots and usually away from the beachfront. Lesser-known towns and cities tend to offer these kinds of deals.
The lifestyle investor will have a lot more to factor into their plan for a Florida investment property, and it’s highly likely ROI will not be the factor driving their decision but a component of it.
It’s fair to say that holiday homes which are realistically of a caliber to achieve short-term holiday rental income, will generally begin at around $200,000 in the more affordable areas. In the hotspots such as Palm Beach, Fort Lauderdale and Miami you’re looking at closer to $500,000 for a three bed vacation home with rental potential.
If you don’t know what area in Sarasota to choose or what you can afford sign up for a 20 minute highly informative Real Estate Orientation with Lee.
