Choosing an Area of Florida
Most people who choose to purchase a home in Florida, have a previous relationship or experience of the place they wish to buy-in. Or they have a close friend or relative who has that experience and is able to advise them on the area’s outstanding features. For other people who are looking for a straight investment property, which they won’t use as a holiday home throughout the year, and won’t rent the property to vacationers the location is less important and the ROI alone drives the property selection.
For each person, the factors driving the purchase are different, and these factors will ultimately determine the location of the property. Our agents are experts in helping buyers navigate the tricky questions of price vs. location and investment vs. lifestyle.
At our brokerage Investments In Sarasota, we believe firmly that if you are buying a holiday home, you should make your choice primarily based on lifestyle, and you should buy the best location you can afford that provides your desired lifestyle.
Here’s a Brief Summary of the Areas of Florida and How they Differ:
Northwest Florida:
Prices tend to be lower in the north, which is further from the huge tourist areas and attractions. This may not be the best investment for a rental return, but as a holiday home and lifestyle choice it is still a splendid place to buy, and a winner for those seeking a quieter, gentler pace of life.
Southeast Florida:
As another sweeping generalization, the southeast Atlantic coast — encompassing Miami, Ft Lauderdale, and Palm Beach up to Orlando —- tends to be generally pricier than the south-western Gulf coast. This stretch includes some of the priciest residences in America, with multi-million dollar homes pushing up the median house prices.
However, if you choose your area wisely, away from the ultra-rich enclaves of Palm Beach, it’s still possible to get a three-bedroom, single-family home with a pool for around the $250,000 mark. In the south Florida market returns are less, ranging from 6–10 percent, but appreciation and prices are much greater. However, it depends on the investor’s appetite for risk and investment goals.
The Miami property market is really a law unto itself. Typical apartment prices begin around $300,000, which isn’t necessarily expensive to be in one of the most happening metropolises in the world and with all that the city has to offer.
In fact, Miami is perhaps the one location that has bounced back the fastest, with an influx of buyers from Latin America. Inventory is now fairly low, which means prices are only going one way. However, it’s still possible to get deals on condos, as this market experienced a construction boom and so has the most inventory available.
Northeast and Central Florida:
The big attractions of Disney, Universal, and Sea World are concentrated around the center of the state, and we think the massive tourism potential of these areas does keep prices high—but also offers a huge potential for returns from tourism rentals, so values are probably fair.
According to Shalimar Santiago, CEO of Investors Advisers Network, central Florida is currently the hottest market, from Orlando to the Tampa region, with returns yielding on average 8–12 percent.
Southwest Florida:
Prices are somewhat lower than in the southeast. Strong rental potential in the summer comes from Europeans and Americans in school summer holidays. In terms of lifestyle, this coastline is fabulous and boasts some of the best beaches in the country. This has helped to skyrocket the waterfront property prices, which can be more than double the price of comparable properties in the Orlando area. This helps explain why 60 percent of the wealthiest people in the country winter either on this southwestern Gulf coast in Naples or at Palm Beach on the southeast Atlantic coast.
If you’d like to learn more about buying property specifically in Sarasota sign up for a 20 minute highly informative Sarasota Real Estate Orientation with Lee.
