As of April 2023, the average home price in Florida was $410,000. Whether you're a buyer or a seller, that's a huge investment with promising returns. But if you're not familiar with the Tampa area or you're a first-time real estate investor, your fear may tempt you to miss this grand opportunity.
Don't let your anxiety about Florida's market get the better of you; it's stable and a strong investment prospect. Here are five things to know before buying and selling properties there.
1. Move-In-Ready Properties Are More Profitable
While there's no shortage of affordable fixer-uppers in the Florida housing market, investors who want to make a quick return should buy complete homes.
Homes that need upgrades spend months longer on the market than homes in move-in-ready condition. Fixer-uppers also tend to sell for less than their appraised value because buyers expect to spend money on upgrades.
Also, for those who are considering renting their property, it's harder to attract tenants to a shoddy building.
2. Property Taxes Are Low
The state's average tax rate is lower than that of the U.S. as a whole. By buying property in Florida, you'll be able to use more of your hard-earned money for property management services to raise the value of your investment.
3. Tax Incentives Are Available
The mortgage interest tax deduction allows you to subtract your monthly mortgage interest from your taxable income. You can claim this exemption for the interest payments made on either your primary residence or second home.
Moreover, in Florida, veterans and their families are eligible for several tax deductions. These deductions may encompass mortgage interest deductions, exemptions for surviving spouses, and exemptions for disabled veterans.
Other tax exemptions you may find useful include the Florida homestead exemption and the tax exemption for seniors.
4. There's a Huge Demand to Take Advantage Of
Lately, Tampa real estate has a low stock, with housing inventory at a mere three-month supply. When there's a high demand for homes, prices tend to increase faster than the rate of inflation. This means that real estate investors will see higher ROIs in Florida's market than they would elsewhere.
5. Using an MLS Makes Finding Properties Easy
Ask your realtor if they work with a local multiple listing service before becoming one of their clients. If so, you'll get access to all of the homes on the market.
This can help you browse faster and see properties that aren't listed in other types of real estate listings. It also gives you a competitive edge in the market.
Finding Success as a Real Estate Investor in Tampa, FL
Every real estate investor in Tampa has access to a booming market with high demand, particularly those with move-in-ready properties. Be sure to take advantage of some of the tax incentives the state has available.
Working with a realtor who uses an MLS can help you find your next investment faster. And when you've finally fallen in love with a property, contact PMI MetroBay to make sure it's cared for properly. We make real estate investing easier by doing the complex tasks many investors do themselves, including marketing and rent collection.
