The infographic below from Florida Realtors lays out several tips you should consider before you buy.
Category: Investing in Rentals
Sentiment is down, does that mean the prospect of higher returns is up?
According to a recent Gallup poll, real estate remains a top investment choice for Americans, although its popularity has decreased to a five-year low. In April, 34% of respondents selected real estate as the best place to invest their money, out of options including stocks, bonds, gold, and savings accounts. This poll has consistently ranked real estate as the preferred investment for the past decade.
CoreLogic is forecasting low risk of our homes going down in price over the next 12 months (see chart below). Our area falls into the “very low” category, with a less than 10% chance of price depreciation. As the U.S. population continues to shift in our direction, I agree with the company’s assessment that it is much more likely we continue to see rising home prices in the next year.
The local market for condos and townhomes is continuing its shift. When compared to last year at this time, the market moved towards a seller’s market across the all price points in Sarasota County. While we saw the same trend across most price points in Manatee County, the $400,000-$599,999 market moved in the opposite direction.
If you haven’t looked at the prices people are getting for rental properties in Sarasota, you should. The rents compared to the cost of ownership are very favorable for the owners of single family homes and condos. Further, as stock market volatility is making it look like downside risk is outweighing upside opportunity in stocks, investing in a local property can be highly appealing.