Reasons to invest in Florida real estate

Florida is so much more than nice weather, stunning beaches, world-renowned theme parks, and incredible cities. In these times of high uncertainty, investing in residential properties in Florida offers returns, asset protection, and tax benefits that are hard to find in other assets and places around the world. Considering a real estate appreciation (price increase) over the last 10 years of +10% per year (remember that total return is composed by the appreciation return plus the cash flow return if property is rented) it is no coincidence that the state has been the number 1 destination for foreign real estate investors for the last 15 years!

Florida offers a diverse range of locations with attractive real estate investment opportunities and a high quality of life. Take West Palm Beach, for example.

According to local realtor Steve Froggatt, “West Palm Beach is a city in Southeast Florida. It’s separated from the neighboring Palm Beach by Lake Worth Lagoon. Downtown’s Clematis Street and CityPlace districts are filled with restaurants, shops, bars and clubs. The Norton Museum of Art displays American, European and Chinese art, including Impressionist paintings. Nearby, the 4-theater Kravis Center for the Performing Arts hosts concerts, plays, dance and opera. This area of Palm Beach County has a laid-back feeling about it. The benefits are less people, less traffic, easy access to PBI airport and a vibrant downtown area. From the city you have easy access to Palm Beach Island where you will find some of the most exclusive & expensive Real Estate in the US. On the Island you will have access to one of the best public par 3 golf courses in the State of Florida with the ocean to the east and intracoastal to the west. With a small population of only 125,000 residents, it’s a great place to invest due to its location.“

Furthermore, this is a good time for buyers: the market has stabilized. Remember that in recent years, the market was heavily favored towards sellers, where high demand outweighed supply, giving sellers a significant advantage (“sellers market”). Now, with the increase of for sale inventory, supply and demand have balanced, improving market conditions for buyers. However, if interest rates decrease and more buyers take mortgages, demand could increase again, making the situation less favorable for buyers. There are many reasons to invest in Florida’s real estate market:

• Wealth protection by investing in one of the safest places in the world, with clear rules for investors
• Risk mitigation through reduced dependence on the stability of your local currency and diversification of assets in the event of a market crisis
• High return on the investment due to property appreciation: historically, prices have shown a long-term upward trend (+10% annual price increase in the last 10 years)
• Opportunity of increasing the return of the investment if the property is rented to a tenant adding regular cash inflows
• Excellent way to diversify your investment and retirement portfolio: add another asset class with strong returns and consistent cash flow
• Many tax benefits (Florida does not levy income tax nor estate tax) make the state of Florida very attractive for foreign investors
• Secure permanent residency in the United States for you and your family by investing through the EB-5 Investor Visa
• Easy access to mortgage loans for foreigners in American banks, not indexed to inflation
• Properties for a wide variety of budgets: from $100,000 to millions of dollars
• Properties for all tastes: traditional rental, short-term rental/own use or residential
• Subtropical climate, beautiful beaches, dreamy theme parks in Orlando, vibrant cities like Miami, and elegance and tranquility like Palm Beach
• In addition to English, Spanish is widely spoken
• Top destination in tourism: Florida received more than 140 million tourists in 2023
• State with the second-highest net immigration in the United States in 2023
• In addition to tourism, the financial, aeronautics and healthcare industries are strongly attracting new residents to the state that provides a healthy demand in time