Property values in Fort Lauderdale and Broward County continue to show remarkable returns
, making houses for sale in Fort Lauderdale an attractive investment. But it’s important for potential investors to weigh their options carefully when they are looking for houses or Fort Lauderdale condos for sale. Here are some tips to help you decide if it’s time for you to start investing in Fort Lauderdale real estate.
1. Know what you’re looking for in an investment property
For an investor, this is a critical question because investment property comes in many forms, with varying degrees of the time commitment required. If an investor is seeking a primary residence that will hold its value for future resale, they will want to evaluate historic data for the neighborhood they are interested in. Fortunately for this type of investor, Broward County has seen unprecedented increases in property value in recent years. If this trend continues, investors may be able to reap tidy returns, even if they don’t plan to live in the home for an extended number of years. Investors who are looking for a property they can rent out to others to earn some rental income have some important factors to consider as well. If you’re a handy person with some time to commit, you may want to consider an older property that may need a little TLC. Investors managing rental property also need to take into account the amount of time it takes to manage a property on their own. If your time is limited, you may be better off hiring a management company or looking at condos rather than standalone homes since many Fort Lauderdale condos for sale already have property management companies that handle these details. Take stock of your budget, your time commitment, and your expectations, and let these factors guide the rest of the process.
2. Analyze the area’s future development plans
Regardless of your reason for investing, all investors want their property values to increase. With construction booming in Fort Lauderdale, it’s very important for investors to do their homework to determine that the decision-makers in the area view development and maintaining property value as a priority. Do they have a master plan for additional construction or building more Fort Lauderdale condos for sale? What kind of amenities are on the docket in terms of restaurants, retail, and entertainment venues? Have they looked at maintaining and expanding infrastructure as more people move to the area? The Broward County planning commission
should be able to provide you with information on current and future development plans.
3. Get to know the neighborhood
Location always tops the list when investors are thinking about houses for sale in Fort Lauderdale. Is it a family-friendly area? Are there ample amenities that are easily accessed for shopping, dining, or entertainment? Many renters place a priority on convenience and access as well as a lively social and cultural scene. Easy access to transportation and highways is also important to commuters, while most people living in Florida relish parks, beaches, green spaces, and access to outdoor activities. Location often is more important than the property itself because an investor can update or remodel a home to meet higher standards, but they aren’t able to relocate it!
4. Look up housing inventory and occupancy rates
Over the past two years, housing inventory has been pretty tight nationwide. While that may sound like bad news for potential investors, it has actually spurred growth in the demand for rental properties. Many buyers simply can’t afford to purchase homes, so they are seeking good rental options instead. Investors should look into the inventory and occupancy rates of the areas they are interested in to make sure demand will remain strong for rental properties.
5. Assess the schools
While this may not matter for some, the rental market is seeing more and more families seeking rental property rather than buying. That means the area school systems will play a factor in where investors should look for lucrative investment property. Fortunately, Broward County schools garner some of the highest marks in the state
. Investors may also want to consider whether potential houses for sale in Fort Lauderdale are located near schools and have pedestrian-friendly walkways to get there.
6. Get your financing in order
The red-hot real estate market has made it so sellers can be more selective when multiple buyers are interested in condos or houses for sale in Fort Lauderdale. That means potential investors are more likely to win a property if they have cash in hand or preapproved financing. Investors will also need to plan for other costs like insurance, property taxes, any property management or HOA fees, landscaping, and maintenance. Rental property investors should also plan for other risks that regular homeowners don’t face, like damage caused by renters, unpaid rent, evicting tenants, etc. Like any investment, there are always risk factors involved, and investors should be aware and prepared before making any financial decisions.
7. Don’t wait too long
That said, typically, the longer you wait to take the plunge and buy real estate as an investment, the higher the price tag will be. That has proven to be particularly true over the past two years as the real estate market has seen double-digit increases in home prices year over year.
8. Assess the local market
Savvy investors do their due diligence, and that means digging into the data. Have home prices remained steady over the past several years? What areas have the most inventory available? How quickly are homes selling? At this stage, it’s important to work with someone who knows the market and can even provide information about homes before they are listed publicly. An experienced professional like Sandra Tagliamonte
can help potential investors find the right property to meet their specific needs. Contact Sandra today