Everyone should have a "ball park estimate" about the
future profits of their potential real estate purchase. As an example - For Investment
Condos - What return do you anticipate or must have on the rental income and the price
appreciation to consider making a purchase?
Real Estate Buyers should avoid buying any properties that rely on ongoing appreciation
similar to the past...in order for the deal to still make sense. Try to locate properties
based on sound fundamentals that will weather potential readjustments in the economy, too.
The real estate market has always been flexible. The Sale Price has always been what a
seller and buyer agree to accept to close a deal. In the last three to four years in many
Florida areas ...a good percentage of sellers and buyers have agreed to close deals at
...and above the asking price. Gulf Front...Waterfront and Investment Properties are best
examples of this trend.
FLORIDA POPULATION GROWTH AND REAL ESTATE APPRECIATION
Between mid 2003 and mid 2004, Florida's population hit 17.4 million making it the
Nation's third fastest growing state. The population increased by nearly 400,000 people
with an average of 1,090 per day. Florida's growth is being driven primarily by winter
weary Northerners and others who are attracted by the warmer weather and tropical
lifestyle. Some were planning for retirement and decided to invest in the Tampa Bay market
now. Many bought before the boom and have seen their initial buy price increase 25 to 35%
per year. Others during that time frame were attracted by cheaper housing and they too
have seen substantial price appreciation on their purchase. Some younger people and
families relocated for better job opportunities and rented units while they prepared for
purchase. This added to the rental income on those that purchased investments to rent.
INVESTMENTS COMMENTS KNOWLEDGE IS YOUR POWER
We are all familiar with the "Dot com" Internet Stocks Bubble. It reached a
plateau and came falling down....then settled and after years...a few have slowly begun to
rise....but not near the astronomical heights previously.
FLORIDA BUSINESS CLIMATE STATISTICS
Florida is one of the Nation's Top 10 Business States in 2005 according to a recent
national study. The ranking considered 26 factors. It means that Florida is among the best
places in the nation for conducting and succeeding in business because of it's progressive
pro business policies, a quality workforce and a positive economic environment. The
Nation's five best performing central business districts over the next two years will be
Tampa Florida, Miami Florida, Orlando Florida, Oakland California and Orange County
California. Florida is also projected to turn in a good showing among suburban business
markets in such regions as Pinellas County Florida and Palm Beach County mainly because of
while collar job growth.
(sources included our Team's experience and knowledge of the Florida Market plus -Florida
Association of Realtors, USF Bureau of Economic and Business Research, Pollina Corporate
Real Estate Study ) Max
Back to Top
Team Real Estate Main Page
Top Team Web