Investing in real estate, like all financial choices, is a huge decision.
If you are planning to invest in Tampa real estate, you’re likely already knee-deep into researching the ins and outs of investing, real estate management, or home flipping. Thankfully, Tampa is a great place to get started if you’re interested in investing and becoming a landlord or flipping homes.
To help you out in your efforts, I’ve compiled some reasons why real estate investment is a smart move and why Tampa is the perfect place in which to get started.
Why Invest in Real Estate?
There are so many reasons to invest in real estate in general, which is likely why you are wondering if it may be a good fit for you and your lifestyle.
Passive Income
To start with, it’s a good form of passive income with many tax advantages. This passive income is recurring cash flow, and many people use it to fund their retirement. Who wouldn’t want to retire in sunny Florida, after all? As long as your property is rented out, you will have a passive income.
High Return on Investment
If you are thinking about flipping homes, it’s good to know that there are often higher returns with real estate than with other investments. Since land is a commodity that we cannot increase, real estate is a very dependable hedge against inflation.
Properties can be improved to accrue additional equity and sold at a higher rate as long as you find well-priced properties that will be reasonably easy to fix up.
Capital Leverage & Portfolio Diversification
Additionally, real estate has the unique possibility of leverage, which other forms of investing might not have. This occurs when a mortgage is used to reduce the amount of capital you need to invest to buy additional properties. Using that equity to secure additional properties can help you grow your investments more quickly.
Also, investing in real estate is a perfect way to diversify your portfolio, while reducing risk and maximizing returns.
Low Mortgage Rates
Right now, we are seeing some of the lowest mortgage rates on record for 30-year fixed mortgages. For individuals able to take advantage of this, right now is the time to invest in real estate while minimizing the amount you need to invest to get a return.
Why Tampa?
Fast-Growing City
Tampa is a bustling city. In fact, it’s the fastest-growing city in all of Florida. Just imagine the possibilities!
More people are moving to Florida, whether it’s to start their lives after college, for a new job or for retirement. Having a strong student population means young professionals are putting down their roots here right after graduation. And our warm climate means people stay here long after their careers wind down.
All of this steady growth means that there will be even more businesses popping up to make life easier and more convenient for Tampa residents. If you hope to get into commercial real estate, this could be great news for you.
Even with single-family or multi-family homes, this growth is helpful. The cost of living is already lower than the national average, as are the sales tax and income tax rate. That means more and more people will continue to be drawn to living in Tampa.
Overall, it’s a great place to find a property that will increase in value over time, all while saving some money due to the healthy economy and lower costs. Having additional people move into the city will only continue to make housing more desirable as time goes on.
Culture
In this city, both single-family and multi-family investments are booming. Many people are making the move from multi-family homes to single-family homes. This makes for diverse neighbors in a city that is already very ethnically and racially diverse, giving Tampa plenty of rich culture. This diversity serves to further expand the attractiveness of the city as a place to live, meaning that there will always be people looking to move to the area.
Family Friendly
Tampa is a great, safe location to live in and perfect for raising families. The city offers good schools and there are also numerous parks, libraries, and family-friendly activities. If you hope to rent or sell, this is a great selling point for families.
Transportation
More and more people look to transportation access when looking to rent or buy a home, thus good transportation makes it easier for investors to rent or sell.
Tampa has accessible public transportation, and it also has well-maintained roads for commuters. The location makes it quick and easy to commute to and from, so workers don’t have to worry.
Area Attractions
With the Gulf and its many beaches, numerous theater and dining options, universities and more, the Tampa Bay area offers residents plenty of things to do. This helps keep the real estate market healthy. Whether you are talking about the trendy eateries and shops of Tampa or the scenic views of Bayshore Boulevard, there’s a little something for everyone.
Ready to Get Started?
If you’re planning to invest, predictions are that the housing market will continue to increase in value, so it’s better to invest sooner rather than later. The growing population will continue to fuel housing needs, which will help keep your property occupied should you rent it out.
The hardest part of your decision may just be which neighborhood to purchase in. Each has its pros, with some of the best being: Old Seminole Heights, Beach Park, Westchase, Virginia Park, Tree Tops, Ballast Point, Tampa Palms, Tampa Heights, Carrollwood, Oldsmar, Davis Islands, Palma Ceia, Ybor City Historic District, South Tampa, Hyde Park, Waterchase, Highland Park, Odessa, Temple Terrace, Riverside Heights, and New Tampa. With all the great parts of Tampa, it’s hard to go wrong.
Working with a great Tampa Realtor is one way to make the process go a lot smoother and to make sure you have all the details you need before purchasing a property. She can help you quickly find a property, negotiate, and achieve your dream of a solid investment in a beautiful state.
If you are ready to buy, let’s talk! I can help you navigate the Tampa real estate market and help you find the perfect property to invest in.