Real Estate Investments in Florida
The market is ever-changing as do investment strategies. And many of today's real estate investors go into the transactions misinformed with old thinking. There is a huge misconception on the part of some who think they can buy a residential home, fix it up, and then sell it; and then get what we used to call "the old rollover provisions", where you used the money you made to buy another piece of property for more than what you sold. But there are two problems with that approach…
- That rule existed for personal residences only
- It doesn't exist anymore.
If you're looking to turn a quick profit on a real estate 'flip' , know that though it may be quick, it may not be as lucrative as you had hoped as a hastily conceived investment strategy often produces better payoffs for the IRS than it does for the investor.
Overseas Realty will refer you to lawyers and accountants that can best help you with your specific real estate investment, and over the years, we've realized that a "tax-smart flipper" could benefit from a slightly slower investment pace. The result has been that many or our clients have not opted for the "take the money and run" quick-flip approach, but instead, invested in patience as well as properties.
If you hold an asset for a year or less, you'll face short-term gains that are taxed at ordinary income-tax rates. This could be as high as 35 percent! If your investment timetable is lengthier, federal tax laws reward you. By holding an asset for more than a year, you'll face the long-term capital gains rate that maxes out, in most instances, at 15 percent.
We help our clients find the houses to invest in, rent the house for them during this time period, and then find the buyers at the optimum time.
We offer assistance to purchase foreclosed homes and short sales which are great investments in this marketplace. Regarding real estate for investment purposes only, you generally have 2 possibilities:
Commercial real estate in the US is comprised mostly of office buildings, shopping centers, and warehouses. Normally, gains can be considerably higher when investing in commercial property rather than residential real estate but it does bear a higher risk. It is recommended that to enter into a commercial real estate investment, it should be with a minimum investment capital of $1,000,000.
The location of a residential property is the most important criteria when deciding where to invest and values differ considerably between homes, condominiums, and apartments. Most homes enjoy better gains than condos or apartments because they generally operated at higher comparative cost than homes with common area costs like pool service, landscaping, etc. to be factored in.
Residential Real Estate Investments in Florida
Residential Real Estate Properties Distinguish Between Their Usage:
Someone who is looking for a property in Florida for his own use, should actually look at the property and buy that property which matches his personal criteria as everyone has a different tastes. Overseas Realty, Inc. can also help locate a suitable lot for you and build a home on, and customize it to fit your needs.
On the other hand, in the resale market, (the local market of pre-owned real estate properties), Overseas Realty, Inc. offers to represent you and your interests as your Buyer’s (or Seller’s) Agent in a purchase (or sale) of real estate. This professional representation of you as a buyer is free of charge because the brokerage fee is usually paid by the seller and is split between the seller’s broker and the buyer’s broker.
It is not recommended to rent a property "designated for own use" since the gains are modest and effort and annoyance are often greater than the anticipated benefit. Therefore, a real estate property should either be determined for own-use, or serve as an investment for the highest possible yield.
Real Estate investments are supposed to generate high yields from leasing and appreciation. Such properties distinguish in use as follows:
Short-term leasing can generate high yields with high occupancy rates. But at the same time, bears high risk with low occupancy rates. To be attractive to vacationers, the short-term lease property must have a prime location such as on, or near the beach, or popular tourist areas. It's also recommended that these properties be fully turn-key, as in, furnished and ready to use. For this reason, such properties are usually more expensive to purchase with the promise of higher returns. These properties require a consistent effort to achieve and maintain a high occupancy rates. Most units are fully rented during the high season while their occupancy rates suffer during the long off-season. And many properties along the beaches are only rented 2 or 3 times per year. These are usually homes that are lived in by the owner and rented when they decide to travel.
The most secure and profitable use of a Florida investment property is long-term leasing. Also consider that a property which was leased for several years, and then owner-occupied after that, is an attractive investment strategy. Overseas Property Management, Inc. has specialized in long-term leasing agents at the ready to asset you.
Homes for Investments
The most secure and profitable use of a Florida property as an investment is its long-term leasing. Overseas Property Management, Inc. presently has many long-term rentals that are enjoying high returns from rental income, even while the owner is not present.
Reasons To Invest in Residential Real Estate
• Comparable Low Taxes
• Retirement Aspect
• Monetary Security
Commercial Real Estate Investments in Florida
Commercial Real Estate on the resale-market:
Let us represent you as the buyers broker and share our experience. We will search and find what you are looking for.
New Commercial Real Estate Investments:
For investors we are preparing some great opportunities....ask us for details.
After the sale, we will take care of your investment with our experienced commercial management team.