Why Settle For Low Capital Growth? Try Florida Tenanted Property Instead

Florida-Real-EstateFinding a property market with high capital growth potential isn’t easy. Most economies in the world are either in recovery, slowing down or at a standstill.

Mr Bank Manager is reluctant to give you any change either, so where do you go for high capital growth?

Fortunately I can show you a part of the USA where it is almost child’s play to raise your profits from property.

This is a place where people are currently having to rent their homes, even though it is financial suicide to continue to do so for more than three years.

Yet these reluctant tenants have no choice because for now, they like most other reluctant tenants cannot get the finance to buy their own property or they are the victims of the many foreclosures that took place in the bust.

This part of America we like to call ‘the sunshine state’ also happens to be a place where property prices have fallen 70% since 2008 and are only now on the road to something like realistic value.

We are of course talking about the Florida property market and as one recent analysis by Real Estate website Zillow.com has pointed out, for many people in Florida, buying a home actually beats renting in three years or less.

For tenants of property in Fort Lauderdale, the ratio is even less at just 2.8 years.

The analysis looked at the break-even point or the amount of time it takes before owning a home becomes better financially than renting.

What is unlikely to come as a surprise to those who have already invested in property in South Florida is that it takes just 1.6 years to reach the point where it is better to rent.

So in counties like Miami Dade, you have a lot of people paying more rent per month than they would like.

For investors, however, the big price falls that came with the housing bust and the rise in rental rates have made Florida property a magnet for those seeking higher capital growth than they might get elsewhere.

With the rent covering the mortgage it is easy to imagine investing in a tenanted apartment in Florida that will generate the kind of income that will cover your mortgage payments and leave some considerable profits in a shorter period that you might find in other locations.

You can also look forward to maximising growth and returns as property prices continue to recover to something like their true value.

Until then with the price of tenanted properties at $63,000 and generating $699 a month rent you can be sure that a property in Florida will almost certainly pay for itself.


Do you know of another place in the world where conditions are better for property Investors? Please leave your comments below:


Kind regards


Brett Tudor
Property Expert