Above and beyond the white-sand beaches and temperate climate, Florida is an attractive state for retirement real estate investments. In fact, about 1,000 people relocate to Florida each day to enjoy the weather, tax breaks, real estate investments, and plenty of recreational activities.
If you’re planning on both enjoying retirement and making money from investment properties, working with an experienced team is crucial to making lofty returns. Community Capital Holdings is proven, professional, and well-capitalized. We’ve funded over $100 million in private real estate loans and focus solely on hard money lending. Bringing expertise in both hard money lending and the Florida real estate market, Community Capital is ready to help turn your plan into action.
Check out this blog to see why people are flocking to Florida for retirement real estate investments.
1. Tax breaks that benefit seniors
A huge known benefit for real estate investing in Florida is that there’s no income tax in the state. According to the Florida Department of Revenue, “When someone owns property and makes it his or her permanent residence, or the permanent residence of his or her dependant, the property owner may be eligible to receive a homestead exemption that would decrease the property’s taxable value by as much as $50,000.” Seniors and senior veterans can even apply for further tax benefits in their communities.
2. Active adult communities
With so many seniors relocating to Florida on a daily basis, there are countless active adult communities across the state to either enjoy or invest in. Retirement communities make it easy for transplant residents to find friends, explore hobbies, and create a strong sense of community in their new stage of life. Adult communities with condos and various income-producing residential properties are also a lucrative investment for those looking to make a profit on real estate endeavors.
3. Affordable housing
Though almost surrounded by stunning waterways and occupied by extremely notable celebrities, Florida has several cities and communities that are incredibly affordable or on par with the national average. According to 24/7 Wall St, “the typical home is worth $196,800” which is “$8,100 less than the national median home value of $204,900.” The same source says that the value of homes built before 1939 is naturally more affordable than new construction. These statistics are important for real estate investors who are looking to gain income from fix-and-flip properties. There is plenty of room for growth when investing in a property that needs a few updates.
4. Easier to generate rental income
Affordable properties are excellent sources of passive income for those looking to continue making money during retirement. With growing communities across the state, there are opportunities to purchase investment real estates such as multi-family properties and fix-and-flip properties. The rental demand is increasingly high in Florida which makes it a notable state to continue your investment growth.
5. Plenty of tourist attractions and vacation rental opportunities
For those who want to live in Florida but invest in real estate other than year-long housing, there are plenty of tourist attractions and vocational rental opportunities. Companies like Airbnb and VRBO are taking the vacation rental market by storm and are proving lucrative for savvy investors. Other than seasonal housing, there are countless recreational activities that require real estate investments such as golf, water sports, restaurants, and retail.
To get started on your Florida retirement investment, contact Community Capital at [email protected] or (954) 947-1232