Florida's a great option if you've had your eye on sunnier spots to live in 2025.
Some like it hot, and there's no hotter place than the Sunshine State, especially for those who are looking to build wealth by investing in real estate.
Whether you're focused on affordability, or nabbing an investment property near the beach, there's something for everyone.
Combined with recent market developments, you'll understand why the real estate pros we spoke with say now's the time to make your move.
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The ultra-rich have also been investing in art from big names like Picasso and Bansky for centuries. And it's for a good reason: Contemporary art prices have outpaced the S&P 500 by 136% over the last 27 years.
A new company called Masterworks is now allowing everyday investors to get in on this type of previously-exclusive investment. You can buy a small slice of $1-$30 million paintings from iconic artists, all without needing any art expertise.
If you have at least $10k to invest and are ready to explore diversifying beyond stocks and bonds,see what Masterworks has on offer. (Hurry, they often sell out!)
You can take advantage of increased inventory
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With more available homes, buyers no longer have to rush into bidding wars. Less competition means more intentional purchasing, allowing prospective homeowners the chance to secure better prices.
"For the first time in years, Florida's housing market has a notable increase in inventory, which means more selection and stronger negotiation power for buyers," according to Jeff Lichtenstein, CEO and Broker of Echo Fine Properties in Jupiter, Florida.
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You'll have less financial stress thanks to favorable tax laws
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As one of the most tax-friendly states, thanks to the absence of income tax, Florida appeals to many. That means, investors, retirees, and remote workers can make the most of their money with tax breaks like these.
Coupled with an effective property tax rate of .91%, it's much more affordable to work and own property here. Moving away from the financial stress of living paycheck to paycheck can ease this burden. It's kind of like paying yourself first — instead of the government.
You can retire in a thriving community
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Florida houses some of the most notable retirement communities in the U.S.
With popular places like Naples and The Villages it has become one of the country's top three most populous states.
And while the existing retirement communities appeal to the snowbird and 65 and over crowd, the sheer number of people living here makes it attractive to any age group.
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Secret: You don't need thousands of dollars to buy thousand-dollar stocks or create a diverse portfolio.
Robinhood offers a method of investing called “fractional shares.” On its own, one share of a single stock could cost a lot of money, making it difficult to diversify. Robinhood allows you to buy pieces of stock instead, so you have the option to build a diverse portfolio quickly.
Let’s say you want to invest $250, as an example.
With that amount, you could build a relatively diverse portfolio with an investment of $50 in a big tech stock, $50 in a retail stock, $50 in an energy stock, $50 in a manufacturing stock, and $50 in a bank.1 <p>This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice. </p> <p>To get stock reward, new customers need to sign up, get approved, and link their bank account. Stock rewards shares cannot be sold until 3 trading days after the reward is granted and the cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at <a href="https://robinhood.com/us/en/support/articles/open-account-pick-your-stock/">rbnhd.co/freestock</a>.</p> <p>Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.</p> Robinhood Gold is offered through Robinhood Financial LLC and is a membership offering premium services available for a fee.</p>
Even better news? Add a Robinhood Gold membership, and you’ll get access to 4.00% (as of 12/27/24) APY2 <p>Annual Percentage Yield. Rate valid as of April 12, 2024. To earn interest, a cash balance is needed. If you have a margin balance, there is no cash balance to earn interest. Interest rates for cash sweep and margin investing can change at any time. Fees may reduce interest earnings.</p> on your uninvested cash3 <p>Interest is earned on uninvested cash swept from your brokerage account to partner banks. Partner banks pay interest on your swept cash, minus any fees paid to Robinhood. As of Nov 15, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 5% for Gold customers. The APY might change at any time at the partner banks' or Robinhood's discretion. Additionally, any fees Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks.</p> <p>All investments involve risk and loss of principal is possible.</p> <p>Robinhood Financial LLC (member SIPC), is a registered broker dealer.</p> and the ability to buy and sell stocks 24 hours a day, 5 days a week.
Open and fund a Robinhood account and earn up to $200 in stock
You may no longer need to pay property taxes
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Those state and income tax advantages we mentioned earlier offer some great perks now, but the state's already property taxes might go away altogether.
A current proposal aims to eliminate property taxes altogether. "There is a bill on the table to get rid of property taxes," Lichentenstein says. "If that occurs, expect prices to skyrocket."
With the planned changes expected to drive up interest in the state, you may need to make a move now in order to take advantage of current deals.
You'll get nice weather all year long
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The Sunshine State's tropical climate means sunny days year-round. This makes it
an ideal place for folks who love spending their time outdoors and on the water.
"Beyond the tax advantages, Florida offers a climate that
is both warm and inviting year-round, making it an ideal place for retirees,
remote workers, and vacationers alike," according to Austin Hair, an
American Ninja Warrior national finalist, a world champion wakeboarder,
and a passive real estate investor at Leaders
Real Estate.
If your ideal home means waking up where others pay to vacation, this is the state for you. Beaches, theme parks, and cultural hotspots are more than enough to keep you happy.
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You can invest in a booming rental market
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Even if a full-time move isn't for you, and you're looking to cash in on the state's tourism industry, passive real estate investment might be for you.
"The state's thriving tourism industry also fuels strong demand for short-term rentals, making investment properties highly lucrative, particularly in cities like Orlando, Miami, and Tampa," according to Hair. "Additionally, the influx of businesses relocating to Florida is driving job growth, population increases, and higher property values, creating an attractive market."
There's still prime real estate to buy
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Desirable locations in Florida continue to see population growth, making the hottest land harder to come by and driving up the price. "There isn't much land left in prime areas," according to Lichtenstein. "With demand [increasing], and a decrease of supply, prices will go up in the long run."
Hair agrees. "With rising demand, home prices are expected to continue appreciating, making 2025 a strategic time to buy before values climb even higher."
It really is all about timing, and trying to time the market by waiting for the perfect interest rate could make it harder to get a deal.
There are changes coming in the world of homeowners insurance
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Legislation isn't just moving the mark on property taxes, it's also impacting insurance instability from excessive lawsuits.
"Insurance issues from Surfside collapse and easy to sue insurance companies over frivolous roof/water leak lawsuits have been reformed," Lichtenstein says. "This will lead to a stabilization of insurance pricing."
Bottom line
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The combination of tax advantages, weather, and tourist attractions makes it an ideal investment for both homebuyers and entrepreneurs looking to tap into a new source of income.
Current market conditions— such as increased housing inventory and potential legislative changes — offer the ideal opportunity for snapping up your piece of the Sunshine State.
Just don't wait too long, according to the pros, just about everyone is about to be looking to take advantage of everything Florida has to offer.
Ark7 - Real Estate Investing Benefits
- Invest in cash-flow-generating, professionally managed rental properties without having to buy the whole property
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- 3% sourcing fee and 8-15% monthly management fee
- $20 minimum investment
- Ark7 investors have earned 5%+ annualized distributions from monthly income alone4 <p>The 5%+ return is the portfolio average and is based on figures since Q4 2022.</p>
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