Shaun Benderson Talks About Main Draws of the Florida Housing Market
By Space Coast Daily // April 19, 2018
Benderson has a wealth of experience in Florida
Whether it is Sarasota or Tampa Bay, it would be fair to say that all of the news outlets in Florida are going crazy about the property market in the state right now.
Gone are the days when this was a scoop; everyone knows that commercial, retail and residential real estate is in huge demand in Florida, and investors are making it their aim to capitalize on any project that falls into this category.
One man who has seen it all in this area is Shaun Benderson. Originally targeting the Phoneix market, he now has a wealth of experience in Florida. Through the course of this guide, we will take a look at some of his thoughts on why this particular market is soaring in popularity, and why you need to invest in it as a matter of urgency.
There are very few new buildings
From a very young age we are all taught about the laws of supply and demand. In simple terms, if there is little supply, demand tends to rise (and thus, so do prices). Well, this is the situation as it has played out in Florida, or at least a lot of areas within it.
Through the course of 2016 and 2017, there were actually very few new buildings constructed. This is mainly because of the oversupply that occurred several years ago, but nevertheless, the effects are going to be experienced by all those investors involved in the space. Many believe that it won’t be until 2021 or even 2022 when a new wave of new developments start to enter the picture – which is quite a time to wait.
The tax situation is favorable
In comparison to other states, there’s no doubt that Florida’s tax setup is very favorable to investors. If we compare this to the likes of New York and California, the advantages are aplenty. In the two aforementioned states, investors are no longer able to deduct state and local income tax from federal tax. Over in Florida, this isn’t the case, and this can represent monumental savings by the end of the tax year.
The upshot of this is that Florida is a hugely investable state. As we have already alluded to, this has the knock-on effect of this is that the market is going to become more competitive, supply is going to tighten and ultimately, prices are only going to go one way (and that is upwards).
The long-term benefits
A lot of investors are also turning to Florida so they can reap long-term benefits in the region.
Single-family homes are typically the best type of property that can benefit from long-term appreciation. Sure, this does come at an initial cost, but history has shown that these prices increase at a phenomenal rate. In other words, don’t expect to buy such dwellings at a knock-down rate, but instead understand that over time you will make back your investment, plus much more.
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