Real estate investors know that low housing inventory increases sales prices. But the latest real estate report by Douglass Elliman shows sales in Miami Beach and the barrier islands slowed in the second quarter of 2016, making overall inventory increase by almost 33%.
This is great news for investors who were hesitant to buy earlier in the year, when the combination of high sales prices and low inventory made it a more expensive investment.
What Types of Investments Are Best For South Florida?
South Florida real estate expert Ingo Winzer advises that South Florida is a great place for long-term investment.
Because half the population of Miami is renting, buying homes to rent is a good bet in Miami-Dade and Broward counties. However, the sales prices are expected to continue to rise, so buy carefully and look at the long-term investment.
If you’re interested in commercial projects, check out retail and restaurant investments in Palm Beach County, as the incomes are highest there.
The recent increase in inventory combined with longer amount of time on the market will work in the favor of investors looking to catch deals in the South Florida area. Just remember that long-term investments will result in a greater return over time.
The overinflated sales prices are bound to drop in the next couple of years, making South Florida a great investment now and further down the road.
If you’re looking for a place to invest in real estate that’s always in demand, South Florida won’t disappoint you. Its pristine beaches and tropical climate make it a real estate hot spot that will never burn up.