When most South Florida residents think about purchasing a home, they do so from the standpoint that the new home will be their primary residence. After all, there aren’t many people who can afford a second home these days – or are there?
According to a recent report, the market for residential income property in South Florida is seeing quite a surge. These properties – mostly duplexes and other rental properties – are owned with almost the exclusive intent of renting them out to tenants. The owners collect the rent as residential income. What is the reason behind the recent surge in residential income property? Well, the report indicates that rental rates for apartments in South Florida are getting pretty high – near record highs, actually.
Measuring the increase in the price of residential income properties on a per-square-foot basis can lend some prospective. In 2013, the reports indicate that these residential properties were selling at a rate of about $90 per square foot. This year, they are selling at a much high rate – about $124 per square foot, on average.
The bottom line? It seems like this may be a good time for investment-minded buyers in South Florida to begin to explore the advantages of owning residential income property. While most of the talk around the local market is focused on the investments in all of the condo towers that are popping up, residential income property may be an overlooked source of positive revenue. Getting the right information on where and how to find the best pieces of property could be a good start for potential buyers in South Florida.
Source: Miami Herald, “Residential income property market surges in South Florida,” Peter Zalewski, Nov. 8, 2015