Investing in real estate has always been a particularly attractive sphere for generating income. However, there are some new tendencies in the real estate market of the USA and South Florida in particular. Thus, the aim of this paper is to explain why it is becoming more and more popular to invest in middle income condos or townhouses otherwise called income producing properties.
I am convinced there is a great opportunity to invest in income producing properties in South Florida for a couple of reasons. First of all, it is very affordable and has a lower level of risk due to small sizes of property comparatively to investing in other kinds of real estate. However, even a small apartment can bring enough profit for covering some expenses of investors. Single-family homes and condos were recognized as the property that provides the most rental income for the smallest level of investment.
Moreover, recent state of the economy leads to drop in real estate prices and people tending to rent smaller and more affordable apartments. Buying property now will have even more benefits when the economy levels up. Then the prices will go up increasing the value of the apartments that investors buy quite cheaply these days.
Furthermore, there is a high demand for this niche of the real estate market in South Florida. A strong rent growth in the region is explained by a reasonable amount of college students and seasonal workers who come to South Florida for a certain period of time. Thus, they search for a place to live, and the most common choice is to rent a small apartment to share with someone else.
Thus, purchasing income producing properties in Florida is a wonderful opportunity to generate reasonable rental or other revenues for the owner with low investment and risk.