Did you know 75% of investment properties in Tampa are purchased by individuals not corporations?
If you’re looking to expand or start your real estate portfolio, Tampa is the perfect place. Now you may not know much about the area, but we’re going to tell you everything you need to know, from the population growth to the best neighborhoods. Keep reading to learn why you should purchase real estate in Tampa, Florida.
Growing Population
People from all over the country are flocking to Florida. As the population increases, so does the need for housing. Tampa has been attracting more and more people and the population has been growing since 2010.
Even in the last year, Tampa has seen a population growth of 1.17%. This gives you, as an investor, the perfect opportunity to make a profit.
Job Growth
Jow growth and population increase go hand in hand. While many areas in the nation are experiencing high unemployment rates, Tampa has continued to create jobs.
This past April, the unemployment rate decreased to 3%, which is below the nation’s average. Job availability and job security are driving factors for people who are looking to move to another city or state.
The increase in job opportunities has been in a variety of different industries. Construction, finance, and manufacturing have seen the most growth, but the hospitality industry has grown a lot too. This also leads to an increase in diversity in the Tampa area, which is just another great element that people are attracted to.
As the Tampa area grows your property will also appreciate. This not only affects the amount you can charge your tenants but if you ever decide to sell your real estate investment, you’ll make an even bigger profit.
Affordability
One of the great things about Tampa is the variety of properties. If you’re a first-time investor on a low budget, you’ll be able to find the perfect property. If you’re a seasoned investor and you’re looking to expand your portfolio, you’ll also be able to locate a property that works for you.
There are single-family homes, apartments, condos, townhomes, and multi-family properties for sale. It may take some time, but you’ll find the right property for the right price in Tampa.
Investor Friendly
When you’re choosing the perfect place to invest, you must consider the state and local states. Florida is one of nine states that don’t have a state income tax. If you were to choose a state with this tax, you’ll receive fewer profits from your real estate property.
Property taxes are based on which county your property is in and will vary. The no-state income tax is great for you as an investor it’s also a reason many people move here.
Florida doesn’t have strict landlord laws. You’ll have more freedom when it comes to writing your lease; the state doesn’t require that you have one. However, you should. While many states have rent control laws in place, Florida doesn’t, which means you won’t lose some of your ROI(return on investment) on your Tampa property.
Downtown Renovations
Many places in Tampa, including downtown, are getting multi-million dollar renovations. While, at first, you may be wondering why you should invest in an area with a lot of construction, there are many benefits that come with these improvements.
These projects increase diversity. The University of South Florida has a medical center that will bring in people from all over, including students, scientists, and researchers. Water Street has many new restaurants opening soon, and the River Walk and Channel Side renovations have already increased the population of the area.
There will be more attractions and job opportunities that people want to live near. The high demand for these areas will give you more control over the rental price.
Tourist Destination
If you’re interested in expanding your real estate portfolio consider short-term rentals. The Tampa area gets thousands of visitors every year. The beaches have been ranked some of the best in the world, which brings a lot of people in.
If you purchase a property close to the water, you’ll have plenty of visitors year-round. While your vacancy may slightly increase during winter, Tampa has visitors in November and December for holidays. Plus, many snowbirds come down from the north to escape the cold, which gives you the perfect opportunity to lease out your place for a few months at a time.
MacDill AirForce Base
Tampa is home to MacDill Airforce Base, which can give you an opportunity to rent your property to our military. While some live on base, others are given a stipend for housing. If you purchase real estate close to the base, you’ll be able to advertise to them and their families.
Neighborhoods to Invest In
When you think of Tampa, you may only think of downtown, but there are many great neighbors that offer a variety of different things.
Spanishtown/South Tampa
Spanishtown, commonly referred to as South Tampa, is the opposite of Highland Pines. The crime rate is low, but the cost of living is much higher than in most places in Tampa.
It’s located near the Bayshore, which gives the residents the chance to get outside a lot if they want. If you choose to invest in this area, you’ll likely pay more, but you’ll be able to charge more too. Your tenants will have access to good education as well, which can be a great selling point when you’re trying to fill your property.
Tampa Heights
This area is also close to many famous Tampa attractions. In recent years many developers have been focused on improving the area.
The median home price is a little more than some of the other neighbors, but it’s close to downtown, so it’s still relatively affordable. This is a perfect place for tenants who work downtown but want to be outside the hustle and bustle.
If you’re considering investing in Tampa Heights, it’s best to do it now. Soon the prices will increase, and you might have trouble making a profit.
Hyde Park
Hyde Park is a picturesque neighborhood that has a lot of original architecture. It has high-end restaurants and many great schools. It’s a great place for young adults and families who are looking for a safe neighborhood.
Up-and-Coming Neighborhoods
There are some areas in Tampa that haven’t become as popular yet. These neighborhoods have a lot of potential and as an investor, you’re going to want to purchase real estate here fast.
Ybor
Ybor is an up-and-coming neighborhood. Crime rates are slowly lowering, which means the homes are still affordable. If you’re looking into fixer-ups this is the perfect neighborhood for you to invest in.
There are many great things in Ybor that you can use to attract tenants. It’s about a five-minute drive from downtown and there are electric scooters all over the city that people use as transportation.
Ybor is rich in history and is known for its great Cuban food and trolleys that are still in use today. If you’re a developer, this is the perfect place to buy real estate as a lot of the land and buildings are commercially zoned.
University Square
If you’re interested in expanding your rental portfolio, be sure to look into University Square. The living cost is lower in this area, making it great for young adults just starting their careers and for retirees.
The neighborhood is close to the amusement park Busch Gardens and is another community that is on the up-and-coming list. The homes are still affordable, so if you aren’t able to get an affordable investment property in the more property neighborhood, this is a great option.
Highland Pines
At first glance, you may not want to invest in Highland Pines. This neighborhood has a history of high crime and low employment rates. However, the neighborhood is starting to look up; there’s still an opportunity to purchase property that has a fairly inexpensive price tag.
If you’re planning to purchase and hold for a few years, this could be a great place to start as property values are expected to increase. Not only will you be making a profit, but you’ll help improve the area and make it a safer place.
Real Estate
As you can see, Tampa is a great place to invest in. There are many opportunities no matter what your price point is. If you’re looking for high-end or up-and-coming, there’s something for you.
If you’re ready to get started contact us here. We’ve helped hundreds of people find the perfect real estate and you’ll do the same for you.
