Friday, April 4, 2014

Canadians Buying Florida Real Estate

I have a visible Sarasota FL real estate website and I get a lot of calls from Canadian media asking me to advertise to Canadian investors.

Sarasota is arguably one of the best places, if not the best place, to invest in Florida real estate.  Best doesn't mean the least expensive.

Downtown Sarasota and Sarasota Bay

Unfortunately, a lot of Canadian real estate investors focus on the less expensive properties and gravitate toward less expensive markets like Orlando, Tampa, or Ft. Myers.  In my opinion, that's not the best approach to investing in Florida real estate.

Sarasota County is one of the top three affluent counties in Florida, with the top school district in the state.  Sarasota benefits from a world class reputation for arts, amenities such as fine dining, and lifestyle, including the consistently #1 rated Siesta Key Beach.  The affluent visitors to Sarasota could go to Ft Myers or Tampa, but they don't.  They come to Sarasota year after year.

These visitors are very often seasonal renters, and rent the same property year after year.  These affluent seasonal visitors pay higher rents to be in Sarasota, because Sarasota seasonal rentals, in good economies and bad, are booked far in advance and are in limited supply.  Low supply and high demand equals high occupancy and high rental rates.

The supply/demand equation means your Sarasota real estate investment is more likely to appreciate in value, at a higher rate than Tampa, Ft. Myers, or Orlando.

More evidence that Sarasota is in high demand:  local builders.  Sarasota County is experiencing a boom in new communities with single family homes and villas.  They are building apartment complexes in Tampa and Ft Myers.

My advice to Canadian real estate investors is to buy a single family home in the $250-$450,000 range, with a pool, as close to the beaches as possible.  The home does not have to be in a gated community.  Expect seasonal rental rates in the $3000 per month range.

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