Real estate investors from around the nation have been finding success in Tampa real estate for years now. There are many reasons why, you too, should invest in the Tampa real estate market.
The Tampa real estate market ranked among the top 20 US housing markets for real estate investing in 2018 according to the annual study of the PWC. Real estate investing websites like Realtor.com have predicted positive trends for Tampa investment properties for the upcoming year too. Here are the top 5 reasons to invest in Tampa real estate.
A Strong Economy Bolsters the Tampa Real Estate Market
The Tampa real estate market has been booming thanks to the strong economy. Worth over $130 billion, the local economy is supported by the presence of Fortune 500 companies such as Publix Super Markets Inc., Jabil Circuit Inc., and WellCare Health Plans, Inc. Besides these top performing companies, there are 19 companies with headquarters in Tampa that make an annual revenue of over $1 million. The success of these companies means an increasing demand for commercial real estate as well as residential real estate.
The city of Tampa also has a lower unemployment rate (3.1%) than not only the State of Florida (3.6%) but also the entire nation (4.1%). Job growth is at an average of 2.1% a year, with jobs being created in healthcare, financial industries, and high tech.
Along with this job growth comes population growth. Residential real estate investors will find that young professionals are always looking to become tenants of single-family homes and multifamily homes in the Tampa real estate market.
Why is the success of the economy one of the top reasons to invest in Tampa real estate? Real estate investors should always check the state of the economy of a location for an investment property. If the economy of a real estate market is in a bad shape, this can directly affect a real estate investment: high vacancy rate as tenants leave the area, lower rent prices as tenants cannot afford anything higher, etc. The Tampa real estate market, fortunately, won’t face any of these issues in the upcoming year, making it a prime location for real estate investing.
Related: Tampa: Hot Weather, Hot Real Estate for 2017
Tampa Real Estate Market Housing Inventory
All across the US housing market, the housing inventory shortage has turned the real estate market into a seller’s market, rather than a buyer’s market. Some real estate investors have become discouraged from buying an investment property anytime soon because of this. However, another reason to invest in Tampa real estate is the plans to bring balance to the real estate market (between a seller’s market and a buyer’s market).
Balancing the housing market will be achieved through plans for housing inventory development. According to Realtor.com, housing inventory development is predicted to increase by 20%. Combatting the investment property shortage in the Tampa real estate market will allow real estate investors buying an investment property to have not only a greater variety in rental properties but also more leverage for negotiating house prices. This makes it a great time for buying an investment property in the Tampa real estate market.
Tampa Real Estate Prices
Many real estate investors consider the Tampa real estate market to be one focused on expensive, luxury real estate investments. Perhaps the median house price somewhat supports this:
However, real estate investors should know that there are plenty of real estate investment properties that are more affordable in the Tampa real estate market, some as low as $90,000. Not only can real estate investors find affordable real estate investments in this housing market, but they can also make a great return on investment with them as we will see. Visit Mashvisor now to set a budget and find Tampa investment properties in the range you set.
Find Tampa investment properties that meet your real estate investing budget.
Besides finding the suitable price for Tampa investment properties to meet your real estate investing budget, know that real estate experts predict house prices will be on the rise this year. While most popular real estate investing sources offer varying predictions for the increase in house prices over the year (1.8-6%), they all agree that this rise will, in fact, occur in the Tampa real estate market.
This only furthers the case that now is the best time to invest in Tampa real estate. With house prices on the rise, buying an investment property now will get a real estate investor a return on investment within the year if he/she settles on selling the investment property.
Return on Investment with Tampa Real Estate
One of the most important reasons why real estate investors should choose to invest in Tampa real estate is the return on investment they can get on their cash investment. Even for the high median house price, the median rent for Tampa investment properties can bring a good return on investment:
This means that the Tampa real estate market has a price to rent ratio of 11.8, which is good for real estate investors considering buying an investment property in this housing market. While the price to rent ratio alone doesn’t mean Tampa investment properties will make good rental properties, the other reasons (economy, job growth, and population growth) mentioned do .
Click here to use Mashvisor’s investment property calculator to see the return on investment for the Tampa real estate property of your choice.
Even with more affordable Tampa investment properties, real estate investors will find that they can charge rent anywhere in the range of $950-$1,250 a month, depending on the neighborhood. So, Tampa investment properties will still make a good return on investment through rental income.
Tourism and Airbnb Tampa
The final reason to invest in Tampa real estate might actually be the most obvious one: tourism. It’s a known fact that Tampa is home to one of the best tourist markets in the nation, and this helps the success of real estate investments in Airbnb Tampa real estate. In 2017, Airbnb in Hillsborough County (which includes Airbnb Tampa) had 78,700 Airbnb guests, making up to $10.4 million.
Related: The Best Ways to Increase Airbnb Rental Income
Unlike other locations, Airbnb Tampa is legal. While owning Airbnb Tampa requires tax payments for sales and rental tax, there aren’t many things that stand in the way of investing in Airbnb Tampa. Be sure to check the zoning regulations of individual neighborhoods, as some don’t allow Airbnb Tampa to be run out of rental properties.
These five reasons are what most real estate investors look for in locations for real estate investing, and the Tampa real estate market has all of them! There is no reason not to consider Tampa real estate as your next investment property.
Related: Where to Look for The Best Real Estate Investments for 2018
