A recent survey ranks several locations in Florida as the best in the US for property investment. The reports highlights property in Jacksonville, Orlando and Tampa as especially attractive for the passive investor, particularly those building a rental property portfolio.
The survey carried out by JWD Group looked at cities in the US offering the best opportunities for the so-called armchair investor wanting to increase returns through buy-to-let investment. The results are dominated by cities in Florida – they take the top three positions with a total of seven cities featuring in the top 15.
Jacksonville is the top city in the US for property investment, followed by Ocala and Palm Bay on the Florida coast in second and third places respectively. Other cities deemed as excellent opportunities for property in Florida are Orlando (8th position) with the nearby city of Kissimmee (12th), Homosassa Springs (13th) and Tampa (15th) completing the list. No other US state has more than two cities on the list.
To ascertain the best cities in the US for property investment, the JWD Group survey looked at three main criteria. These included “price to rent ratio”, a combination of low property prices and high monthly rental rates ensuring investors cover their expenses as well as making money. Although rising, Florida property prices are still comparatively low while the strong demand for rentals ensures competitive letting rates.
Another pillar behind successful buy-to-let investment is a strong local economy supporting growing employment. To measure this factor, the survey looked at the number of Fortune 500 companies based in locations throughout the US. Florida offers some of the best climates for doing business in the US with low taxation and favourable conditions, reflected in the number of companies relocating to the state.
Lastly, the survey took property appreciation potential into account and looked at markets that have achieved above average price rises over the last 15 to 20 years. In addition to price appreciation, the survey also considered locations with low inventory rates and property that could be considered as undervalued.
Florida is no stranger to top rankings in property investment lists. The Forbes Where to Invest in 2015 list featured four locations in Florida tipped for their potential for safe property investment – Orlando, North Port, West Palm Beach and Jacksonville. Like JWD Group, Forbes found that Florida property ticked all the boxes for successful investment.
Source: JWD Group, Forbes