Tampa is home to amazing tourist attractions and amusement parks, pristine beaches, endless shopping malls, and delicious restaurants. Not to mention they also are home to two champions: The Tampa Bay Buccaneers and the Tampa Bay Lightning.
It’s one of the fastest-growing cities in Florida, gaining over 250,000 residents between 2019 and 2020. If you’re considering renting out your real estate, that should be reason enough.
But there’s more! The city continues to keep the unemployment rate around or below 4%, which keeps people coming in for more jobs.
If you’re looking to invest in real estate, Tampa is the place to do it. Keep reading to learn why we think real estate investing in Tampa Bay is the best.
1. Tampa Investment Properties Are Affordable
Although rental properties and real estate is a hot commodity in Tampa, Tampa offers some of the most affordable properties.
When looking to invest, you don’t want to break the bank right away. Being able to afford a few properties, making profits, and investing again is a better way to do it. And Tampa gives you the ability to do so.
The median listing price of a home in Tampa is $344,900 as of May 2021.
2. Tampa Redevelopment Provides Opportunity
In the past few years, Tampa has been making it a priority to redevelop many different neighborhoods. From Downtown Tampa to St. Petersburg’s downtown, and from Ybor City to the Riverfront, Tampa has been creating safer, more attractive neighborhoods.
What used to be just the Channel District where ships would dock and warehouses were housed, it’s now a bustling epicenter of Tampa. Sparkman’s Wharf is a new hangout spot that offers fun restaurants, an outside bar with modern seating, and a big-screen TV to watch some of the best sports games.
The Riverfront continues to construct and change the original buildings. When kayaking on the Hillsborough River, you’ll see an old warehouse turned into a huge market and a few outdoor dining areas with top-notch food choices. Bikers will be riding by on the waterfront’s riverwalk, and dogs will be playing in the many parks.
One of the most popular areas of the Riverfront that has been redeveloped is Armature Works. Armature Works is the market that has cute, boutique shops and spectacular dining options from sushi to tacos. If you get bored, head outside to play jumbo Chess or sit in the sun gazing at the river.
Because of Tampa’s redevelopment, there is some newer prime real estate in the area.
3. Tampa Has Great Appreciation Rates
Back before the housing market crash in 2007, taxable rates in Tampa rose to be around 15-20% for property values. Although Tampa is not at the point right now, appreciation rates continue to rise year after year.
As such, Tampa is ranked in the top 20% in real estate appreciation.
Because appreciation rates are so high in the area, short-term investing gives Tampa Bay real estate investors high returns on their properties.
4. Tampa Is Home to a Booming Economy
With so many things to do around the area, locals are always out and about. That probably also has a lot to do with the beautiful warm and sunny weather. On top of the locals, tourists are constantly visiting the Tampa Bay area, pouring money into surrounding restaurants, local businesses, and hotel and Airbnb properties.
Since Tampa has a great job market, many people are flocking to the area to find these jobs. Because of this, the real estate market also experiences tremendous growth. Hint, hint: This means invest!
Tampa is the hub of four Fortune 500 companies and the newest place to house many start-ups and entrepreneurial businesses. This can be attributed to the lesser expenses for real estate, but better job prospects for the business.
Because Tampa offers so many diverse areas of business from amusement parks to Fortune 500 companies and top healthcare jobs to tourism boards, the economy is consistently growing.
5. Tampa Is Tax-Friendly
One of the best parts of investing in real estate in the Tampa Bay area is that Florida does not have any state tax requirements. Yes, please!
Tampa also has a lower overall tax burden of 8.9%, which ranks Florida as 34th out of 50 states for some of the lowest tax bills.
Investing in real estate with lower tax burdens will help you keep more money during your investment. Instead of constantly paying taxes, you can invest that in making your property better or maybe even buying another property.
Although state taxes are not an issue, it is important to know that there are local taxes. Property taxes in Florida can be on the higher end. With that said, you can try to exempt your property from these taxes if you qualify.
Choosing an area of Tampa with less property tax is also an option. With so many different neighborhoods, you’re bound to be able to find one that fits your budget.
Ready to Invest in Tampa Real Estate?
Once you’ve read the 5 reasons you should invest in Tampa, the decision should come pretty easily. Why would you not invest in an area with a booming economy, high appreciation rates, and tons of new developments?
If you’re ready to make the jump into investing in Florida property, contact us today at Alex Plotkin Real Estate. We’ll help you choose a beautiful property that is sure to be a great investment. With over 30 years of experience in the area, we know what we’re talking about.
Get started today!