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Rental Property in Florida

How long should I hold on to my investment property?
ROI (return on investment) varies based on many factors, your costs to maintain the property; taxes, HOA, insurance, etc. If the investment property carries a mortgage, the interest rate is a factor as well. There is never a guarantee that a property will increase in value, but let’s say you did some solid research, purchased your property in a desirable location at a good price. This is where the old real estate adage applies; location, location, location. You can now assume your property value will hold, and most likely will increase by about 2%-3% per year. Yes, this is a modest increase, but in today’s real estate market this is a reasonable expectation. Markets do change quickly, and your investment property value rises or falls dependent upon geographical stability, age and condition, size and improvement, population movement, taxes, and the surrounding neighborhood. It is always a smart move to closely watch all investment properties to be certain that your investment is providing the return you anticipated. Of course, if your investment property is generating an income; it pays to hold that property until you have achieved your personal goal. I have many clients who purchase homes in anticipation of living or retiring to their investment property in the future. In the interim, the client has a home in a great location, purchased at a good price, that is generating an income. When they are ready to retire to Florida their home is ready to live in and enjoy.
Many clients also rent their Solivita home for the winter season; usually November thru April. During the other six months, they visit, vacation, and enjoy the benefits of owning a home in the award-winning community of Solivita. If you were to choose this option in Solivita your property would not generate an income but instead would cover the ownership costs and provide you and your family a great place to relax and vacation while you try out the fabulous Solivita lifestyle.
Not to be forgotten in the equation is the tax benefits of a rental property. However, you choose to manage your investments, home ownership is always a good choice to consider.