Are you considering buying an income property in Jacksonville? If you are, then this is the best time to do so. Florida has for the past couple of years been a hot market for investors looking to buy an investment property.
According to a recent PwC report, this trend is expected to continue well into 2019.
The report mentions some big-name cities like Miami, St. Petersburgh, Tampa, and Orlando. However, what’s interesting is that it also mentions other cities that are usually under the radar, one of which being Jacksonville.
What exactly qualifies Jacksonville as a good option for buying investment property in 2019? The answer is simple. The Jacksonville real estate trends!
Before we look at tips for buying investment property in Jacksonville, let’s look at some of the city’s real estate trends.
5 Jacksonville Real Estate Market Trends
1. Jacksonville has affordable investment properties.
With the median investment property costing $320,000, Jacksonville is a haven for affordable properties. This is lower than the national average.
Things get even better in some of the city’s best neighborhoods, as the median property price gets as low as $117,000.
Admittedly, though, affordability is subject to change. A report by Realtor.com found that houses for sale are poised to go up by about 4%. If this indeed happens, it would be roughly twice the national average.
For this reason, if you are looking to buy a property in Jacksonville, this is the best time to do so.
2. The city is appealing.
Being part of Florida already makes Jacksonville a hot real estate destination. Florida has some of the nation’s best beaches and sceneries. These drive many people to visit the Sunshine State.
This drives up demand for Jacksonville, Florida’s investment properties.
3. Jacksonville has high employment growth.
Jacksonville, according to the report, is expected to continue its high employment growth in 2019. This will be more than the national average.
Furthermore, the higher the rate of employment growth, the more the population will increase. Ultimately, this will mean a larger tenant pool.
4. Jacksonville has a strong economy.
Florida’s economy ranks 4th after big-wig economies like New York, Texas, and California. It’s also one that is growing rapidly. In fact, Forbes has ranked it the 8th biggest city with the fastest growing economy.
It has also been ranked the 7th best city for future job growth.
The state’s housing market predictions, as you’d expect, are significantly influenced by this strong economy.
5. Jacksonville has a growing population.
Jacksonville, as it is, is the most populated city in Florida. It’s also in the contiguous United States, the largest by land area. With such a large population comes a large tenant pool.
In fact, almost half of the residents in the city are renters. It’s no wonder the city is a magnet for investors looking to buy income properties.
With this in mind, now let’s look at 4 tips for buying investment property in Jacksonville.
1. Understand your risks.
Real estate investments, as with any other type of investments, are risky. Jacksonville real estate is no exception. Therefore, always consider some things prior to making the purchase.
Firstly, know that your property will not always have a tenant. Tenants can move out for all sorts of reasons.
Secondly, understand that you’ll not always have great tenants. You may encounter some that may end up causing excessive property damage.
Thirdly, know that you may need to evict a tenant at some point during your landlording career. Tenant evictions can be lengthy, time-consuming, and costly.
If this is your first investment, it may be in your best interest to hire a professional. A good property manager can help you handle things like property marketing, rent collection, property maintenance, and evictions.
2. Calculate your investment rate of return.
If you are like most investors, your goal of investing in Jacksonville real estate is to make money. For this reason, get to know what you can reasonably expect to make from your investment before signing on the dotted lines.
So, what’s the best rate of return on an investment? Frankly speaking, there is no direct answer to this common question.
This is because the rate of return usually depends on several things. Such things include the location, investment risks, and size of the rental property.
To determine the rate of return of a particular property, it is recommended to hire a good real estate agent.
3. Find the right neighborhood.
Location is everything when it comes to real estate investing. It can make the difference between a money pit and a money making machine.
The question is where should you by investment property in Jacksonville? The following are some recommendations from Mashvisor.
Sandalwood
- Price Per Square Foot: $130
- Median Property Price: $255,979
Hogan’s Creek
- Price Per Square Foot: $105
- Median Property Price: $223,550
Lackawanna
- Price Per Square Foot: $118
- Median Property Price: $144,700
29th and Chase
- Price Per Square Foot: $92
- Median Property Price: $116,633
4. Don’t let your excitement cloud your decision-making.
In other words, buy with your head and not your heart. Don’t make the mistake that beginner investors make of ‘falling in love’ with a property. This could cost you a lot of money and time.
What you want to do is put your emotions aside and think logically and rationally.
Buying an investment property in Jacksonville can be very profitable. However, similar to any other investment, you need to do your due diligence. This article aimed at helping you get started in this regard.