There’s Money in the Dirt! – 5 Reasons Why Investing in Land in Florida Makes Sense

March 24, 2023

When you think of Florida, what comes to mind first? Maybe it’s the ocean and sandy beaches, or maybe it’s theme parks and tourist attractions. With its warm climate, beautiful beaches, and abundant natural beauty, it’s no wonder people from all over the world flock to Florida every year. While the Sunshine State is a highly attractive destination for tourists, it is also quite attractive to investors. Beyond its reputation as a popular tourist destination, Florida is also a great place to invest in land. If you are looking to invest in land, here are 5 reasons to strongly consider Florida.

1. Appreciation in Value

One of the primary reasons Florida’s land is so valuable to invest in is the potential for appreciation in value. Florida’s real estate market has historically seen steady growth in property values, especially in areas such as Miami, Orlando, and Tampa Bay. With a growing population and a strong economy, Florida is expected to continue to see an increase in real estate values in the coming years. Investing in land can provide you with a long-term asset that has the potential to appreciate over time.

2. Diverse Investment Opportunities

Another benefit of investing in land in Florida is the diverse range of investment opportunities available. From beachfront properties to agricultural land and urban lots, Florida offers a variety of land investment options. This means that there is likely to be an investment opportunity that aligns with your investment goals and risk tolerance. I personally have a dozen or so industrial and residential developers that are always looking for well-located, reasonably priced tracts of land.

3. Income Potential

Investing in land in Florida can also provide income potential. Depending on the location and type of land you invest in, you may be able to generate income through various means, such as leasing or selling the land for development. For example, if you invest in agricultural land, you could lease the land to a farmer for crop production, which can generate a steady stream of income while you wait for development opportunities to arise.

4. Tax Benefits

Landowners may be eligible for tax deductions on their property taxes and other expenses associated with owning land. Additionally, if you hold onto the land for an extended period of time and it appreciates in value, you may be able to defer paying taxes on the gains through a 1031 exchange (see my other blog on this topic here), which allows you to reinvest the proceeds from the sale of the land into another property without incurring immediate tax liabilities.

5. Hedge Against Inflation

Finally, investing in land in Florida can serve as a hedge against inflation. As the cost-of-living increases, the value of land often increases as well. This means that investing in land can provide a level of protection against inflation and ensure that your investment retains its value over time.

Investing in land in Florida can provide numerous benefits, including appreciation in value, diverse investment opportunities, income potential, tax benefits, and a hedge against inflation. Like any investment, it’s essential to do your due diligence and carefully consider your investment goals and risk tolerance before making any investment decisions. However, if you’re ready to pull the trigger and invest, reach out to me at [email protected] so I can help you find your perfect match.