In Real Estate for investment purposes, you generally have two possibilities:

1) Commercial Real Estate

Commercial R. E. in the United States comprise property like office buildings, shopping centers, and warehouses.

With investing in commercial property, normally the gains can be considerable higher than from residential Real Estate, however, it also bears a higher risk. Entering into commercial Real Estate can be recommended for investment capital of $1,000,000 and higher.

2) Residential Real Estate

Like with any Real Estate investment at all, the location of a residential property is thee most important criteria. Residential Real Estate differs considerably between homes, condominiums, and apartments.

For investment purposes, most homes achieve better gains than condominiums or apartments. Condominiums and apartments are generally operated at higher costs, e. g. for maintenance of common elements, pool service, landscaping, thus generating a lower cash flow.

All residential Real Estate properties distinguish between their usage:

2.1. Owner occupation

Someone who is looking for a property in Florida for his own usage, should actually look at the property and buy that property which matches his personal criteria. Everyone has a different taste! If desired, OVERSEAS REALTY Inc. can locate a suitable lot for you and build a home on it - customized to your needs.

On the other hand, in the resale market, i. e. the local market of pre-owned Real Estate properties, OVERSEAS REALTY Inc. offers to represent you and your interests as your Buyer’s (or Seller’s) Agent in a purchase (or sale) of Real Estate. This professional representation of you as a buyer is free of charge because the brokerage fee is usually paid by the seller and is split between the Seller’s Broker and the Buyer’s Broker.

It is not recommended to put a "property-designated-for-own-use" up for rent since the gain is mostly modest. Effort and annoyance are often higher than the anticipated benefit. Therefore, a Real Estate property should either be determined for "own use", or serve as an investment for the highest possible yield.

2.2. Sole Investment

Real Estate investments are supposed to generate high yields from leasing and appreciation. Such properties distinguish in use as follows:

2.2.1. Short-term Leasing

Short-term leasing or vocational leasing can, subject to high occupancy, generate high yields, however, it also bears high vacancy risks. To be attractive to vacationers, the short-term lease property must have a prime location, e. g. on or near the beach. It should be considered that such properties are more expensive to purchase.

Furthermore, such properties require a high effort to accomplish and maintain a high occupancy rate, whereas reality often proves to be different: Fully rented during season, they suffer long vacancies during off-season.

Additionally, these properties must be turnkey-furnished. If damages occur, it is especially annoying when the precious personal property is affected, e. g. when the property is periodically used by the owner as well (thus mixture of usage). Many properties along the beaches may only be rented two or three times per year, which is intended to restrict short-term leasing to a minimum.

Therefore, a Florida property either for "owner’s use", or for "sole leasing" (investment).

2.2.2. Long-term Leasing

The most secure and profitable use of a Florida property as an investment is its long-term leasing. Also, a property which is being leased for several years, and then being owner-occupied is an attractive investment alternative.

Therefore, OVERSEAS PROPERTY MANAGEMENT Inc. has specialized in long-term leasing.

 

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