In todays blog I´d like to take the opportunity to share some really interesting facts we have unearthed regarding the Florida, and particularly the Tampa Bay markets. If you are still considering several different states from a property investment point of view, perhaps this information might convince you to take a closer look at our local market.
Some of the reasons we love Florida..
- It leads the nation in job growth (ahead of Texas)
- The unemployment rate is just 4.8% (full percentage drop compared to last year)
- It is an extremely landlord friendly state
- No state income tax and very low property taxes (usually in 1-1.5% range)
- Low cost of living, great infrastructure and competitively priced homes
- Great lifestyle, climate, beaches, people, food and amazing sunsets!
What is so special about Tampa?
- It is by far the most important area in Florida after Miami. Local economy is worth $130 billion!
- Consistently one of the Top 20 fastest growing metro areas in the county with population of 4 million
- Four Fortune 500 companies headquartered here, plus 15 others with turnover of more than $1 billion
- Diverse economy with financial services, education, military, avionics, tourism and telecom sectors
- Tampa MSA added more than 44,000 new private sector jobs during 2015
Some key economic facts about Tampa
1. Jeff Vinik (Billionaire investor and owner of NHL Tampa Bay Lightening team) has teamed up with Bill Gates´ Cascade Investment in a $2 billion investment to transform 40 acres of downtown corridor into an entertainment, residential and business hub.
2. Port Tampa Bay is partnering with a range of private firms in a $1.7 billion project on 45 acres of port owned property near the Jeff Vinik & Bill Gates site. The port envisions 9 million square feet of mixed use space over the next 15 years.
3. Tampa International Airport is halfway through phase one of its $1 billion renovation. This will help the airport accommodate up to 35m passengers per year (double the amount in 2013). It includes a 1.4 mile people mover track, a 2.6m sq ft car rental facility and a massive overhaul of main terminal with dozens of new restaurants and retailers.
4. Visitor spending in Tampa sustained over 48,000 jobs last year and generated sales of $5.6b in Hillsborough County alone. That is well above pre recession levels. Taxes from tourism are equivalent to $727 per household, one of the reasons Tampa is such a low tax environment for investors and local residents.
5. The University of South Florida in Tampa is one of the largest public universities in the nation and holds the distinction of being a top-tier research institution. With an annual operating budget of over $1.5bn, 48,000 students and 9,000 faculty staff, the USF has a major impact on the Tampa economy.
6. Tampa is home to US Central Command and the enormous MacDill Air Force base, which contributes $5 billion annually to the economy and employs over 15,000 people.
What is Tampa MSA made up of?
It´s important to remember that we deal with Tampa as a large metropolitan area. This is made up of many different towns and cities, each with their local authorities, permit offices, schools and other spheres of influence. It includes St. Petersburg, Clearwater, Tarpon Springs, Sarasota, Bradenton, Spring Hill and key commuter towns in the center of it all: New Port Richey, Port Richey and Holiday. The latter three are where we are most active.
These are great neighborhoods where we specialise in sourcing concrete build single family homes. We renovate them thoroughly, usually with new roofs, HVAC, kitchen, floors, paint and bathrooms. The average sales prices range from $90,000 - $120,000 and rents from $900 - $1200.
Our Latest Podcast
Earlier this morning I recorded a 20 minute podcast drilling down into the reasons why Florida, and particularly the Tampa Bay area is such a hot destination for rental property investors right now. We cover the business, tourism and educational sectors, the big infrastructure improvements that are underway and why we focus in community towns like New Port Richey & Holiday.
If you regularly listen to podcasts, just search for "Torcana" to view our entire archive, otherwise, you can click here to listen directly on soundcloud.
That´s it from me today - happy investing!