Investing in real estate is an excellent way of diversifying your portfolio and earning a significant sum of money compared to other assets. When investing in real estate, the primary consideration is the location. And if you’re trying to decide which real estate market to invest in, there’s no better place than Palm Beach, Florida.
Home prices are breaking records
While the world’s real estate market prices are heading south due to economic uncertainties, the same doesn’t hold true when it comes to the sunny sands of Palm Beach. Palm Beach real estate remains to be among the most expensive real estate in all of America. Home prices keep breaking records, and the demand for luxury real estate in the area shows no signs of slowing down. Large luxury properties are priced in the tens of millions with celebrities and high-net-worth individuals snapping them up. Early this year, a renovated private island in Palm Beach was listed at a whopping $218 million, the most expensive listing in all of Florida’s history.
Location is always key
At the end of the day, real estate boils down to three things: location, location, and location. What’s great about Palm Beach is that it attracts folks from all over because of its year-round pleasant weather, and the stuff it has to offer. Palm Beach is diverse and filled with things to do and places to go, from shopping boutiques and high-end dining restaurants, to fun water activities and entertainment everywhere you go. Despite the hustle and bustle of the town, however, Palm Beach remains to be a great place for winding down and relaxing because most properties offer their owners privacy, peace, and quiet. This is why a lot of celebrities and businessmen relocated to Palm Beach during the pandemic, and why a lot of high-profile personalities continue to do so to this day.
Flipping is the future
House flipping is an investment strategy where an investor buys a home and renovates it for the purpose of selling it at a much higher price than it was bought. Given the high-profile clientele in Palm Beach, many investors looking for a faster ROI resort to this method. However, flipping is not as easy as it sounds. It requires capital to secure a property and flip it. And the faster you put the rehabbed home on the market, the more money you’ll make. One lender estimates that getting a house ready to sell will take from 3 to 6 months for experienced home flippers, 6-12 months for “reasonably experienced” flippers, and 12-18 months for inexperienced flippers.
Given the built-in challenges of house flipping, it remains to be an effective way of turning a quick profit because it takes a relatively short timeline compared to the buy-and-hold strategy, which is passive and long-term. In fact, house flipping accounted for 9% of all home sales in the first quarter of 2023, the second highest level in about 100 years.
Investing in real estate in Palm Beach may have high costs, but it also has high returns. Some luxury properties in Palm Beach sold by as much as 86% higher than the original cost after being flipped. Tommy Hilfiger himself bought a mansion in Palm Beach at $36 million and sold it a mere three weeks later at $41 million. A lot of investors engage in several flips to generate a steady stream of income.
Rentals are safe and steady
For those who want to invest but don’t want to flip a house, renting out a property is a great option too. Many investors purchase second homes that they rent out until they eventually either sell it or move into it. This method is relatively less costly, because even small properties such as apartments are popular among tourists and digital nomads. An apartment in West Palm Beach was renovated into an Airbnb in under two weeks, and has since earned its return on investment.
Find the perfect investment property
If you want to own investment properties in Palm Beach County, the Telchin Group LLC can help you find the perfect property in Palm Beach, The Club at Ibis, or other neighborhoods in Florida. With top Florida Realtor Eric Telchin heading the team, the Telchin Group LLC is represented by agents equipped with the expertise, knowledge, and passion to provide clients with a smooth and hassle-free home-buying experience from start to finish.
Contact the Telchin Group today at 561.301.0249 or send an email here to schedule a consultation.