Stretching for hundreds of miles along the Atlantic Ocean and the Gulf of Mexico, Florida’s beaches are renowned for their popularity among tourists, with over 140 million visitors each year. These sandy shores also hold great appeal for residents and retirees looking to settle down in the sunny southern state.
Florida is often seen as an attractive place to live, thanks to its pleasant weather, abundance of things to do, and lack of state tax. However, Yawar Charlie, a seasoned real estate agent and member of CNBC’s “Listing Impossible” cast, advises potential buyers to exercise caution before investing in property there. “Not all sunny spots in the Sunshine State are wise investments when it comes to real estate,” he informed us.
Despite being based in Los Angeles, the luxury real estate agent has a diverse client base that spans both California and Florida, allowing him to stay knowledgeable about both markets.
Miami Beach
Miami Beach, with its pristine beaches, lively nightlife, and world-class dining, is often considered a great vacation or wild Spring Break hotspot. However, Charlie advises against buying property in this area.
“Indeed, Miami Beach exudes glamour, yet the escalating sea levels and more frequent hurricanes present substantial risks,” he stated. The rising cost of property insurance is a growing concern, with the possibility of long-term value decline being a genuine issue. It’s as if purchasing a stunning beachfront property with an impending disaster lurking beneath.
Daytona Beach
Daytona Beach in Florida is a highly sought-after destination, boasting an impressive 23 miles of pristine white-sand beaches. It offers a wide range of water activities such as surfing, swimming, windsurfing, and kayaking. Additionally, its affordability should not be the sole factor in your decision-making process. Despite its attractiveness and low cost of living, exercise caution before making any investments.
“Despite its renowned speedway, Daytona Beach faces challenges of economic stagnation and high crime rates,” Charlie explained. According to Neighborhood Scout, the likelihood of becoming a victim of a violent or property crime is estimated to be one in 28 people.
According to Charlie, the real estate market has been slow and property values are expected to stay stagnant without significant economic growth. Investing in this place may make you feel trapped in a stagnant position.
Fort Myers
Fort Myers is a stunning destination for beach lovers and those seeking relaxation. However, Charlie cautioned against making investments in the area.
“Fort Myers is grappling with challenges related to overdevelopment and environmental issues, specifically concerning water quality,” he shared. The housing market has experienced significant fluctuations, and there is uncertainty regarding its long-term growth prospects. It’s similar to purchasing a fancy car that could potentially run out of fuel.
Pensacola
Pensacola’s stunning turquoise and pristine white sandy beaches offer the perfect getaway, but Charlie cautioned potential homebuyers to steer clear.
“This city has experienced economic challenges and limited job growth, which has had an impact on the housing market,” he stated. “The presence of high crime rates and a dearth of new development projects diminishes its attractiveness to potential investors.”
Based on data from Neighborhood Scout, the crime rate in this city is significantly higher compared to other cities in the state. Additionally, there is a concerning statistic that suggests a relatively high chance of individuals becoming victims of violent or property crimes.
“Investing in this place might be as challenging as trying to catch a wave in a small pool,” Charlie remarked.
Ocala
Ocala is a charming and well-maintained city that offers affordable options, but it’s important to be mindful of your expenses. According to Neighborhood Scout, Ocala has a crime rate that is significantly higher than other communities across the United States, regardless of their size.
And as per Charlie’s perspective, there are additional causes for worry.
According to him, Ocala’s real estate market is affected by sluggish economic growth and a lack of amenities, despite being affordable. The region’s economy is heavily dependent on agriculture, which is known for its unpredictable nature. It’s a peaceful town, but the calmness may hinder the growth of your investment. Consider it like investing your money in a time capsule, with no assurance of future benefits.