There’s nothing quite like life in the Florida Panhandle. Long stretches of gorgeous white sand beaches are the envy of the continent. The exciting ambiance has a way of making residents feel like they’re on vacation all day, every day. The convenience of shops and services perfectly complements the beautiful scenery, and the dining scene must be experienced to be believed.
The best part of all of this? Florida Panhandle real estate prices are among the lowest in the country. Have you ever dreamed of elevating your life by buying a bigger home, owning a second property, or just getting onto the property ladder to begin with? You’ve come to the right place.
You can hardly ask for a better investment opportunity, whether you’re searching for a home of your own or a place to rent out; as more people start to eye the Sunshine State, one thing is certain. Real estate values are sure to rise over the long term. For an investment-minded individual, this might just be the best time to stake your claim in Florida Panhandle real estate. Let’s explore a few of the options in more detail.
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A Haven for First-Time Home Buyers
Buying a home as a young person was once a rite of passage into adulthood. Now, more than ever, this celebrated milestone is out of reach for the upcoming generations. High housing prices and economic uncertainty have made purchasing and owning a house borderline unattainable. For many first-time buyers, Florida Panhandle real estate shines like a beacon in a dark night, particularly compared to money traps like New York, Los Angeles, or San Francisco.
Even what would be considered “luxury” homes tend to be far more affordable here. Think of the possibilities that have just opened up to you! If you’re blessed with a higher level of financial abundance, you could potentially enter the market with a larger property with a private backyard and ample living space. For those with tighter budgets, your first condo or townhouse could be very attainable. However you make your purchase, you will start to build equity and be on to bigger and better things as time goes by.
Ready to start the search for your new home? You can see all of our featured listings right here.
Upgrade Your Home to Paradise
It’s rare for a homeowner to stay in the first house they ever purchased. Most people end up moving at least once or twice as their family dynamic changes. As your income and equity grow, you may decide that you want a larger home, a change in scenery, or both.
If you plan to upsize, Florida is a great place to consider, and not just because of the fabulous beaches and vacation lifestyle. People from all walks of life come here due to our booming economy and family-friendly environment. You can take your career to new heights while upgrading your home and lifestyle. The fact that you can get a lot more home for your money is just an added bonus!
Alternatively, you might consider investing in a vacation home you can retreat to when the cold weather hits other states. There’s nothing like a home-away-from-home in paradise (aka Florida) when you want to get away from it all. Whether you’re upgrading to a permanent home or a second property, you can rest assured that buying real estate in a highly desirable community is a solid financial investment.
A Real Estate Investor’s Dream
Has the idea of becoming a real estate investor ever occurred to you? Buying, holding, flipping, and renting properties can be big business and an excellent way to build generational wealth for your family. It all starts somewhere, so you might as well look to an affordable market with plenty of opportunity for growth. The possibilities are nearly endless.
- If you’re a first-time buyer, you can search for a home with a secondary suite. Renting out part of your house can cover a significant portion of your mortgage, if not all of it. What better way to break into the market?
- As an existing homeowner, you can cash out some of your equity to fund your down payment on an income property. Rental units in Florida are in high demand since so many people are seeking to relocate. Owning a second home provides an opportunity to earn passive income each month, and your purchasing power will increase as real estate rises in value.
- If you find a property in need of some care, you might purchase it now and flip it later. Profitable flipping has become more challenging due to the fluctuating market, but an experienced real estate team can help you uncover some prime opportunities.
- Have you been bitten by the entrepreneurial bug? Florida offers incredible opportunities in commercial real estate. Invest in a property to launch your own idea or rent out the space to another business owner for passive income.
Once you start moving up the property ladder, you’ll gain experience and confidence along with greater purchasing power. You could then invest in a third or fourth property, and so on. Holding multiple properties allows you to maximize your equity growth in the minimum amount of time.
Every time housing values go up, your net worth increases. You may even decide to keep adding more properties to your growing portfolio. This is the same path many real estate investors use to generate substantial wealth and income!
Did you know that Pensacola is a great place to invest in commercial real estate or start a business? Learn more in the posts below:
- Why Pensacola Is a Great Place to Start a Business
- Should You Buy or Lease a Commercial Building?
- Why Open a Restaurant in Pensacola, Florida?
The Challenges of Investing in Florida Panhandle Real Estate
Like anywhere, investing in the Florida Panhandle comes with some downsides and risks. The first question to ask yourself is whether you’re ready to become a landlord. The advantages on paper are significant, but it’s not always easy in the real world. Here are just a few challenges you may face along the way.
- You’ll be tasked with finding and vetting tenants for your property. If you find the right fit, you can enjoy a relatively stress-free investment experience. If not? We’ve all heard the horror stories from landlords with bad tenants!
- The property may be vacant for some time until you find the right tenant. You will have to carry all of the costs with no income until then. A financial cushion is beneficial, especially if this process takes longer than anticipated.
- Unless your rental agreement states otherwise, you are responsible for all maintenance of the home. You could bring in a property management company to deal with tenants and handle repairs, but this convenience will come at a cost.
- Though real estate values tend to rise over time, there can be short-term fluctuations. You could see a financial loss if you end up selling the property after owning it for a short duration.
You can minimize many of the risks associated with investing by researching ahead of time. An experienced real estate team can help you uncover the best properties with the most potential and guide you through the due diligence process.
On the plus side, Florida does not have rental control laws, which makes it one of the most landlord-friendly states in the US. You alone decide how much to charge each month based on what the market will bear.
A Note About Short-Term Rentals
It’s almost impossible to have a conversation about investing in real estate without talking about short-term rentals. In a vacation destination like the Florida Panhandle, the idea of owning an AirBnB or VRBO is particularly appealing. However, a nationwide housing shortage has resulted in some strict regulations on some types of investments. For example:
- You must obtain a Florida Department of Business and Professional Regulation license if you plan to rent your property for less than 30 days more than three times per year.
- Many counties will have specific regulations in terms of license requirements and occupancy limits.
- Homeowners Associations can have restrictions on short-term rentals or prohibit them altogether.
Before buying a property in hopes of listing it on a rental site, it’s a good idea to talk to an experienced local professional who can guide you through the various bylaws and regulations. As a client, The Zimmern Team is here to answer any investment-related questions you may have.
Do you need help narrowing down your home search? Here are some resources that can help:
- Buying A Home In the Florida Panhandle
- How to Prepare for a Military House Hunting Trip
- What Types of Homes Are in the Florida Panhandle?
The Stunning Communities of the Florida Panhandle
Pensacola
As the most populated (and still growing) city in Escambia County, Pensacola has earned a few fun and well-deserved nicknames. It’s called “The City of Five Flags” due to its rich and fascinating history. It also proudly bears the title “The Cradle of Naval Aviation” due to its military presence.
A fishing enthusiast’s delight, it’s also called “Red Snapper Capital” of the World thanks to the abundance of Red Snapper in the Gulf of Mexico. Or, as many of the younger and trendier locals affectionately call it, P-Cola.
Today, this highly sought-after community is primarily known for its incredible shopping and dining scene, great schools, and thriving economic core. You’ll find a diverse mix of young couples, growing families, professionals, and business owners among your neighbors here. No wonder Pensacola real estate is in high demand!
Pensacola Beach
The strip right along the Gulf of Mexico is part of Pensacola, yet it feels like a different community altogether. Fabulous seafood restaurants line the streets, along with a host of eateries ranging from casual to upscale. Pensacola Beach real estate options on the barrier island range from condos and townhouses to cozy beach cottages and luxurious waterfront homes.
Gulf Breeze
Do you love the idea of a beach lifestyle in a more peaceful, family-friendly environment? Enter Gulf Breeze, a laid-back community in Santa Rosa County. Imagine having three gorgeous waterfronts in view, with Pensacola Bay, Santa Rosa Sound, and the Gulf of Mexico as your borders!
Here, you’ll also find an eclectic variety of independent restaurants and locally-owned shops. Whenever you crave bigger-city excitement, just head over to Pensacola, which is just minutes away. Gulf Breeze real estate features numerous options, from bungalows, townhouses, and mobile homes to waterfront condos and sprawling estates within gated communities. There’s something for everyone at nearly every budget.
Navarre
Navarre offers a small-town feel as one of the less-populated cities in the Florida Panhandle. It’s also a waterfront community within the Pensacola Metro Area and home to numerous military members stationed at NAS Pensacola, Hurlburt Field, or Eglin Air Force Base.
Navarre’s pristine beaches are often voted as among the best in America. Understandably, you’ll find water lovers from all walks of life here, including fishing enthusiasts, surfers, boaters, and anyone who lives to be near the seaside.
If residents don’t come for the water, they come for the food. Navarre is practically synonymous with its stunning restaurant scene. If that’s not enough, both Pensacola and Destin are a short drive away!
As a smaller bedroom community, Navarre real estate can be refreshingly affordable, even for a beachfront location. You’ll find spacious family homes, villas, and condos at various price points. Values rise the closer you get to the shore, but remain reasonable in contrast with other waterfront areas.
Destin
If you’re looking for an exciting home with an urban feel, Destin just might deserve your consideration. This Florida town lies 50 miles east of Pensacola, at the northwest point of the Gulf of Mexico. As a well-known beachfront paradise, Destin is popular with tourists, especially during the winter months.
Local residents know Destin as much more than just a tourist hotspot with sparkling beaches and a thrilling entertainment scene. Its safe environment, access to premium schools, and scenic neighbourhoods make it a highly sought-after area for families.
Destin real estate values tend to be high as demand grows. For the right person with above-average income, this might just be the perfect place to invest in your next home or vacation getaway.
Do you want expert, personalized guidance when buying, selling, or investing in your next property? Our Florida Panhandle real estate agents are happy to help! Connect with us today at (850) 266-7245 or email info@thezimmernteam.com with any questions.
Meet The Team
Learn about The Zimmern Team’s full-service and community-focused approach to real estate.