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Some real estate markets are lukewarm and others are very hot in terms of profit potential. Many investors are searching for the next lucrative market to open up with scores of rental properties. Florida has always been a popular place to invest, but recent developments in real estate have all eyes watching the Jacksonville market. This Northern Florida city is emerging as the place to go for rental properties at below market prices.
Factors Affecting Jacksonville Real Estate
The peak of the real estate boom began showing signs of trouble in 2007 and real estate prices have been steadily falling since then. There are many reasons why a homeowner enters a foreclosure, but the loss of these homes is fueling the market for real estate investors in Jacksonville, Florida. Current rental property and vacation homeowners are reaping the rewards of their investments well into 2012.
Historically low interest rates offered by financial institutions is another factor driving the current real estate market in Jacksonville. Investors that use cash down payments and alternative funding like loans or bank notes to make up the difference are doing so with very little interest. Many lenders are giving out loans to investors that purchase their first rental property or multiple rental properties.
New construction in and around the city of Jacksonville is bringing in more tourists and causing more people to take up residence in neighborhoods inside of the city and in the beach district. This rise in population is slated to continue for many years and investors that own rental properties will be positioned for long-term results.
Growing Jacksonville Towns and Neighborhoods
There are multiple sections of Duval county in Jacksonville, FL. Apart from the downtown area, there are many elegant neighborhoods and housing communities that are growing rapidly. New residents and tourists are moving into these neighborhoods as an alternative to living directly downtown.
Some of the growing neighborhoods include:
• East Jacksonville
• Lake Shore
• Greenfield Manor
• Secret Cove
• Spring Park
• Windy Hill
Jacksonville is surrounded by beaches that are just east of the downtown area. The beach communities are also a popular place to begin investing in real estate rental properties. The beach communities are Atlantic Beach, Mayport, Ponte Vedra, Jacksonville Beach and Neptune Beach.
What to Know About Jacksonville Rental Properties
Since Jacksonville has more residents than any other Florida city, the need for temporary and permanent housing is much greater. The influx of tourists, business people and new residents are helping to expand the rental property market. Rental income is traditionally larger in Jacksonville giving real estate investors a way to build steady income with long-term growth from rental property and vacation home investments.