They don`t earn commissions when you buy Florida Investment Property. It is also likely that you have probably never had an `apples to apples` comparison of stocks versus Florida Investment Property quite like the one you will see here.Leverage: Banks will not typically loan money to buy stocks. Banks will however, compete fiercely to loan money to buy Florida Investment Property. Your first question should be, `why is that`? It has to do with risk management, which we will discuss later. The fact that banks want to loan you money to buy Florida Investment Property creates a situation which we will call LEVERAGE.Let`s assume that you have $10,000 to put into some type of investment.
If you choose to buy $10,000 worth of stocks, you will own exactly $10,000 worth of stocks. Pretty straight-forward. However, suppose you choose to invest that $10,000 into Florida Investment Property using a 90% mortgage (which in many cases can go up to 95-100% mortgages in today`s market), you will own $100,000 worth of Florida Investment Property. If both of your investments were to appreciate by 10%, your actual gain with your stocks would be $1000 where your actual gain with Florida Investment Property would be $10,000. That equates to an actual 10% return on investment vs. a 100% return on investment. That`s what we call leverage.
New single and multi-family homes, condos and communities are popping up with styles that range from Old Southwest Seaside Florida condos for sale, which include such amenities as pools, tennis courts and fitness centers to make them more attractive to investors.