Land holding in Florida

[Linda Quinton]

We are just taking the plunge of several lots in Florida with the view to hold and sell later.  We have done the usual checks to make sure we are choosing the best lots but I just wondered if anybody would give a general opinion of land banking in the Florida area in general.  Promising?  A bad idea?  How do you do your research on where to land bank?

[Chad U.]

Hi @Linda Quinton 

Many areas of Florida were building like crazy during the boom and lots were selling for a huge premium, however since the crash have come back down in price to long term averages. However, as the economy is gaining steam, Florida is now the 4th largest populated state with many baby boomers retiring here, builders are starting to build again so lots will become in demand again. 

You should probably look into lots that are part of a planned gated community where some houses have already been built, but the builders stopped during the housing crash.  Also check that the development infrastructure and community amenities have all been installed, in some cases you can pick up a lot for less than what these costs were.  Therefore, you can own a lot similar to what a builder would purchase to build a home on, and there will be no further out of pocket expenses to get to 'build ready'.   These lots hold the most value.  

Focus on areas where tourism is strong (which is most parts of Florida), population is increasing, near beaches, and government is planning large infrastructure investments such as transportation like highways, airports, etc.  

Hope that helps.

Chad