WHO WE ARE
Argentico’s principal is a Florida realtor, whose license is on Palm Beach Island with its oldest independent broker. This firm also manages investor rental properties. We do not charge additional commissions.
WHY INVEST IN PALM BEACH
The point of this newsletter is we heartily recommend investing in single-family-homes, not in apartment buildings with rules forbidding multiple renters, as is the case in much of the Miami realty investment market.Palm Beach County is replete with affordable single-family-homes, and with a solid workforce with a need for rentals. Furthermore, the millennial trend is to rent, not to buy, so the demand to rent continues.
These homes are not far from the Atlantic Ocean, important golf courses, and polo.
ONE REASON WHY PALM BEACH COUNTY HAS A SOLID ECONOMY
One reason Palm Beach is so strong is the Business Development Board of Palm Beach County works strategically to attract new business. From hedge funds to agribusiness, the county seeks to bring in new commerce, especially from the Tri-State region surrounding New York City.
(Note: The Business Development Board recently brought the United States Polo Association to Palm Beach from Lexington, Kentucky.)
PROPERTIES
Here are three economical options, all in North Lake Worth, which is a community near everything and increasingly interesting. All of these examples are from the official Multiple Listing Service, the only web search method of confidence, and accessible only via a licensed realtor.
2 bedroom house and 2 bath. Approximate price $175,000.
Taxes $1,340.
Annual rental income 20,400 (*net return 7.9%), plus real estate capital appreciation.
Similar home. Approximate price $160,000.
Taxes $1,500.
Annual rental income $18,700 (net return 7.8%), plus real estate capital appreciation.
House with separate rental apartment. Approximate price $140,000.
Taxes $3,939.
House and apartment combined annual rental income $26,400 (net return 14.1%), plus real estate capital appreciation.
*By net return we deduct the bulk of expenses an investor will incur, such as insurance, taxes and the like, from income.
We recommend reading this article from the Palm Beach Post which mentions 9.5% returns in real estate.
Wellington
Wellington is located 20 kilometers from Lake Worth and 22 kilometers from Palm Beach Gardens and is in the center of international horse country. The homes are desirable as rentals, and mostly are within developments. Some are luxurious.
Here is a home of 3 bedrooms with 3 and a half baths in the development Breakers West, and is situated for polo and other equestrian activities.
Price approximates $350,000.
Taxes $4,568.
Annual rental income $28,800 (net return 5.2%), plus real estate appreciation.
Golf Property
The Club Cottages – located in the Professional Golfers Association of the Americas (PGA) Palm Beach Gardens – sell for between $200,000 and $265,000, and rent during “the season” for approximately $5,000 per month. (With golf membership, they rent for about $6,500 per month.) Out of season they rent for about $2,000, and annual rent approximates $1,800 monthly.
The Golf Villas rent for approximately the same prices.
We can help out-of-town owners manage these rentals, in and out-of-season.
These are highly sought-for rentals during season, typically October to April, with very high season November to February.
IMPORTANT DETAILS
The Sun Sentinel published a very important article on sea-rise in Palm Beach vs Miami. Please, read it.
Also, there’s to be a new train service, from Miami – through Ft. Lauderdale and Palm Beach County – to Orlando. This service, called Brightline, is thanks to the visionaries at All Aboard Florida of Florida East Coast Industries. It has won design awards from Fast Company. The Coral Gables-based enterprise behind this dates back to the days of Henry Flagler and the Rockefellers’ Standard Oil, when they all helped create the region’s original train service.
NEXT NEWSLETTER
The sixth issue of The Up Shot is to be about commercial property in and around Buenos Aires, and REIT-like (real estate investment trust) investments here.