When the subject of investments is brought up, most people do not immediately think of real estate. However, real estate is a potentially lucrative field to invest in, whether you choose to purchase a single or multifamily home, condo, condo hotel, commercial, or other type of real estate. Several real estate options have the ability to be rented out, an avenue that can offer you an additional income. Beach property is an especially good investment, as demand for this type of property will always be higher than supply. Land availability for new construction is very limited, so such properties will always be in demand. You have several choices when investing in real property. You can choose to buy a property at a fairly low price, repair or otherwise improve it, and sell it quickly for a profit. You can also choose to buy real estate and hold it, living there until it has appreciated enough to sell for a profit. If you plan to purchase and live in your home for many years before selling it, you are almost guaranteed to turn a profit. Most real estate profits don't happen overnight, but good things come to those who wait.

Pinellas County, Florida is a prime place to enter into the field of waterfront real estate investment due to its 400+ linear miles of coastline. Many recreational activities, a strong job market and local economy, and high-quality local schools make the Tampa Bay area an excellent location. The median price for homes in the Tampa Bay area rose 17% last year alone. Homes on the barrier islands rose in price between 70% to 90% over the last five years. In the Tampa Bay area, median home prices changed 31 to 58% since 1998 - the 26th most changed area nationally. The real estate market in the Tampa Bay area is part of a national trend that has seen the sharpest increase in the value of homes since World War II. If properly done, investing in real estate can allow large profits, a place to live in between sales of houses or condos, and even early retirement. Florida weather, a 3% cap on homesteaded property tax, and a lack of state income tax are just three reasons that people are rushing to move to this tropical locale. In the month of February, 2004, sellers in the Tampa/St. Petersburg/Clearwater Metropolitan Statistical Area saw a 28% gain in the 2,561 homes they sold.

In January of 1998, many people, encouraged by a historically large increase in stock prices, invested in stock instead of real estate. Unfortunately, this turned out to be a bad investment. Many people lost money when the stock market crashed at the end of the last millennium. If you are seeking a different, intelligent way to invest your money or expand your portfolio, take advantage of the opportunity of buying real estate. Real estate, especially waterfront property, is a relatively safe investment, as large-scale declines in home prices are rare. Price fluctuations do occur, so in order to maximize profit, you should use this to your advantage and buy real estate at a low price and sell when the market goes back up. Currently, the real estate market is a better investment opportunity than money markets, the stock market, an IRA, or a 401(k). Should you choose to use your IRA retirement funds as a down payment on a piece of property, you will still be able to receive tax benefits, plus the property you invest in will appreciate faster than the IRA would accrue interest. You will also broaden your portfolio and enjoy more control over an investment property than the stock market.