Industry veteran Jeff Beggins warns that a combination of federal and state policy shifts will soon drive a surge in demand for Florida residential real estate, leaving investors with fewer opportunities to buy at current prices.
Florida’s residential real estate market is approaching a turning point, according to Jeff Beggins, Chief Evolution Officer at CENTURY 21 Beggins Enterprises. Beggins contends that upcoming changes in federal monetary policy, new mortgage products, and state tax proposals will soon reshape the economics of property ownership. He believes investors have only a brief period before these changes are reflected in higher prices.
“The best time to buy something was five years ago,” Beggins says. “The second-best time is right now.”
Beggins outlines several converging policy moves that he believes will sharply increase housing demand. He points to political incentives for the White House to stimulate the housing market ahead of the midterm elections. “We have a president in the White House that is a real estate guy who knows that he needs to boost this economy to win the midterms,” Beggins says. “Everything’s political, and you gotta follow the money in politics.”
Beggins highlights several specific mechanisms he expects to see soon: reductions in interest rates, the introduction of 50-year mortgage amortizations to lower monthly payments and expand buyer eligibility, bonus depreciation for investors and second-home buyers, mortgage portability to ease transaction friction, and a proposed Florida ballot initiative to repeal homestead property taxes.
He argues that while any one of these changes would increase demand, the combination will have an outsized impact. “The combination of all of these things all coming together at the same time is going to, in my opinion, make the overall market just skyrocket,” Beggins says.
Beggins bases his confidence in imminent policy action on the economic impact of housing transactions. He states that each home sale generates about $75,000 in local economic activity, including commissions, title and mortgage services, home improvements, furniture purchases, and moving expenses.
Policymakers, Beggins argues, understand this multiplier effect and are motivated to enact measures that will boost transaction volume. For investors, he believes the key issue is not whether these policies will be implemented, but how quickly they will affect property prices.
Beggins contends that the current quarter may be the last chance for investors to acquire properties before policy-driven demand pushes prices higher. “I think we have a tiny window of this first quarter, probably the first month of this first quarter, as the last of the outstanding deals in certain micro markets,” he says.
This creates a sense of urgency for investors who share Beggins’ outlook. Buyers who act now, he argues, can benefit from both anticipated appreciation and the leverage available through low-cost financing. Once policy changes take hold, increased competition and higher prices will make entry more difficult.
One financing tool, Beggins says, is currently underused: the debt service coverage ratio (DSCR) loan. These loans allow investors to qualify based on the property’s projected cash flow rather than their personal income. “As long as the projected cash flows come in and cover the mortgage, they’re very easy to get more financing on,” Beggins explains. “As long as the buyer has a decent credit score and a twenty to twenty-five percent down payment, they’re very easy to finance.”
Beggins argues that DSCR loans, combined with bonus depreciation, offer investors a path to building long-term wealth by acquiring cash-flowing properties with favorable tax treatment. He encourages investors to act now to maximize these advantages.
“Get a couple of friends together, form an LLC, buy an income-producing property, get the write-offs right,” Beggins advises. “Buy a short-term rental, buy a cash-flowing property, buy a little duplex, buy a little triplex, get the deductions right, and then learn about debt service coverage ratio loans. Buy something that’s going to cash flow and pay for itself, and then you’re going to have an appreciating asset you can actually pull cash out of and buy another one.”
Beggins’ investment thesis depends on several policy changes materializing as he predicts. If interest rates remain high, regulatory approval for 50-year mortgages stalls, bonus depreciation rules change, or the Florida property tax initiative fails, the expected surge in demand may not occur.
Investors following Beggins’ advice are effectively betting on the success and timing of these policy moves. Those who agree with his outlook may view the current quarter as a rare opportunity to buy at pre-boom prices. More cautious investors may believe that current prices already reflect optimistic assumptions about future policy.
Regardless of their stance, Beggins’ message is clear: “If you’re not leveraging debt properly, you’re missing the boat, and if you’re not doing it soon, you’re missing the boat, because prices are going to go up as demand increases.”
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