t’s not surprising that Florida is a top destination for many when looking to move. Nearly 1,000 people move to Florida daily, which equates to about 350,000 people per year. According to local experts, the average Orlando home selling price has increased by 44% over the past five years. With these year-over-year gains, buying a home in Orlando is a great opportunity for investment.
These stats offer compelling reasons to finally pull the trigger on buying a home, vacation home, or short-term rental property in Orlando if that is something you have considered.
And to quantify your reasoning even further, mortgage interest rates have been sitting at historic lows. In July of 2021, the average rate for a 30-year fixed-rate mortgage sat at 2.98%, the first time this rate has fallen below 3% since the government-backed mortgage finance firm, Freddie Mac, began publishing mortgage rate data in 1971. So with that said, here are 5 reasons to buy a home in Orlando right now:
We’ve already mentioned it, but while mortgage-interest rates are still historically low, purchasing a home in Florida can and will actually save you money in the long run. Low interest rates allow for more buying power, allowing you to find a home you’re really excited about–maybe even your dream home.
When buying a home in Orlando, you may even want to consider a vacation property or short term rental property. When doing so, you join the company of other savvy investors who understand and appreciate the value of real estate. A vacation home is not only a place to visit or call your second home but an investment or even a legacy you leave for your family down the road. When buying in a great market, like the one you can find in Orlando, Florida, and working with a Realtor® who can help you prioritize a good cap rate (the rate of return on a real estate investment, also known as capitalization rate) you can ensure your investment is not only an exciting one but a solid one, too.
While retirement may still be quite a few years down the road for you, purchasing a home in Florida can provide for the future in ways you may not even realize. One option for the future is using your Orlando home as a vacation home now, and into your everyday home down the road. And, if you want to continue to visit this home for special occasions or hosting family throughout the year… that’s okay too. That is truly an ideal vacation home situation, especially when the home is located in the vacation capital of the world. What’s even better—what you owe on your home at retirement could be next to nothing, which is a true win at that stage in life.
When you own an Orlando vacation home, it takes the guesswork, a lot of planning, and even added costs out of organizing your next vacation. Having this “home away from home” also allows you to become part of the local fabric that makes up the city your home is located. When you return to the same place year after year, you become comfortable with the community, build relationships and friendships with other residents, and really be yourself. Not to mention, Orlando is full of amazing theme parks, world-renowned eating and shopping, amazing nightlife and other entertainment, and is not far from Florida’s whitesand beaches.
Deciding to rent out your vacation home when you’re not actually vacationing in it could be a great opportunity to bring in additional income. Remember to lean on experts to help you with navigating owning a rental property. Using a management company will allow you to step out of the day-to-day dealings, ensure your home is kept in top condition, and help you bring in the best possible earnings on your vacation property.
It’s important that you work with a real estate agent who is experienced in the Orlando real estate market to help you find a home that works for you and your home needs. A serious, experienced, and responsible company that operates in the region is always prepared to guide its customers and present options aligned to the real estate needs and goals of each individual.
In September 2020, the newspaper Estadão* published an article* that said: “On the one hand, low interest rates have too restricted the horizon of traditional investment gains, such as fixed income, leading to the need for diversification, which opens up space for investments abroad. On the other hand, the real has already accumulated a loss of close to 40% against the dollar. Therefore, a property in the US offers investors the possibility of making exchange hedges, protecting them from a further devaluation of the real, insofar as part of the equity will be immobilized in hard currency.”
Combining the high tourist movement in Orlando and its surroundings, the reality of the current financial market and an efficient property management, it is possible to achieve satisfactory occupancy rates. Often, the cost of mortgage installments is absorbed by the income generated from short-term leases. Periods when the investor is not using the property are perfect for this. Thus, buying a property in Orlando is even easier.
It is noteworthy that property management is an important service available for hiring when owning an Orlando investment property. Glasstone has years of experience in the property management field and guarantees that, yes, it is really feasible to optimize the property’s income. With a series of precautions that enhance the satisfaction of guests and owners, buying a property in Orlando becomes even more intriguing and profitable. It is an extensive list of practical and bureaucratic recommendations and details that, when administered by those who know the subject, generate positive results.
*Source: https://einvestidor.estadao.com.br/investimentos/brasileiros-investem-mercado-imobiliario-estados-unidos
