Casa Du Mcfimeh- 5 Reasons Why You Should Invest In Orlando Real EstateAugust 27, 2022
When it comes to real estate, Florida is gifted with some of the world’s most desirable residential areas; and none more so than Orlando.
A thriving tourism destination that attracts visitors, vacationers and investors from all over the globe, Orlando is a city that offers huge potential, particularly to those looking to make a mark in the real estate market.
There are many factors that make Orlando an ideal investment climate, but we’ve compiled a list of the ones we think matter most. Let’s get started.
1. Booming Local Economy
Officially the US’ number one tourist destination, it’s no surprise that Orlando’s economy is absolutely thriving. Boasting a range of world-famous entertainment, hospitality and sporting venues, Orlando’s tourism is unrivalled, and is a major contributor towards local economic growth.
Due to a highly favourable business tax environment, Orlando is home to a number of successful companies and large-scale enterprises that bring both job opportunities and ongoing investment to the area. An estimated 900 people move to Orlando every day, and as the population continues to grow, so does the demand for property.
In fact, between the years 2010-2018, the population of Orlando grew by over 19.6%. (US Census Bureau).
Benefiting from significant investment and infrastructure development, Orlando is undoubtedly one of the most built-up cities in the US. So much so that it officially ranks in the Top 10 large US cities for infrastructure, according to Foreign Direct Investment Magazine (fDi).
2. A Highly Popular Area
Major tourist attractions such as Walt Disney World, SeaWorld and Universal Studios make Orlando one of the World’s most popular places to visit. In 2018, Orlando tourism officials announced that Orlando received a record-breaking 75million annual visitors – a 4.2% increase from 2017.
This, along with other milestones including a record number of international visitors and airline arrivals, now officially confirms Orlando as America’s most visited destination.
With this increase in visitors, comes an increase in real estate interest. Whether it be vacation homes, permanent residences, or investment property, Orlando is expected to continue to profit from rising levels of demand for visitor accommodation.
An enticing prospect for investors, it’s no surprise that Florida tops the chart of top US destinations for overseas investment. According to the National Association of Realtors, the state of Florida saw a total US$24.2billion invested into the real estate market, with Orlando being well among the most favoured areas for buyers.
3. Significant Return On Investment
In terms of income potential, Orlando offers fantastic opportunities to prospective investors and homeowners. At a time where visitors to the city are at an all time high, there’s respectable revenue to be generated from homeowners who rent their properties out to vacationers.
More specifically, investors are beginning to realise the potential of resort properties. By investing in popular, professionally managed resort residences that have access to world-class amenities and hospitality services, investors are able to capitalise on the rise in demand for vacation homes and create a consistent, long-term revenue stream.
Resorts that are professionally managed, in particular, are built to cater to both leisure and group travel markets; providing an exclusive, personalised, premium resort experience that not only attracts a more affluent audience, but also encourages that audience to stay for longer. As a result, occupancy levels are likely to increase, meaning greater income potential for homeowners.
According the US Census Bureau, properties controlled by property management operations have an occupancy rate of 73.5%.
The Orlando Housing Market In 2019 – A Breakdown:
- Median Property Price: $320,194
- Price per Square Foot: $169
- Average Days on Market: 88
- Price to Rent Ratio: 17
- Monthly Traditional Rental Income: $1,603
- Traditional Cash on Cash Return: 2%
4. Appealing Yet Affordable
In addition to the superb range of attractions and resorts, another factor that makes Orlando an attractive proposition is the house prices. In comparison to other major US cities, Orlando is surprisingly affordable; and according to the National Association of Realtors (2017), is less expensive (cheaper median home cost) than San Francisco, Los Angeles, New York, Washington and Miami when it comes to property investment.
Not only is it cheaper to buy property, but it’s also easier to sell. Since July 2018, overall house sales has increased by 7%. If we break it down, single-family home sales increased by 7%, condos by 4% and townhouses/villas by 5% – suggesting that homeowners are keen to take advantage of Orlando’s favourable market conditions.
Other factors that make Orlando an appealing place to be is the cost of living. As well as offering relatively low median house prices, the cost of living in Orlando (i.e housing, food, transportation) is actually 4% below the national average. This, coupled with the fact that Orlando is also ranked as the number one city in the US for job growth, makes this region of Central Florida incredibly inviting.
In fact, according to the data collected by the U.S News, Orlando is ranked as the 63rd best place to live in the country.
5. Diverse Range Of Properties & Neighbourhoods
Central Florida has an enormous selection of investment property to choose from, and the very best is undoubtedly situated in Orlando. With a huge range of properties suited to all different types of lifestyles, Orlando has something for everyone. Residences range in shape and size, and include condos, vacation and family homes, resort accommodation, and exclusive properties.
There are many neighbourhoods throughout Orlando that offer highly investable property. Most notably, the Orange county area (home to Disney World), which accounted for over 35% of all Orlando real estate sales in 2017.
Other popular areas include:
- Lake Nona
- Thornton Park
- Lake Como
- Milk District
- Lancaster Park
- Delancy Park
- Baldwin Park
- Central Business District
- Rose Isle
In terms of real estate investment, the best neighbourhoods to invest in (based on estimated cash on cash return) are:
- Roosevelt Park (7%)
- Millenia (5%)
- Westfield (5%)
- Rio Grande Park (5%)
- Mariners Village (4%)
- Lake Richard (3%)
- West Colonial (3%)
- The Dovers (3%)