Orlando, Florida is at the heart of Florida investment. The home is Disney and a leading Florida relocation destination, Orlando is tipped to be “the new Miami” for the rich list and “the new breadbasket for the state.” Billions of dollars continue to get pumped into Orlando, in tourism, life sciences and education, making it one of the safest and well positioned economies for both long and short term returns. It has an excellent employment market and is named one of fDi Magazine’s (Foreign Direct Investment) top 10 American Cities of the Future and is also in Forbes’ top 10 “coolest cities.”
The Orlando investment properties
Properties range from $90,000 up to $500,000 depending upon how many bedrooms, how close to Disney World, sq. footage etc. Exquisite custom homes will range from $700,000 to over 1 million and will be more geared towards very high end luxury renting.
Price Range: 90-$160,000 The average vacation rental condo is about 800-1400 sq. ft. We don't recommend anything less than 2 bedrooms for rental income purposes. One bedrooms tend to not rent very well at all in Orlando, they do better along the coast where there is less inventory and rates are higher.
Townhouses are two story homes that are attached to each other usually in rows of 4-6 units. These typically range in sq. footage from 1200-1800 sq. ft. with some luxury townhouses being as large as 2000+ sq. ft. Sometimes they will have small splash pools in the back, sometimes not. It depends on the neighbourhood. Typically these feature no less than 3 bedrooms but can have up to five.
Single Family Detached Homes:
Price Range: $175,000-$500,000 These can range from 1400 sq. ft. up to (on average) 3800 sq. ft. and are usually around 4-8 bedrooms featuring multiple master suites. We recommend the Single Family Home with a private pool (all single family vacation rentals will have private pools, if they don't do not buy it). The most profitable homes have 5-8 bedrooms but for the smaller budgets 4 bedroom homes can still return a good profit IF you are located in the right neighbourhood.
Price range: $220,000-$500,000
The vacation rental market is becoming so popular in Orlando that developers are now buying up as much land as they can find in the Disney areas and developing new vacation rental neighbourhoods. The great thing about buying new build homes is that they are constantly outdoing the last community. Every time a builder builds a new community they take all of the best features from their last one and do away with everything that didn't work.
They pay close attention to what rental guests are asking for and try and constantly implement these features in the communities. Things such as indoor game rooms (flex space) are more desirable than huge oversized bedrooms that you would normally find in residential homes. So builders are taking the unused sq. footage from bedrooms and instead using it to make a large game room in the house. They are also doing away with things such as a living room and a family room because of wasted space and are better utilising the square footage elsewhere. They are all being built with dual master bedrooms to accommodate higher paying bookings that travel with dual families (this generates more income to you) and are including dozens of energy efficient features that save you thousands of dollars in running cost in the long run. These are all features you wouldn't find in an older home. The communities themselves are also being built with five star resort style amenities.
Price range: $200,000-$400,000
The case for existing homes is also quite compelling as they can offer you something that newer homes cannot. They offer you the security of knowing that they can and will perform. You know going into the investment what type of rental income to expect because, like a well oiled machine, these homes have already been pulling it in for years. The property managers have spreadsheets and rental history reports of what these exact homes are renting for and what people are willing to pay. Many guests that stay in a vacation rental will often stay at the same place year after year because they know they will not be disappointed and it's familiar to them so they re-book. These existing neighbourhoods have a huge pool of people that are repeat guests and come back year after year. Many of the homes for sale in these communities are sold turnkey with bookings already lined up for the year and they transfer over to you when you close on the property, which means immediate rental income!
Now there is a low cost finance option available in Orlando, with a circa 5% APR with 30% down payment, subject to status. Please enquire to find out more.
What the experts say
“Orlando is the new breadbasket for the state. It's the location in the state that's going to have the most growth in the next decade or two." Dr. Sean Snaith, Institute for Economic Competitiveness at the University of Central Florida.
“People thing I am gushing about Orlando, but I’ve got to believe the city will be one of the fastest growing cities over the next 25 years.”Mark Vitner, senior economist, Wells Fargo.
“Orlando is the strongest economy, which is the long-term tendency for an area to consistently grow in size and quality. Orlando seems to be very much one of those cities of the future that’s still very young at heart and has a lot of growth ahead.”William Fruth, president, POLICOM.