When property investors look for a new location, housing demand and tourism spending rank as two of the most important indicators. Orlando is one location that does not require a lot of convincing.
Orlando is the number one travel destination in the United States. Last year, the Florida attraction capital had more than 74 million visitors from across the globe.
However, not all Orlando neighborhoods are equal. You need to do some research before purchasing a property in such a large city.
Read on to learn how to become a real estate investor in Orlando. Explore topics such as shopping in the Orlando property market and tips for buying real estate here.
Property Type
Perhaps one of the first steps is identifying the types of properties that you have an interest in. Orlando is a large city with many different property types.
For example, there are thousands of condos in the Greater Orlando area. Condos have great appeal for short-term tenants. They can stay for a week and enjoy the community's amenities such as a swimming pool or tennis courts.
Other property types include townhouses, apartments, and single-family homes. Each property type has pros and cons depending on your investment goals and target audience.
Condos may not be a practical choice for investors shopping for long-term rental properties. You should discuss property types carefully with your real estate agent before shopping.
Location
Getting a property inside Orlando's boundaries is not enough. The city is roughly 4000 square miles large.
Many people come to Orlando to visit the city's world-renowned theme parks. With traffic, however, you can be thirty to sixty minutes away from a Disney World theme park.
Instead, you should work with your real estate agent to look into the best Orlando neighborhoods. There are some key considerations to make before buying a property.
Safety is a critical consideration for any successful real estate investor. Tourists may not be attracted to your property if it is located in a dangerous locale in Orlando. The city is enormous and there are safe and unsafe spots for crime.
Understanding Market Conditions
There are many challenges to buying in the current housing market. Home prices are still on the rise. At the same time, inventory is low and competition for a limited number of properties is high.
Interest rates also weigh on buyers who need to finance all or a portion of the sale price. While mortgage rates remain high, the industry-wide consensus is that the U.S. Federal Reserve will lower rates in 2024. Borrowers can refinance and secure a lower rate when this occurs.
With home prices still rising, investors continue to buy. Their homes will appreciate in value and they will yield a higher return on investment.
Your Guide to Becoming an Orlando Real Estate Investor
The Orlando real estate market is lucrative, but also challenging. You can make a mistake in a city as geographically large as Orlando.
The good news is that SunnySide Properties has been successfully navigating the Orlando market for years. If you want to become an Orlando real estate investor, contact us at SunnySide Properties today to speak with an expert.
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