Advantages and Trends of Purchasing Real Estate in Central Florida
We believe that real estate is one of the greatest investment opportunities and should be a significant part of everyone’s financial picture. Most people start with their primary residence and we strongly believe it should not stop there. The key to real estate investing for most people is leverage. For example, if you invest $50,000 in the stock market, you typically get the return on the $50,000 in stock value. If you invest $50,000 in real estate, you can leverage a $500,000 property. So a 10% return on your stock investment brings you $5,000 versus your real estate investment which is $50,000.
Besides being a great investment, a significant bonus to buying a 2nd home/vacation home is that you typically get the use and enjoyment of the home. Owning a vacation home can lead to a legacy of great memories with family and friends. And, it is an asset that can be passed on from generation to generation.
Often times a vacation home is used as a business tool to meet with business associates. Orlando is full with great golf courses, fine dining and fun nightlife. There is no better place to mix business with pleasure, than Orlando.
The dominant trend for vacation homes is towards a fully amenatized community, which includes features such as large gradual-entry pools, tiki bars, restaurants, movie theaters, game rooms, gyms, water parks and man-gated entrances. These features help bring up the occupancy and rates for these types of properties. There was a trend towards Condo/hotels during the peak of the market but this died off during the downturn in the real estate market. However, there could be a resurgence of these types of properties, which tend to get good occupancy and rates as long as they are well located and offer an abundance of amenities.
We’ve all heard the saying, “Location, Location, Location” when trying to decide on where to purchase. Even in today’s market, location still trumps price. With so many low-cost opportunities to choose from, it’s hard to decide on where to pick up that irresistible deal. So many communities are “on sale”. How do you choose?
It’s our contention that location, above all, will continue to dictate the success of your investment. Especially for vacation rental properties, those located close to the Disney area have a distinct advantage. While there are unbelievable deals to be found “out of pocket”, it’s the rental units with the highest rates and occupancies that will dictate the value of your investment down the road. In comparing identical homes, one close to Disney and one that is not, the cheaper home would not be the best choice – even if your mortgage and expenses are less.
Ask your Global Real Estate Professional which communities offer the best price, location and rental amounts. Properties in these communities appreciate faster while delivering more rental revenue to offset your expenses. While the game has most certainly changed, the fundamentals remain the same.