The presence of big employers nearby, various amenities, and new construction are some of the many reasons why investors choose Orlando real estate as opposed to other cities. As more people are moving to Orlando, more demand for Orlando real estate is apparent. Short-term and vacation rentals, in particular, have come to constitute a bigger share of the real estate market and continue to lead the market in 2018. According to real estate market analysis, investing in Orlando real estate in 2018 marks an excellent investment strategy. But what is making Orlando real estate the most diversified? What is driving the strength of this real estate market? And what neighborhoods are seeing the most potential for high cash on cash return?
We at Mashvisor have studied the Orlando real estate market and provide you below with some factors that have contributed to the desirability and attractiveness of the Orlando real estate market in 2018. We further explore three top neighborhoods which as a real estate investor you should know about.
Tourism Sector Flourishing
Orlando has a plethora of tourist attractions such as Disney World and many others that continue to make the city one of the most visited of American cities. In fact, Orlando draws over 62 million visitors per year. Airbnb Orlando, in response, is flourishing; more people are demanding short-term rentals and choosing Airbnb for their experience. If you are moving to a different city for a couple of days or months, we highly recommend that you rent your space on Airbnb. Not only will Airbnb provide a pleasant and profitable experience, but it will keep your real estate property lively while being away.
Prior to your investment in Airbnb, it is important to understand Airbnb’s policy and hosting standards for listing a property, communicating with guests, maintaining the space, and providing necessary amenities. While managing property while away can be daunting, new third party agencies have made it possible amidst this industrial revolution.
Orlando real estate is flourishing partly because of the growing population the city has been seeing in recent years. With a population growth reaching 7.3% over the past three years, Orlando’s population today has reached over 3.3 million residents. This growing population has consequently contributed to a boom in the job market and particularly the tech industry. Recent analysis has concluded that jobs in Orlando grow at 4.5% annually. Being the 3rd most populous city in Florida, Orlando is a target for many for its growing job market, breath-taking sceneries, theme parks, natural beauty, and blue lakes. If you are looking for a vibrant city with potential for job employment and real estate investment opportunities, we then recommend that you do further research and maybe plan a visit.
Luxury Homes and Higher Return on Investment
The demand for rent and ownership of luxury homes is on the rise in the Orlando real estate market. Because luxury houses can also be vacation rentals for many wealthy tourists, the demand for them has been high and proportional to the rate of visitors who continue to flow into the city every year. Moreover, because the demand for luxury homes is increasing, so is investors’ interest in owning them. Real estate investors are looking into purchasing luxury homes in order to make a profit. However, this sounds like a profitable idea only if you are wealthy enough to afford to purchase a luxury home in the Orlando real estate emarket, specially since proeprty prices have gotten unbearably high.
Top Neighborhoods in Orlando Real Estate
We at Mashvisor have assessed the numerous neighborhoods in the Orlando real estate market and selected the three neighborhoods with the highest potential for investment. As you read further, ensure to do more research pertaining to your desired neighborhood or area. Get help from Mashvisor and its real estate investing tools to help you conclude on a good location and the best invesment property.
- Median Home Value: $320,000
- Median Rent: $1,000/month
A suburban neighborhood in Orange County, Winter Park is home to many of Orlando’s well off residents. Its streets are made of cobblestone, and its architecture is ancient and beautiful. It is of no surprise to find culture gems in the backyards of many houses. Although rent is relatively low as compared to other surrounding neighborhoods, the majority (about 65%) of population owns their homes. If you own property in Winter Park and want to make money off of it, we recommend renting out.
- Median Home Value: $120,000
- Median Rent: $900/month
Just south of Orlando lays Kissimmee, a town in central Florida’s Osceola County. Kissimmee is in close proximity to tourist attractions, and therefore bringing people from different cultures and creating adversity within in. While it’s considered a hub for tourists, Kissimmee enjoys grand real estate investment opportunities. This is because of the affordable housing and reduced property taxes that the town offers. Note that although homes are affordable and cheaper than the national average, about 56% of the population rents their homes. Buying investment property in Kissimmee and renting out whether using traditional or modern methods is a viable option today.
- Median Home Value: $290,000
- Median Rent: $1,200/month
The name, College Park, is derived from streets named after colleges such as Harvard and Yale. Located just outside Downtown Orlando, College Park is known for its 20th century cottages, green spaces, and blue lakes. People prefer College Park over other surrounding neighborhoods because here they get to walk around and get to places with ease, hassle-free. The convenience and accessibility of this neighborhood have further incentivized residents to settle and own as opposed to rent. In fact, about 61% of the population owns their homes.
The increasing population and number of visitors coming into Orlando have made the Orlando real estate market attractive for property investment. Whether you want to invest in rental property or own a home, Orlando can accommodate your needs. We encourage you to plan a trip to Orlando to explore its abundant neighborhoods and conclude on a viable investment option.
For more information about investing in real estate in Orlando, visit Mashvisor.