Are you looking to begin your overseas investment journey? If so, we thoroughly recommend investing in the Orlando property market. It has been revealed that Orlando investment properties are proving to be particularly opportunistic for property investors across the globe.
Before you can start looking for your perfect Orlando investment property, you first need to understand the Orlando market and the important things to consider. Alistair Brown International Real Estate understand that it’s more than just the property you need to prioritise.
With this in mind, we’ve put together a comprehensive guide, listing five things you should know about investing in Orlando property to offer you industry-lead guidance to ensure a smooth and enjoyable experience.
1. What are the Best Neighbourhoods and Resorts in Orlando?
Before you can think about what property you want to invest in, you must first consider what location you’d like your property to be in. Whether you’re choosing to live there yourself, or you’re choosing to rent it out, the neighbourhood plays a vital role in the enjoyment or success of your Orlando investment property.
Luckily, there are a plethora of warm and welcoming neighbourhoods in Orlando that can make the perfect location for your property. Better yet, some locations are perfectly situated to provide convenient access to key tourist destinations. Here are some of the recommended neighbourhoods:
- Holden Heights
- West Colonial
- Malibu Groves
- Lake Copeland
If you’re looking for an investment property or vacation home that is in one of the most desirable locations in Orlando, we recommend SPECTRUM+ at Reunion Resort. Ideally located near Disney World and with unbeatable resort facilities, this is the perfect investment property or vacation home.
2. Short and Long Term Rental Regulations in Orlando
If you’re looking to buy an investment property in Orlando with the aim of renting it out to holidaymakers or Floridian residents, you must first understand the rules and regulations based around renting in Orlando. New Airbnb rules have recently taken effect in Orlando, allowing property owners to rent out parts of their homes on a short term basis.
Here are the specific rules that Orlando homeowners should follow when renting out their property to short-term guests:
- Hosts can only have one booking at a time
- There is a maximum of two people per room
- A maximum of four non-family members at a time in the rental unit
- Hosts must register with the city, paying a fee of $275
- A 6% state transient rental tax, among other lodging taxes, is applied to these short term rentals. Airbnb automatically collects these taxes for its Orlando hosts.
This makes it great for those who have purchased vacation homes in Orlando as when they are not using the property themselves, they can rent it out to capitalise on the fantastic property and its prime location.
More than 5.2 million people are predicted to call Central Florida home by 2030. With this increase of individuals wanting to move to the Orlando area, long-term rental agreements are also still profitable. Just like you would back in the UK, for example, you can rent your Orlando investment property on a long term basis and enjoy a profitable return on investment.
3. Orlando Real Estate Market Trends
The Orlando real estate market provides investors with fantastic opportunities, being rated as one of the strongest investment locations for years now. For example, more than 36,000 homes were sold across Orlando in 2018. With prices going up by 82% in the last seven years, investors are being presented with plenty of attractive investment opportunities.
In 2019, we saw around $1.7 billion worth of homes sold across Orlando in the first 2 months of the year. This number continued to increase throughout 2019 and is predicted to continue growing into 2020.
There is plenty of housing demand in Orlando, with a population of over 2.5 million and an expected growth of the population of 2.3%. The most popular location in Orlando is Orange County, with 35% of Orlando sales coming from this area. In fact, homes in Orange County took an average of 60 days to sell in February 2019. This is due to local residents, vacation home buyers and investors looking for a prime location near to Walt Disney World either to enjoy themselves or to capitalise on the booming tourism industry.
4. Vacation Homes are Profitable in Orlando
On the topic of Walt Disney World, vacation homes in Orlando are growing increasingly popular and selling faster than ever. Orlando is heavily visited by tourists every year, with 2017 seeing 72 million tourists flocking to get their dose of Floridian sunshine. With this in mind, a vacation home investment in Orlando pays particularly well.
While the location is both well-established and well-regulated, there has been a decline in the number of guests staying in hotel rooms. This is because families, couples and individuals want somewhere more accessible and enjoyable to use as their base for the duration of their visit.
Resort-style vacation homes are proven to be particularly popular. This is because of the fantastic range of facilities they can offer guests during their stay. For example, Margaritaville Resort offers unrivalled resort-style facilities including:
- State of the art fitness centre and spa
- Multiple shops and boutiques
- 14-acre water park
- Multiple restaurants and bars
- Parakeets kids club
- Movie grill theatre
- Resort-style pool with hot tub
- Teen centre
5. Experts can Streamline the Process
As one of the fastest-growing real estate markets in Florida, Orlando is performing exceptionally well. However, this also means there is plenty of choice and competition to deal with during your investment journey. For first time investors, this can be overwhelming, taking the fun away from the experience.
Alistair Brown International Real Estate has over 30 years of experience helping people to find Orlando investment properties for sale, we can ensure you find not only the best property but the perfect location for it.
If you’re interested in finding an Orlando investment property, get in touch with us today. We’ll be able to listen to your specific needs and circumstances and provide you with the guidance you need to make the most informed decision.