Why does it make sense to invest in Orlando?Everything is always bigger in America, including your potential rental returns.
Now investors far and wide have taken a new interest in a market once ascribed a ‘hands off’ warning. Rumors of yields you wouldn't get anywhere have surfaced,and the American economy looks healthy enough to pay the gossip a listen.
The rewards can be great, If you invest in a quality area, it is not unusual to see your property returning a net yields of between 6% and 9%.
Orlando is the 3rd largest city in
the state of Florida.
The Greater Orlando metropolitan area is home to 2,134,411 people.
It is also the number one holiday destination in the USA.
And it’s not hard to see why with tourist attractions such as Walt Disney World, Universal Studios, Sea World and Kennedy Space Center.
But apart from its obvious attractions, what makes Orlando a good place to invest?
Tourism
Tourism contributes approximately US$ 28.3 billion to Orlando’s US$ 95.8 billion economy.
The city has more than 116,000 hotel rooms; only
Las Vegas has more.
In 2008, 48.9 million people visited the city.
At the time it was the second best year on record.
However, at the height of the recession in 2009 numbers dropped to 46,583,000.
This was only the second drop in the last 15 years.
But in 2010 the number of tourists jumped back up to 51,455,000.
And in 2011, 54,290,000 visitors came to Orlando.
Growing population
The population of Orlando increased by 28.2% over the last decade.
Between 2006 and 2010 growth slowed to just over 1% per year.
This was due to the recession and a reduction in the number of people relocating from Central and South America.
Now the population is starting to rise again.
In fact, on 6th April 2012 the U.S. Census Bureau reported that Metropolitan areas were seeing a ‘mini-boom’ in population growth with an increase of 4.6%.
Experts predict that by 2017 the population will grow by a further 14%.
Rising employment
When visitor numbers dropped it had a big impact on the economy.
Service industries had to cut back, leaving many people without work.
In November 2010 unemployment in Orlando peaked at 11.7%.
But fortunately, city officials realized they needed to diversify.
As a result a number of private and government initiatives were started, such as the US$2 billion Lake Nona Science and Medical Park.
In 2011, 12,200 new jobs were created.
This was one of the highest increases in private sector jobs in the USA.
By January 2012 the unemployment rate in Orlando had dropped to 9.3%.
That’s still one point higher than the national average of 8.3%, but it’s clear things are moving in the right direction.
Medical City
Lake Nona Science and Technology Park (Medical City) is a US$ 2 billion joint venture by the Tavistock Group and the US Government.
The project covers 600 acres (2,428,113m2) and includes 2 new hospitals, the relocation of the University of Central Florida College of Medicine and a range of medical research facilities.
An economic impact study by Arduin, Laffer & Moore Econometrics projected that by 2017 Medical City will create:
The Greater Orlando metropolitan area is home to 2,134,411 people.
It is also the number one holiday destination in the USA.
And it’s not hard to see why with tourist attractions such as Walt Disney World, Universal Studios, Sea World and Kennedy Space Center.
But apart from its obvious attractions, what makes Orlando a good place to invest?
Tourism
Tourism contributes approximately US$ 28.3 billion to Orlando’s US$ 95.8 billion economy.
The city has more than 116,000 hotel rooms; only
Las Vegas has more.
In 2008, 48.9 million people visited the city.
At the time it was the second best year on record.
However, at the height of the recession in 2009 numbers dropped to 46,583,000.
This was only the second drop in the last 15 years.
But in 2010 the number of tourists jumped back up to 51,455,000.
And in 2011, 54,290,000 visitors came to Orlando.
Growing population
The population of Orlando increased by 28.2% over the last decade.
Between 2006 and 2010 growth slowed to just over 1% per year.
This was due to the recession and a reduction in the number of people relocating from Central and South America.
Now the population is starting to rise again.
In fact, on 6th April 2012 the U.S. Census Bureau reported that Metropolitan areas were seeing a ‘mini-boom’ in population growth with an increase of 4.6%.
Experts predict that by 2017 the population will grow by a further 14%.
Rising employment
When visitor numbers dropped it had a big impact on the economy.
Service industries had to cut back, leaving many people without work.
In November 2010 unemployment in Orlando peaked at 11.7%.
But fortunately, city officials realized they needed to diversify.
As a result a number of private and government initiatives were started, such as the US$2 billion Lake Nona Science and Medical Park.
In 2011, 12,200 new jobs were created.
This was one of the highest increases in private sector jobs in the USA.
By January 2012 the unemployment rate in Orlando had dropped to 9.3%.
That’s still one point higher than the national average of 8.3%, but it’s clear things are moving in the right direction.
Medical City
Lake Nona Science and Technology Park (Medical City) is a US$ 2 billion joint venture by the Tavistock Group and the US Government.
The project covers 600 acres (2,428,113m2) and includes 2 new hospitals, the relocation of the University of Central Florida College of Medicine and a range of medical research facilities.
An economic impact study by Arduin, Laffer & Moore Econometrics projected that by 2017 Medical City will create:
- 16,200
new jobs
- US$
5.2 billion in annual income
- US$
1.5 billion per year in wages
- US$
245.5 million in annual tax revenue
Several new housing developments are
under construction in the surrounding area to accommodate the influx of new
workers.
Prices start at US$ 137,000 for a simple townhouse and go up to over US$ 500,000 for a detached family home.
Experts estimate that capital growth will be between 5% and 7% per year during the construction phase.
If you’d like full details - email or call us at info@globecore.us
The US Government continues to invest heavily in Florida.
In September 2011 Space Florida, the Space Coast Energy Consortium, Brevard Workforce, and the Technological Research and Development Association were awarded US$ 2.2 million from the Jobs and Innovation Accelerator Challenge.
Increasing sales
On 17th April the Orlando Regional Realtor Association (ORRA) reported that sales in March 2012 increased by 17.82% over the previous month.
According to ORRA the number of re-sale properties on the market is also decreasing.
There are currently 9,253 re-sale properties available.
What’s more, the total number of properties for sale in Orlando has fallen to an all time low.
In April 2012 there were just 11,553 properties for sale compared to a whopping 35,357 in November 2007.
Capital growth
Property prices in Orlando are now over 60% lower than in 2006.
In April 2006 the median price for homes peaked at US$ 315,166.
Today it is just US$ 161,450.
However, this is an increase of US$ 17,110 (11.9%) from the low of US$ 144,340 seen in January 2011.
But you can still buy property for as little as US$ 69,100 in key areas of the city.
Only a few years ago the same properties were selling for US$ 189,000.
Industry opinions are divided about what will happen to prices in the short term.
California research firm, Clear Capital, expects Orlando to lead the USA in capital growth during 2012.
They predict prices will increase by 11.7%, compared with 2.1 percent for the USA as a whole.
Whereas, Chief economist for Florida Realtors, John Tuccillo, said he expects to see only modest price increases this year.
Most pessimistic are California company RealtyTrac Inc. who warn that many more foreclosures will hit the market and prices may decline further.
However, current demand for property is high, with many large investors buying up multiple properties.
And because the supply of property is now at an all time low, any new foreclosures coming to market are likely to sell fast.
The truth is, prices in Orlando are now so low that in the mid to long term you are likely to make strong capital gains.
What is on offer?
Today you can buy properties in Orlando for up to 70 percent less than just a few years ago.
There is a wide range of property available.
From one bedroom apartments to 3 and 4 bedroom family homes.
Often they are brand new and have never been lived in because the developers ran into trouble and banks were forced to foreclose.
Your rental yields between 6% and 9%.
As demand increases rental rates will rise along with house prices.
Summary
Prices start at US$ 137,000 for a simple townhouse and go up to over US$ 500,000 for a detached family home.
Experts estimate that capital growth will be between 5% and 7% per year during the construction phase.
If you’d like full details - email or call us at info@globecore.us
The US Government continues to invest heavily in Florida.
In September 2011 Space Florida, the Space Coast Energy Consortium, Brevard Workforce, and the Technological Research and Development Association were awarded US$ 2.2 million from the Jobs and Innovation Accelerator Challenge.
Increasing sales
On 17th April the Orlando Regional Realtor Association (ORRA) reported that sales in March 2012 increased by 17.82% over the previous month.
According to ORRA the number of re-sale properties on the market is also decreasing.
There are currently 9,253 re-sale properties available.
What’s more, the total number of properties for sale in Orlando has fallen to an all time low.
In April 2012 there were just 11,553 properties for sale compared to a whopping 35,357 in November 2007.
Capital growth
Property prices in Orlando are now over 60% lower than in 2006.
In April 2006 the median price for homes peaked at US$ 315,166.
Today it is just US$ 161,450.
However, this is an increase of US$ 17,110 (11.9%) from the low of US$ 144,340 seen in January 2011.
But you can still buy property for as little as US$ 69,100 in key areas of the city.
Only a few years ago the same properties were selling for US$ 189,000.
Industry opinions are divided about what will happen to prices in the short term.
California research firm, Clear Capital, expects Orlando to lead the USA in capital growth during 2012.
They predict prices will increase by 11.7%, compared with 2.1 percent for the USA as a whole.
Whereas, Chief economist for Florida Realtors, John Tuccillo, said he expects to see only modest price increases this year.
Most pessimistic are California company RealtyTrac Inc. who warn that many more foreclosures will hit the market and prices may decline further.
However, current demand for property is high, with many large investors buying up multiple properties.
And because the supply of property is now at an all time low, any new foreclosures coming to market are likely to sell fast.
The truth is, prices in Orlando are now so low that in the mid to long term you are likely to make strong capital gains.
What is on offer?
Today you can buy properties in Orlando for up to 70 percent less than just a few years ago.
There is a wide range of property available.
From one bedroom apartments to 3 and 4 bedroom family homes.
Often they are brand new and have never been lived in because the developers ran into trouble and banks were forced to foreclose.
Your rental yields between 6% and 9%.
As demand increases rental rates will rise along with house prices.
Summary
- Florida’s
population is growing fast
- Unemployment
rates are falling
- Infrastructure
is being improved
- Private
industry is investing
- The
US Government is investing
- Rental
homes are in high demand
- Property
sales are increasing
- House
prices are rising
At Globe Core Real Estate Turnkey Real Estate is our Specialty
We are a business dedicated solely to the Customer Satisfaction and Increased Earning Potential for each of our Real Estate Investors. By providing Fully Rented and Completely Renovated Turn-Key Real Estate Investment Properties, our Investors are able to achieve unmatched Investment Returns.
Here’s our simple 3-Step Process to owning investment property:
- Acquisition – our experienced sales team will assist you with the purchase of an undervalued property that fits your criteria.
- Renovations – we will take care of all necessary repairs so that the property is in rental-ready condition within 2 or 3 weeks after closing.
- Rent Guarantee – a tenant will be placed within a specified period of time after closing has taken place. Our tenant marketing system is so advanced that our average tenant placement time is less than 30 days. We will send you a monthly proceeds payment with an accounting statement showing your income for the period.
Please call us today to discuss your investment possibilities. Email us info@globecore.US
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