You probably already know that Orlando is one of the top tourist destinations in the world. From the theme parks at Disney and Universal to its proximity to top-rated beaches, Central Florida is already on the map.
But, did you know that the Orlando Metro area is also one of the best cities for investing in real estate? Let the experts at The Property Source tell you why!
- Higher Rental Income
The point of owning rentals is to make a profit, and the average monthly rent in the greater Orlando area typically tends to be as much as 20% higher than the national average. With a median monthly rent of $1300-$1400, your cash flow on an investment property is almost guaranteed to be higher than in other popular markets.
- Lower Taxes (or None at All!)
Florida is one seven states in the country with no individual income taxes, and Florida’s property taxes are lower than two dozen other states (0.98% in 2019, for example). State laws are also favorable towards investors, especially those who are set up as sole proprietorships or LLCs, though we recommend you consult your tax professional or accountant to determine how to best take advantage of Florida’s business-friendly statutes when investing in Orlando real estate.
- Increasing Demand from Foreign Investors
Florida is one of the top 3 states for real estate investors outside of the United States, for reasons ranging from those amenable tax laws we mentioned, to the natural beauty and opportunities for recreation and relaxation. Over the last decade, the real estate investment market has seen a big upswing in buyers from the Middle East, China, and many Latin American countries.
- Steady Population Growth = Increasing Number of Renters
According to the Orlando Economic Partnership, the city of Orlando adds more than 1,000 residents per week — and the surrounding 7-county area has maintained that level of growth for more than 60 years. Whether you’re buying single-family homes, apartment complexes, or vacation rental properties, you’ll see no shortage of prospective tenants and clients, allowing you to select from among a well-qualified pool of interested renters and collect a respectable amount in rent from month-to-month.
- Nationwide Leader in Employment Growth
Orlando consistently ranks at the top of the charts when it comes to employment growth in metro areas with at least 1 million inhabitants. In 2018 alone, the Orlando-Kissimmee-Sanford metro area experienced job growth of 4.8%. Orlando’s unemployment rate is lower than the rest of the state — and most of the country — as it tends to hold steadily under 3%.
It’s no wonder that people from all industries — IT, medicine, construction, hospitality, and many more — are drawn to the Orlando area when looking for new job opportunities.
- Stable Appreciation
A key factor in making a real estate investment that leads to consistent returns is choosing a market where the property you purchase maintains — or preferably gains — value over time. When compared with other housing markets around the nation, the Orlando area stands out with 1-year appreciation rates of just under 5%, and 3-year rates of over 40%.
- Tourism Keeps People Coming — To Visit and to Stay
Orlando ranks in the top for cities worldwide when it comes to tourism. The theme parks are the obvious, most popular attractions, but nature-lovers flock to the area for unparalleled bird-watching, beachgoers often call Orlando home base as they explore both coasts, and thousands of astronomy fans line up on the Space Coast every time there’s a launch at Cape Canaveral.
Orlando’s visitors aren’t limited to domestic travelers. Cruise down I-Drive and take a look at all of the Brazilian restaurants and shops, or go shopping at Millenia Mall and try to pick out any of the multitude of languages being spoken by the shoppers there. You’ll soon see that the Orlando area is a magnet for people from around the world, and some of them fall in love with everything the region has to offer and decide to stay long-term.
Florida is a true mixture of families who’ve been here for generations, retirees coming from other parts of the country to spend their golden years warm and happy, young professionals moving up the corporate ladder, couples moving here with little children who love living near Mickey Mouse, and so many more.
The Orlando area has an impressive range of cultures too. From restaurants to heritage events, there’s almost no nationality you won’t find here, with significant populations of immigrants and visitors from China, Brazil, Cuba, Puerto Rico, Haiti, and the Middle East.
If you speak a language other than English, you may find even more opportunities for marketing your investment properties at top prices as you connect with prospective tenants that come from around the world.
- Transportation Infrastructure
In general, it’s easy to get around Orlando and the rest of the state. Toll roads are well-maintained and don’t experience the kind of congestion you see in other major metro areas, and high-speed rail networks are in development that will take visitors, locals, and businesspeople alike from Orlando and Tampa to Miami at top speeds of just under 170 miles per hour!
Florida is called “The Sunshine State” for a reason! From snowbirds who come from colder northern states to escape the snow and cold to visitors from the Southern Hemisphere who come during our summer months for a break from their winter, Florida’s beaches, palm trees, and consistently warm weather mean that you’ll be able to take advantage of a full 52-week rental season: there’s no “off season” here!
Unlike towns and cities directly on the coast, the Orlando area tends to be better-protected from weather events like hurricanes. There’s no risk of storm surges, and because storms lose strength as they pass over land, the impact in Central Florida is usually diminished compared with the impact on coastal areas.
Plus, newer properties are built to the latest code requirements for safety, helping protect your investment even further.
As an investor, you’re looking for the best range of property types, stable (preferably increasing) income, curb appeal, deal and a favorable tax climate. Look no further than the Orlando real estate market for all of that — and much more. The Property Source is ready to help you find the ideal investment opportunities to help you grow your portfolio and experience all of the advantages that the Orlando metro area has to offer.