by Steve Silcock | Sep 26, 2013 | Homes, Villas and Condos, Investment Property in Florida, Property for Sale in Orlando, Real Estate News
Considering buying investment property in Orlando ? Buyers are no longer in control as demand is exceeding supply for well priced real estate. We work with many investors who are out of state or overseas looking to buy vacation / investment property in Orlando and we spend a lot of time educating our clients on market conditions.
For those of you looking to gain a quick overview of the changes in our market here are 5 things to consider when purchasing investment property in Orlando.
Lowball offers:
As inventory levels drop the chance of getting a seller to accept your lowball offer is minimal. As demand exceeds supply of quality homes buyers are no longer in control and sellers have more negotiation power than they’ve had since the real estate bubble burst. Typically, lowball offers that aren’t in line with comparable sales data are increasingly proving to be a waste of time and can turn off the seller and close down any chance of negotiations.
Get pre-approved:
Gone are the days when people would take your word that your credit was good and you were able to get financing. Nowadays, most sellers will only consider offers with a proof of funds (cash purchase) or a Pre Qualification letter (if your are taking a mortgage) so ensure you get yourself in a position to buy prior to arranging your trip to purchase property in Orlando, Florida.
Get realistic about the market:
All markets are different and what you are experienceing at home may be very different when you are looking to purchase property in Orlando. Talk to our agents – they all “live work and play” right here in the Disney are and will help you understand the value of your preferred property by showing you the recent sales figures of comparable properties within your preferred or comparable community. These figures will be a good indication of the market value of the property and help you understand the local market values and conditions. Transactions from the last 3 – 6 months are the most important as these will be used by the appraiser to determine the current appraised value of your property should you be looking for a loan.
Expect some competition:
Foreclosures and short-sale properties are down over 84% and low inventory levels in Central Florida is spurring an increase in demand for property in Orlando. Home buyers may face increased competition for the home they want, particularly among short sales and foreclosed properties, in which they may be up against investors who are making all-cash offers. It is, therefore, important bank-financed buyers are pre-qualified in the current real estate market.
Conduct property research:
When buying property in Orlando, Central Florida it is important to work with a real estate agent who knows and understands the unique real estate market of Orlando. They will be able to give you invaluable advice and information on the short-term rental market enabling you to make the right investment choice for your personal and investment needs. Understanding the value of properties within your preferred community and how they compare to your favorite homes is important in your decision making process. Once you have the property, home and termite inspections are recommended to ensure the property is structurally sound and suitable for your needs.
We have helped clients purchasing property in Orlando area for over 20 years and our agents have the knowledge and experience to guide you. It’s an important decision so make sure you are working with people who know the area and the communities – never buy from a trade show or direct for the developer.
Contact us today and let one of our agents guide you through the process.
by Steve Silcock | Sep 23, 2013 | Homes, Villas and Condos, Investment Property in Florida, New Construction, Property for Sale in Orlando, Uncategorized
Prime Homes released inventory villas for sale in Waterstone Courtyard Villas on a first come first served basis and they are selling !!!! This is a great opportunity to pick up exceptional construction just minutes from Disney . The developer is offering $6,000 back at closing as a special incentive but this only applies to the inventory homes and they will not last long.
The Marbella 3 offers 3 bedrooms, 2 baths and 1,471 sq. ft. of living area. The Marbella 3 also comes with a 392 sq. ft. courtyard. Prices starting at $145,900.
he Marbella 4 offers 4 bedrooms, 2 baths and 1,664 sq. ft. of living area. The Marbella 4 also comes with a 392 sq. ft. courtyard. Prices starting at $155,900.
The Monaco 4 offers 4 bedrooms, 3.5 baths and 2,031 sq. ft. of living area. The Monaco also comes with a 380 sq. ft. courtyard. Prices starting at $184,900.
Waterstone Courtyard Villas is located just off Highway 27 in Davenport, Florida. Situated near I4, Waterstone is in a prime location for Disney World’s many visitors. Luxurious living featuring beautifully constructed courtyards for each villa, along with immaculate finishings to the interior makes Waterstone Courtyard Villas a tremendous investment opportunity.
by Steve Silcock | Sep 23, 2013 | Homes, Villas and Condos, Investment Property in Florida, News, Property for Sale in Orlando, Real Estate News
Anyone who has been following the investment market for Florida Villas for Sale will have seen lots of activity this year as the market continues to improve. Although we are heavily influenced by the high proportion of foreign investors who choose Orlando to purchase Florida villas for sale it is encouraging to see that the US housing market as a whole continues to take great strides towards “normality”.
Daily Real Estate News | Thursday, September 19, 2013
As the peak home-buying season comes to an end, rising inventories and slower, steadier home-price increases in many markets are showing a healthier housing recovery, according to realtor.com®’s National Housing Trend Report for August.
“Where we have seen significant volatility in many markets — including double-digit declines in inventories as well as increases in median price for both yearly and monthly views — we are now looking at a housing market that is less heated and moving closer to normalcy,” says Steve Berkowitz, CEO of Move, Inc., which operates realtor.com®.
Earlier this year, tight inventories persisted in many housing markets, leaving buyers with limited options and helping to drive home prices up. Future home-price increases on Florida villas for sale may be driven more by market demand than inventory shortages.
The majority of markets are ending the 2013 home-buying season on a positive note, with more balanced inventories, shorter times on market, and higher listing prices compared to a year ago, realtor.com® notes.
Nearly a third of the 146 markets that realtor.com® evaluated are within 5 percent of last year’s inventory levels. More than two-thirds saw a net increase in inventory levels over the last month.
Price appreciation is also becoming more widespread, realtor.com® notes. In August, 123 of the 146 markets posted year-over-year rises in median list prices. Seventy-eight markets saw an increase of 5 percent or more.
Source: “Dynamics Shift in Housing Market,” realtor.com (Sept. 12, 2013)
This report demonstrates that the improvements and increasing prices we have experienced on Florida Villas for sale in Orlando is being repeated across the US.
by admin | Jun 26, 2013 | Investment Property in Florida, Retirement / 55+
Given the positive trends in the Florida real estate market so far this year, Canadian media is reporting to it’s Snowbirds that the time to invest in a Florida home is now.
Apart from new construction underway at ChampionsGate in Orlando, Florida there are numerous existing Florida homes available for sale. If you are not sure if you want new construction, a retirement home or an investment property for either long term rental or short term vacation rental, do some research to see which type of Florida home would best suit you and your needs.
The following article is from Canadian Real Estate Wealth Magazine.
Florida is known for its amusement parks, but no white-knuckle ride has been quite like the last real estate cycle. From 2004 to 2007, Florida experienced one of the biggest property booms in America. Lax lending policies coupled with borrower greed led to massive growth in a relatively short period of time. Despite the meteoric rise in prices, many believed the market couldn’t fall. But when the U.S. market imploded, Florida was one of the first states to crash. And, like the rest of the country, many watched helplessly as prices and demand plunged.
As ‘Foreclosure’ and ‘For Sale’ signs popped up like weeds, many Canadians – retired snowbirds and keen investors alike – started taking interest. Florida prices plunged more than 40 per cent peak-to-trough on the FHFA Index and top destinations such as Orlando experienced a 56 per cent drop in prices from an average $258,000 (U.S.) at the peak, down to $113,400 in 2011. Rock bottom prices and a high exchange rate made purchasing U.S. property an attractive proposition for northern neighbours. According to the National Association of Realtors, nearly a quarter of home sales in the 12 months ending in March 2012 were by Canadians.
Times, however, are changing. A 2012 report from BMO indicates that while the housing market in Florida is relatively stressed, the worst is over. “Florida was one of the epicentres of the housing bubble-bust cycle, but there are mounting signs that a recovery is under way,” it said.
Economists indicate that the Florida economy is recovering at a modest pace with real GDP expected to grow 1.9 per cent in 2013.
Unemployment is trending down, but it is still an above-average 8.7 per cent. Certain pockets of the housing market are showing promise, with prices in Miami and Tampa bouncing up 9 per cent from their late-2011 lows. Another positive sign is a reduction in the supply of homes. Property market expert and owner of The Pink Flamingo, Erica Muller, indicates inventory has diminished by more than 50 per cent.
“We are seeing bidding wars and multiple offers on almost every property. As long as a home is not overpriced, we are seeing it sell within the first week of listing and sometimes it’s sold before it even hits the public MLS. Building starts are up and more and more people are paying builder prices for a new home due to the lack of inventory available.”
However, it should be noted that the foreclosure rate is still the highest in the U.S. at 13.7 per cent.
“Overall, Florida’s housing market is one of the most stressed (second of 50) in the country, behind Nevada, but a draw down in inventories and upward price momentum are positive indications that the worst is over,” states BMO.
While this might be the beginning of the end for Florida’s negative market cycle, Florida Home Finders of Canada vice president Brian Ellis, says it’s not too late for Canadians looking to buy.
“Most savvy real estate investors will tell you the best time to buy is just when the market has turned a corner and is starting to go up – and that’s where Florida is now,” Ellis says.
All of the factors that have made U.S. property an attractive real estate proposition still hold true; Florida real estate prices are low, the Canadian dollar is strong, and low interest rates at home make it easier for Canadians to equity out of their home and put cash down on a U.S. property. The only drawback to the Florida market, says Ellis, is that this situation will not last forever.
“So, Canadians have to jump and they have to jump fast if they want to take advantage of this marketplace.”
While factors that make buying south of the border attractive to Canadians can apply to several states in the lower 49th, investment experts argue Florida has unique economic advantages that set it apart from other destinations. According to Florida Investment Real Estate owner Steven Silverman, Florida – which is already the fourth largest state in the country – has long been one of the fastest growing regions in the U.S., and by the next census will surpass New York as the third largest state in population.
Florida’s attractions make it one of the top tourist destinations in America and its weather will always be a selling point for retirees looking to escape cooler climes. As Jerry Seinfeld quipped, “my parents didn’t want to move to Florida, but they turned 60, and that’s the law.”
Silverman also points out there is no state tax for individuals and business structures in the state, making it attractive for entrepreneurial activity. Major changes to the Panama Canal – which will allow container ships to reach Florida in 2014 – will make the state a stopping point for distribution of imports to the Eastern Seaboard. Silverman also suggests major intermodal expansion is being planned for Central Florida.
The recovery in Florida is not happening uniformly across the state. As a top tourist destination, Orlando is starting to benefit from a recovery in tourism-related employment and expansions to Disney World’s Magic Kingdom Park, SeaWorld Orlando, and Universal Studios Florida.
Meanwhile, Miami is experiencing a turnaround in prices, thanks in large part to foreign investment. The Miami Association of Realtors reported a 34 per cent increase to $160,000 in median sales price of condominiums in Miami-Dade County in 2012 over the previous year.
According to Shalimar Santiago, CEO of Investors Adviser’s Network, the hottest market is currently central Florida, from Orlando to the Tampa region, with returns yielding on average 8–12 per cent.
“In the south Florida market returns are less, ranging from 6–10 per cent, but appreciation and prices are much greater. However, it depends on the investor’s appetite for risk and investment goals.”
According to Ellis, about 80 per cent of Canadians buying real estate in Florida are purchasing condos. “With this product, they can lock the door and walk away and not have to worry about the exterior maintenance. So that’s what most Canadians are buying.”
While single-family properties are more labour intensive, they are currently producing higher yields, argues Santiago.
Townhouses are also hot, says Muller, because they have lower monthly fees than condos but you can typically pick them up for around the same prices. Also, the rents tend to be higher and they attract more family-oriented renters than condos do.
She adds: “The areas we recommend our investors purchase in are many of the mid-upper middle class suburbs of Orlando such as Winter Garden, Windermere, Lake Nona and Lake Mary. Vacation rentals are also a very popular option right now for those not as concerned with the short-term return but are looking to win big on the capital gain over the long run.”
Bardell Real Estate – Florida Homes for Sale
by admin | Apr 29, 2013 | Homes, Villas and Condos, Investment Property in Florida, Long Term Rental
The Orlando Sentinel reports that Florida has 7 of the nation’s top 20 metro areas for single-family rental investments. Buying a Florida home and using it for long term rental is becoming an attractive option for many. During the last 18 months we have seen a growing increase in the number of investors buying property for long term rental. We help clients to find the property, refurbish and then place a tenant – a true one stop shop our clients.
Orlando comes in at number 13 of the 20 as the foreclosed homes in the area become viable for return on investment with long term rentals planned. This is the perfect time to invest in a single-family home in Orlando that can be rented long term, with a positive outlook for excellent returns. Bardell Real Estate can help match you with the perfect investment property – contact us with your requirements for a long term rental property in Orlando, Florida.
OCALA, Fla. – April 5, 2013 – Seven of Florida’s foreclosure-filled housing markets are among the nation’s Top 20 metro areas for single-family rental investments, according to a report.
Ocala was the top-ranked of the Florida metropolitan areas, ranking fourth nationally with a median sales price of $75,357 for a three-bedroom home and an average monthly rent of $1,070 on the same-size house, according to the report by real estate research firm RealtyTrac Inc.
The California-based company predicted cash flow by factoring capitalization rates, rental rates and home prices. Occupancy rates were not factored into the ranking.
The four-county Orlando metro area ranked 13th for best returns, with a median sales price of $108,000 on a three-bedroom home and an average rent of $1,316 on the same-size house.
“Buying single-family homes as rentals that actually generate good monthly cash flow has become more difficult over the past year as institutional investors crowded into the market, snapping up tens of thousands of properties in 2012 alone,” said Daren Blomquist, vice president of RealtyTrac. “But there are still opportunities for the more conservative, individual investor to buy rental homes that generate a healthy return on investment – it often just takes persistence and a willingness to pass on bad deals.”
Other Florida metro areas on the Top 20 list were: Brevard County, Jacksonville, Volusia County, Tampa-St. Petersburg, and Lakeland.
Leading the nationwide list was Memphis, Tenn., with a median price of $72,605 for a three-bedroom home and an average rent of $1,047 for a house of that same size.
Copyright © 2013 The Orlando Sentinel (Orlando, Fla.), Mary Shanklin.
Should you have any questions regarding long term rental properties in Florida, Bardell Real Estate has the answers. Contact us so we can match you with your Orlando specialist who will help match you with the perfect long term rental opportunity.
Long Term Rentals with Bardell Real Estate.
