Why Invest in Property?
The million dollar question - where should we invest our hard earned money?
If we new the answer to this we would all be millionaires, so lets at look at the possibilities of where we can invest our money in comparison to investing in houses for sale in Orlando Florida.
Bank/Building Society Accounts, Cash ISA's
Low returns with interest rates being near their lowest for decades but security for your investment with the guarantee of knowing that you will not lose your initial sum.
Equity Investments. i.e. Shares, Unit Trusts, Bonds, Equity ISA's etc
Statistically higher returns on your investments than Banks and Building Society's, but with volatile markets due to the uncertainty of terrorist attacks. Here you have the potential to lose some of your original investment.
These are the two main areas that you can investment money in if you do not want to invest in bricks and mortar.
Buy to let (the UK)
This has been a very popular investment since the housing market started its boom period around seven years ago, with many professional landlords with large portfolios seeing good rental yields and excellent growth on their initial outlay.
As this market grew over the years more and more part time landlords invested in one, or maybe two properties, this resulted in the rental yields getting lower. Now with the interest rate rises we have seen this year the housing market seems to be cooling off so what growth are you going to be seeing in the future?
European Property
Without doubt this has been, and remains, a good place to start looking for investment in property. There are opportunities for excellent growth and rental yields in certain countries and with the added benefit being able to use the property as a holiday home yourself.
As already mentioned we looked at investing in Spain and France, these seem to be the most popular countries for Brits to buy which is why we looked there.
There seems to be a similar feeling to the UK in these countries, which is why we looked elsewhere. Other up and coming areas of Europe are more interesting such as Cyprus, Croatia and Bulgaria to name but a few, these areas are being researched by The Investment Property Shop during 2005.
Orlando Florida
Florida is the easiest state in the USA to buy property but there are only certain areas where short term rentals are allowed under state law. This is obviously important if you are purchasing as an investment intending to rent the property out.
Can you think of a better place in the world for potential rental income? With all of the attractions, including Disney and Universal studios, Orlando is one of the most visited tourist areas in the world, with a warm comfortable environment, all year round, and some of the nicest, friendly people you will ever come across.
Typical rental income of up to $900 a week in high season is achievable and with interest rates on the borrower's side, high rental yields are easily obtained.
To give you an example of the potential growth you could achieve in Orlando we would like to give you the example of the first property we purchased this year in Davenport. Just outside Kissimmee, within 10-15 minute drive of Disney.
- Purchased Mid January 2004
- Sunset Ridge Lot 9, 5 bedrooms, 3 bathrooms with a 25ft pool villa on a secured gated community
- Purchase Price $209,990
- Value at Present of Last remaining similar lots $320,000
This property was completed in November 2005 and, as you can see, the growth we have benefited from has been excellent and the market is not slowing down.
The reason for these dramatic figures is that demand is outstripping supply, in other words the builders and developers cannot build enough new properties to keep up with the demand from buyers.
So why invest in property?, surely, for growth and good yield with the bonus of being able to use your investment to relax and enjoy instead of waiting for and worrying about your next investment statement coming through the letter box.
Our advice is to make sure you are buying through a company that you have confidence in, not just the first advert, seminar, or website you visit that throw the Houses for sale in Orlando Florida hard sales attitude in your face. This is one of the biggest decisions you will make.
The Investment Property Shop has been through the entire process, let us use our experiences to help you when you look for houses for sale in Orlando, Florida.
