In the Orlando area there are many affordable homes for sale. As interest rates continue to be below 5%, now might just be the right time for you to begin building your long term wealth. Below are 5 Ways to Take Advantage of the Real Estate Market here in Orlando!
1. First Time Buyers purchase your first home while the interest rates are low and affordability is up!
The Orlando first time buyer affordability index increased to 177.43 percent in June. This means that first-time buyers who earn the median income ($36,577) in Orlando can qualify to purchase one of the 5,438 homes for sale that are listed for $165,893 or less. With interest rates still looming around 4.56% in June – why are you paying rent?!
2. Invest time in a short sale for a big return on your investment
Short sales are not for the faint of heart. You may not hear anything for weeks at a time as the bank sifts through the paperwork and thousands of other files. The median sales price for short sales in June was $99,000 while the median sales price for “traditional” sales was $158,000. You do not reap the reward without the wait though! They can take 3-6 months to complete the transaction and you need to be a very patient person. Keep in mind, some of these homes have been neglected and may need some work.
3. Rehab a bank owned property
The median bank owned property sold for $80,310 in June. What a deal! Keep in mind many of these properties are not move in ready and may require quite a bit of work to be livable. Often times a buyer cannot obtain financing for these homes due to the condition; so this market is packed with cash buyers and investors. Of the transactions closed in June almost 40% were bank owned properties. With prices this low and little inventory (only 656 bank owned listings as of 7/31), there is heavy competition in this market! Keep that in mind when you prepare an offer or you will be outbid.
4. Move Up
If you are currently living in a home and have outgrown it over the last few years now is a great time to “move up” into something larger. The majority of homes sales are under $250,000. Last week, almost 80% of the transactions were under $250k. There is potential for more negotiating power at the higher price points – which tend to be larger homes – because there is less demand for these homes. However, keep in mind, regardless of the price when a home is priced right, in a good location, and in good condition everyone in that price range wants that home. You can still see multiple offer situations even at the higher end – so offer appropriately.
5. Invest in a rental home or condo
Whether you have cash to spend or not, there are plenty of opportunities to invest and earn money on a real estate investment. Condo prices are extremely affordable in areas of Orlando. Yes, you can actually buy a condo unit for less than a car! However, there are plenty of other housing opportunities with little money down. For example, you can purchase a VA foreclosure with 5% down even if you’re not a veteran using the VA Vendee program. Fannie Mae properties can also be purchased using their HomePath loan which requires only a 3% down payment and requires no appraisal or mortgage insurance!
Feel free to call or email us with questions about how to take advantage of today’s real estate opportunities!