It's only natural that, in a city as large and diverse as Orlando, you're likely see a wide
variety of price ranges for different properties, and these price ranges
change from area to area. As a potential investor in an Orlando property it pays to have a solid grasp of the different neighbourhoods that make up the city and the differing price levels and appreciation prospects of these areas.
To get you started here are some of the price ranges, and how you
can expect them to appreciate, in some of the more prominent
neighbourhoods in Orlando.
A historically vibrant area of Orlando and a highly desirable place
to live, the prices for homes in Park Central start at around $80,000 for
a two bedroom, two bathroom property. At the upper end, the higher
priced homes can reach around $200,000.
Buying a home in Park Central will most likely require a higher
initial investment on your part, and the appreciation rate may be lower
than in areas that are improving. However, on the plus side a home in Park Central will attract lots of renters.
buy-to-let investor, this means you will experience very low vacancy
rates, and shouldn’t have any problems selling it should you wish as
long as you practice good management habits and keep the house well
Pine Hills is a neighbourhood that sees higher crime rates than most
of Orlando and has lower property values as a result. You can find a
three bedroom home for sale for as little as $30,000 in Pine Hills, a
significant improvement from the $80,000 minimum in an area such as Park
Central. However, a well-designed three bedroom home can still fetch a
premium price of $250,000 in the right area of the neighbourhood.
Challenges of Different Rental Ranges
Renting property in areas with higher crime presents a set of unique
advantages, paired with some potentially frustrating disadvantages. If
you rent a home in a higher crime neighbourhood, you most likely will be
able to spend less money right out of the bat and, barring any major issues with the home, will be in a strong position to achieve a double-digit yield.
Simple improvements may be all you need to increase the potential
yield your investment can produce for you. If you do your research and
can identify an area that is going through a revitalisation or being
heavily developed, the property value of the entire area may rise, and
the value of your investment will rise alongside it.
On the other hand, in less desirable areas you will almost undoubtedly see
higher vacancy rates; it won’t matter how much you’ve increased the
value of your property if you can't convince anyone to rent the space from you.
In addition, your properties will be at a higher risk of suffering
damage from vandals or other criminals who could incur property damage.
If you find a home that you are interested in purchasing, make sure
you employ the resources at your fingertips to get a full picture of
what’s happening in the surrounding neighbourhood. Failing to do so may
have consequences that could have been foreseen and avoided.