A Guest Post by Jim Nolan of Inspections by Nolan based in Orlando & Florida Chapter President of NAHI
“So, when will we hit the bottom of the market”? I hear that a lot in conversations about real estate in Orlando. “I’m ready to buy – but I don’t want to buy until the market hits the bottom”. That’s another often heard comment about the Orlando real estate market.
Well – when did the market hit the top? Truth is – off the top of their heads, most people can’t tell you. Sometime last year? Actually, research will show that the market actually peaked in about November 2005. Only one problem. We didn’t know that was the peak until April 2006. So what’s the point?
The point is If you wait until you know that the market hit the bottom – you’re going to miss it. We only know where the bottom is when we start going up for a few months in a row.
So – if you’re on the fence – thinking about buying, this is about as good a time to buy as you’re going to get. The selection has never been greater. Interest rates are incredibly favorable and if we’re not all the way to the bottom just yet – we’ve got to be real close.
There’s not too many better places in the U.S. to live than Orlando. The future here is going to be about as bright as anywhere. Look at all the development going on in this town. Look at what’s going on along Sand Lake Road and Turkey Lake Roads. Look at the Westgate Resorts expansion, The Wal-Mart Plaza Area, The Whole Foods Plaza, Intermezzo at Rialto, The Phillips View Tower next to the Gourmet McDonalds and the new Restaurant Row project west of Della Dr. All of the projects are being done by Professional Real Estate Investors. People that buy and build real estate for profit. Think for a minute. Would all this development be going on if it weren’t the right time to invest? What makes you think you’re smarter than these professionals risking hundreds of millions on our neighborhood? It’s time to invest in Southwest Orlando residential now.
Still don’t think so? Consider this. Home heating oil is over $3.15 per gallon up north. It’s a cold winter so far up there. Our hurricane cycle appears to be over. The Canadian dollar has increased in value from about 74 to 94 cents on the American Dollar. How many of you remember all the Canadian license plates we used to see around here every winter? That’s why the northern border “Welcome to Florida” signs are in French. The Euro exchange rate is still very favorable for the Europeans to come visit Disney and invest in America. So the northerners, The Canadians and The Europeans will all be coming back to vacation and buy those Davenport short term rental vacation homes again -sooner than you think.
I remember years ago a real estate guru used to advocate the 10% solution. Buy your real estate 10% down at 10% financing and 10% below market value. Right now you can blow those numbers out of the water. Prices have dropped substantially, interest rates are way below 10% and it’s a lot cheaper to put 10% down now than it was two years ago. Think about it, houses are on sale, right now. So, if you’re going to be living and working in the Orlando area for more than just the next couple of years – buy a house. I think you’ll be glad you did.