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How To Make Fifty Thousand Dollars In Nine Months From Your Orlando Villa Investment

By Expert Author: Sebastian Jay
Word Count: 475 words | Views: 1062 view(s)
Orlando in Florida is one of the hottest property investment locations on the planet right now. Purchase prices are low, increases in capital value are simply immense (in 2005 parts of Orlando saw home values rise in excess of 40%), and rental demand remains strong no matter what the time of year. Naturally, with so much going for the area, it is easy to see why demand for Orlando real estate outstrips supply - a situation that is predicted to continue through to at least 2007/08 and perhaps beyond.

For investors, Orlando's buoyant market represents a great opportunity. If the right property in the right location at the right price is purchased, investors have the potential to make a profit of $50,000 USD in just 9 months from purchase!

How to make $50,000 USD from your Orlando Villa

Let's start with a typical 4-bed Orlando villa with swimming pool close to Disney World. If you look around the real estate market and choose wisely you'll have little problem getting your hands on a preconstruction Orlando Villa through a local developer or via a web site such as http://www.1st-for-florida-property.com

Preconstruction villas are homes that are yet to be built. They are 'pre-sold' by the developer in order to raise finance for the construction phase. As you will be committing to buying real estate in the preconstruction phase the developer will be open to giving you a discount. If you take the right approach and employ some tactical negotiation skills there is no reason why you won't be able to obtain a preconstruction Orlando villa for up to 15% below market value. On an Orlando Villa whose built market value will be $350,000 USD that represents a saving of over $50,000 USD!!

Standard build time in Orlando for preconstruction homes is currently nine months. Even if the market does not rise during this time - something that is highly unlikely - you're already guaranteed to make yourself $50,000 USD profit from your Orlando Villa. If you factor in a conservative pro-rata market growth of say 10%, you'll find yourself sitting on a profit closer to $75,000 USD!

Realizing Greater Profits through Rental

An Orlando villa sited within a gated community inside a short-term rental zone, and close to the theme parks in the city will garner an annual rental yield of at least 10% with all management costs accounted for.

For your Orlando Villa valued at $350,000 USD a 10% yield translates into a rental income of $35,000 USD. Based on a mortgage rate of 6% over a fixed term of 30 years, which would give annual repayments of less than $20,000 USD, you stand to make around $15,000 USD in clear profit every year.

After just two years you could therefore sell your Orlando villa having made a total profit of over $100,000 USD. Not a bad return on your investment if you ask me!
About the Author/Author Bio

Sebastian Jay is a freelance writer and co-owner of 1st for Florida Property - the #1 place on the Web to find new construction property in Orlando.

Article Source: http://www.financenook.com/Article/How-To-Make-Fifty-Thousand-Dollars-In-Nine-Months-From-Your-Orlando-Villa-Investment/25323

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Article Tags: florida, property, real estate
 
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