Owning a home has always been a part of the American dream and investing in real estate is a goal for many once they have purchased their first home. While there are many factors that should be considered when looking to purchase an investment property, there are some that stand out among the rest. Let's take a look at some of those factors and why they point to Kissimmee Fl. as a prime investment market in 2021.
Affordable Home Prices
With an average cost per SQFT of $155, homes for sale in Kissimmee are more affordable than the national average, and much more affordable than the average in Florida. A town median home price of $265,055 is also well below the state average median of $464,078 making the initial investment amount more manageable for first time investors looking to get into the property game. Another important investment factor is the affordability of Kissimmee when compared to its neighboring areas. Kissimmee’s cost of living is 22.6% lower than Miami’s, 7.1% lower than Orlando’s, 6.3% lower than Tampa’s, and 6.4% lower than Jacksonville’s. This eased cost of living makes Kissimmee a desirable place for renters working in the surrounding cities.
High Levels of Appreciation
Not only is the housing in Kissimmee affordable, but the values are increasing steadily and building wealth for investors. An average annual home appreciation rate of 7.60% puts Kissimmee in the top 10% for real estate appreciation across the nation and when compared to the national average appreciation of roughly 4% its no wonder investors are looking favorably upon Kissimmee. This appreciation is resulting in rising home prices and in 2020 we saw median home prices increase by 9.5% and the price per square foot went up 5.5%.
Record Low Interest Rates
Those interested in purchasing investment properties using a mortgage (as opposed to a cash purchase) will be happy to learn that Florida ranks in the top 10 states with the lowest mortgage rates across the nation. Recent data shows that the 30-year fixed mortgage rate in Florida is 3.48% and the 15-year fixed mortgage rate is 2.82%, with rates continuing to decline in recent months. A small uptick in interest rates can make a big difference in monthly mortgage payments and should be a big consideration when purchasing an investment property.
Short Term Rental Opportunities
It's no secret that Florida in general sees a high level of tourist attention throughout the year and in fact Kissimmee is actually one of the most popular tourist destinations in the state. With its proximity to Orlando and the world class attractions offered there (Walt Disney World parks, Universal Studios parks, etc.) not to mention the short drive to Tampa, numerous beaches, and attractions based within city limits, Kissimmee has seen a boost in short term rental opportunities. Websites like Airbnb, VRBO, and others have created a short term rental market that allows homeowners to rent their home, or rental specific properties, for a few days or weeks at a time without the stress of organizing and advertising on your own.
Even if you don't live in Florida, Kissimmee should be on your radar if you are a real estate investor or hoping to become one. The opportunities for consistent rentals and financing factors combine for an ideal market. Regardless of your investment experience, Kissimmee has a real estate opportunity for you.