Why Invest?

Property purchase is a stable investment in today's marketplace. Find out below some of the factors that make property the wise investor's choice today.

Really Exciting Reasons...
why you should invest in your own Florida Villa rather than the stock market, building society or ISA!

 

Reason 1: Holiday Costs

Your investment is waiting to pay you a terrific dividend. Year upon Year of memorable family holidays in your very own private villa. When is the last time that another of your investments gave you that?

Reason 2: What Florida Will Offer You

Walt Disney World, Universal Studios, Universal Islands of Adventure, Sea World, Busch Gardens, Cypress Gardens, The Everglades, Daytona Beach, Golf, Snorkelling, Boating, Water Skiing, The Kennedy Space Centre - Visitor Centre & Astronaut's Hall of Fame, Swim with Dolphins, Jet Ski, Para-sail...

And just in case that isn't enough, over 1,200 miles of beautiful Coastline, 300+ Days of Sunshine and an average temperature of over 70 degrees throughout the whole year.

Really boring reasons Really Exciting FINANCIAL reasons...
why you should invest in your own Florida Villa rather than the stock market, building society or ISA!


We invite you to take the next few minutes to learn about the Central Florida real estate market as an investment, how it compares to other methods of wealth creation and why it is such a lucrative form of investing.

Sorry but as a potential property investor, the Orlando area isn't all about having a good time. If you are seriously considering your own investment property in Central Florida, the below text contains very boring information, but never the less, it's information you need to take into consideration before deciding where to invest your money.

Reason 1: Leverage

Banks will not typically loan money to buy shares on the stock market. Banks will however, compete fiercely to loan money to buy Florida Investment Property. Why? It has to do with risk management, which is discussed later. The fact that banks will loan you money to buy a Florida Investment Property creates a situation called LEVERAGE.

Let's assume that you have £10,000 to put into some type of investment. If you choose to buy £10,000 worth of shares, you will own exactly £10,000 worth of shares. Very straightforward. However, if you choose to invest that £10,000 into Florida Investment Property using a 90% mortgage, you will actually own £100,000 worth of property.

If both of your investments were to appreciate by 10%, your actual gain with your shares would be £1,000 where your actual gain with Florida Investment Property would be £10,000. That equates to an actual 10% return on investment in shares, vs a 100% return on investment by your property. That's leverage.

You are earning growth on the whole £100,000 value of the property not just your £10,000 deposit and have doubled your £10,000 investment to £20,000 value in the first year.

Leverage: Florida Real Estate vs. Shares.

Even allowing for a 10% increase on your shares against a lower 6% increase on your Florida Investment property, the numbers speak for themselves.

Let's assume the Stock Market investment gained 10% of the initial £10,000 value (£1,000) and your Central Florida Investment Property investment gained 6% of the initial £100,000 value (or £6,000). That is still an actual return of 10% versus 60%. It is not hard to see which investment provides a greater immediate return on investment. Additionally, these numbers do not take into account any income from your property during the course of the year, or the substantial tax advantages to owning property.

Reason 2: Value

As we mentioned previously, if you invest £10,000 into purchasing stocks, you own £10,000 worth of stocks (a fairly obvious point). If you invest £10,000 into purchasing Florida Real Estate using the leverage of a 90% mortgage, you own £100,000 worth of Investment Property.

However, any switched on investor will tell you that there are excellent deals to be had in purchasing Investment Property right now, you just have to find them.

What if you purchased a £100,000 property that happened to be worth £110,000 the day you bought it? It does happen, all the time. If you look for the opportunities, they are all around you.

Value: Making money when you buy.

The reasons are endless as to why a quick sale is desired, but just to name a few: job relocation, divorce, an estate is being settled or maybe a current valuation on the property simply wasn't done prior to selling. By 'finding this deal' you have accomplished two things:

  1. You have added £10,000 to your asset column in the form of equity.
  2. You have created additional LEVERAGE for yourself as the value of your property increases (a 6-10% gain on £110,000 is better than a 6-10% gain on £100,000!) Remember that you make money in Orlando Investment Property when you buy, as well as when you sell.

Reason 3: Control

Let's take our assumption one step further. When you buy your £10,000 worth of shares, what can you do to increase its value? If we follow the previous assumption, you have invested £10,000 using a 90% mortgage to purchase a £100,000 property that has an actual value of £110,000 because you 'found a good deal'. So what can you do to further increase the value of your new £110,000 property?

It is amazing what a little landscaping and a paint job can do to increase the value of a property. Only a few hundred dollars well spent can result in a significant value gain in an Investment Property. Your £110,000 property with a little effort could easily be worth £115,000, £120,000 or more virtually overnight! Do you have to do any of this work yourself? Absolutely not! If you like to do that sort of thing then fine, go ahead, but if not, simply hire contractors and accept a little lower net gain.

Reason 4: Superior Tax Position

The tax code in the United States is geared to reward Investors who make housing and other property available to the population. When you invest in shares, you are taxed at some of the highest rates in the tax code. When you invest in Florida Investment Property, you put yourself in one of the best tax positions in the business world. Remember the Donald Trumps of this world hold substantial portions of their assets in Property. Tax advantages are one of the main reasons that they do.

Reason 5: Limit Your Exposure to Risk

Risk Management - do you remember at the top when we said that banks would loan you money for Investment Property? The answer to the 'why' is very simple. Low Risk. Banks incur little if any risk when loaning money on Investment Property due to the steady, solid growth rate of the property market, as well as the fact that if you default on your payments they will simply sell the property to somebody else. This is in direct contrast to the volatile stock market, which can vary daily with sharp increases and decreases in value. Furthermore, banks realise that a property isn't going anywhere, whereas many investors know all too well about ".com" and other types of companies that were there yesterday and gone today.

This is not to say that property values don't stagnate or go down from time to time, however the dips are much less dramatic than that which can take place in the stock market, proven out by the banks' willingness to loan money on property.

Reason 6: Protecting your peace of mind.

Finally, now that we understand the value of leverage and risk management we realise that a 6% growth on a Central Florida Investment Property gain 'beats the pants off' a 10% stock gain in actual return on investment by a wide margin. This doesn't even take into account several factors that can increase this number such as tax advantages, income on property etc.

Owning good solid Investment Property, allows you to sleep at night, as well as go on a vacation without worrying about your asset column. This is directly opposed to the risks of holding a substantial percentage of your assets in stocks and shares.