Foreign National investors still expect a positive cash flow in the condominiums market in Central Florida.
According to Florida Realtors (R) with data provided by Florida Multiple listing services (MLS), in the Orlando-Kissimmee area 799 condos-townhomes where sold in December 2017, a similar number was sold in the same month for 2016, a two years homogeneous average. Approximately, 46% of them were sold with without financing, cash transactions. For the same period, 2,800 single-family homes were sold and only 20% were cash transactions. The 2017 condo market median price was $163,000 vs single family homes market median price was $255,000. The condo market experienced a 19% median price increase for 2017. However, cash buyers are still motivated to buy and in most of the cases rent out their properties. Lease prices are going higher, HOA dues seem to be stable and property taxes are increasing and a predictable pace. While for some Canadian, UK or US experienced investors the returns in the condo market may not be that attractive compared to stock markets, the poor economic performance in several other countries, including Latin American, has prompted an increase in capital inflows from investors protecting the buying power of their capital, I.e. Argentina’s Peso depreciated 34% in 2015, 18% in 2016 and 17% in 2017. Condos market is still the preferred commodity to be traded vs single family homes or high-end properties for investors searching options outside their own volatile market at home.
Foreign National Investors Forecast
