RENTAL HOMES IN ST CLOUD FLORIDA– While news reports of a down housing market may have discouraged many would be homeowners from taking the plunge back into buying Real Estate;  investors flocked at the opportunity to scoop up distressed property at a huge discount. 

Contrary to popular belief,  Investors are not necessarily guys in business suits but rather average people with a basic understanding that timing is everything when it comes to buying and selling real estate. Buy low, sell high.  Declining value means opportunity. 

Investors watched the market here closely. As the glut of foreclosed homes hit the market, they had an ample supply of inventory to choose from. Most were looking for 3 bedroom 2 bath homes in St Cloud Florida. 

Why developments don’t work as good investments.

 While planned developments appeal to the average consumer, novice investors lost their shirts when the housing market peaked back in 2007.  Why?  Savvy investors look at the bottom line. Novice investors don’t. 

 Novice investors,  did not factor in the carrying costs and additional fees as part of their investment properties in St. Cloud Florida.  For that reason sub divisions while appealing to consumers as primary residences are attractive, are losing propositions for seasoned investors who know the burden of additional taxation such as CCD fees and Home Owners Association fees chipped away at their profit margins.

CDD fees (community District Development) are bonds the builders put in place to pay for amenities like sidewalks, street lighting,  club houses, community pools and common areas. These bonds are rolled into the property tax paid by Kissimmee and St Cloud Florida  home owners.

Comparing apples to apples, a 3 bedroom 2 bath home within the city limits of St Cloud Florida (outside of development) may have property taxes within a range of $2000-3000.  A similar home inside a development with  CDD fees would have a tax base of $3000-4000. Not including the additional cost of the home owners association fees.   It is not hard to figure out why they went belly up when the market went flat. They got caught short as value began to decline and the carrying costs were prohibitive from profitable renting.

Rental demand is on the rise.  The hundreds of thousands of people that got caught up in frenzy of the heated real estate market between 2005-2007 have lost their homes. As a result, they are now converted renters. Rents are predicted to rise annually as the demand for housing increases.  A 3 bedroom home in St. Cloud Florida will fetch $900-$950 a month.  A four (4) bedroom home can expect to yield $1200-1500 a month in the St Cloud Florida Area

While it is true that prices have slowly inched up over a year ago, at about a 6% gain, the selection of quality homes has decreased proportionately. What is coming to market now, are homes which have been in the foreclosure process for years in some cases. As a result they need a great deal of work to bring them back to rent-able status. 

 Early on, banks were reluctant to sell to investors, in fact, many would not.  They were holding out for the new wave of first time home owners who would finance the purchase through them giving them one more opportunity to try and recapture their bad debt.  That wave never materialized.  What did materialize were buyers offering cash for investment properties.

In a time where we are seeing values finally starting to rise, sompared to other parts of the country, Osceola County, specifically St. Cloud Homes have seen a median sales price rise on resale properties, which is  currently at $185,200.

Leading Experts Say The Housing Market Will Not Recover..Really? What is Happening in the Florida Housing Market

Leading “Experts” Predict the Housing Market will not recover…really?  As leading St Cloud RealtorFlorida Realtor and Kissimmee Real Estate Expert-I beg to differ. Real Estate has always been a cycular commodity. Even in the Great Depression of 1929, the housing market did bounce back then; just as it will again, but in a much more controlled slow manner. If one expects instant gratification and rebound-that will not happen.

How will the housing market  recover occur? Let’s Look at the Florida Housing Market. As a leading Realtor/Broker in St. Cloud Florida, I can say with certainty that the recovery of the housing market in St. Cloud and Kissimmee Florida Housing market is largely dependant upon the banking industry and foreclosed homes being held in silent inventory.

 If the banks release  too many foreclosed homes  at one time, the market will be oppressed for an extended duration. However, if the foreclosed inventory is released incrementally, prices will make gains, as they are currently in the St Cloud and Kissimmee Florida areas, although modestly. These areas were among the hardest hit in the Housing Market Crash. So the fact that gains are being made is noteworthy.

The real question is it sustainable?

Only if the banks continue to make foreclosure  releases in moderation. It will take years to liquidate the surplus inventory of homes they currently are holding as a result of defaulting borrowers.  However, as history indicates here in the US, 6% annual gains in the housing market were sustainable for over 30 years prior to the artificial creation of the housing bubble which was attributed to the media fueling a  manufactured frenzy, lenders offering loan products which were designed to put borrowers in jeopardy and lack of consumer knowledge in general regarding the terms and conditions of the loan they were being offered which were too good to refuse for many. The frenzy created  was unsustainable and unrealistic, causing hyper inflation of homes and subsequently had no other reasonable course but to decline when borrowers failed to meet their mortgage obligations. 

So FOUR years later….

The housing market in the US is making gains in year over year comparisons. They are not overly impressive gains, but are gains none the less.  There  is ample opportunity for first time home buyers to enter the housing market from which they were previously excluded due to hyper inflation of housing prices.  .


 Renters: Shut out buyers have been laying in wait, and have now discovered they can afford housing. Prices have reverted to previously low levels which is opportune timing for them. They will transition from renting to buying.

Women will buy in larger volume than they did previously. As much as as 20% is predicted to be female professional women

We have the return of thousands of Veterans with benefits reentering the housing market.

 Loans will be secure, and they also now have opportunities available to them to  utilize those VA benefits which they earned while in Military Service.

They will now, just as they did back in the 1940’s after WWII stimulate the housing market.

In addition, we have a growing population of baby boomers who are well qualified and funded with retirement income, dividends from other investments, and pension plans looking to invest in housing as a shield from higher proposed taxes, and as a means of protecting their estates from increased taxation.

They are in an excellent position to purchase now, hold for future generations, or subsidize their previous investment income by transitioning into rental ownership until such time the market recovers.

 There are four or more sectors of the population which can and will sustain the housing market.  The key is in the hands of consumers as well as the control of release of the previsously foreclosed  home inventory.  Do not expect instant gratification- there is no quick fix other than time for the housing market to heal and regenerate which is slowly beginning to do.

St.Cloud Homes & Land, LLC is a full service Licensed Real Estate Agency Providing OUTSTANDING customer service and commitment to excellence for its clients. Kissimmee Homes, St Cloud Florida Homes, Kissimmee Vacation Homes, Kissimmee Town Homes, Kissimmee Condos, St Cloud Vacation homes, St Cloud Town Homes, St Cloud fl historic homes, St Cloud Fl condos, all OSceola County Real Estate Properties.

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