In Orlando a buyer is recommended to have a combined annual income of at least $49,382.26 (HSH.com). Recently HSH performed a study on the home prices in 27 different cities and focused on a home buyers average annual income when purchase a property. They found Orlando, Miami, and Tampa were the only cities to not suffer an increase in home prices since the first quarter of the year.
That means Orlando is still very affordable compared to the rest of the country. What we don’t know is how much the future price increases will be so getting into the purchase process before a possible increase may be in your best interest.
Other factors to consider when purchasing a home is the Down payment – this can range from 3.5% to 20%. Most lenders will look to keep your monthly mortgage payment no more than 28% of your annual income. This would further reduce the chance of a default on the loan. When using these numbers a $50,000 income may allow you to purchase a $250k property requiring a $8,750k down payment (3.5%) with a possible monthly payment of $1200-$1500.
We also came across some other fun facts from the Orlando Business Journal which stated the following about last quarters findings:
- Orlando’s mortgage rates fell by .18%
- Home prices increased by 0.9%
- With 10% down payment annual income recommendation increases to $56,968.00
- Orlando ranked in the top 10 of the most affordable metro areas to live in