Capitalize on Ocala

While lashes were being felt from the stock market’s recent buckling, treasury bonds were looking innocuous; yet for so many, it is hardly a benchmark to balance the scales towards a secure future. Low yields have investors looking in the direction of real estate to expand their portfolios.

In the decade following the U.S. housing bubble and the global economic recession, Florida became a mecca for home flipping. In 2015, three of the top five cities nationwide to make a solid return on investment were in the ‘Sunshine State.’ According to RealtyTrac, home flippers in Ocala were generating a 73.9 percent return on investment. Three years later, inventory of foreclosed homes is way down, home prices are still gaining, and mortgage rates are starting to climb. Timing is sound to take another hard look at the potential of Marion County.

Unlike South Florida, where expansion is limited, Marion County has considerable options. Besides the sheer volume of land - 1,014,400 acres to be exact, the area offers attractive topography - a mix of rolling countryside, forestland and lakefront regions; and at least three mild seasons of weather. By Florida standards, the higher elevation of the area –18 feet near Lake Weir to a high point of 230 feet in Reddick, served coastal evacuees in recent years as an inland harbor of sorts, when the state was threatened by serious summer storms.

In 2012, there were sound reasons not to invest in land, yet agriculture became a focal point for billionaires Bill Gates and Frank Stronach. The key may be investments into farmland with a reliable water source and usage permits in place. Microsoft founder Gates was linked to the purchase of 4,500 acres of North Florida prime timber country. Already established in Williston with a showplace horse farm and auction house to raise his prized Thoroughbreds, automotive parts magnate and racetrack owner Stronach, has collected 95,000 acres across four counties to humanely raise Brangus cattle to supply organic grass-fed meat to restaurants in The Village at Gulfstream Park. Stronach also selected Ocala to build his world-class Adena Golf and Country Club.

A year ago, Forbes contributor Ingo Wisner prospected Ocala for an article and predicted home prices to rise 14 percent over three years. “Population has grown just slightly faster than the national rate, but jobs have increased at twice the average, with most new jobs in the large healthcare sector,” he noted. New employment opportunities by companies like FedEx Ground, Chewy’s and Lockheed Martin are also affecting the number of rentals and homes available for sale. The Office of Economic growth and Demographic Research projects Marion County to have an 11% growth rate over the next 15 years.

Intelligent investment diversification which includes real estate could reduce exposure to overall market risk and act as an inflation hedge. Tangible assets, especially a beautiful property offers personal comfort and immediate satisfaction. A primary residence has functional benefits for the whole family. Purchasing a second home as a rental property, either a single family home or a working farm, in the short term, can be an income stream as time allows for the asset to accumulate value in the long-term. Plus, incentives like Florida’s Greenbelt Law offers tax benefits on active agricultural properties.

There is growing interest in equestrian activities. It is not uncommon to hear testimonials by doctors and nurses who are pleased that they made the move to Ocala. Time that was previously spent in their cars commuting is now enjoyed riding their horses, bikes, or perhaps boating on Lake Weir. Farms tend to be more affordable in Marion County compared to other equestrian communities. Price per acre will depend on location, facilities and market demand. The estimated cost of living in Ocala is 12% lower than the national average based on affordable housing, groceries, healthcare, transportation, and utilities costs. Compared to other horse oriented cities, Ocala‘s housing costs are 27 percent less than Lexington, KY; 35.1 percent less than Tryon, NC; and 64.2 percent less than Wellington, FL.

For the best results with your next investment, contact a licensed Realtor familiar with the area. He or she can advise you on property size, price, and availability.

-Julie K. Castro

Homes & Land of Ocala Marion County

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