buying a villa

[brer rabbit 28]

anybody actually bought a villa in Orlando?How difficult is it with the mortgage side of it/housekeeping etc?

 

[wayneg]

I would be interested to hear from owners. Has it worked buying for an investment?
I have looked at buying every year since we started going to Florida but the maintanance costs seem very high to me. I have not done any research only looked at sites like this http://www.florida-villa.com/villa_owners/management.cgi
I have a customer that sold theirs last year, saying they could not break even on it. With all the charges/fees and motgage payments they had to rent out a minimum of 40 weeks a year.
I would not need a mortgage could use some of my investments to buy one but would need to be a better return than my current investments.

 

[wildwood]

We bought a villa very close to Disney in Febuary and I really did not know how hard it was going to be , my self and my DH both have full time jobs and Dh works a 12 hour day and I have to work on the villa about 5-6 hours a day on top of running the home looking after DS and having a life which at the moment is hard to grab , we have been lucky and have not had a mnth with out a booking in it yet but that is only from a managment in Florida that has been a great help and also putting in the hard work even saying this we have still not made a cent of profit not with having to pay, mortgage payment, management fee, pool cleans , garden services, pest control, home owners associates fees, electric, water , cleans after ever guest and then you have to make sure you have a villa that is as good as you can get it and has all the ammenties you can imagaine .I hope that one day it will not be such hard work and I can really enjoy having the property but at the moment that feels like a long time away I would say to any one who wants to buy a villa think hard and then think again and then if you still want to do it go for it the only thing that stops me from selling it again is that we have bought it for our DS as an investment in his future .

 

[UKDEB]

brer rabbit 28, your signature has me well confused. Isn't that mandymouse?

 

[magicmouse2]

The typical response to this question seems to be its hard to even cover the expenses. Never heard anyone actually make a profit on a villa yet. We too would like to purchase a vila in a couple of years but for our own pleasure, not to make a profit. If we get close to covering cost that will be fine. Godd luck with your decision and choose carefully.

 

[isla bonita]

We have had a villa for a little over 2 years. We also bought before everything went up in price. It took our home 22 months to be built.

Now homes are a ot more expensive then what they were 4 years back. If you do not have a mortgage it is a great thing I am sure for us we have one. I am hoping with all hard work we can get it going so it pays for itself. We also bought a larger home a 6 bed 5 bath so it is not for every one. That puts us in a different catagory. Not many people have use for one.

We have shared a lot of great memories with both family and friends so it has more then paid for itself in that aspect. Also for us it is like putting money in the bank. Every mortgage payment we make so our investment has gone up approx. 35% so we are very lucky in that way also. How we look at it is we are in a win win situation.

Just so you know it is not an easy undertaking if you need to have it booked. Last year ours was booked 133 nights this year so far 100. That is pretty good not great but pretty good. You have a lot of expenses. Here is a list.
mortgage?
electric
telephone
state tax
county tax
tangible tax
licenses
clean fees
lawn care
pool care
insect care
cable tv
Also you need to have items replaced or upgraded. We have put a lot of money into our home and it is not a posh place at all. We upgraded on furniture and add every time we have gone down but it is like your own home it always needs attention.

I do not mean to sound negative but it is a very big responsability to take on and it is not for every one. If you have any specific questions I can answer to the best of my ability. Hope I gave you the good the bad and sorry the ugly aslo.
Deb

 

[terrynewpack]

Don't do it unless you can finance it without any rental income. Realtors will tell you differently but this is not the right time to contemplate a purchase.


Terry

 

[angel659]

Hi

I would love to do this but to be honest unless we sell up here and rent we would not be able to do this yet.

 

[Julia Ann]

We are also looking at buying, but perhaps a 2 bed condo - again we are in the early stages we could cover a mortgage with out rental (although would hope not to have to) but and not sure of the extra costs. i am assume the upkeep of a condo (shared pool and facilities) would be less than a villa but i might be building up my hopes. Any advise would be great.

 

[AlanUK]

Sometimes I think it would be nice to buy a Villa with a view to having some long winter holidays in it once DW and I are retired, but at the moment the high prices and rental market saturation put me off

We'll stick with our DVC for now and see what the future brings

 

[Miffy2003]

Sometimes I think it would be nice to buy a Villa with a view to having some long winter holidays in it once DW and I are retired, but at the moment the high prices and rental market saturation put me off

Spooky - was about to post something very similar!

I was looking very very seriously for a property of c. £150k over in Orlando but came to the conclusion that for the time being they are too pricey for the potential rental returns.

 

[brer rabbit 28]

brer rabbit 28, your signature has me well confused. Isn't that mandymouse?

No it's me-promise!

 

[brer rabbit 28]

Thanks everyone for the advice.It is sonmething i'm looking at doing in about a years time,but want to cover every angle before i take the jump.
Have been looking at prices at vista del lago on 192.We stayed there once and it was lovely,also villas are very reasonably priced there.
I am lucky not to have a mortgage but read something about not being accepted for an American mortgage unless you have one here.

 

[Obi Wan Kenobi]

There are lots of variables to the cost including when you bouight, where you buy and tyhe management company you use.
I hope this comes out OK, but to give you an idea (You may need to re set on a word doc to read correctly)

Villa1 Villa2 Villa3
$ $ $
Typical Sales Price: (including Pool) 170,000 200,000 220,000
Investment:
25% Down Payment 42,500 50,000 55,000
Closing Costs 5,750 6,750 7,450
Estimated Monthly Expenses:
Management 100 100 100
Electricity & Water 160 185 200
Pool Maintenance 85 85 85
Lawn Maintenance 75 75 75
Pest Control >25 >25 >25
Cable TV 35 35 35
Telephone >25 >25 >25
Cleaning 95 105 120
Homeowners Association >150 >150 >150
Total Monthly Expenses: 750 785 815
Annual Expenses: >9,000 >9,420 >9,780
Annual Mortgage Payments:
(Including Insurance & property tax. Figures assume *7% for 30 years) >13,450 >15,695 >17,313
Total Annual Expenses: 22,450 25,115 27,093
Estimated Net Rental:
Yield / Income @ 35 weeks 0% / 22,500 0% / 25,000 0% / 27,650
Yield / Income @ 40 weeks >6% / 25,280 >6% / 28,440 >7.2% / 31,600

Then you have to add every 5 years or so, renewing the fitments and furnishings plus infestation (bug) clearance on top

Oh I forgat, make sure where you buy the villa is zoned for rental and is not going to be altered! Plus you need to look at the Income Tax you will have to pay in the UK as well

 

[minnie29uk]

There are lots of variables to the cost including when you bouight, where you buy and tyhe management company you use.
I hope this comes out OK, but to give you an idea (You may need to re set on a word doc to read correctly)

Villa1 Villa2 Villa3
$ $ $
Typical Sales Price: (including Pool) 170,000 200,000 220,000
Investment:
25% Down Payment 42,500 50,000 55,000
Closing Costs 5,750 6,750 7,450
Estimated Monthly Expenses:
Management 100 100 100
Electricity & Water 160 185 200
Pool Maintenance 85 85 85
Lawn Maintenance 75 75 75
Pest Control >25 >25 >25
Cable TV 35 35 35
Telephone >25 >25 >25
Cleaning 95 105 120
Homeowners Association >150 >150 >150
Total Monthly Expenses: 750 785 815
Annual Expenses: >9,000 >9,420 >9,780
Annual Mortgage Payments:
(Including Insurance & property tax. Figures assume *7% for 30 years) >13,450 >15,695 >17,313
Total Annual Expenses: 22,450 25,115 27,093
Estimated Net Rental:
Yield / Income @ 35 weeks 0% / 22,500 0% / 25,000 0% / 27,650
Yield / Income @ 40 weeks >6% / 25,280 >6% / 28,440 >7.2% / 31,600

Then you have to add every 5 years or so, renewing the fitments and furnishings plus infestation (bug) clearance on top

Oh I forgat, make sure where you buy the villa is zoned for rental and is not going to be altered! Plus you need to look at the Income Tax you will have to pay in the UK as well

For the last 3 years,Ive only had to pay 88p UK income tax and no US income tax.I dont know anybody who has made a profit (till they sell),so there is no income tax to pay.
I have been lucky and my villa pays for its 75% mortgage and all expenses.In nearly 3 years,its only cost me £2,000 for my games room and Ive had several free holidays there.
Buy a resale at a decent price and there is no reason why it shouldnt be as successful,

Lynn

 

[Obi Wan Kenobi]

For the last 3 years,Ive only had to pay 88p UK income tax and no US income tax.I dont know anybody who has made a profit (till they sell),so there is no income tax to pay.
I have been lucky and my villa pays for its 75% mortgage and all expenses.In nearly 3 years,its only cost me £2,000 for my games room and Ive had several free holidays there.
Buy a resale at a decent price and there is no reason why it shouldnt be as successful,

Lynn

how many weeks rental are you getting?

 

[minnie29uk]

Don't do it unless you can finance it without any rental income. Realtors will tell you differently but this is not the right time to contemplate a purchase.


Terry

Totally disagree Terry,
Now is the time to do it.There are lots and lots of lovely resale homes for sale.You can now buy a home cheaper than friends who baught one two years ago did.
It is hard work getting bookings,but Ive managed 32 weeks,34 weeks and 40 weeks this past year.
It is a great joy,but hard work.
If you dont need rental income,of course its less stressful.
Nothing in life is handed on a plate,but doesnt mean its not possible,

Lynn

 

[isla bonita]

There are also costs such as advertising. To get the bookings. Competition is only getting harder to get the bookings.

I do disagree with Minnie29uk when she suggests used homes are resonably priced. They have maybe stayed steady in the last year but they are still inflated. Unless you do not have to carry a mortgage it is a great thing. Many book the amount of weeks you have said but at what price?

I have had offers of a lot less then my prices. I am not one to except as it is cheaper on my month bills if it is not used then to except little for our home.

For us it is a business with perks. For some it may be a vacation home that they make enough to pay some of their expenses. It is not the same to every one. For all it is different things.

 

[Julia Ann]

As i posted earlier we are looking (very early stages) at buying a 2 bed condo probably within the next couple of years, preferably near to I-Drive or 192 and would probably be a re-sale so that i can rent out immediately. It is the running costs that i am a bit bewildered with - the running costs for a villa posted earlier were good to read but has anyone got a 2 bed condo that can let me know there running costs, by private email if you wish. We are not looking to make an income profit from it, it would be for an investement. What approximately would you rent out a 2 bed condo for?

 

[Shane]

Hiya Brer Rabbit

Recently, we were looking into buying a villa, we know various people who own and rent villas and theyve sent us several information packs and all the details. From what I can gather, its a major difference when buying a house over there than it is here, there laws are extremely different with houses and alot require you to put a 20-30% deposit on the house.