owning a Villa?

[Morgstar]

ALL OPINIONS WELCOME!

For those of you who own/would like to own or wouldnt want the hassale of owning a Villa. What are your thoughts on the positives and the negatives.

DGF and I's lives are changing dramatically at the moment, we both have great new jobs and i find myself thinking more and more about the future (even though i think im peter pan and will never grow up). I will now be living away from her for a large proportion of the time and chances are when i'm 'home' she my well be in work.

One thing that isnt changing is our annual trips to WDW, infact with our new jobs it is likely that we will make two trips a year. So with this in mind i am eager to find out the benefits and draw backs of having your own place.

We wouldnt be looking to make any money at and totally understand there is no such thing as a garuanteed bookings. We would want to cover our charges and know that when we go we always have a 'base'.

To make matters more complicated at the moment my girlfriend works for disney and gets amazing onsite discounts. We love staying onsite, especially since we both like a drink and you can use disney transport. However i cant help think that there can be nothing better than having a 'home' near the world, even if you have to rent it out as much as you can!

What are your thoughts?

 

[wildwood]

Hi I have owned a villa since 2006 and all I can say is that it is very hard work , even with very little spaces left in my bookings calander you only just break even after paying managmnet , untilties and taxes . I work about between 4-6 hours per day in the villa as well as a full time job and although I love my villa and the coments I get from the people I rent to I may not have bought one if I had know it was so hard to get bookings .

The only advice I can give is location of the villa must be right , you have ti keep up with other villa owners and what they offer and you need to be very comminted . I am soory I sound a bit negiative but I wish some one would have told me this before I bought .

Saying all this I get so excited when I know I am going to my florida home and the look on my DS face is worth all the hard work .

 

[mickg7dyd]

Hi,
I don't own property in Florida but have friends who do. One thing they have told me is make sure you get a good management company as they can make or break your income. When they first bought the property they stayed with the previous owners management company but had lots of issues with them including the property being occupied without either letting them know or paying them. They also advertise the property on the "360" website which gets them a lot of bookings. Over the last year they have "broken even" on costs and had several weeks there themselves, we stayed there last year and a great time. As for the initial purchase cost there are some real bargains out there at the moment and it is a buyers market and of course the exchange rate is good too.

Mick.

 

[PoppyAnna]

Orlando house prices are something DH and I are keeping an eye on too.
It's a choice for us of either moving up here or staying put in our current (adequate) house or buying a Florida holiday home.
DH is planning on retiring in 15 years time at 55 - so it opens up many questions.
We appriciate you can't make it a business that pays a profit in the current financial climate and that you're lucky if costs are covered and you get a few weeks out there every year.
Part of this is that it would be something for me to do when both of my girls are at school - as an above owner says, it's a few hours work a day.
Keeping the property updated and up to scratch, choosing the right location....the mind boggles with everything you need to keep up with...

To the original OP - if you love staying onsite, would DVC not suit you more?

 

[SammieG]

we looked into this a few years ago and decided against it.. IM SO glad that we did.... it just wouldnt have worked out for us..

the rental market is absolutley flooded in Orlando.. and I think you would have to work really hard to get it to even vaguely pay for itself.

However... as someone else suggested... have you looked into DVC? Very flexible... you might even get a cast member discount.

Your investment will actually increase in value too.

We have 3 timeshares and that worked out to be the best way for us to go.

Sammie x

 

[Morgstar]

Thanks for all your responses. Much appriciated.

As it happens, we have had a serious look at DVC, been on the tour, researched the abillity to rent or lease points as need etc. The truth is whilst we do love the concept I look at it and wonder would we not be getting more out of owning or own place. Dont get me wrong I really do belive that DVC is excellent value for money. However if we had DVC i Know the missis would want to buy enough points to stay in the best resorts, we'd also want to garuantee being able to go for 2 x 2 weeks a year etc. so in the end the cost of DVC would probably be huge. (Although i conceed that over the years it would more than pay for itself)
All this and realistically we would still be staying in a hotel rather than felling we were 'staying in our own home'.

I realise that i am totally idealizing the thought of having your own villa since we will need to rent it out as much as possible and will probably have to work our holidays around the bookings we recieved.
This is the reason i have posted so that i can be told I am wrong/right or just plain 'you are living in cloud cooky land'

I am interested to hear about the work involved. Eventually (several years down the line) my girlfriend would like to give up work but she is such an organiser and workaholic (she dusts the lounge every single night!) that she would love to have the opportunity to do 'work from home'. Especially it involved 'her' home in florida. To me the thought of having to do work towards it ie. running a website, organising turn arouds is a plus as it would keep her occupied. If this was the case though we would have to 'guarantee' breaking even.

Would anyone know what the 'average' (using that term lossly) number of weeks rent you would 'normally' get for a; 6 bed villa with pool, spa, games in Emerald Isle/Windsor hills would be? Again I understand that these would only be estimates as there no dead certs.

By way the since i have only just started to look at this possibillity and research it if I am totally off mark or making any stupid comments please fell free to call me stupid so that i can be correct!

 

[Pinklepurr361]

We returned from our first trip to Orlando recently and totally fell in love with everything it had to offer. We stayed in a townhome in Windsor Hills and seriously considered buying a place. They still have homes available which are in the 400's (cheap compared to UK prices) and we came home with armfuls of sales brochures and prices. However, we eventually decided against it as the risk and outlay is too high at this time in our lives. As someone else has said, the rental market is flooded with similar homes and you would need to make your home outstanding in a particular way in order to attract business. Whether that is through quality furniture and decor, themed rooms or competitive prices, or a superb website, or all of these, you would need to decide.

Good luck and I hope you can come to a decision.

 

[Mrs Doubtfire]

Hi Morgstar

I can't offer any advice but know on the Orlando Hotel & Attractions forum there are quite a few owners who should be able to help. One owns in WH & another at EI. They may be able to give some advice

 

[PhilUK]

We've got a couple of Buy to Let Properties here. They just about cover their costs with long term tenants. The difference here is that if there's a problem I'm within a mile away to get it sorted and I can do a drive by daily if needed. We considered a property near Disney World but eventually bought into DVC {9 Years ago}. Our home resort is Boardwalk so it's a 10 minute walk to Epcot or Hollywood Studios. We pay a modest annual fee but we don't worry about Grass Cutting, Pool Cleaning, Carpet Cleaning, Dusting, Bed Linen, Oven Cleaning, Light Bulb Changing, Pest Control, Fence Painting, Gutter Cleaning, Window Cleaning etc etc.

Phil

 

[SimonV]

I would say it is a very tough decision to make these days, as there's no doubt it is currently extremely hard work to get enough bookings to cover your costs, and finding the right management company is crucial. Doing your 'homework' is even more important - try to find out as much as you can from others (as you are doing ) about the reality, looking at forums like the Orlando villa owners - http://www.orlando-guide.info/forums/

If you have done all your sums, and are still keen, there are several companies you should look at for good help and advice (and a British sterling mortgage, if possible).

The bottom line is that the property market is really flat right now, so it is totally a buyer's market. There are a few hints locally that things might have bottomed out, but I don't expect to see much movement for the rest of the year, which means you have time to have a really good look at what's available and what's in your budget. BUT (and this is a pretty significant But), if you decide you can afford to go the villa route, you should be on to a good long-term investment (accent on the long-term!), as the rental market has still got a lot of growth left in it (as more and more people discover the benefits of staying in a villa rather than a hotel, especially the US domestic market, which is still predominantly hotel-orientated and is obviously a much bigger part of the market) and house prices will surely start to rise again in another year or so, meaning you should eventually be sitting on a genuine nest-egg (which you can't really say of timeshare, for all its benefits).

 

[Paul (tigger fan)]

I am like op and have been thinking about buying a base in Orlando for the last few years.

The route that always comes into my mind is not to make money, but instead try to find 3 other Orlando loving people/families and we would each own a 1/4 share each of the villa, equally sharing the burden of costs etc thus making it a more feesable option.

My thoughts would be 3 months each year allocated to each owner drawn up and agreed by a lawyer . My own personal preferance would be Oct, Nov & Dec each year.

I would not be to worried if my months were to be rotated every year , say Jan - Mar 1st year, April - June 2nd year , July - Sept 3rd yr, and Oct - Dec 4th Year, .

My question is has anyone heard of any purchase schemes that make this possible.

I am not a big risk taker and feel this could be an option for us as a family and when my wife and i retire (sadly a long way off, but i can dream)we could have our Orlando base sorted .

 

[paulh]

we looked into a villa a few years ago,decided against it and whent down the dvc foute.had no problems and love it
Would only buy if renting wast the only way for you to cover the cost.buy if you can afford to lose the money
Paulh

 

[deejay-55]

There are lots of satisfied holiday home owners, and also a number who bought at the top of the market a couple of years ago and are feeling the strain. If you decide to go ahead, do use a realtor to help you find the right Orlando property for you - not all US estate agents are realtors!

 

[Pootle]

I've been a Florida regular visitor for 20 years and have looked into ownership many times (but also settled for DVC and am happy I did). You asked for all opinions so here's my take:

Now could be a good time to buy - but then again, it might still have further to fall and it could take a very long time for the housing market to recover in Orlando.

The greatest threat I see to tourism is the cost of fuel; the price of gas is a big issue in the USA right now, but air fares too are starting to be affected. The rising cost of oil is a global issue. Ask yourself how tourism to Florida might be affected if the air fares were to double in price for instance (ok, maybe not next year, but who know how much longer relatively cheap fares will be available?). Would it affect the ability to rent out the property (fewer tourists) or your own ability to visit so often?

Good luck with whatever you decide to do. I'm planning my next visit while I can still afford it

 

[T16GEM]

We too have been visiting Florida since 1989 and have thought so much about buying out own place there. DH has recently been looking into buying again and was very close to doing so a few weeks ago. However, following some research in local neighbourhoods around Kissimmee the problem that we have come accross is that at the moment many houses are being repossesed (sp?) or home owners are leaving the property in a bad state if they can't afford to keep up the repayment, according to some this is having a detrimental effect on the rental market in some areas as villa owners are not aware that the homes around theirs (which they themselves keep pristine) are in a bad way and they are finding their customers complaining and it is affecting how many bookings they themselves are getting.

So for now we have decided to put our plans on hold. I think to be honest that you need to be able to sustain a bad housing market and just get by on minimal rentals for a long period before the recovery begins and not everyone can do that. I don't think at the moment that I am brave enough to commit to that kind of outlay right now you know?

We are now looking at DVC! Yay!

 

[orlando-brit realtor]

As a realtor in Orlando and originally from the UK, all i can say is that property prices are great. However, it is a common misconception rental properties completely pay for themselves. The majority of properties generate probably only about 75% of operating costs after you ahve paid the management company, and if you dont pay good money with a good management company you wont even cover those costs. Home prices are very competetive at the moment which means great deals for everyone, but gone are the days when you find management companies guaranteeing so many weeks rentals. Mainly because they have gone banktrupt. As you said there is no guarantees.

My parents and my wifes parents are DVC members and they joined in the very beginning in 1993. Back then the points were something like $35 per point and because Disney couldnt sell them we had Passes to all the parks for each guest in our party for as long as we stayed up until newyear 2000. Both our parents recouped the cost of the investment just in passes alone. The DVC is great because it is flexible. They use it now mainly for the cruiseline. But at the end of the day it isnt real estate that you own. You have to look at your own particular circumstances and decide which is better for you. DVC has annual fees for maintenance etc aswell.

Both routes are excellent choices, but keep in mind real estate is a long term investment aswell, its not somethjing you can buy today decide it doesnt work and flip it timorrow.

 

[Whisky In A VAse]

For someone who has only briefly looked at DVC, can someone explain how DVC works and what the benefits are?
Thanks

 

[orlando-brit realtor]

For someone who has only briefly looked at DVC, can someone explain how DVC works and what the benefits are?
Thanks

Essentially, you are buying points. You can choose how many you want to buy but there is a min. You can then exchange these points for different types of accomodation at different times of the year. You can borrow points from the next year or bank points not used from the previous year. If you buy say 200 points, you recieve 200 points each year for the life of the ownership which i believe is typically 50 years. The points required for accomodations varies depending on size and time of the year. You can use them at other Disney resorts and also on the Disney cruiseline. Points can also be used at select hotels throughout the workd where Disney has partnerships. there are annual dues which cover maintenance and use of transportation etc, and these fees are based on how many points you purchase.

Hope this helps

 

[neilsalop]

We bought a villa in mid 2001. Then 9/11 happened.

We had a useless management company that ripped us off, by letting our villa and pocketing the money. We lost thousands. The last time we were over was late '02 to complete the sale and it's taken us until now to decide to go back to Florida.

Our dreams were wrecked by terrorists and (British) management, we will never have the opportunity to do it again and I don't think we would even if we could.

If you do decide to go for it, talk to other clients of the management company, get a good accountant, buy the best that you can afford and don't expect it to pay for itself in the short term.

Also if you sell the IRS keep 10% of the sale price to cover unpaid taxes, and they're right buggers to deal with and don't willingly give it back to you.

 

[PoppyAnna]

We bought a villa in mid 2001. Then 9/11 happened.

We had a useless management company that ripped us off, by letting our villa and pocketing the money. We lost thousands. The last time we were over was late '02 to complete the sale and it's taken us until now to decide to go back to Florida.

Our dreams were wrecked by terrorists and (British) management, we will never have the opportunity to do it again and I don't think we would even if we could.

If you do decide to go for it, talk to other clients of the management company, get a good accountant, buy the best that you can afford and don't expect it to pay for itself in the short term.

Also if you sell the IRS keep 10% of the sale price to cover unpaid taxes, and they're right buggers to deal with and don't willingly give it back to you.

Goodness me, sorry to hear about your awful experience. We will give it serious thought when the time comes (when the prices are right) and a lots of what we've have talked about are scenarios like you have mentioned. I guess, you never, in your wildest dreams would have thought about a 9/11 type disaster.
I'm glad you're returning to Florida - I hope it holds all the magic for you that it did once before.
Oh yeah, welcome to the DIS