Purchasing vacation/rental home in Orlando...any canadians done this?

[mickeywho?]

DH and I have casually talked about the idea of buying a home in Orlando for the purpose of renting out to tourists and using it ourselves when not rented. While we've discussed it here and there over the past couple of years we're starting to get more serious about this idea and wonder if it's even financially sane in this economic climate.
What should we realistically be looking at as far as : new vs resale, finding a property manager, FINANCES! what are we even looking at for costs?
Any opinions/advice would be appreciated. Whether you have looked at this yourself and went for it or decided against it - good decision?
We'd look for a 4-bed with enclosed pool.
Thanks!!

 

[mickeywho?]

Nobody's even thought about this?

 

[Louiepipbgeeco]

DH and I have bantered the idea about a bit. But, in the end we decided it would not work for us. So, instead we bought DVC.
I just worry about when/if it sits empty. etc.
But, I am sure there are people on these boards who have done this and can offer first hand advice. UK board also. Most people purchase and hire one of the mgtment companies to handle upkeep and renting. A friend of ours researched and was steered away by a bank mgr. home here because apparently there are many fees/taxes (For example in a condo complex if there are 8 units and 2 go bankrupt/etc. the other 6 would have their fees raised to make up the loss???--this is just info from a friend/again I have no firsthand exp.
You just need to research and decide what works best for YOU.
Good luck.

 

[minnie56]

We did it twice...years ago tho. We re-visited it about a year back and decided against. Florida is not terribly buyer friendly to Canadians anymore and there's such an excess of real estate on the market I think it could be years before things recover and the rentals get as good as they were not to mention seeing a decent return on the investment. Just my 2 cents..

 

[villaofmemories]

We live in Ottawa, and purchased a 3 BR townhome, short-term rental property last July. It has been a fantastic experience for us thus far! We sat and watched property prices drop for 2 years and decided that we wanted to take advantage of the low prices. We didn't find the Florida real estate market unfriendly to Canadians at all. You can even finance through RBC in FL and do your banking in Canada.

The one thing that caught us of guard was the amount of work required to respond to requests from guests. (although I am enjoying this!) We decided to be "hands on" owners and manage all of the rentals ourselves. It is at least 1 hour per evening. Of course, you could also have a management company do this if you didn't have the time. You just pay for this.

As far as worrying about the property when you're not there - we have a fantastic management company that takes care of everything for us! There are plenty of reputable companies in the Kissimmee/Orlando area.

Hope this helps. You may want to take advantage of the strong CAD!

 

[irisesareblue]

We're looking right now at buying a property, however, will only be using it for ourselves for 3-4 weeks per year and allowing friends and family to "use" it through the year. Then, in 10 years, when we retire, we'll hopefully get to use for 3-4 months out of the year as "snowbirds".

IMHO if you find a good realtor who will work with you, then you'll be fine - they'll walk you through the HOA fees & condo fees, etc. etc. - it's a whole different set of rules and requirements, that's for sure!

 

[eeyoremum]

My dad is down there now looking at property. What about the taxes for Canadians? I hear they are higher than those who don't buy from Canada? That would be the only reason they don't buy. DH and I want to buy property in Florida but if Dad does it is just as good.

 

[CrazyDisneyMommy1]

We have also been thinking about buying a home to rent out in FL as well. I think economically it is the right time, as the prices are low and they will eventually start to go up, it will just take time. The property taxes do scare us though, they are much higher for non-FL residents. It's to bad that there government doesn't see this, so that more out of state and out of Country people would buy up someone the homes that are around. Yes there would less paid in property taxes, but there would not be so many houses on the market and in foreclosure. As per fees and everything, I am not sure. We to were looking for a 4 bedroom with enclosed pool. I think I figured it would work out to be about 1600 per month with everything for a house that is about 125000.00, but this is just a guess??? You also need a larger down payment being out of country. Most sites I have looked at said 20 to 30%, so on a 125000.00 home, you need $25000 - $37500.00 down. ????
Have fun looking and you will way the pros and cons and do what is best for you and your situation. Good luck

 

[Northstar]

Another thing to consider, if you're planning on renting it out, is the need to pay US income taxes as a nonresident alien on your rental income.(usually a flat 30% rate unless there's some tax treaty provision that limits it).

Then, when you file your Canadian taxes, you have to declare your rental income as income but you get to deduct the US tax you owed. It's about 9000 Tylenol worth of headaches just to file the forms.