Villa Ownership !

[tyke]

I am at the very early stages of planning the purchase of a new home for short term holiday rental in the Orlando area.

I know that some of you have your own property out there and I am interested to hear your views on the pros and cons of owning and renting property in the US !

I am not intending to make a fortune on the rental (although it would be nice !!!) but would like to know if the average yearly rental income covers the operating costs of the property !

Indications of the monthly operating costs would be appreciated.

Also as an investment how does the annual increase in property value compare to here in the UK !

Many thanks

tyke

 

[neilybealy]

you might like to goto Florida Rental Home Owner Forum

you'll need to register first

please delete this post mods if you're not suposed to link to other forums

 

[Elle]

Tyke,
There are many pitfalls to owning a vacation home in Florida but there are many benefits too, mainly that it can be great fun but rarely financially profitable.
We get asked all the time about buying a rental home and my answer is the same every time, if you cannot afford around
$1500 to $3000 per month outgoings without getting a rental then don't do it! Yes some people cover their monthly bills, some even make a profit but many more do not and unfortunately burden themselves with a huge financial debt that selling the house itself does not always cover, as property rates in Florida particularly STR's do not move as much as in the UK, sometimes going down rather than up!!
It is a fantastic thought, owning your own place out there, but the reality is it can be very hard work, stress inducing and very time consuming.
Take a look at the forum above it is a great reference point, we also have a web site for owners Florida Homes and Travel (we produce a monthly newsletter) but as we are commercial I don't want to put the address for fear of upsetting the status quo.
Having done all the doom and gloom though, if you work hard and do your research it can be very rewarding (emotionally) and fulfilling and can be great fun, we certainly enjoy it!!
Elle

 

[JANNYANS]

I agree with Elle.If you can't afford to subsidise a second home for at least the first year don't do it.I tis hard work to get the bookings and don't believe the promises given by some companies about how they can guarantee x amount of booknigs a year -they usually don't materialise.Do your research thoroughly looks at the forum mentioned and then do it if you think it will work for you.If you want to buy property that increases in value buy in the uk.

 

[tyke]

Thanks guys - I will check out the website !

tyke

 

[SimonV]

tyke, I am looking at this very closely at the moment for a new section in the book, and I have made some very good contacts in Orlando for help and advice. Drop me an email or pm and I will be happy to pass them on at this stage.

Simon.