Virtual tour of our January villa

[Boss Hogg]

Matt

I have noticed something else not quite up to scratch in the games room. There seems to be a significant lack of tasteful artwork - of the standard we are used to

Ah well you see without yours and Kev's advice on such matters, looks as if we may have overlooked this issue. I shall have to take some photos myself of suitable subjects and get them enlarged, so we can add them to the walls to improve the standard of the decor. I shall be visiting the local cattery before our trip.

And was the 5.23 thing all about, get fed up of looking at Kev's face in bed again??

 

[Ali and boyz]

The owner of the villa we're renting for our January trip has had a virtual tour completed.

Think we'll be able to slum it here for a couple of weeks!

looks lovely I would be frightened to sit down or sleep in the beds incase we messed it up Where abouts is it? and if you don't mind me asking was it very expensive to rent.

 

[UKDEB]

2005 rates.

Not cheap, but I was pleasantly surprised given we've paid a similar amount several times for Formosa Gardens. Granted, it's only 4 bedrooms, but the home is huge and is a step up from anything else we've rented before. This is a $2M home (at least that's what the owner told us) - more than twice the value of the most of those on FG (with one or two exceptions). That's a lot of money! It's an ex-model home and you only have to look at some of the extras (such as the pool) to know that it didn't come cheap. We got quite friendly with the owner of a couple we rented on FG. He sold both just over a year ago - the 5 bed for $600K and the 7 bed for $850K. Both overpriced in his opinion, but the 7 bed went sight unseen to a British couple. Just one more reason why I won't be getting into real estate in Orlando any time soon!

The villa will accommodate 2 families. Consider that in the context of what you'd pay for top class hotel accommodation. I don't want to open up the whole debate of onsite/offsite or villa/hotel - I'm an advocate of all options and a firm believer that each has its place, but I'm happy with my choice!

 

[disneyholic family]

2005 rates.

Not cheap, but I was pleasantly surprised given we've paid a similar amount several times for Formosa Gardens. Granted, it's only 4 bedrooms, but the home is huge and is a step up from anything else we've rented before. This is a $2M home - more than twice the value of the most of those on FG (with one or two exceptions). That's a lot of money!

The villa will accommodate 2 families. Consider that in the context of what you'd pay for top class hotel accommodation. I don't want to open up the whole debate of onsite/offsite or villa/hotel - I'm an advocate of all options and a firm believer that each has its place, but I'm happy with my choice!

yes i saw the rates the other day....not cheap but cheaper than a much much much smaller 'villa' at WDW......so you're getting very good bang for your buck....and having a private pool is really nice....

what's FG?......
$2M sounds about right for what they show in the picture (since according to the main reunion site, the most expensive lots are about a half million just for the property)....
in florida you can get a zero percent down mortgage, so they may have gotten that (meaning you put no money on a down payment at all, everything on the mortgage)......but if they rent out at any decent sort of occupancy rate over the course of the year, they make a sizable profit over the cost of the mortgage....
obviously they make good money or else none of these people would get into the business....

we also invest in real estate....but not in florida....too far away....but if we lived there, i'm sure we would get involved in it.......although one would think that there has to be some sort of saturation point.....

 

[Miffy2003]

Going O/T a little - but I know several people who own villas in Florida and they are struggling to break even.

 

[Cochise]

I would be following the kids round everywhere. It is beautiful but not a place i could relax in with mine.

 

[UKDEB]

if they rent out at any decent sort of occupancy rate over the course of the year, they make a sizable profit over the cost of the mortgage....
obviously they make good money or else none of these people would get into the business...

Interesting. Dh and I have just been wondering quite why anyone would get into it in Orlando these days. From what I can gather, it's rare to make a business case for it. There's still money to be made from a capital gains point of view (although not nearly as much as if you'd bought a couple of years ago), but the rental market has to be a mug's game.

Don't know what the fed reserve rate is at the moment, but if you've got a $2M mortgage, surely you must be paying 5% (including a margin). That's $100K a year in interest only, never mind capital repayments and maintenance. Water, air con, lighting, pool cleaning, management fees...

I'm a banker - I have an interest in these things!

 

[Mr Ed]

That's not a villa..... It's a theme park!!

 

[disneyholic family]

Interesting. Dh and I have just been wondering quite why anyone would get into it in Orlando these days. From what I can gather, it's rare to make a business case for it. There's still money to be made from a capital gains point of view (although not nearly as much as if you'd bought a couple of years ago), but the rental market has to be a mug's game.

Don't know what the fed reserve rate is at the moment, but if you've got a $2M mortgage, surely you must be paying 5% (including a margin). That's $100K a year in interest only, never mind capital repayments and maintenance. Water, air con, lighting, pool cleaning, management fees...

I'm a banker - I have an interest in these things!

that's what i was saying about the saturation point....
although we have a friend in the real estate investment business who just moved to florida a year ago because the market there is so hot...but not orlando...the atlantic coast area....
it's funny, because it was hot for years and then went bust....and bust in a big big way.....but apparently it's recovered....or so he claims.....
as for orlando....i don't know the market and would never want to get involved in something that is so potentially overbuilt....(besides which, i hate orlando.....we only go there for WDW.....in fact we would never go to florida at all if not for WDW....i've never been a fan of florida....although i wouldn't mind living in WDW.....my ideal job: work in WDW and live nearby....and if i lived nearby i would probably look into real estate simply because that is what we have always done wherever we live......)

regarding this house....
let's see....i agree with you......
so if the financing is $100,000/year...
and if they charge on average about $3000/ week (including the pool heating charge), and they rent every week that would give them about $150,000.....

only leaving $50,000 above the mortgage for the other costs and possible profit...
of what you mentioned, water's cheap, but electricity's probably quite expensive.....and i would assume the management fees aren't cheap either....

and that was assuming that they rent out 100% of the time which i'm sure is not anything approaching reality....

so why do they do it?....for the tax loss?....cockeyed optimism?...

i forgot one thing....mortgage costs are tax deductible.....most of that $100,000 would be deductible.....so if this person is high income in his real job, then the $100,000 is reduced by the tax advantage of the deduction...quite a huge sum of money, assuming he's high income (which he would have to be to be able to afford this little gambit)...
so if he's in the 48% bracket, that would be $48,000 less in taxes he would have to pay.....so the mortgage would only really cost him $52,000.....

hmmm.....

 

[disneyholic family]

Going O/T a little - but I know several people who own villas in Florida and they are struggling to break even.

are they Brits or Americans?
that little thing about mortgage deductibility would make it a better deal for americans than Brits....

 

[florida sun]

Deb

It looks fantastic, really lovely


Sue

 

[Miffy2003]

are they Brits or Americans?
that little thing about mortgage deductibility would make it a better deal for americans than Brits....

Three are Brits, two are from the USA.

 

[cannp123165]

Looks lovely. )).

 

[Boo Boo Too]

Hi UKDEB

Bit of a bump for this post - I am looking into Villas in Reunion for a few days this year, so your thread came up on a search that I did

In fact I am interested in the villa linked to be this thread... are you going to stay there again this October?

Any tips or advice - the villa that you stayed at looks simply stunning!

Thanks,
Boo

 

[Girlsontour]

WOW

Three of us would rattle round in that place!! I would love to stay in a villa - just to have more space than a hotel room, but with having a 10 year old on her own she likes the company that she meets at hotels. I don't know (or like!!) enough people to share a villa with - and i dread to think about planning a park trip with more than 3 to think about

 

[UKDEB]

Hi UKDEB

Bit of a bump for this post - I am looking into Villas in Reunion for a few days this year, so your thread came up on a search that I did

In fact I am interested in the villa linked to be this thread... are you going to stay there again this October?

Any tips or advice - the villa that you stayed at looks simply stunning!

Thanks,
Boo

We're not staying at that particular villa again - we tried to book it, but the dates didn't quite work out. If you're interested, mention that I made a referral (my name's Debbie Churchill) and you might get a discount.

We will definitely be staying at Reunion again in October - I'm in discussions with an owner at the moment. It's a stunning place and I can't imagine wanting to stay anywhere else in the Orlando area for a while to come. The problem is that, at the moment at least, there don't seem to be that many available. There are literally hundreds of properties there and hundreds more yet to be built, but not all of them are available for rent and some of them are only bookable through Reunion itself (owners have to choose to either enter the Reunion rental programme or manage the properties themselves - there's no halfway house). Having said that, Reunion doesn't have that many on its books (check out its website for those it does have) and it is a very expensive way of doing it. The one we are hoping to book has just been completed and the owners have decided to put it into Reunion's programme (even though they have another property there which they manage independently). I'm waiting for prices, but I know it will be considerably more than I was initially expecting based on the rates for their other home.

One of the factors in choosing these properties is that they both back onto golf courses. I have come across several other properties, all of which seem to be furnished nicely, but which don't have the golf course aspect. I haven't got time this morning to look for the links, but if you're interested, post back to this thread and I'll dig them out.

 

[Boo Boo Too]

Wow, thanks for your reply UKDEB - very helpful

Yes, am finding the same thing as you - very few properties for rental in Reunion (at least directly through the owners - which seems the best way to do it).

Also there seems to be several classes of property in Reunion: some more basic (that I am not so keen on) and some frighteningly expensive (got quoted $650 a night for one and $900 for another - both extremely beautiful, but a bit much for the two of us going...). We are looking for the middle ground (if that makes sense).

May I ask when in October you are planning to go (or haven't you fixed your dates yet?)? Have details for a nice property in Reunion available from 14th/15th October if that is any use (would book it myself, but we are going earlier, when it isn't available). The property you have mentioned might also be of interest to me, if the owner decides to rent it privately (if our dates don't clash with yours).

Thanks,
Boo

 

[ely3857]

Looks ok I suppose, If you like slumming it



Jodie

 

[Boo Boo Too]

Just managed to book this same villa (http://www.vr360floridavillas.co.uk/propertydets.asp?id=357#) for our 4 night stay in Orlando this October. We are only in Orlando for 4 days before off on a cruise from Port Canaveral.

Cost wise it isn't cheap, BUT is on a par with a Club Level room at the Hyatt Grand Cypress or the Ritz Carlton and some of the Deluxe Disney properties.

Am incredibly excited - it just looks fantastic. My only worry will be never wanting to leave!

Boo

 

[UKDEB]

Well done, Boo - you will love Reunion and Peter's home. We have had a response on the one we're looking at - $10,000 for our 9 night stay. Now, I am extravagent (not proud of it, but well-known for it ), but even I am reeling at that!