In a recent trip to Colorado, my wife and I found ourselves engulfed in the Ski in Ski out lifestyle and fell in love with our vacation condo. Positioned perfectly in the center of the village was Copper Mountain Real Estate with a window full of wonderful vacation home properties for sale. As an Orlando real estate agent I have toured, listed, and guided buyers in purchasing hundreds of Orlando Vacation homes for sale. It was in that moment I understood why purchasing a vacation home was so desirable to others. If your considering purchasing your next vacation home here in Orlando, FL, just minutes from Disney, we have curated some excellent content you help you decide if a Florida Vacation home makes sense.
Where to start
The first step on your Orlando Vacation home journey is considering motivations and reasons to purchase a vacation home. With five straight years of record tourism spending in Florida, Orlando defiantly holds a large share of the global market. In 2016 Florida welcomed 112.4 million visitors from 189 different countries and these guest spent a whopping 111.7 Billion dollars.
Here are the top 6 reasons to purchase your next vacation home.
- Will use the home for personal retreats and family
- Will use it for future retirement
- Felt the price was a good deal
- Potential for price appreciation
- Low mortgage rates
- Want to generate income through renting
What are your rental expectations?
The next step is determining what your rental expectation are for your Orlando Vacation home. Will you be renting it out short-term or perhaps having a long-term tenant? Have you considered the differences? Here is what you should know about each in a few words.
Short Term Rental: With the increased popularity of short-term rentals, City Planning officials have explored changes to the City’s ordinances related to short-term rentals; however, state laws limit the City’s ability to amend our ordinances. Popular sites like Airbnb and VRBO, have created a niche to promote your vacation home, get bookings, and generate some serious income. So what is a short-term rental? Short-term home rentals are generally defined as the rental of a residential property (house, condominium, room, garage apartment, etc) for periods of less than 30 days.
Most standard residential zoning districts do not allow for short-term rentals and this is where the experts at Lineage Real Estate will provide you with a wealth of knowledge and education. We hold the RSPS designation (Resort & Second Home Property Specialist) and have made vacation home sales a cornerstone of our business. We will discuss more on short-term rentals later on, but in the meantime, if you have questions just ask.
Long Term Rental: This is where you are more into the investor profile vs a vacation homeowner. Often times when you have a property in the long term rental it is rented 365 days of the year, and the owner does not expect to stay at the property. Now that you have a better understanding of what zoning to look for next is to determine what type of Florida vacation villa meets your needs.
How much will it cost?
The typical price for Orlando vacation home is around $230,000 in the resale market and on average $350,000 for new construction homes. Depending on your location will also determine your purchase price tag. For instance, you may want a to search for Orlando luxury homes for sale and you would find a beautiful collection million dollar vacation homes just minutes from Disney World & the attractions. These homes are the top tier mega vacation properties featuring private pools, game rooms, and a resort packed with world-class amenities. Reunion Resort is known throughout the world as a premier Orlando Vacation Home Resort Community and the pro’s at Lineage Real Estate would recommend it to anyone in search of luxury Orlando vacation homes for sale. Check out Reunion Resorts latest inventory and new listings here.
Types of properties
If you are not quite ready for a million dollar luxury vacation villa we have a variety of options in a range of pricing starting under $200,000. Here are some different options to consider for next holiday home. Another great community to check out is Champions Gate. View The Retreat At Champions Gate inventory here.
Condominium: A condominium, or condo, is a building or community of buildings in which units are owned by individuals, rather than a landlord.
Condo owners only own the interior of their unit. All other areas, including the building exterior, lawn, and communal areas, are the property of the Homeowners Association (HOA).Condominiums often have a community focus with a clubhouse, pool, golf course and/or similar amenity. This would be ideal for a carefree lifestyle and the ability to lock up and leave when you want. A condo also offers a great atmosphere to meet other residents and enjoy all the building amenities.
A townhouse is generally larger than a condominium and offers a lower homeowners association fee. Some townhouse communities offer the same types of amenities as condos, but others are more private. These may include private splash pools, courtyards, or garage. Townhomes are designed in rows, so tenants usually share at least one wall. It’s common for townhomes to have two or more stories.
Single Family Home/Villa: The seem to the most popular choice and offer the ultimate space for you to enjoy a vacation. These homes can range from 3 on up to 22 bedrooms, most with private bathrooms for each room. In addition to having a space for everyone, there are full-service kitchens, large dining room tables, private pool, and optional game rooms. These homes can be found in resort communities packed with neighborhood amenities for all ages.
Condo Hotel: A condo hotel is similar to how it sounds. It is a condo, generally a single story flat with 2-3 bedrooms that are individually owned but run similar to a hotel. The owners have the option to place it in the rental program for the onsite management and or use it exclusively for their personal use. The revenue derived from the rental income would offset the monthly fees and the owner would receive anything beyond that as profit.
Just like anything in life, there are advantages and disadvantages for each type of property above. This is a great conversation to have with your expert real estate advisor on the pros and cons of each and what fits your investment goals. Another factor that may influence the type of property you will purchase may have to do with your financing options. In the US 36% of investors and 29% of vacation home buyers pay all cash for their property purchase. For some that is an option for others, you will need to take a mortgage or finance a portion of the vacation property. One other thing to consider is are you domestic or a foreign nation buyer? The lending guidelines are vastly different for each. Contact us here for more information. This is not a one size fits all situation as each type of property will have a specific down payment amount, monthly obligations, capital contributions, and financing options, we recommend you have this conversation with your Florida real estate advisor before visiting any properties.
One example why this is important would be when a Canadian investor called me up and wanted to see Floridays Resort in Orlando. He was positive this was the resort for him and was currently staying in one of the units. He found the MLS listing in Zillow and called me to schedule a tour. During my initial phone consultation with him, I asked him how he would be paying for this new property. He replied back, “I will get a small mortgage from TD Bank, no problem I am well qualified.” I responded with, “are you aware that Floridays has not financed any transactions in that community over the past 24 months and all the deals have been all cash.” After a brief silence, he confirmed he was not aware of that. It is the small details such as this example that makes working with a knowledgeable vacation home expert so important. Best of all our buyer services are 100% FREE for you. The sellers have pre-negotiated our commission and will pay us directly. We will get you the very best deal in regards to pricing and terms possible while taking advantage our established relationships with other brokers and new construction builders.