In the event that you’re serious about making an offer on a Orlando Vacation home during this frothy real estate market – perhaps even a house that’ll grow to be your possible retirement residence.
Listed below are 4 factors to bear in mind when purchasing a Orlando Vacation Home
1. Always remember that the key to vacation homes is location, location, location. Sure, this is certainly a cliché, however that doesn’t cause it to be incorrect . Before preparing an offer on any Orlando Vacation home, get to understand the region by visiting plenty of times to check out the local neighborhoods and also have a look at the details .
Apart from traveling during peak time of year, spend some time there after the busy streets leave . Different seasons bring different vibes to the area . Not only that , but some of the local stores and restaurants may only be open seasonally . You’ll want to be familiar with what the area has to offer during the off-season .
Craig Venezia , author of “Buying a Second Home : Income , Getaway or Retirement ,” suggests focusing your search on destinations which are not more than two hours from your main residence .
“If you have to drive more than two hours , you won’t go there nearly as often as you think you will ,” he says . In addition , Venezia notes , the farther away your vacation home is , the harder it’ll be to check on it or visit to take care of necessary repairs .
2. Determine the property’s real rental possibilities . Beaches in addition to mountains and large tourist locals such as the Orlando area are generally the best choice destinations to acquire rental cash flow any time you’re not residing in your vacation home , according to the National Association of Realtors .
If you think you’ll want to transform a home you’re looking at into a Orlando vacation rental property , seek the advice of the community and , if applicable , the homeowners association , to make sure short term rentals are permitted — before submitting any specific offer .
Make certain , as well , that the Orlando property you’re looking at carries the conveniences renters expect to have .
In the mountain resort regions where properties that double as vacation getaway rentals should have hot tubs , fireplaces and mountain views to lure tenants . These features help tremendously for getting the highest rental price and occupancy rate.
3. Add up all the expenses for purchasing and the maintenance of the vacation home. Mortgage rates are usually a little higher for second homes compared to primary residences , according to Walter Molony , economic issues media manager for the National Association of Realtors .
That’s especially true in the event that you’ll be relying upon rental income to qualify for the mortgage loan .
When this is the case , the mortgage company will see your vacation home as investment property . But not only could you likely be forced to pay a slightly higher mortgage interest rate as compared to normal , you might be asked to produce a down payment of 25 percent or so , according to an article by CNNMoney’s Sarah Max .
You’ll get far better success acquiring Orlando vacation home loans from smaller sized community banks , Molony says.
Renting a house to offset your expenses may also mean having to pay extra charges , such as the expense of professional property management . The manager who Kaitlin hired for her condominium , for example , charges 15 % of the rental fees to market the investment property , process tenant applications , handle payments as well as look after the home .
4. Before preparing an offer , sleep on it . Purchasing an Orlando vacation home can often be the initial step to get closer to accomplishing a retirement life goal . Many times , though , this emotionally charged aspiration will cause potential buyers to hurry into making offers .
That’s particularly true in today’s buyer-eat-buyer vacation home market .
“There is this feeling that you have to buy now because prices are low and mortgage rates are low ,” Venezia says . “But you don’t want to be in such a rush that you jump in prematurely . You really want to take your time and do your due diligence .”
For that reason proceed with discretion . You’ll need to be assured that the property will not solely meet your requirements right now , but down the road . It’s smart to take into account the age-friendliness of the investment property , simply because you could be residing in the residence years from now when it may not be just as simple to , say , take on flights of stairs .
Kaitlin together with her partner came to the conclusion consciously and knowledgeably . They thoroughly evaluated all the possible expenses of acquiring vacation homes in a different state as well as in Florida . Then , they waited for the perfect properties to become available to the market before pouncing .
“We needed to know that no matter what happened , we could afford both homes ,” Kaitlin says . Now it’s just a matter of time before they’ll kick up their flip-flops in their ideal retirement location.