The Orlando Vacation Home rental market can be extremely prosperous if you are the owner of the property. Renting out a house for few days monthly could actually net you more rental income compared to full time renters in many vacation spots.
Orlando Vacation Homes – Charles Valeston, La Rosa Realty: If you are looking to invest in a Vacation home in Orlando Florida, you may be asking “When is the right time to buy an Orlando vacation home?“
Allow me to draw some distinctions in the market place; many of us believe the real estate market is split up into only 2 parts:
- Residential: Consisting of single family detached houses, villas, town-homes and condos.
- Commercial: That contains office buildings, multi-family apartment buildings, retail centers as well as strip shopping malls and commercial buildings.
So where could that leave the vacations homes? Well the real estate industry lumps vacation homes in with residential properties.
In a previous article I talked about how a vacation home can be both a personal bonus to you and your family for vacation/holidays and then as a great investment. The truth is, if you plan to make your vacation home available for short term rent then you must have a license from the state of Florida because you are operating a mini-hotel business. Still sound like residential? What about commercial real estate? This author contends it is its own market.
Let’s take a look at some history. Everyone knows the Residential real estate bubble burst in 2008, to be more accurate during the 3rd quarter of 2007. The Commercial real estate market quickly followed after a short time in 2008.
What a lot of people were not aware of is the Vacation Home market initially experience the decline in the very start of 2007. It was as though somebody went and turned the spigot off and then acquisitions of vacation homes jut stopped.
Orlando Vacation home transactions and property prices continued to decline during 2008, 2009, 2010. Actually within this time period the majority of vacation home purchases were frequently “Short Sales” or “REO Bank Foreclosures”.
Short Sale occurs when the mortgage loan balance that is greater than the Fair Market Value of the property.
REO (Real Estate Owned) is a property that the bank has carried out the foreclosure procedure and it is now acquired by the bank.
Since the real estate market today is slow-moving for sales at the moment, it’s fairly simple to acquire good Orlando vacation home properties for a price that will allow you to show a profit in a hurry.
There is no better time period to buy an Orlando vacation home than right now!