Renting Your Home
Tax & Finance
Post Purchase Help
Villas In Orlando - The First Steps
Buying villas in Orlando? The fact
that you are on this site reading what we have to say suggests this is
your intention and would also indicate that you have
some common sense by doing some research first. Unfortunately the vast
jump in two-feet first - before they have found out just how deep the water
is and also before they have learned how to swim!
For those buying villas in Orlando or in Florida, we cannot emphasise
enough the importance of being thorough in your research. If you need to
rent out the home to meet your home's expenses including perhaps a
mortgage, you need to treat the purchase of your home with the same care
and consideration as you would if you were setting up your own business,
after all you are in effect doing just that.
Purchasing - Is it Right For You?
You need to determine whether the work
involved and the time you need to spend in running a rental business is
for you. As mentioned above, when
buying villas in Orlando to rent out you will be running a business. With
any business it takes a lot of work and will be a drain on your time. If
you work during the day then your leisure time will become an extension of
your working day. The more time you put in to your rental business, the
more likely you are to get more out.
If you can't afford to spend the time running the rental of the home,
coupled with the fact that you can ill afford the running costs, then
perhaps you should look at another type of investment. The home rental
business is definitely not for you.
For people buying villas in Orlando it is all too familiar a story.
We have seen it happen to many. People buy, it becomes a financial noose
around their necks and then sell up at a loss. Don't fall in to this trap.
It is easily done. Villa property companies make it sound very easy.
Buying IS easy, but renting your villa or condo out to meet your
commitments IS NOT. Do your homework first. From villa rental magazines,
phone a few owners. Get a perspective on things, ask for their views and
how much time it takes to manage their properties. Ask questions such as:
"If you knew then what you know now would
you still have bought your holiday villa?"
"Having gone through the process, what would
you have done differently?"
"What information did you not receive that,
if you had had it before you bought would have made things easier?"
Before you consider buying villas in Orlando,
you must do business plans - including cashflow forecasts.
You need to cost out your expenditure against projected income. Have a
look at homes that are advertised and see what rentals they are charging.
But do compare like-for-like. Not all rental homes are the same - and we
don't just mean the number of bedrooms! For example look at a home's
location (in terms of proximity to Disney World) the home's outlook (i.e.
over a lake, orange groves, is it overlooked at the back?) the facilities
available at the home and the communal facilities offered in the
'sub-division' or 'community' where the home is located.
Renting out Your Home?
This consideration should form a key part of
your decision BEFORE you purchase - assuming this is how you intend to
finance your purchase and the ongoing costs. How are you going to position your business
in the marketplace? Who are your potential customers? How are you going to segment your market and how are you going to target
them? What budget will you have to do this? How much can
you afford? How are you going to maximise this expenditure - i.e.
get 'bangs for bucks'?
For some basic costings, please see our
Remember, when buying villas in Orlando, if you intend to rent out your villa to finance your
purchase or to produce an income stream, the considerations are no
different from setting up and starting any type of business - because,
in effect, this is exactly what you are doing.