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Old 28 Jul 20, 11:27 AM  
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#1
themacfamily
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Anyone from the UK had good experiences buying a villa in Florida?

This is something my family and I have considered for many years: buying a villa in the Kissimmee/Orlando area so that we have somewhere to stay when we visit, and somewhere to rent out to other holidaymakers when we aren't there as an investment. I guess what has held us back so far is the amount of negative things we have heard from people about doing this - too much work, very little money to be made, bad experiences from annoying guests etc...

Has anyone actually bought a property in the area, had good experiences and were really glad they did it?
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Old 28 Jul 20, 11:58 AM  
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A&S&O
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We've often thought of doing this too, but have found it difficult to find out any definitive information. I sometimes wonder if people are reluctant to help potential new owners because it will mean more competition.

I don't think there's money to be made if you're buying via loan / mortgage.
Does it matter if it makes money, or are people happy for rentals to cover its costs - making it cost neutral and giving you free accommodation when you need it?
As an investment, it all depends on whether house prices rise or fall and what the exchange rate is when you buy or sell.
Also, room rates / villa rental is so cheap, is it worth the hassle?
I think we decided that it might be viable if we are going to spend lots of time there - maybe 4 - 6 months after we retire.

Very interested to hear other people's views.
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1997 DLP x2, 1998 DLP x2, 1999 DLP, 2000 DLP, 2002 DLP, 2003 DLR, 2004 WDW + DLP, 2005 DLP + DLR, 2006 WDW, 2007 DLP x2, 2008 WDW + DLP x3, 2009 DLP x7, 2010 WDW, 2011 DLR, 2012 WDW + DLP, 2013 WDW + DLP, 2014 WDW + DLP x3, 2015 DLR + DLP x2, 2016 WDW + DLP x2, 2017 WDWx2 + DLP, 2018 WDW + DLP x2, 2019 WDWx2, 2022 WDWx2, 2023 DLP x2. 2024 DLP x2, WDW. 2025 planning WDW.
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Old 28 Jul 20, 12:17 PM  
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Gryff
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We bought 14 years ago don’t regret one minutes of it we’ll maybe one
When our Management Company sold out to some complete novices
6 weeks of sheer hell till we sorted it out
Will you make money no you won’t
We reap the benefits now having both been able to take very early retirement and use the villa as much as we can
Helen
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Old 28 Jul 20, 12:45 PM  
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#4
A&S&O
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Questioning no one in particular and realising amounts will vary -
How much does a villa cost?
How much does a management company charge?
What is a typical annual income?
How much is insurance?
How much are utility bills?
How much for annual upkeep?
How much tax do you pay on the income (and to who)?
Do properties have local taxes (like council tax etc.)

What else is there to pay?
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1997 DLP x2, 1998 DLP x2, 1999 DLP, 2000 DLP, 2002 DLP, 2003 DLR, 2004 WDW + DLP, 2005 DLP + DLR, 2006 WDW, 2007 DLP x2, 2008 WDW + DLP x3, 2009 DLP x7, 2010 WDW, 2011 DLR, 2012 WDW + DLP, 2013 WDW + DLP, 2014 WDW + DLP x3, 2015 DLR + DLP x2, 2016 WDW + DLP x2, 2017 WDWx2 + DLP, 2018 WDW + DLP x2, 2019 WDWx2, 2022 WDWx2, 2023 DLP x2. 2024 DLP x2, WDW. 2025 planning WDW.
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Old 28 Jul 20, 02:07 PM  
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#5
Floridarules
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In my opinion, I would say if you have to borrow to buy, no.
If you have the money to buy outright and can afford to maintain the villa - yes

I was amazed for example at HOA fees of $3500 per year for a gated community, electricity bills (because of the Aircon) of around $500 month, insurance’s are very expensive too (including termite) and management fees $400month. These are only some of the bills and of course there are variances but this information (provided in 2015) by a villa owner steered us away from the idea. That and the poor exchange rate 😥
We as renters, had no idea of the bills Villa owners have, therefore understand the prices charged.
So we console ourself with going as often as we can (when we are allowed to of course) 👍
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Old 28 Jul 20, 02:13 PM  
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steve@mac155.f
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Originally Posted by A&S&O View Post
Questioning no one in particular and realising amounts will vary -
How much does a villa cost?
How much does a management company charge?
What is a typical annual income?
How much is insurance?
How much are utility bills?
How much for annual upkeep?
How much tax do you pay on the income (and to who)?
Do properties have local taxes (like council tax etc.)

What else is there to pay?
All of the above will depend on many different factors.

The cost of a villa can differ because of it's size, the area it is in, if it is on a resort or not is it in a gated or non gated communitie.

Management company costs are made up of different cost not just a managment fee, you can add in pool cleaning, lawn maintenance, cleaning fees, then on top you will have maintenace costs which the MC either carrys out for you or arranges for you.

The amount of income depends on what you charge for rentals and how many bookings you get.

You have at least 3 insurances you will need to get Home insurance that covers short term rental, liability insurance and flood insurance the cost of these will again differ dependant on type and size of home and for all 3 it could run between 3 to 4k a year.

Utillity bills are high compared to the UK and again are dependant on size of home and amount of bookings, mine can run anywhere between $ 250 to $700 a month for both water and electric and would be more if gas is also used in the home.

Anual upkeep is a bit like how long is a piece of string as anything could happen and normally does in the 9 years that i have owned i have replaced the pool heater, pool pump twice, the whole AC system, the roof, and had the pool resurfaced, i have replaced furniture through out the house, and have repainted the whole inside twice and the outside once plus many other houshold items including bedding and towels.

You pay state sales and use tax (6.5%) on rentals that you take and county tourist development taxes (5%), I have not so far paid any federal income tax as i have never made a profit and any money you spend on the home is tax deductable on your federal tax return.

You will pay property tax which is just like our council tax and is based on the county appraised value of the home and the millage rate that the county adopt for the yearly property tax.

on top of the above there is still a multitude of things to pay out for like cable, TV and wifi, alarm monitoring, pest control, state and county licences, advertiseing, accountants fees, HOA dues ect.

Steve
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Old 28 Jul 20, 02:29 PM  
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Cloverlady
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We looked into it a while back and in the end decided we were happy to pay to stay in other people's villas than buy our own.

On top of the costs of what has already been mentioned the main reasons for not doing it for us is that even when you retire you can only stay a limited amount of time over in the USA in your villa, and secondly was the cost of medical insurance as you get older.

We're pretty healthy now but as we near retirement age and actually retire we would expect to be hit with higher insurance dependent on which ailments we have at that time - and that cost is only going to go one way!

We instead, once we eventually retire in about 6- 10 years, are aiming to be able to do long term rents, perhaps 3 months at a time, health willing!
And if Brexit still makes it possible, to buy a property in Spain Portugal France or similar for the rest of the year.

Plus we get the pleasure of trying new places, not stuck to one accommodation but with the knowledge that if we particularly like a villa we could go back and back and become good customers of that owner
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Old 28 Jul 20, 04:08 PM  
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YorkshireT
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I looked many times- my only regret was not buying a villa on Lely Naples after the last crash when exchange rate was good- I’d have made a killing.
Now I’ve enough DVC points to go out for February every year in a studio when we retire. No hassle, total dues cost about $2500 a year.
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Old 28 Jul 20, 07:53 PM  
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EllieP
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We too have been looking into this for a few years, albeit purchasing a townhouse/condo not a villa. Although, from my research, there are higher HOA fees in terms of townhome community, the upkeep costs are less, no pool costs etc.
We had arranged to view properties when we were out there, should have flown today ☹️

I am now unsure of what we will do, we would need around a 50% mortgage and would look at renting when we weren’t there. I wonder if Property prices will come down a little due to the current situation, but I’m feeling a little dubious about whether we will now purchase or not.

I have spoken to several families that have purchased townhome properties as opposed to villas and feel this is a better option for us. Most say they make a small profit, which tends to then go towards purchases for the property but breaking even is what we would be looking for anyway. So the property pays for itself generally. However there are many that say this is not the case. So at the moment, who knows. 🤷🏻

Edited at 09:06 AM.
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Old 28 Jul 20, 08:50 PM  
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cornishfrogboy
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This is (IMHO) a great question and an interesting thread. Here is my personal view.

We are looking into buying a holiday home. It will be in Falmouth and fully furnished.. where I already live. I can furnish it through discarding my current (good condition) items and replacing them in my own home with new. The money that this property generates will be used to pay to stay in somebody else’s home.. anywhere we choose to in the world in any year. Somebody else can take the risk of living several thousand miles away from a very large investment, while my investment will be very close to home.

1. In our town, a two bedroom flat can be rented out to students between mid September and the middle of June as we have a 7000 student University experience going on. 2019-2020 terms were 23 September to 12 June. Students don’t like renting year round as they are rarely around in those summer months, yet end up paying for them. I can make a better rate by hoofing them out for the summer and then Air bnb’ing those months. The student can pay slightly more over 8.5 months and then I can charge more in those 3.5 months to tourists.

2. I fully understand all taxation rules as I have rented out in the past. They are in any case, extremely simple.

3. I will not need a management company or to pay for one. I can advertise easily and varyingly cheaply through numerous mediums. In the event of snags, I have recourse to my own Handyman skills (I was a self employed general handyman for a while upon retirement from the Police) and also have a very good knowledge of specialists such as plumbers, roofers, electricians, central heating engineers etc in the area and who to trust or otherwise. I am thus not reliant on the management company to select various tradesmen that may or may not be giving the MC inducements for trade. With 33 years in Falmouth and great Grandparents in the graveyard, I know exactly where to go for best skills at best price. I also have great access to ‘mates rates’ and ‘good will’.

4. I can do my own books.. as I have done in the past, saving plenty.

5. Decorating and general upkeep, turn arounds, snags requiring immediate attention?.. I would do them myself. Why pay somebody? I will be living less than 10 minutes away.. even when all the roads are blocked by Visitors.

6. U.K. properties are generally more substantial in build and less vulnerable to general wear and tear with concrete, brick and heavy roof tile construction, no serious infestation risks etc.

7. We do not have extremes of weather that can destroy your investment.

8. We will have much smaller resort or estate maintenance fees... or none.. I don’t have to pay towards Beach, Restaurants, Bars, Communal facilities etc.

9. I am not reliant on the goodwill or otherwise of a management company 3.5k miles away who decide which villas achieve full occupancy and conversely, which do not unless there are more visitors than available Villas. For instance, I have had 8 vacations involving Villa or condo stays in the Orlando area, always in Easter or Summer School Hols and have always had what was clearly an oversupply to choose from... A couple at very short notice. I have never paid more than around £550-£580 per week with pool.

10. What happens if air fares go through the roof in the next few years as Airlines struggle to recoup huge losses? This will always impact on tourist footfall and therefore rents, management costs etc. What happens if the USA hits owners through increased taxation after they have nearly bankrupted themselves. It is for sure that taxation will be reviewed.. affecting ownership costs and tourist foot fall. With my plan, I am pretty safe from any of that.

I appreciate that this is a contrary view to many others, not negative, but in an oblique way, a different answer to the same question. We want to have options of travel as we approach normal retirement age and in the event that it is too much hassle as we get older, it is...
1. An awful lot simpler to sell off a property in your own back yard.
2. Easier to manage that sale
3. We are far more likely to profit year on year from a U.K. property rising in capital value, than a Florida Villa where we all know that prices can be highly volatile in both directions.

I intend seeing the Far East, the remaining ‘A list attractions of the USA, South America, Cruising, Southern Africa and a few other places that I have not yet visited. Whilst owning a local holiday home will no doubt help fund it, it will in no way limit my options year on year.

I have had a few mates invest in Floridian villas over the years, one with no mortgage (He won £125k on ‘Who wants to be a millionaire’) and others with varying loans. All got out, most lost money between prices of purchase and sale.. and were relieved to escape. I never rented off any of them because even with mates rates, I could do better elsewhere. Several of those have purchased similar properties locally.. I.e swing role student let/ holiday homes for rent.

I appreciate that many have had delightful experiences from owning or part owning (the rest in mortgage is not owned) Florida Homes. Having done my sums and asked questions, it doesn’t work for me. Perhaps my ambitions are wider reaching (worldwide) and in any case, I am risk averse!
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Index of all my Trip and Pretrip reports..https://www.thedibb.co.uk/forums/sho...6#post15662196

Edited at 03:07 PM.
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