[Olly]

Originally Posted by raul

I?ve been asked to invest in a 4 bedroom villa in Florida. I have no idea about this type of thing but wondered what the general feeling towards buying such a property in that area is at the moment. The property would be purchased on a 30 year repayment mortgage and then rented out for 40 weeks a year through a management company who take 30%. Anybody who knows any positives or negatives please chip in.
thanks
Raul

Hi Raul

Best advice; 'definitely not now'...

I am a British, US Licensed Realtor & International Property Specialist. From the tone of your question this is an entirely new venture for you. While much of the advice given here is fair, the comments are made mostly from people who are based within the UK and not, on the daily scene across the vacation locations of Florida. Equally, many make it clear they represent alternative locations.

Certainly this is not the time to buy if you have little or no experience of the STR (short-term rental) market. As for a property management providing 40 weeks of annual bookings, ask them for a contract guaranteeing same. Plus, the average value guaranteed too. (It's horse-manure; you'll never get this level without the property & location conform to certain criteria - too long an explanation here!)

If you're a seasoned investor looking for LTR (long-term rental) even now is just a tad too early. Why? Because the price of homes is dropping at an average rate across the state by circa 1.5% per month - ouch!!!

A seasoned investor knows how to take advantage of this situation but, with great respect, if you're just putting your toe in the water for the first, please don't. At least for the rest of this year and only after a review of the market by next February in preparation for 'maybe' a buy later next year.

Finally; just because a property is in a STR zone, doesn't automatically mean it will rent well. For example; around Disney in Orlando only two zip codes provide the best returns...34746 & 34747 (Kissimmee). Places such as Clermont, Davenport & Haines City while still capable of attracting business, it's far, far less than Kissimmee locations. Then, there are numerous other factors which come into play wherever you choose. By this I mean 'any' vacation area across the globe.

It's a skill few master unless they approach the subject following appropriate researches, etc.

Whatever you choose to do, please be careful and I wish you every success...

Olly