At any given time, there are scores of vacation home rentals in Orlando available for purchase as it’s a tourist hotspot. You may find yourself asking, “is the investment worth it?” There are important factors to keep in mind, such as your budget, your time, and the risks included. Make sure you are investing your hard-earned money the right way and for the right reasons: here are six reasons why you shouldn’t buy a vacation home rental in Orlando.
1) You Are Looking For a Cheap Cash Flow Property
Real estate prices in Orlando have increased greatly over the years. Houses that were once sold for $100,000 are now sold upwards of $200,000, and prices continue to rise each year. Investing in this kind of property will bring you a profit if you sell the home in the future. Renting your vacation home to the many people seeking out a quality home to enjoy their time in Orlando can bring a steady income, but it will not always be the case. You will be able to recoup a lot of the expenses that go into the home, but to be able to generate a steady cash flow will require much more work than just hiring a property manager and handing over the keys. If you’re not prepared to put a little work into booking your vacation rental home in Orlando than you might just want to consider a long term rental property instead, it’s less hands on.
2) You Don’t Have Time To Enjoy a Vacation in Orlando
Buying a house that you can’t enjoy is not really worth buying, is it? When you’re buying a vacation home in Orlando, you are tapping into a market that will bring much more value to your purchase. Even if you don’t have time to enjoy your own vacation home as often as you’d like, other people who have the time will pay you to stay there for a couple of weeks. When you do have the time for a get-away, you can be sure to enjoy a nice and leisurely vacation at the destination of your choosing, utilizing the income you have earned from renting out your vacation home. If you don’t think you’ll ever have the time to enjoy it than a long term rental investment may be a better route for you to take.
3) You Feel Safer Investing In Other Avenues
Investing your money in other avenues, such as stocks, bonds, or even precious metals may seem like a better option than investing it on vacation home rentals in Orlando. But think about it this way– you can’t enjoy gold like you would enjoy an inviting, modern vacation home that you are free to use at your disposal. You are also more than likely to have a greater return from the house than from your precious metals and the stock market. Consider the potential income and enjoyment that will come from your vacation home for years to come. If the prospect seems intimidating, fear not, as there are more than enough exceptionally competent property managers available to help you throughout the whole process. The trick is knowing the right questions to ask in advance.
4) You Don’t Mind Giving the IRS a Little More of Your Income
For those of us who don’t happen to be accountants, we don’t always recognize ways to save more money on our taxes. A vacation home offers a break from the daily hustle of life, but it can also offer a break from taxes. A great benefit of a vacation home is the ability to write-off part of the earned income in any given year, as well as deducting some of the expenses incurred in owning the home. The IRS allows you to rent out your vacation home for up to 14 days a year without paying any taxes on the income. The key to maximizing the benefits is to keep the yearly use of your vacation home to less than 14 days a year. Your accountant can help you sort through the rules and guide you in the best route to take. This of course is not an option for those looking to generate an income on their property. If you are booking your vacation home 35+ weeks per year your income should far exceed what you are paying out in taxes.
5) You Don’t Want to Save Money on Your Next Orlando Vacation
People don’t go on vacations so they can save money – they go on vacations so they can enjoy spending the money they’ve earned throughout the year. Vacations are supposed to be relaxing and fun, not a burden. Opting to stay at your own home during your trip to Orlando will allot more funds for recreation. Renting a vacation house can sometimes burn more than half of your vacation budget. The vacation home rentals in Orlando give joy to both the owners and occupiers. Just think about it– paying for a limited stay in one house is a lot more expensive than actually owning property that will make your vacation relaxing and enjoyable and create long term wealth for you over the years.
6) You May Not Want To Have a Vacation Home When You’re Retired
You don’t need any more burdens, especially when you are enjoying that retirement that you have spent so many years earning. Collecting rent payments and finding occupants may seem cumbersome when in your golden years, when your main goal in life is to release yourself from all the stresses you have accumulated over the years. If you decide to rent the house, you will have a steady income that you can use in many different ways. On the other hand, when you are retired, you can always choose to live in that house. In addition to offering a plethora of shopping, restaurants, and fun activities, Orlando’s temperate climate is warm nearly year-round. Orlando is one of the most ideal places to live and that is evident by how many people are choosing to call this fine city their home.
Nobody likes extra worries, as the undeniable fact of life is that we will always seek the path of least resistance. Consider your future and ponder what will be the best path for you. Take advantage of a knowledgeable Realtor that will guide you as you consider buying a vacation home in Orlando.
We hope to earn the opportunity of helping you achieve your investment property goals this year. To set up a free, no obligation investment property consultation with us please use our scheduling tool or contact us directly at 866-422-6191 and if you have enjoyed this article please consider subscribing to our blog and stay updated on future information.