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This is a guest post by Gabriel Knight, a financial blogger and writer. He is associated with several financial and real estate communities. He writes various kinds of article on real estate, mortgage and finance topics for several financial and real estate websites.

City of OrlandoYou may be aiming to own a second home in the coastal state of Florida. The current local real estate market in the city of Orlando and that of Central Florida has never been more conducive for fresh investment of such a magnitude. As per the latest market data, housing prices in these places are hovering somewhere around 30-50%. However, you may be a bit skeptic whether or not is it an apt time to take the plunge. Alternatively, some people who already have a vacation rental property in Orlando are seriously contemplating to sell them off in order to relieve themselves of the white elephant they thought would give handsome return on investments due to their pressing personal financial situations. So, before making the final decision, you should consider some essential factors related to home buying in these areas.

Home Buying in Orlando – Factors to Consider

Here are some indispensable factors that should help you to make a judicious home purchase decision in the state of Florida:

  • You must consult a local real estate brokerage firm regarding the expenses and advantages of buying a vacation property in this state. (You Can Use Our Free Expense and Analyzer Worksheet Here)
  • Research has shown that existing vacation home owners who have been successful with their investments are said to be in favor of spending more good time with their near and dear ones. They cared more for their family rather than for the house they’ve purchased. So, you might share that mindset as well.
  • At the moment, Orlando is considered to be one of the best real estate hotspots to invest in, considering the historic low mortgage rates as well as housing prices. (Search Hundreds of Vacation Homes in Orlando For Sale Here)


What If You Want to Sell an Existing Vacation Home?

House For Sale Orlando Take for instance, you already own a piece of real estate in Florida and you want to sell that off citing it as a financial yoke, given the perpetual economic uncertainty in your local economy. If you can work with a real estate agent who can ensure a steady rental income, then hopefully your view towards the vacation property would change for the good. As a result, you will think twice before selling it off.  However, if your financial hardship is too severe to be managed by your own self, then it is advisable for you to consult a real estate attorney at the earliest before you start missing the monthly payment deadlines.

A competent attorney may help you get your loan modified in to more suitable repayment terms. He may also assist you in short selling your property, besides weighing all the other debt relief alternatives that might be best for you. However, if there is a good amount of equity left in your home, then refinancing the mortgage would be a better option. For that reason, you should get in touch with your lender and sit for a mortgage questions and answers session with him.

What If You Want To Own a Vacation Home in Orlando?

2013-real-estate-trendsConversely, if you are thinking of buying a vacation home in Orlando, property rates in this area are comparatively lower than other places in the country however, inventory has been clearing up due to supply and demand. Because of this, most homes on the market, especially in vacation rental approved communities, are experiencing bidding wars and multiple offers driving up the prices higher than the actual list price. Though homes are selling higher than list price they are still relatively lower than the prices of homes in most other areas of the U.S.

Still, you may be a bit skeptic about investing in a real estate market that has so many short-sales or foreclosures listed. The reason for such a trend in Orlando is that those existing homeowners did not evaluate their mortgage affordability before buying the homes during the past housing boom of 2004 and 2006. As a result, they found it overwhelming to make the monthly mortgage payments on time.

In addition, there was little or no regulation on the mortgage lending practices that were prevalent in those days, while housing prices were soaring uncontrollably. This led people to owe more mortgage than their property is worth of. However, the trend has reversed as of now and buying an Orlando vacation home right now may give you a good return on investment. Even in this situation, you should evaluate your present financial health and long term goals before buying any such property so as not to over commit to something you may not be able to afford in the future. A vacation home purchase in Orlando should be both an emotional and financial decision, not just one or the other.

This is a guest post by Gabriel Knight, a financial blogger and writer. He is associated with several financial and real estate communities. He writes various kinds of article on real estate, mortgage and finance topics for several financial and real estate websites.

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