These are brand new vacation homes that are supplied complete with a furniture package in a gated “golf” community close to the theme parks in Central Florida. Prices start at $329,900. And they offer an apparent rental guarantee. Are these a “must buy”?
Well, let’s take a brief look at some history. Orlando real estate was a prime example of the “bubble” that grew too large in the first few years of the 21st Century, fueled in the vacation home market by overseas buyers in addition to other pressures to buy at the time. But over-hype, clever marketing and “guaranteed” rental schemes that proved to be ‘not quite so guaranteed’ left many buyers angry and out of pocket.
Then recession came and prices fell dramatically, more than almost anyone could imagine. We could spend a lot of time talking about bank lending practices, political interference that distorted things, unwise actions on the part of buyers, the blight of foreclosures and short sales – but let’s leave that for other web sites and focus on the recovery since then. In fact, double-digit price increases in the Orlando/Kissimmee area have been recorded for each of the past three years. The time to buy looks good, lessons have been learned and we’re not going to make the same mistakes again, are we?
Looking around the Orlando/Kissimmee vacation home area, there are some very attractive communities and homes currently on offer, whether you want a new or a re-sale home. There are many re-sale homes available as owners who held on through the price crash now judge that the time is right to sell. And new builders have expanded with a vengeance: communities have opened up over the past couple of years (e.g. Championsgate) and they supply gorgeous new properties. These are complete with home warranties, energy saving enhancements and the promise of a more upscale image for those owners looking for a marketing advantage to obtain rental income.
So what are the pros and cons of going “all the way” for the complete package about to be offered at Rosemont Woods?
Pros: attractions to consider include:
- Complete package, all combined via one source, including rentals and management
- Providence is an upscale community, with it’s own golf course and dining facilities
- The location close to Disney is attractive to renters
- The rental guarantee seems to reduce financial risks
Cons: potentially quite substantial. Areas of concern include:
- Value for money
- Property management choices
- The dubious history of “guarantees”
- Question marks from some professionals about whether guarantees are legitimate or contrary to Florida real estate regulations
Time and discretion mean that we are unable to fully cover all of these in this post so here’s the summary:
You have a lot of homework to do when buying a vacation home, most certainly if you plan to enter into one of these schemes. Clearly you need to understand all sides of the story before making a decision (unless you really don’t care what happens to your money). Since our philosophy is that we want you to make an informed purchase, we can say that Rosemont Woods may be the absolutely right place for you, but it could well be absolutely wrong. Don’t you want to find out before committing?
Call us to find out the facts that others won’t tell you, so that you have the full knowledge before you choose your dream home. Phone or email details are here.
