November 12th, 2010 4:11 PM by Karyn Smith
What to Buy?
There are two largely separate rental markets in Central Florida's vacation home industry, the single family pool home market, and the condo/townhouse market. Both are equally profitable, so which to buy into becomes more a matter of personal choice than of economics. A condo is an apartment/flat which is owned, a town home is like a terraced home, and a single family home is a detached home.
Condos and townhouses a Condo is an owned flat a town home is like a terraced home
These tend to be located on resort-style communities, which have a central swimming pool and clubhouse facilities for the use of guests. These communities are in some ways closer to a resort-style hotel than to a residential community. Buying and owning a condo or a townhouse can be less expensive than a pool home, but you need to be sure that this is what you want for your own use when you come to Florida. Examples would be Windsor Palms, Terra Verde, and Windsor Hills.
Townhouses have seen a massive surge of interest in recent years in rental zones as well as for residential purposes. There have been many developers that have begun to construct townhomes as they fill the middle ground between condos and single family homes or villas. They are very popular with families who want to get on the property ladder and also with the retired who are looking to downsize.
In the Orlando area there are numerous townhomes available in short term rental zones and these again could fill the gap between those who want a completely hands free investment of a condo and those that want a good sized villa or single family home.
Condominiums or condos as they are more commonly known are the equivalent of European apartments/flats. With the properties and land being purchased on a freehold basis but within a communal area where there are community rules and regulations. A president, treasurer and secretary are typically elected by the owners and they will oversee the day to day running of the community under guidance of regulations and rules set down by Florida State.
Single family pool homes can be found on some resort communities, but many are on quieter, residential-style communities. The homes, having their own pools, are more self-contained, so community facilities are not so important to guests. In general, pool homes are more expensive to buy and to own, but income from rentals will be higher to compensate. Please check out my website to look at all the different communities.
Three to four bedroom villas within 15 minutes of Disney world are traditionally the best rental properties, but competition from increasing numbers of villas to let has dented average yields.