Jabba68

At the end of the month my brother and I are travelling to the Orlando area with a view to purchasing a villa.

I have read a bit about it, but was wondering if any of you kind souls out there would be able to give me any insight or advice on the kind of things we should look out for.

We are looking for a 6 bed villa, preferably on a golf course or with a lake view (which I am aware adds to the price). We plan to rent it out for most of the time.

I'm not sure whether a brand new villa is better value than a second hand one.

Appreciate any help you may be able to offer....

NatashaB

Make sure it's not on a sinkhole:

http://www.bbc.co.uk/news/science-environment-25983415

Do you live in the US? Will you have someone local to manage the property? Do you understand the tax implications?

http://www.wikihow.com/Buy-Property-in-Florida

Jabba68

Ouch! Thanks for that....I guess you can get insurance cover for that kind of thing?

No we live in England (the old one!), but having spent a bit of time over there in the last 2 years want to buy a holiday home, particularly for one family member who has health problems that is vastly improved by spending time in a warm climate.

We will need to get a management company to look after the property.....

Pulaski

You realise that there are restrictions/ prohibitions on vacation lets in the area around Orlando, right?

Jabba68

I understand that not all communities allow rental, so we would need one that does allow it short term....thanks.

NatashaB

I believe that insurers in Florida have to provide coverage for sinkholes (some states don't), but insurance or no insurance, I wouldn't want to own a house that might disappear into one. I assume you would have to file a US tax return to report any rental income you make, which sounds like a whole world of paperwork since you're a non-resident.

Jabba68

Thanks NatashaB. No worries on the tax returns as my better half does those kind of things in her sleep! Good point though.

Bit of a worry about the sinkholes though. Not sure if there's some kind of geological survey that can be carried out.....

NatashaB

You can get a homeowner inspection, that's pretty standard in any house purchase, but it tends to concentrate on the house itself rather than the geographical area. I'm sure that when you get in touch with a realtor they will be able to advise you more, but don't forget that their job and their commission is based on selling you a house... so do your own research!

Zillow.com, realtor.com and trulia.com are all good places to browse for property and find realtor contact details.

Bob

Madmapper.com too, though that is more geared towards rentals, but you might as well look into the local rental market and see what you'd be competing against and the kind of fee's/expenses are.

Michael

I'd worry more about hurricanes. Since it can sometimes be difficult in some areas to get hurricane insurance from private companies, Americans often have the option of purchasing hurricane insurance through the federal government. Check if that is possible for a non resident in an area where it is difficult to get hurricane insurance.

Pulaski

In theory, perhaps, but they would be mighty expensive because you'd effectively be drilling a well hole, and that, just for drilling the hole costs $000's. In practice, sinkholes in Florida are more-or-less random collapses in the limestone plate on which Florida sits, and if there was a reliable and cost effective way to find one before it causes damage, everyone would be doing it. As it was a sizeable apartment building went into a sinkhole about a year ago, and it was completely unforeseen.

RICH

My insurance has "sinkhole" as optional. I opted not. It would have involved some kind of inspection on behalf of the insurance co, and I took the point of view, if they inspect and still insure, then my risk is low!

When that guy's bedroom swallowed him a year ago near me, the insurance broker sent out an email, explaining "catastrophic collapse" such as that is still covered, even without the sinkhole coverage. So not sure what s/h cover covers - maybe filling in the hole after

We are due a good hurricane. That coverage is not optional, and has been hard to come by in the past. Also Flood insurance is now more expensive, but you can choose to buy where it is not needed.

Flabound oneday

Buying new you will have the benefit of construction to the latest hurricane codes plus warranties on appliances etc. a decent builder should give you a 10 year warranty. sinkholes are mainly around Spring Hill area I wouldn't be worrying unduly. get good home insurance (I can give you my guys details if you want).flood insurance is only mandatory if you have a mortgage..

ignore the zillows and trulias, their info is often way off.

use a site called myfloridahomesmls.com
the mls (multiple listing service) is where every realtor posts their sales

I would research and use a good buyers agent (realtor) they will act for you , get the best deal for you and unlike the agent working for the seller be impartial and steer you clear of any potential pitfalls. they get paid from the sale so it shouldn't cost you anything

buying is a fairly simple process here....don't be taken in by the adverts from developers 'guaranteeing' 53 weeks a year rentals...it don't happen

Flabound oneday

oh and avoid short sales (lots of hassles)

Flabound oneday

just to give you an idea there are over 100 6 bedroom homes built 1990 onwards from $169000 up to $500000

it would help to know other criterias...ie pool, bathrooms, sq footage, single or 2 storey etc