How much money can you make with a vacation home in Orlando?
By: Márcio Lima •
For many people, buying a property in Orlando is part of an alternative and safe investment strategy. However, the biggest doubt among investors is still about how much money he or she will earn from the rental of the holiday home.
According to various realtors, it is complicated to give a standard answer to this question, since numbers can vary drastically depending on the property. Overall, good homes in Orlando (well-located, well-maintained, and newer) yield about 4 to 6 percent of seasonal rental and historically 3 to 4 percent of conventional rent, but conventional rent is currently warmed up and has yielded 5%.
Although it may seem a low percentage, these numbers are quite expressive for the American market, where savings yield less than 1% a year. It is also worth remembering that another factor that influences profitability is the acquisition price of the property - so it is important to have the advice of a real estate expert when purchasing any property.
An Orlando 4-bedroom home, for example, located in the Yellow Sector (maximum 10 minutes from Disney), is rented, on average, 28 weeks a year with an average daily rate of $ 124 (net to owner), generating a gross revenue of about $ 24,000 a year.
Its important to highlight the importance of deducting the Operating Expenses and Taxes when calculating the income. Something estimated at US $ 16,000 is spent a year in these standard houses and a net income is obtained between 3% and 5% of the value of the property. In addition, it is important to remember that the financial performance of the seasonal home will depend on the indicators of the American Tourism Market, which may vary according to the economy.
In general, no administrator guarantees the exact financial performance of a property, as no one can manage global political, economic, or climate variables. However, a few companies offer an annual prepaid rental agreement by major Orlando tour operators – creating a good revenue predictability.
It is worth studying all the possibilities and talking with those who understand the subject to know what are the income expectations of the property. But you can be sure of one thing: the American economy is much safer than other countries, so investing in a property in the United States is far more advantageous than risking your savings somewhere else.
real estate, investment