Holiday homes in Florida offer a nice retreat from a dismal winter.
Buying holiday homes in Florida should be considered a good investment. Florida is attractive for many reasons - it is a popular retirement state, its warm climate attracts vacationers and it has many holiday attractions such as Disney World, spring break and the Florida Keys.
An economic recession is a good time to invest in holiday homes in Florida. As there are many foreclosed properties, vacation villas, condos, townhouses and rentals are on the market for a fraction of their value. Banks are negotiating deals with tenants who are willing to cover the owners yearly costs. This protects the banks, and the tenants have an opportunity to become potential buyers when the market improves. For example, in early 2009, New World Real Estate sold a three bedroom villa with a pool for $165,000. However, it is important to remember that many banks are not making loans for the purchase of second homes.
Investors should research the market conditions in each region in Florida, as conditions can differ depending on location and economic situation. House Hunt News offers statistics and information on market conditions and trends in major cities in Florida, including minimum and maximum price of homes sold, average home price, property class (single family, condo, etc.), projected market performance, average time a property is on the market, whether the area is a buyer's or seller's market, sales as percent of asking price and population growth centers.
Alto Research offers similar market information, providing statistics for single-family and condo home sales, median prices, home sales demand, price per square foot, inventory of property for sale, and housing market conditions for various cities in Florida.
Investment property is more attractive if it is near popular attractions where vacationers gather. Orlando, with Disney World, Epcot Center, Sea World and Universal Studios, is a popular destination. The region also has an impressive buy-to-rent market. One way for investors to increase the value of their holiday homes in Florida is to take advantage of the rental market. Rental property that is fully furnished and located in and around the holiday spots in Florida is in demand for vacationers.
Waterfront property, especially with amenities, such as a dock or location for fishing, swimming or boating, commands premium prices for vacationers. Other amenities of holiday homes for rent that increase the frequency of rentals are a swimming pool, proximity to a golf course, views of the ocean or lakefront, bungalow or cottage design and extra bathrooms. The extra income from renting investment homes can subsidize the cost of the property.