Anyone intending to buy an investment property to use as a short-term rental will at some stage be faced with the question of; "Do I go for new or do I go for re-sale?"
On the US 27, for example, one of the main highways through the Kissimmee and Davenport areas, we have seen more growth in new house building recently than any other part of the USA.
Currently, new pool homes are not available for much under $400,000 and are probably costing currently around $30,000-$100,000 more than the equivalent re-sale.
The choice is endless, but there is a home out there to suit every pocket. The most popular rental homes tend to have three or four bedrooms and two or three bathrooms, with a screened swimming pool. This is usually where we start our search.
A typical four bedroomed home is normally licensed to sleep ten guests and is therefore ideal for two families travelling together who want to share the costs.
What if the prospect of a pool home appeals but it is outside your budget?
There is always the alternative of townhomes or apartments.
Townhomes which are springing up everywhere these days, but even they can cost close to $300,000 when new.
The good news is that despite all this building activity having a knock-on effect as far as re-sale property values is concerned there are still a few bargains to be picked up.
Good re-sales, especially those 2 and 3 years old are available in abundance and represent really good value for money in many cases. There is a theory that once property gets to 5, 6, or 7 years old, or older, that many management companies will refuse to look after them. This is not true, however it has to be said that generally speaking, the newer a property is, the more appeal it carries for the potential holiday maker. Also newer properties generally are cheaper to keep cool ( air conditioning ) and maintain.
Which is best for you is really down to the need, desires and most importantly, budget of you, the individual. Here are a few other factors to take into account:
1. If buying new, you will normally have a year or so to plan your strategy for renting the property - time is a big advantage over the possibility that with a re-sale you will have to have it up and running in 4-8 weeks.
2. Alternatively, a re-sale may come with a good rental history and several months' bookings in place, so one can balance out the other.
3. Buying new these days almost certainly means buying a new furniture package, as very few builders now offer new homes fully furnished. This is likely to cost in the region of $15,000-$25,000 and will not be part of your mortgage.
4. Most re-sale properties come fully furnished, and although technically the value of second-hand furniture is nil, the buyer usually does well out of the deal and may only have to replace a few worn out items.
Re-sale properties are likely to cost, on average;
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3/4 bedroomed townhomes; $200,000-$300,000
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3/4 bedroomed pool homes; $250,000-$375,000
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5/6 bedroomed pool homes; $320,000-$650,000
These are just examples - if you contact us and give us details of what you are looking for, we can send you up-to-date details of actual properties that are currently available - at no obligation.
Just go to the "contact us" page and start the ball rolling.
