If you love visiting Orlando and are contemplating buying a vacation home and wondering whether or not it’s better to rent, you’re certainly not alone. It’s a truly difficult decision because there are many variables to take into account. Of course, money is a big concern, but so is time and use. Whether you should buy a vacation home or rent when you visit is not just a matter of finances, but also, about your plans, use, and so much more. The truth is, there simply is no one-size-fits-all answer. So, if you’re asking this question, you ought to be focused on the big picture.
Should I Buy a Vacation Home or Rent?
There’s no question Orlando has much to offer and making it your preferred vacation destination spot is a very exciting proposition. You can enjoy the wonderful weather, have a dedicated place as a real home away from home, have a place for family and friends when you’re at your primary residence, and, even generate passive rental income. In addition, if you’re planning on relocating in a few years, this will give you a solid head start.
Don’t even think of buying a vacation home until you’ve visited the area a few times. It sounds basic, but you better be sure you simply adore and can’t get enough of that beach town, ski village, or country ranch before you commit to buying there, since you’ll be spending a great deal of your free time there in the future. Unlike hotels and timeshares, owning a vacation home doesn’t allow you the option to change destinations if your tire of the scenery. —Forbes.com
For these reasons, buying a vacation home versus renting seems to be the obvious choice; and, it can certainly be the right decision. When you stop to consider renting as an option, there’s no question it can be problematic. You have to book the property well in advance, you won’t have a say in what rate you’ll pay, and, you will have to pack a lot more and lug more stuff back and forth. What you have to know to determine the right answer is based on a few key factors. Here are some helpful things to think about to know if you should buy a vacation home or rent:
- Determine your monthly obligations. Your monthly obligations will be mortgage, insurance, utilities, and all those you’re already familiar with in your primary residence. The good news is, if you can bring a sufficient down payment and lock-in a low interest rate, you’ll be able to grow your equity at a faster rate. Plus, you can offset more costs by renting it out periodically and in Orlando, you’ll get a very good rate.
- Be honest with how much time you’ll vacation. If you’re only going to visit the area for a few days each year, then renting is the obvious choice. However, if you, family and friends are going to be using the property for several weeks during the year, you can buy a vacation home and rent it out.
- Think truthfully and carefully about your long-term plans. This is one of the biggest considerations because you don’t want to purchase a vacation home and then decide years later to retire to a different location. But, if you love the sunshine, and all the things to see and do in the area, it makes a great place to relocate or when you retire.
- Fully understand all the tax and expense implications involved. When you rent, you won’t have any tax benefits, but, when you buy a vacation property, you can write-off deductions and expenses on your tax returns.
When you’re ready to purchase an Orlando vacation home, you need to have the help of an experienced real estate professional. You can find the right vacation property for you and your family to enjoy in the City Beautiful and experience all the Sunshine State has to offer.