Many Canadians and residents of states like New York, Michigan and Ohio spend their winters in Orlando every year – trading in the cold and snow for Florida’s balmy breezes and warm sunny skies. If you’re one of these “Snowbirds,” you know that Orlando has a lot to offer, including world-class theme parks, championship golf courses, fine dining and exceptional shopping.
Renting a home may seem like a good option for part-time residents. But it may wind up costing you more in the long run. Here are a few reasons why snowbirds should consider buying a second home in Orlando instead of renting one.
1. No Surprises – A typical snowbird can spend upwards of $15,000 to rent a home for 3-4 months out of the year. Besides the cost, the downside of renting is that you never quite know what you will get when you arrive at your rental home. If you choose to buy a home, you can select the one with the features you prefer. And you can keep personal items in an owners’ closet, so those items will be right where you left them when you come back again the following year.
2. Rental Income – Instead of paying out rental fees year after year, you could be collecting rental fees when you buy a home in a community that allows short-term rentals. This way, you can recoup some of your investment.
3. Tax Advantages – Owning and renting out a second home may have some tax advantages for you too. Talk with an accountant to find out your options. In general, expenses such as insurance, utilities, home maintenance and depreciation can be deducted, depending on how often you rent out the property, and how many weeks you personally stay there each year.
4. Retirement Residence – Once you retire, you can sell your primary residence and move into your vacation home permanently. By this time, you will have gotten to know the neighborhood, and feel comfortable in your surroundings. It will make the transition into retirement a lot easier when you already have a place to live.
Ready to look for a vacation home in Orlando? Contact the experts at Team Donovan. We are the leading Central Florida real estate firm specializing in the sale of properties for use as a second home, investment or both. Browse our website for the latest listings, or give us a call at 407-705-2616.