Team Donovan Blog - Real Estate Information

Why Should Vacation Home Buyers Care about REOs?

Are you in the market for an Orlando vacation home? If so, you may have come across a listing on a real estate website like Team Donovan’s that says the home is a bank owned / REO property. REO stands for Real Estate Owned, which means the home has been foreclosed upon and repossessed by the lender (which is typically a bank).

Foreclosure processes vary by state, but the end result is the same. After a bank forecloses on a property, they place the home into their inventory of real estate owned. At this point, federal agencies such as Freddie Mac, Fannie Mae or HUD (Housing of Urban Development), may have to settle with the bank if there was some type of guaranteed loan involved. It doesn’t matter whether these agencies or the bank own the property,…

What You Need to Know to Buy a Holiday Home in Orlando – Part 2

Are you thinking about buying a second home in Orlando? Many travelers from Canada and the United Kingdom come to Central Florida year after year to spend a relaxing holiday. At some point, it may make more financial sense for you to buy a vacation home in Orlando, rather than spending money on a hotel or vacation rental home. In a previous article, we shared five things you should know before buying an Orlando holiday home. Here are a few more important points to consider before making a purchase. 

1. Determine the Financial Stability of the Homeowners’ Association – Many Orlando vacation homes are located in a housing development that is governed by a homeowners’ association (HOA). An HOA makes and enforces rules for the properties in its…

Orlando Community Reports - March 2016

The March Team Donovan community reports have now been updated and are available from the following link:

                                                                                Community Report

What You Need to Know to Buy a Holiday Home in Orlando – Part 1

Many people who travel to Orlando, Florida from outside the U.S., such as Canada or the U.K., enjoy their holidays so much, they decide to buy a second home here. If you want to make Central Florida your “home away from home,” there are some important points you need to know before you buy.  

1. Decide How to Pay for the Property - Many foreign buyers wind up purchasing a holiday home with cash, since financing can be difficult to obtain. If you plan to finance your purchase with a U.S. bank, expect that a minimum down payment of 30 percent will be required. A U.S. mortgage also generally requires far more paperwork than loans secured in other countries. Another advantage of raising finance outside the U.S. is that your holiday home purchase in…

5 Important Questions You Need to Ask When Buying a 2nd Home

Buying a second home in Orlando for retirement or as a family vacation home requires serious thought. Choosing where to buy in Central Florida depends largely on what you can afford and whether or not you plan to rent out the property when you’re not using it. Here are a few core questions you need to ask before purchasing a home: 

How much will it cost?

When you buy a vacation home, there are additional costs to consider besides the sales price. You will have to factor the same costs you have with your primary residence such as taxes, insurance, utilities and maintenance fees. Plus, when you’re not living in a home on a daily basis, you may not have the ability to tackle small problems before they become big ones. That can translate into higher…

How to Know if a Vacation Home or Condo is Best for You

If Central Florida keeps luring you back every year for holiday, you may be thinking now is a good time to put down roots and buy a second home in Orlando. Buying a condo or single family home can be an excellent investment, especially if you acquire a property in an area that’s zoned for short-term rental. This will allow you to rent out your home to vacationers while you’re away, gaining some cash flow in the process

Once you’ve decided to buy a home, the next question you’ll have to ask yourself is what type of vacation home? Should you buy a condo or single family dwelling? That depends on you and your preferences. There are pros and cons for each. Here are some points to consider that should help you make a decision.  

Orlando Condo Advantages:

Proof that You Can Make Money with a Vacation Home

Thinking about buying a second home in Orlando? Many people dream of buying a vacation home and renting it out so they can recoup part of their investment. The key to generating a profit with a vacation home is making sure that the property is in a desirable location.

There’s no doubt that Orlando is a popular vacation destination. Visitors come here from all over the world to go to Disney World and Universal Studios, for starters. And the city’s location in the center of the state makes it easy for vacationers to drive to Tampa, and enjoy the beaches on the Gulf of Mexico, or head east to Cocoa Beach on the Atlantic Ocean and all the attractions there, like Kennedy Space Center.

Before you buy a vacation villa, it’s important to realize that there…

Orlando Community Reports - January 2016

The January Team Donovan community reports have now been updated and are available from the following link:

                                                                                Community Report

Why a Short Sale May be Right for You

Home buyers who search for vacation homes in Orlando may occasionally come across a property that is listed as a short sale. This type of property may turn out to be a good investment. But it’s important that you understand what the short sale process involves, and whether it makes financial sense for you.

What is a Short Sale?

A homeowner who is struggling to make mortgage payments may decide to use a short sale as a way to avoid foreclosure. The homeowner sells the house for less than the amount owed on the mortgage. And as a result, the lender doesn’t get all of its money back. This usually happens when a home’s value falls, and only occurs with the lender’s permission.

The bank does not own the property in a short sale. But it must approve the…

FIRPTA Withholding Rate to Change in February 2016

Thinking about selling your Orlando vacation property?  You should be aware of an upcoming change in the U.S. Foreign Investment in Real Property Tax Act, otherwise known as FIRPTA. 

As of Feb. 16, 2016, any non-resident alien who sells an interest in U.S. real property will be subject to a 15 percent withholding rate on FIRPTA at closing. That is an increase from the current rate of 10 percent. 

The change means that anyone who buys property in the U.S. held by a foreign seller must withhold 15 percent of the gross purchase price. The title company remits the amount to the IRS at closing. The withholding would generally offset any tax actually due from the non-resident alien on the sale and would be eligible for a refund to the extent that the…