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FYI--I had two Disney Vacation Club contracts over the years. I wouldn't buy a new one these days, the prices are obscene.
A resale with 20 years left would be perfect and the price would be right. I sold both of mine and one I actually made some money on, the other I broke even on purchase price to sales price after owning and using it for 13 years. After factoring in what I paid in dues and taking away what I would have paid for those accommodations, I came out thousands of dollars ahead. But I bought at $57 and $62 a point--half of what they go for now.
Personally I think this is a good option. Then when you are ready to retire, if you still want to come to Florida, you can sell your place and buy exactly what you want--without guessing how things will be in 10-20 years.
Agreed about not buying new. We had considered at one time buying as founders for the Poly, but they no longer do founder status, and at $160 pp (and then $162 pp next month when it goes to sale for the general public), it's pretty insane to buy in. I've been thinking of unloading our BLT contract (an itty bitty one) and just sticking with our AKV contract, but if we were going to add anything else, the only way we'd do it would be resale. On the other hand, with CM rates for rooms, we'll probably just do cash once we use up our points for the year...
I am looking for positives and negatives, that is why I am here.
You have given me a lot of negatives, am I to assume there are no positives?
I did give you positives. If you can afford it 100% without it changing your lifestyle, I would certainly take a look at buying a home you might want to retire to that you can use as a vacation home now. I would not look at homes in short term areas. As a renter you don't care who lives next to you. As a homeowner you do. That said, having done so, I'm not sure I'd do it again as now that I've lived here for over 10 years, I don't know if this is actually where I want to retire to. Food for thought.
I did give you positives. If you can afford it 100% without it changing your lifestyle, I would certainly take a look at buying a home you might want to retire to that you can use as a vacation home now. I would not look at homes in short term areas. As a renter you don't care who lives next to you. As a homeowner you do. That said, having done so, I'm not sure I'd do it again as now that I've lived here for over 10 years, I don't know if this is actually where I want to retire to. Food for thought.
I got it.
Riddle me this, my wife and I are not really people lovers, we prefer each others company and to be left alone so not having close neighbors is actually an advantage. We have lived in three different houses over 15 years and only speak to one of the neighbors that we have ever had (and would really prefer not to).
So to me not having to interact with neighbors is a good thing and I also was thinking that the people that are renting these places for the prices they go for are very likely to be decent people and there is no chance I get stuck with a "bad" neighbor that doesn't take care of their place, am I off base here?
I appreciate your opinion (though it seems very negative), so you think there is no wise way to make what I want to do work?
The thing about vacation properties is that there are people who do have it work… and there are many who, for whatever reason, have it fall apart. You could have a 9/11-type experience where occupancy rates tanked for more than a year. The economy could go south (metaphorically) and people might stop vacationing. You could end up with a review about bedbugs in your complex, and suddenly you can't rent that thing for pennies on the dollar even if it wasn't in your unit. Your HOA could go into default and you might be on the ticket to help bail out the corporation. Your property could get trashed and, for whatever reason, insurance won't cover the whole cost/you can't collect from the people who did the damage.
The trick is to figure out how much you can afford to lose in a year, and then see if you'd be mentally okay if you lose that much in a year to get out or to decide to stick with it. (The joy of the sunk-cost fallacy.) If you can run the numbers and still feel like you can keep your sanity, then look at occupancy rates, figure out all the hidden costs, and go for something in your comfort zone.
But honestly, I'm not sure that if I was planning to retire 15 years down the road that I'd want to move into a 20-30-year-old townhouse, even if there was some equity in it, in a rental neighborhood with "interesting" surroundings, that would likely need new everything (roof, appliances, flooring, etc. for a full refurb) instead of just taking that money that I had invested elsewhere 15 years ago and buy something new or recently refurbished in a neighborhood that I really liked and that met my needs at that point. I think that's why a lot of people are a little squickish about suggesting the investment side of things.
So to me not having to interact with neighbors is a good thing and I also was thinking that the people that are renting these places for the prices they go for are very likely to be decent people and there is no chance I get stuck with a "bad" neighbor that doesn't take care of their place, am I off base here?
It's quite the opposite. The people with $$$ are getting a hotel room on Disney or Universal property. The people with less $$$ are the ones renting vacation homes in Kissimmee or Davenport.
Riddle me this, my wife and I are not really people lovers, we prefer each others company and to be left alone so not having close neighbors is actually an advantage. We have lived in three different houses over 15 years and only speak to one of the neighbors that we have ever had (and would really prefer not to).
So to me not having to interact with neighbors is a good thing and I also was thinking that the people that are renting these places for the prices they go for are very likely to be decent people and there is no chance I get stuck with a "bad" neighbor that doesn't take care of their place, am I off base here?
Being in a vacation rental community, you will have interaction with your neighbors whether you like it or not. One week it might be the person bathing topless (or totally in the buff) in the back yard next door (but visible from your master bedroom). The next week it might be the keg party with loud music, chain smoking, and f-bombs wafting over to your lanai. The week after that, it might be the people who bring their yappy dog and leave it out there all day and all night when they are out seeing the sights. It could be the kids who are playing in the 'front yard' who decide to write on your car in chalk or blow bubbles that eat away at the paint on your car. And if you don't catch the damage before they leave, you're out of luck. You might end up with someone next door who doesn't do a good job cleaning between rentals, leaving you with an infestation of bedbugs and cockroaches coming over from your shared wall. Also, walls between vacation rentals are incredibly thin, so there could be some…. "adult noise" at night, because people on vacation….well, you know.
Some people who rent vacation homes are wonderful people. Others treat it like a cheap hotel room. And unfortunately you won't know which is which when someone checks in for the week. That's part of the challenge with the new neighbors every week (and ultimately why we opted not to buy a vacation home for our residence).
But honestly, I'm not sure that if I was planning to retire 15 years down the road that I'd want to move into a 20-30-year-old townhouse, even if there was some equity in it, in a rental neighborhood with "interesting" surroundings, that would likely need new everything (roof, appliances, flooring, etc. for a full refurb) instead of just taking that money that I had invested elsewhere 15 years ago and buy something new or recently refurbished in a neighborhood that I really liked and that met my needs at that point. I think that's why a lot of people are a little squickish about suggesting the investment side of things.
That is a very good point and something to consider. My thought was that in 15 years I have built up equity in the property (while the costs have been mostly covered by renters) so I would have multiple options -
1. Sell my main home, pay off the FL one and move down (and pocket the extra $100,000.00+).
2. Main home paid off, use the FL one for the colder months and stay where I am.
3. Sell the FL home and main home and buy something else.
Isn't Windsor Palms considered a good community, no "interesting surroundings"??
Riddle me this, my wife and I are not really people lovers, we prefer each others company and to be left alone so not having close neighbors is actually an advantage. We have lived in three different houses over 15 years and only speak to one of the neighbors that we have ever had (and would really prefer not to).
So to me not having to interact with neighbors is a good thing and I also was thinking that the people that are renting these places for the prices they go for are very likely to be decent people and there is no chance I get stuck with a "bad" neighbor that doesn't take care of their place, am I off base here?
I think you are off base.
Here's a scenario. You buy a place and aren't around. Your neighbor notices a window has blown in. There's a rain storm coming. They have no way of contacting your property management company, and you didn't bother to give them your phone number to call in an emergency. Along comes wind and rain for two, three, four straight days. Right into that window. Next thing you've got mold growing in your home, and it costs $30K to remediate it. True story, it happened in my neighborhood with a guy who uses his home as a vacation home. I noticed it and asked the people who lived around him if they knew how to contact him, not a single person did.
Next scenario, you give the next door neighbor your phone number and email. They notice the lawn company is skimping on the trimming and weeding because they know you aren't around to bust them. The nice neighbor sends you an email with a photo. You call the lawn company and get on them before you get a fine from the HOA. Another true story--I sent the photo and the neighbor was grateful.
Yet another scenario. Neighbors rent their place for three weeks. The renters sleep all day and party all night. Keep in mind that the US dollar isn't strong in many countries, and $179 a night or whatever is nothing to many people. Money can't buy class. What are you going to do about it? You don't even know the neighbors or who manages their property.
One more scenario... Your neighbor falls on hard times and goes into foreclosure. It can take 2-3 years in this state for a property to be foreclosed on. In the meantime they reduce the rental to almost nothing just to generate some income. You get all sorts of riff raff. Then the renters stop coming because the power is shut off or a renter trashes the place and the neighbor can't afford to fix it. Next thing you are living next to a mosquito breeding ground of a pool, mold is growing on the other side of that wall, and there's nothing you can do about it.
All of those scenarios have happened in the past and will happen again.
Here's a scenario. You buy a place and aren't around. Your neighbor notices a window has blown in. There's a rain storm coming. They have no way of contacting your property management company, and you didn't bother to give them your phone number to call in an emergency. Along comes wind and rain for two, three, four straight days. Right into that window. Next thing you've got mold growing in your home, and it costs $30K to remediate it. True story, it happened in my neighborhood with a guy who uses his home as a vacation home.
Next scenario, you give the next door neighbor your phone number and email. They notice the lawn company is skimping on the trimming and weeding because they know you aren't around to bust them. The nice neighbor sends you an email with a photo. You call the lawn company and get on them before you get a fine from the HOA. Another true story.
Yet another scenario. Neighbors rent their place for three weeks. The renters sleep all day and party all night. Keep in mind that the US dollar isn't strong in many countries, and $179 a night or whatever is nothing to many people. Money can't buy class. What are you going to do about it? You don't even know the neighbors or who manages their property.
One more scenario... Your neighbor falls on hard times and goes into foreclosure. It can take 2-3 years in this state for a property to be foreclosed on. In the meantime they reduce the rental to almost nothing just to generate some income. You get all sorts of riff raff. Then the renters stop coming because the power is shut off or a renter trashes the place and the neighbor can't afford to fix it. Next thing you are living next to a mosquito breeding ground of a pool, mold is growing on the other side of that wall, and there's nothing you can do about it.
All of those scenarios have happened in the past and will happen again.
I know I see the cup as half full but jeez you really do see the worst case scenarios.
Its all food for thought and I do appreciate the advice, guess I just expect good things to happen and feel I can deal with bad things if they do....I mean I could get hit by a bus tomorrow but I don't walk around worrying about it happening.
I know I see the cup as half full but jeez you really do see the worst case scenarios.
Its all food for thought and I do appreciate the advice, guess I just expect good things to happen and feel I can deal with bad things if they do....I mean I could get hit by a bus tomorrow but I don't walk around worrying about it happening.
Those things all happened. I could list probably 20 more. I'm not trying to rain on your parade, but when looking at spending that type of money, I look at more than just the warm fuzzies.
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