Buying a holiday home in Orlando Florida

tgangari · 26 January 2016 at 10:34AM

Hi all, (first post woohoo!)

My name is Tariq, I am 28, from London and am a first time buyer. Although I have just secured a sound job at the tail end of 2015 paying handsomely I am not in the position to buy my first home (at least not in my local area) due to a below average deposit at the moment (£12,000)

So I was exploring the idea of buying a buy to let home in Orlando for reasons because:

I love Orlando
Value for money (4 bed home with a pool = 1 bed flat in London.)
I love Orlando
I want to spend a lot more time there possibly permanently at some stage (retirement)

I have a mortgage in principle for the UK home market and its for a value that exceeds what I would need for a holiday home in Florida. One sticking point is that the lender like all UK lenders I have contacted so far do not offer mortgages for an overseas property no matter the value.

The other sticking point is if I was to go for a US mortgage they require a minimum deposit of 30-40% of the property. The current houses I am looking at in Orlando are around the £93,000-£100,000 mark so a 30% deposit will be £28,000 - £33,000 approx.

As a guy with a modestly low deposit but a healthy income does anyone know any lenders who might be able to help give guys like me a mortgage for an overseas property with a smaller % deposit?

It could just be a case of "no, just save up for a bigger deposit" but I do hold the hope that there are lenders out there looking for guys in my situation and if you don't ask you never know!

Any help or advice would be very much appreciated.

Thanks all

T

:j

csgohan4 · 26 January 2016 at 10:36AM

Define healthy income???

Why not save up for now and just enjoy serviced houses/flats like Air bnb when on holiday or holiday rentals

It's not like your retiring now.

If you buy it now and rent it out, you will have to file US tax returns.

matchboxfull · 26 January 2016 at 10:38AM

Hmm, but how do you feel about Orlando?

csgohan4 · 26 January 2016 at 10:42AM

Remember being on holiday and working are two completely different things.

I would love to spend time in the Maldives holidaying, but to live and work there that's different

tgangari · 26 January 2016 at 11:07AM

Hi guys,

I am an over £50k earner and have a small business on the side which is starting to take off and allows me to work virtually anywhere with a laptop and Wi-Fi so the work/life balance thing isn't really an issue although I do know what you mean csgohan4.

It probably sounded like more of a dream idea in my first post but I am serious about the overseas investment. I travel to Orlando on numerous occasions for both work and leisure so I am leading with my head as much as I am with my heart. I am looking at it from a short term goal = Investment, long term goal = mortgage paid off & early retirement perspective. (Especially when I do go full time self-employed the buy-to-let property will act as my pension.)

Also the US tax returns isn't an issue, finding an overseas mortgage lender that doesn't require a higher % deposit is the issue

ognum · 26 January 2016 at 11:11AM

tgangari wrote: »

Hi all, (first post woohoo!)

My name is Tariq, I am 28, from London and am a first time buyer. Although I have just secured a sound job at the tail end of 2015 paying handsomely I am not in the position to buy my first home (at least not in my local area) due to a below average deposit at the moment (£12,000)

So I was exploring the idea of buying a buy to let home in Orlando for reasons because:
I love Orlando

Value for money (4 bed home with a pool = 1 bed flat in London.)

I love Orlando

I want to spend a lot more time there possibly permanently at some stage (retirement)

I have a mortgage in principle for the UK home market and its for a value that exceeds what I would need for a holiday home in Florida. One sticking point is that the lender like all UK lenders I have contacted so far do not offer mortgages for an overseas property no matter the value.

The other sticking point is if I was to go for a US mortgage they require a minimum deposit of 30-40% of the property. The current houses I am looking at in Orlando are around the £93,000-£100,000 mark so a 30% deposit will be £28,000 - £33,000 approx.

As a guy with a modestly low deposit but a healthy income does anyone know any lenders who might be able to help give guys like me a mortgage for an overseas property with a smaller % deposit?

It could just be a case of "no, just save up for a bigger deposit" but I do hold the hope that there are lenders out there looking for guys in my situation and if you don't ask you never know!

Any help or advice would be very much appreciated.

Thanks all

T

:j

I don't own a home in Oralando but do own one an equal distance away. I would give the following advice to anyone buying a holiday home and many friends who own them would agree. I do not let mine, that would be more worry and stress.

A holiday home does not give you a holiday, it moves the pleasures and worries of your life at home.

You will have to do the maintenance, buy the equipment and furnishings and maintain them, pay the bills.

Make sure you know the prices you will have to pay for heating/cooling, power, wifi, cable TV, taxes, running your bank account. In Florida include termite and cockroach treatments, cleaning etc. cOndo association fees and the big one hurricane insurance

Imagine you may get fed up of always going on holiday to the same place.

Never invest abroad what you can't afford to lose, the vagaries of foreign property markets are often misunderstood. Be prepared to walk away from your investment. US homes are not built to last.

[Deleted User] · 26 January 2016 at 11:14AM

It's probably a poor investment - that 1 bed flat in London would return more rental money and rise in value more than the place in Orlando.

I know people who invested in Las Vegas a while ago. Sure, they've had a place to stay when they visited a few times a year, but they are about to sell it, and it is barely worth anymore than they paid for it.. after the purchasing costs and taxes they might as well have stayed in a hotel each time.

AdrianC · 26 January 2016 at 11:15AM

You want to buy a property in the US, would you be looking at a US mortgage, or would you be happy to take a currency risk on top of the property risk?

If you're thinking of spending more time over there, what about visa issues?

csgohan4 · 26 January 2016 at 11:17AM

If the OP earns over 100k, then better off buying in London by saving. They will get more returns over time. Unless they know how to play the stock market and having a shrewd shares/investment portfolio

tgangari · 26 January 2016 at 11:28AM

Thanks for your advice guys all valid points indeed and I appreciate your endeavour's to help but I am not really asking about whether the idea of buying in Orlando recommended is or is most financially or otherwise viable.

I am many steps ahead of those thoughts, have visited the new fully furnished homes, seen the figures and met the on-site management/letting teams. Whether it is a good life/financial investment or not is a matter of opinion.

Does anyone have any advice on overseas mortgages?

Bluebirdman_of_Alcathays · 26 January 2016 at 11:31AM

Tariq, are you a Muslim? If so, you may not be able to visit your newly acquired property after the next Presidential election.....

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Buying a holiday home in Orlando Florida

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