Central Florida is perhaps the capital of the second home market, further compounding the problems as owners divert their scarce resources to their principle home.
As homes increasingly slip into bank ownership the market values generally plummet as banks offer homes for 50% of their pre-recession prices. As the properties become worth less, the spiral continues as additional owners give up hope of disposing of their properties at an affordable price.
There's a glimmer however, but, only for a very select few categories of properties in the savaged realty market around Orlando.
At the very top end of the luxury market, there are a few pristine properties that are shining right now, but only if you've got a million dollars or so to lay down on a luxury home near Disney.
Properties that tick a few boxes are rewarding their investors heavily, but, the criteria required to find such a home is rigorous.
Kevin Maw, editor of totalorlando.com highlights a few important tips for Orlando Realty Investors;
* Properties need to stand out as something special
* Luxury properties near Disney are performing well as rental homes
* Communities that allow short term rentals are scarce
* The Homes generally need a further $100k to furnish
* Lower cost homes are flooding the market - keep clear for now
* Net incomes of around 6-8% a year are realistic
* People forget about property taxes, HOA and membership fees
* A good property manager and booking agent is essential
"Homes that were once marketed in excess of $1,500,000 on Reunion Resort are now changing hands at around $700,000. In some cases, a fraction over the price of the half million dollar plots that they occupy. Now that demand is beginning to soak up the loose inventory, prices are inching up very slowly. For owners and prospective buyers, these luxury resort homes are not only on the brink of rising in capital terms, but are already offering good solid revenue returns on the investment."
For examples of the luxury homes in action;