Should I sell my Florida vacation home during the Coronavirus Pandemic?
Bookings have been cancelled at an unprecedented rate. Walt Disney World and Universal Orlando have closed their doors with no confirmed reopen date. Vacation rental owners and Airbnb hosts have been slammed by what seems an endless amount of cancellations. Once full calendars for the busy Spring season, are now empty. Luxurious homes by Champions Gate and Reunion with $400 and up nightly rates and now seeing those rates slashed below $200. Many owners are finding themselves for the first time ever in a financial bind. Their Disney vacation homes are the financial blackhole. Despite the crisis, their are investors with the risk-tolerance to buy vacation homes in the Disney area.
Investing in vacation rentals during the Coronavirus pandemic
More risk tolerant investors are finding opportunity during hard times. With historically low interest rates, investors have more buying power to purchase short-term rental property in Florida. Low rates coupled with a great selection of inventory (lots of sellers) means buyers are finding opportunity. This also signals a great time to sell for select vacation home owners looking to lower their risk profile and cut expenses. However, buyers must know the risks and be prepared for a prolonged period of economic slowdown.
Vacation homes no longer a safe investment
Every industry has been impacted by COVID-19. The hospitality industry is one of the hardest hit, if not the hardest hit industry. Travel restrictions and theme park closures means cancelled bookings and no new ones. For cash strapped vacation rental owners, this is a heavy burden. Owners no longer have steady rental income to offset their mortgage, utility, management fees, and other expenses. A vacation rental owner may have forecasted $5000 a month in rental income for March may not be in the red over $2000 for the month of March. The future is looking grim.
Considering a sale? Sell your vacation home at the right price by understanding the sales process.
In times of uncertainty, you may be considering selling your Florida vacation property as smart option. Consider contacting a vacation home sales expert who can guide you step-by-step through the vacation home sales process. A real estate agent focused on vacation home sales will be able to get you the best price on the best terms. We recommend Vacation Rental Exit as our go to pro for Champions Gate real estate and Reunion real estate sales.