Is Mickey’s timeshare industry in trouble?
Why would it be? Their sales team is so good at catching people by offering free stuff. They invite potential customers to a free stay at one of their nicest resorts. Even though they state it’s free, it’s not exactly all complimentary, as guests must sacrifice three hours of their vacation listening to their sales pitch. But it works! Annual sales prove the Mouse’s visitors can be converted into owning time of a deed. However, the reality is that the internet has revolutionized conversions for many in the industry. And with that, a new shared industry was born.
Short term rental companies like Airbnb and HomeAway have disrupted the way people travel. Not only have they facilitated the booking process, but they have enhanced travelers’ experiences away from home. In Orlando, tourists can book even better accommodations than a timeshare unit anywhere they want without much-advanced planning, and usually for much less than the annual fees of a timeshare package.
Now, this prompts the question of whether you would purchase a timeshare or an Airbnb? Well, it all depends on who you are. If you can’t afford an investment property with $40K down and a mortgage payment, then it may be best to investigate timeshare packages. Timeshares can easily be put down on credit cards and can have a $6,000 to $30,000 upfront expense, with no need for a mortgage. But once again, you don’t own a real asset, just time to come visit every year.
If you are a true investor, you would understand that buying a timeshare is just as buying a home to live in; a liability. Why not just purchase an Airbnb if you plan on visiting “the Mouse” so frequently? Buying real property will help you gain some wealth when visiting Disney World while also saving you money. When investors create a true Airbnb business, they’re even able to cover their visits with the property’s cash flow. A nice 4-bedroom house with STR eligibility can allow you to visit as often as you’d like, while simultaneously paying off most of the house (if not all) with positive cash flow. Some short-term rental investors have mentioned they have gotten a much better return than renting for the long term in Orlando. Some have even mentioned how they have recovered their investment within 2 years! Obviously, they’re those lucky pioneers who just knew and succeeded.
With short term rentals becoming more public to the community, we wouldn’t be surprised to see that we as both residents and investors could end up helping Disney create more parks and houses to bring in guests. Orlando is already the number one most visited city in the world, and it wouldn’t be a surprise if we surpass 100 million in the next couple of years. Especially with a lot more homes for visitors to stay in. With all that being said - don’t you think you should be part of this trend?
Ask yourself this:
Do you want to…
Make some extra cash flow while gaining equity in Orlando?
Save money when visiting Orlando and Disney World?
Be part of one of the fastest-growing cities in the US?
If so, then creating an Airbnb business would suit you well!
Contact one of your real estate consultants at Oak Avenue Real Estate – they can help you find the right property and guide you through automated management processes that can facilitate your short-term rental business.