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Garrett Kenny, president of Feltrim Developments, says: “I believe the market will bottom out in the next few months – probably by September. We are waiting on the fall-out from the subprime debacle to filter through the system, and then we should be moving over the next 15 months, which I think will be the timeframe needed to burn off all the excess inventory that is hanging in the market.”
In the meantime, developers are being forced to go that extra mile to close a sale. At Tuscana, a Mediterranean-inspired development in Orlando, central Florida, close to Walt Disney World, Feltrim is offering a two-year leaseback deal to sell the last 10 of its 260 condominiums. Priced from $360,000 (£179,500) for a two-bedroom condo, inclusive of a furniture package, Feltrim is giving a rental return equivalent of 7%, with mortgage expenses, property taxes, home owners association fees and all utility fees paid.
"We are taking the risk out of the market for those taking up the leaseback offer," says Kenny. "Feltrim's villa rental division is 100% occupied for July and August which shows that central Florida is still a very popular destination for tourists. The new Harry Potter theme park at Universal Studios will undoubtedly attract huge numbers of tourists. Presently, Orlando has 99 attractions in total which means it would take visitors a jaw-dropping 67 eight-hour days to see every one."
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