Recession concerns

[Katys Grandad]

<blockquote id="quote" class="ffs">quote:Originally posted by Father
I interpreted that as her really saying that she would like to pay for the villa in full so that she knows that this is paid and can concentrate on saving up and budgeting for other aspects of her holiday.

Lots of holidaymakers do this. It may not make much financial sense but psychologically it is good to know that certain things are paid in full and you don't need to worry about them.[/quote]Indeed, but it seems clear that, psychologically, all that would do in this case is replace 1 worry with another.<blockquote id="quote" class="ffs">quote:Originally posted by alastair
Three companies that provided travel from UK to Florida - BA, Virgin and TCD. One (TCD) advertised lower prices than the others. Which one went out of business first, causing difficulties to customers who had booked with them?[/quote]So are you advocating only ever paying the highest price available for air fare, car hire, insurance and accommodation?

[Frosty]

Nina A,
A well structured answer without blowing smoke up anyones.................[clap]

[andrewmckay5]

"As for Andrew's logic that the home that charges more is a better prospect, this is ridiculous!"

No! I said that there is a chance that the cheaper homes would not be covering their costs and therefore a worse prospect; don't spin it the other way.

I also said that if all the short listed villas are roughly the same price except for one then that was a lot cheaper then that would raise a red flag to me.

It is not an exact way to work but if the original poster is worried then I tried to offer one way of looking at it. Foreclosures occur because people cannot pay the mortgage; to me that says an owner hasn't made enough money from rentals.

Ask the owner how long they have had the home and if it was purchased in 2004, 2205 or 2206 possibly then it would have cost a lot of money.

As i said to Robert I don't want to go off in a totally different direction from the original question so DM Frosty if you want to argue. I'll give you my phone number and we can "talk."

Andrew

[lafifille]

From the "guest"'s point of view:

To answer the original question:
I fully understand the psychological aspect of paying in full now to be done with it: it's not rational, it just feels good. But it works too if you put the money on a saving account, in your safe, in your cookie box, in your kids' piggie . I thought about doing it when I rented (from this site), then didn't and paid only the deposit. Then spent a few months chatting with the owner, asking questions, and by the time the balance was taken I felt very comfortable with my renting. Of course I could still listen to the people who tell me: "OMG how could you rent from a private owner when you get there it might not be there or in ruins blah blah blah". I could worry, I decided not to, because I've come to trust the people I'm renting from, and it's not rational either, some will say.
So my advice is: exchange with your potential owners, I've found them quite quick to answer questions even when I had not made up my mind yet. Ask your questions, make your choice, pay the deposit, stash the money somewhere, and do not hesitate contacting your chosen owner when you have a question.

About the debate which has developed on the side, still from the guest's point of view: I paid what I found was a reasonable price for the villa I rented, with the amenities it offered at the time I wanted to rent. It happens it was one of the cheapest I had selected, with another 2 or 3 (can't remember now). Reasonable for me might be expensive for some, and cheap for others.
I own a B&B, in the family house, which has been in the family since the 17th century. I took the business over when my parents retired. Places me in the "no mortgage" situation I guess. It's not my main activity, we just see it as a mean to keep the property in good shape, and meeting interesting people from all over the world, so I can offer "reasonable" rates, which some of my colleagues in the area would call "cheap". But I cover my expenses, and even make a profit, which is often invested in renovating another part of the house, changing the decoration, or helps pay the taxes! I take great pride in my house and keep it in great shape. It would pain me if someone told me he wouldn't stay at my place on the assertion that being cheaper than the average I'm probably offering lower quality accomodation. It would simply be not true. Same probably applies to those owners who have bought many many years ago, and whose property is paid for.

[Carla]

I would not stay at your place Lafifille if you were among the cheapest in your area. I have learnt, in my many years of travelling, that you almost certainly get exactly what you pay for! Maybe that would not be the case with your B&B but I've learnt not to risk it, especially with my valuable vacation time.

I have to ask the question: Why are you leaving money on the table just because your expenses are less than those of other similar businesses in your area?

If you are marketing solely on price, that is not the most important factor for most people. Sure, they want a bargain, but that doesn't mean that they want cheap. There is a very big difference.

[lafifille]

Carla:
I'm not saying I'm practicing cheap prices, I'm saying I'm practising what I consider reasonable rates, that SOME of my colleagues would qualify cheap. I could equally qualify their prices as outrageous. Our business is doing very well, thank you, and has done so for about 40 years, which I think is entitling me to voice my opinion. I can understand that someone who has heavily invested on a short period of time needs to ask for more money than I am, and it's fine with me. I just don't agree if they say "we're more expensive so we're better".
I am not marketing on price (who said that?), and you're right, most people consider more important to have quality accomodation, peace, beautiful setting, good regional food, and above all a friendly welcome. I'm a member of a well-known association that would kick me out in a blink if people complained. Thus my parallel with renting a villa from a private owner on this site. I'm not saying it's the same, I just think it's similar enough.

To answer your question: we're several in the area to practice the same rates. Most of us have been here for a long time, and have seen enough sad stories to stick to a "reasonable" attitude, which has kept up in business this far, and gets us a very nice side income indeed.

I'm sorry if anyone has felt personnally assaulted by my very humble opinion on the subject, because in fact I was just trying to reassure the OP, not to start another heated debate around my business, which is definitely irrelevant here.

[floridadreamvilla.co.uk]

Just a polite reminder to keep this thread on topic. This is not the place to discuss pricing strategies or otherwise for villas or any other rental home. There is a perfectly good Villa Owners Area further down the page for that [msnwink].

[FraserLynn]

TeenaBeena,

I have rented lots of villas directly from the owners in Florida and across Europe and NEVER had an problems at all. I have one rule of thumb only - speak to the owners and raise an questions / concerns you have with them direct. This is the only way that you can be sure that they are someone who you want to entrust your holiday with. Everyone I have rented a villa from has been really helpful, friendly and happy to answer any questions I may have, if they are not then they get screened out, simple.

All the rest is just noise. Every owners circumstances are different and to suggest that these can be understood by looking at price or where / how they market their villa is just plain daft. I think we could all predict that people who own villas are going to suggest that high prices are good and people who rent villas are more likely to be concerned about paying the right price - no surprise there.

Decide how much you want to pay, draw up your short list, speak to the owners and go with the one you like and trust and everything will be fine.

[alastair]

quote:
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Originally posted by alastair
Three companies that provided travel from UK to Florida - BA, Virgin and TCD. One (TCD) advertised lower prices than the others. Which one went out of business first, causing difficulties to customers who had booked with them?
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Originally posted by Katy's Grandad
So are you advocating only ever paying the highest price available for air fare, car hire, insurance and accommodation?
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No, my post did not advocate anything. It only provided a piece of factual information.

[sammibabe]

Like Fraserlynn I have booked and used private villas all over Europe and Florida. We have never had any problems and the villas have been lovely. The last villa we had in Florida was what you would probably class as cheap. It was lovely (the kitchen and bathrooms were a little dated but that doesn't bother us) and we plan to book it again for our next visit. Looking at their visitor books they have had the villa for a long time and lots of repeat visitors. They looked like they had owned the villa for at least 12 years so there outlay could be considerably less than someone else and obviously they haven't spent money on renovations. At the end of the day you pay your money and make your choice. We spend little time in the villa so do not need it to be '5 star'. As far as the money goes I would do as previously suggested and save in an account. We are doing this with the mortgage money we are saving. Excellent regular saver account rates in Barclays and Halifax[msnsmile2]