Sep 17 2007
Investors Buying Florida
Price crashes in the Florida (USA) property market are the buying signals for the astute investor. California’s wealthy have earmarked Florida for their property investments – to capitalise on the lower taxes and the favourable house prices. Investors from the UK account for some 21% of the states overseas buyers.Increased mortgage rates and huge increases in property insurance costs (following the 2004 and 2005 hurricane seasons) were the primary reasons for the fall in the sales of existing homes through 2006 – Orlando being one of the exceptions.
While the median price of Florida property was $248 300 at the end of 2006; typically, single-family homes or townhouses are being purchased at a median price of $352 400 by foreigners – of who some 10% buy at $1 000 000+. The properties, which are mostly (60%) financed, are bought as vacation properties (39%), or both vacation and rental (37%). Nearly 25% purchase for investment/rental purposes.