Sep 17 2007
Investors Buying Florida
Posted in Feature Properties, International Property
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.
Source: REALTOR Magazine Online & Florida Association of Realtors
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Southern Suburbs, Cape Town
3 Replies to “Investors Buying Florida”
The slow market is certainly a good time for investors looking for good opportunities in Orlando . The hotel condo option is proving to be popular. This makes sense when one takes into consideration that Orlando is one of the top convention destinations for the corporate and Disney is one of the top destinations for families and holiday makers. Some of the convention hotels and those around them are booked a year in advance; and many of the convention attendees often bring their families with them – which adds to the demand. Most developers marketing their units are guaranteeing returns through 2008 and the added bonus with these investments is that the maintenance and occupancy is taken care of.
A good example of a condo hotel is the International Plaza. The developer will pay for all your taxes, all association fees (HOA), plus pay part of the mortgage until Dec.,31 2009. The hotel location is excellent since is within walking distance from Sea World, the new aquatic park, & the convention center in Orlando. So it will be very desirable for families or for business person attending a convention. Prices are very resonable. The hotel will have a spa and the decoration will be very elegant and serene “Bali style” with dark woods and different tones of greens and earth tones.
Bag A Bargain Property in the Sunshine State.
If you want a bargain, buy a holiday home in Florida – estate agents say prices are 50% to 60% down on their highs of four years ago. The downturn in the US has been longer and deeper than in Europe. An analysis of prices for Guardian Money by the British Homes Group – a large estate agency specialising in discounted holiday homes and based in the Florida town of Kissimmee – says that in its part of the sunshine state, 19,000 homes are for sale at an average of 51% of 2005 values.
Read the full article at: http://www.empadvisers.com/pages/florida-bagging-a-bargain-property-in-the-sunshine-state
Florida remains the top state for (US) international transactions, tallying nearly one in four of all international sales in the United States in 2008.
(See – http://www.nytimes.com/2009/10/09/greathomesanddestinations/09iht-refla.html?pagewanted=1&_r=1 )
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