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Buyers Are Flocking To Florida
February 12, 2010Article by Ray Withers
Florida property continues to see its shock rise to domination in the battle for the hearts and minds of property investors around the world. Investors continue to fill planes on flights to the region, and they aren’t just focussing on Orlando it is the entire state. So, why is it that people are flocking to invest in Florida? The answer my dear Watson, is availability and quality, and potential long-term rental profits:
Orlando and resort property has had its heyday with foreign investors eyeing huge capital gains and incomes from holidays their family would love to holiday in. Today’s investor, who has seen property values around the world crash, and none harder than in Orlando is doing much more research into their investments, and even though cheap property is plentiful, today’s buyer is making sure it is a bargain and not just cheap.
That said, the buyers are buying in force and when a good property comes onto the market it doesn’t stay around long, says David Cox of international property investment consultancy Property Frontiers, he said:
“Yes, people are doing more research than we have ever seen before but in the case of the kind of bargains that are available in Florida property market they are doing it quickly. We have seen several developments of below-market-value properties selling out in record time; we knew they were high value and were glad to see investors seeing it the same way. We don’t expect the new one to be any different.”
Property Frontiers have just got on board with the Village development in Downtown Orlando, offering 2 bedroom condos a short walk from Disney World and the Wizarding World of Harry Potter, from just $54,900.
The properties are currently available with tenants in place (at 91% occupancy) and at a price 70% below its market value and 50% below its replacement build cost. This gives way to yields of 10%, which are not a pipe-dream but are currently being achieved.
“This is the first development we have had for some months in Orlando itself, and we have researched it to the same degree as our others in Florida, so we are quietly confident that it will sell just as quickly as the others have. Let’s face it, when a property carries an offer like that, the research is simple: find out whether it is too good to be true, if not, buy it,” Cox said.