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Florida Property: Expensive Dream Becomes Affordable Reality
October 5, 2009Article by Ray Withers
Florida, the disputed resort capital of the world is undoubtedly one of the most popular holiday destinations in the world. Like all popular tourism destinations, Florida property investment became very popular with foreigners, which lead to massive price inflation.Unfortunately this led to Florida property becoming very expensive, and this, coupled with the longer and more expensive flights made Florida a stretch too far for many overseas property buyers. It also made Florida property less appealing to speculative investors.
That was, of course, before the downturn hit the reset button on property prices around the world, especially in places largely reliant on foreign buyers like Florida. Florida property investment is now back with a vengeance.There are now dozens of properties for sale in Florida for under £150k. you could hardly find any 2 years ago. What’s more there are now hundreds of repossessed properties being put onto the market by banks and lenders, and hundreds more forced sales. These present the opportunity to buy Florida property at a fraction of what it would normally cost.
People should not be so quick to think that a repossessed property is their easy-route to a holiday home in the sun, warns Ray Withers, director of Property Frontiers.”By the time a bank or lender forecloses on a property the previous owner has been going through a very bad time in their lives, and often foreclosed or repossessed properties can require a lot of work before they can be used,” he said, adding:
“Don’t get me wrong, you get the odd one that is perfect, but mostly, by the time you bring them up to scratch you have spent about £100k – £120k which would almost buy you a property on the open-market at the moment.”Property Frontiers are currently marketing a low-profile condo development in Fort Myers, the economic hub of southwest Florida and the third fastest growing rental market within the United States. Prices on the Royal Greens at Gateway are now some 66% cheaper than they were in 2007; 1 bedroom condos start from just £31,500. Net yields of 10% are forecast on the condos.
The company is also marketing the Cane Island development, offering luxury 2 bedroom apartments just 8 minutes from the entrance to Disney World at the 54% discounted price of £125,000. 3 bedroom apartments are £138,700 and 4 bedrooms are £159,000. Net yields of 6% are being forecast.