Find out what’s happening in the property investment arena both in the UK and internationally
Florida Property Investment Is Hotter Than Ever
April 9, 2010Article by Ray Withers
While it is frowned upon to take happiness from the Florida foreclosures, it is also a fact that Florida property investment is bigger than it has been for many years. In fact, hotter than it has been since the years between 2004, when Florida was only just appearing on international property investors radars (around about the time when budget airlines gave birth to the jet-to-let), and 2006 when a combination of higher prices, and the first signs of collapse appearing at the seams of the US housing market bubble combined to make investing in Florida property much less appealing.
In actual fact, when it is looked upon in that way, Florida property investment is hotter, in terms of foreign private investors, than it has ever been before. The buyers in 2004 didn’t have thousands of properties at, not only below market value, but below their replacement build costs.
These properties are understandably being snapped up, sometimes with one buyer taking multiple properties. This is because the prices are so unbelievably low that the properties can’t fail to make a profit, not only in terms of capital gains, but also from rentals in the meantime, which makes it a low risk investment.
However, it is also because of Florida’s track record as a high growth market, and also, in some cases because of the massive tourism sector, says David Cox, director of international property investment consultancy Property Frontiers.
“Florida has a long track record of economic growth prosperity and of affluence, it is expected that this will return now that the American economy is starting to recover. The low prices of properties gives investors the confidence that they will be able to secure rentals, because they can afford to take lower rates until the market picks up,” he said
Cox also warned that investors should plan their rental strategy carefully: “the rental market in Florida is zoned, and while there are some properties that can be rented to holidaymakers and residential tenants, for the most part it is one or the other,” he said.
Property Frontiers are currently marketing one such property, one that can be rented to both holiday makers and residential tenants that is. But that is not the only strength the Village at Downtown has in its repertoire.
The resort is located just a short walk from Orlando’s main attraction, Disney World, and also from the new Wizarding World of Harry Potter attraction, and priced at 50% below its replacement costs. This equates to 2 bedroom condos from as little as £35,000 — you can see the attraction.