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Florida Property Melt-Down As Foreclosures Rise 133%
February 2, 2009Article by Ray Withers
The latest US property repossession figures give some hope to UK investors looking to snap up cheap property in Florida. The sunshine state has the unenviable position of having more than 500,000 foreclosure – the US term for repossession – filings for the year ending December 31, 2008. This is the second highest foreclosure rate for the whole of the US behind the gambling state of Nevada. According to the figures, released by RealtyTrac, the leading US online marketplace for repossessed properties, lenders foreclosed on more than three million properties in the US last year – an 81% increase on 2007.
Florida real estate stats show a foreclosure rate on 4.52% of all housing – or one in 22 homes. That’s 133% on 2007 and 412% on 2006 figures. Hotspots for Florida property foreclosures were Fort Lauderdale (47,387), Orlando (46,843) and Miami (49,697) standing at sixth, seventh and eighth respectively in the table.
Other Florida locations suffering in the credit crunch are Sarasota, Bradenton, Venice, Tampa, St Petersburg, Clearwater, Palm Beach and Jacksonville. All these popular holiday destinations are in the top 25 of the foreclosure league If you have the cash to snap up a Kissimmee property, a four bed luxury apartment in the Cane Island, development has plummeted in price to just £121, 500. The builders claim this is less than the build price and 54% less than the apartment cost when the development was launched in 2005. The apartments are, less than 10 minutes drive from Walt Disney World and an hour from the airport. Property specifications include all apartments having 2 bathrooms and a balcony. For investors, a management company has already taken on the development and guarantees a 42-week season at a 6% return on investment. Mortgages are available at 70% loan-to-value, meaning investors can buy in to Cane Island with £24,300 cash plus purchase costs.
All of the apartments ready-to-move in at a turn key standard– that’s delivered fully furnished. All kitchens have a full-sized washer & dryer, refrigerator, microwave, glass-top range and dishwasher.