Property in Florida Offering Incredible Investment Opportunity
Property in Florida is currently among the most popular with overseas property investors
. This is because of the large-scale availability of a wide range of distressed and bank-owned properties currently for sale at massively discounted prices.
When property prices fall, buy to let investment opportunities usually ensue, because rents tend to fall slower than prices, which increases rental yields (the annual profit from a rental property). But this reality is amplified in Florida and its distressed and repossessed properties.
This is because the properties are at prices far below even the level to which the market has fallen. On top of that, a rise in home foreclosure means inevitably that more people are looking for rented accommodation. Increased demand in the rental sector then pushes up rental rates. This means that we have a chance to buy property at below market value, in an environment where renting property is getting easier and rental yields getting higher. It is often claimed that this strategy is profiting at others' expense', but an important and often overlooked part of this moral dilemma is that landlord is providing security and in many cases a step back onto the housing ladder.
In normal circumstances, distressed and bank owned properties will be much less prolific. Therefore, while the yields are still good because of the discount, the discount is usually not as good, and the effect on the rental market less pronounced. So, as you can see, Florida is currently something of a buy to let investor's dream.
According to the most recent reports, there is no sign that the situation is going to change anytime soon. 2.8 million US homes were repossessed in a record breaking 2009. But 2010 has already broken several monthly records, as it has emerged that the perceived repossession slowdown was simply because of banks delaying the final act, either through choice of because of government aided schemes to help people fight repossession.
Throughout the crisis, the State of Florida has had among the highest repossession figures. The latest data is for August 2010: during that month, 95,364 American homeowners lost their homes. This is more than in any month since the crisis began, and a 25% increase on August last year. At the national level, Nevada had the highest number homes foreclosed, followed by Florida and Arizona.
Of property in Florida , Tampa will always be a favourite with foreign buyers. It is also affected by high levels of repossessions and currently offering up some top quality investment opportunities.
One such opportunity is the Melrose Landing development, offering cash-flow positive 1 bedroom condos, with 50% LTV financing for 75,000. The 20% below-market-value properties already have tenants in place at rates giving way to rental yields of 5.5%.
But don't forget The Village at Town Center (VTC), a luxury apartment complex in Orlando which has been a runaway success with investors this year and where there are still some units left from 46,000. Prices are at a massive 50% below construction costs and with rental yields from 8-10% Net. There is a guarantee of 3 years rental income and the developers will pay the first year's Homeowners' Association fee, saving 1,600.
One of the advantages of these two and three bed units in a private and discreet gated community is that you can decide how to use them as an investment. The properties are equally suited to long-term lettings, lucrative short-term or vacation rentals, or as a lifestyle investment for holidays or even relocation. VTC's units are equipped with the most up to the minute facilities and the community has an array of lifestyle facilties, including lushly landscaped grounds, a floodlit tennis court and state of the art health and fitness centre, gym and swimming pool. VTC is within easy reach of some of the world's top tourist attractions, including Disney World, the Wizarding World of Harry Potter and the Kennedy Space Center at Cape Canaveral.
Metro Orlando, like Tampa, is an area of prosperity and growth. In fact, the economy there is expanding rapidly and in defiance of national trends. For example, in the third quarter of 2009, growth in the area stood at 3.5%. A young and well-educated workforce is making the area a creative hub: a $13.4 billion high tech industry employs close to 53,000 people, two thirds of the local workforce is under 44 years old and one third has a college degree. The city's administration has a strong commitment to public service and the transport infrastructure is one of the best in the United States.
Orlando's civic seal rightly proclaims it as The City Beautiful' and it is also one of America's leading cities of the future. VTC provides a perfect opportunity to get in on the act.
Property in Florida Offering Incredible Investment Opportunity
By: Property Frontiers
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