To secure a property in Florida for £80,000, you’ll need the cool head and patience of a saint. Many Florida real estate agents are currently showing off surprisingly attractive properties at super low prices that positively scream value for money for those of us who are excited about the two-for-one exchange rate.
Unfortunately, there are a couple of drawbacks. Firstly, in many cases, the agents in question have absolutely no intention of selling you a property in Florida for as little as £80,000; they simply want to introduce themselves to you before guiding you in the direction of the most lucrative property options in Florida. The second is that the two-for-one exchange rate is currently fading away; At the time of writing, the dollar is back with a bang, trading at around 1.83 against the British pound. There is still a long way to go before the dollar returns to pre-credit crisis levels, but it is definitely heading in the wrong direction for buyers.
But look what comes with a Florida property: the delights of the sun all year round; vast stretches of beautiful coastline; the world’s largest theme and entertainment parks (Walt Disney World, Universal Studios, SeaWorld, Discovery Cove, and Epcot, to name just a few). And we haven’t even started on the golf courses.
But is the property trend in Florida changing? Have Florida property prices dropped low enough for us to consider taking the plunge? That’s hard to measure in a market that is going through such unusually dramatic turmoil. The problem is, while the bottom has fallen out of the market, the top remains in denial, furiously pedaling through the air like Wile E. Coyote. Whether or not the coyote miraculously crosses the chasm this time and continues on his merry way, only time will tell, but Florida property on a less rarefied level has certainly taken a nosedive.
Lee Weaver of The British Homes Group, which specializes in providing a one-stop service for Brits looking for property in Florida, says: “In all our 30 years of helping UK buyers find Florida property, the market has never been so full of bargains.For example, Countrywide Financial Corporation, the number one mortgage lender in the US, is currently marketing more than 1,600 homes in Florida, some of which are trading at 40 percent less than their price. market value two years ago.
With this in mind, Homes Overseas has done some research and found a Florida property on the market for less than the price of a new Jaguar.
Orlando, in central Florida, is by far the most important destination for British buyers, who are attracted by its unbeatable combination of family fun, world-class golf courses and historically reliable rental returns. It is, in fact, the largest tourist destination in the world, with more than 50 million visitors a year; however, surprisingly, it has been hit harder than most areas of Florida by the credit crunch. For example, Feltrim currently offers a studio at Horizons on the Grenelefe golf course. This attractive and substantial development boasts three golf courses (one of which was designed by Arnold Palmer), as well as a large water park, marina, spa, sports and fitness facilities, bars, shops and restaurants. The apartment has been recently renovated and is now on the market for just $80,000 (£43,500).
In Canary Island Circle, just 9 miles from Disney, Feltrim offers a spacious family home with four bedrooms (yes, four) and two bathrooms, a sheltered, heated pool, and its own garden. The property is located within a gated community that has an 18-hole golf course and lakes for fishing. This Florida property is currently on the market for just $125,000 (£68,000).
However, before you pack your bags (and your checkbook), remember that when a property’s price seems too good to be true, it usually is. Residential appraiser Al Franks makes this note of caution for foreign buyers: “In some places I see signs of stability and in others I don’t. A house may look good on paper, but then you drive by and much of the neighboring houses have knee-deep grass.
There are also pitfalls for the unsuspecting foreign buyer, such as a two-tier tax system, which is not favorable to non-residents; and the fact that if you’re looking for Florida property as a vacation rental, you need to make sure it’s within an approved short-term rental area.
Golf development property is often a good bet for those with rental returns and long-term growth in mind, and another Orlando apartment from Feltrim, at the Southern Dunes Golf and Country Club, could be a winner for singles and couples. , as the development boasts one of the highest rated courses in Florida. This luxury development is well located for Disney and Orlando and has many on-site facilities and sports and leisure amenities nearby, including a large community pool and fishing lake. All that, but the one-bedroom condo is on the market for just $115,000 (£62,500).
For those still wondering if the time is right to jump into the rough waters of the Florida real estate market, it must be said that there are signs of change. Orlando’s residential resale market posted its second best sales month of the year in July, and local realtors say an improvement in the number of pending contracts bodes well for the rest of 2008.
Kissimmee property prices are a bit higher, but in a very desirable area, another great single family home on the market with British Homes Group, and featuring four bedrooms, a fancy kitchen, pool and large garage, could be yours for just $175,000 (£95,000). At first glance, this is out of our price range; But let’s not forget that this is a buyer’s market and you should come ready to bargain hard.
To confirm that the Florida real estate market really is shrinking, we move down the coast to Delray Beach, nestled between the luxury resorts of West Palm Beach and Boca Raton. Here, an attractive two-bedroom apartment with vaulted ceilings is currently on the market and offers many amenities on your doorstep, including a pool, fitness center, spa, clubhouse, and tennis courts. Downtown Delray and the beach are just a ten minute drive away and the property is on the market for $145,000 (£78,800).
Of course, if you’re looking for something a little more luxurious for your £80,000, you might want to consider vacation ownership (yes, it’s a timeshare, but that’s not a dirty word in the States).
High-end Starwood Hotels and Resorts has a vacation ownership arm that owns Sheraton Vistana Villages, a luxury resort with some 1,500 one-, two-, and three-bedroom villas. The development features three swimming pools plus a children’s pool, tennis courts, a poolside restaurant, a staffed recreation center, two fitness centers, and luxurious tropical landscaping throughout, with buyers automatically gaining access to the international network. Starwood vacation. Annual weeks at Vistana Villages can be purchased from around $10,000 (£5,450).
Those who sell properties in Florida will always say that now is the right time to buy. However, there seems to be a groundswell of opinion pointing in the direction that property prices will bottom at least by the end of the year. One thing is for sure, if you love Florida and can afford to invest £80,000 in a Florida property, you are almost out of reasons not to buy.
