Although Florida property prices have risen sharply over the past few years, recently they have fallen to such a level that investors from all over the world have returned and are now looking to buy, for the prospect of future capital growth is virtually assured and the current downturn is seen as a small market glitch.
Besides tourism, Central Florida’s prospect for growth is now due to the vast employment opportunities ; forty one thousand new jobs were created in the region over the past twelve months and therefore it is no wonder around 360 people net are moving into the area every day.
The “US sunshine state” attracts around 80 million visitors annually and a staggering 52 million of them stay inland, away from the coast!
With an estimated 50,000 + British people now owning property in Florida and most of them buying for rental investment and personal holiday use, what is surprising for many, is to learn that rental restrictions exist throughout the State.
In Central Florida where the Orlando Disney catchments exist, there is of course a considerable rental demand for short- term accommodation, however great care is needed in this area to avoid possible mistakes, for less than one per cent of the total land mass in central Florida is zoned and approved for short- term rentals.
The short- term approval allows use of property built on the specifically zoned site to be used like an hotel and the reason for this is simple; local authorities control the supply of such rental homes to protect the residents from possible neighbour nuisance, however this does of course also help potential investors, for it reduces the competition from similar like minded property owners.
It is of course a competitive environment, and homeowner still have to contend with the hotels, although many people do prefer to stay in a privately owned home.
Historically most British property buyers in Florida look for a villa with its own pool in favour of a condominium, for many British renters think likewise.
A villa with its own private swimming pool does of course have its attraction and yet it can also have a few disadvantages, such as more responsibility and in some cases a higher maintenance cost than a condo.
The majority of Florida visitors (some 85%) are either Canadian or US citizens and most after hotel accommodation will almost certainly seek to rent a condo (condominium), in favour of a villa.
Condos although best described as similar to a UK flat or apartment are normally starting from as little as £80,000 and most are spacious and can even be as large as many villas. The resort facilities normally on offer and the associated running costs rival the villa counterpart.
A villa can of course be a wise purchase although normally the price of a new or established home will commence around the £130,000 mark. Lower priced homes are available although the age may well mean that some work is going to be required.
An increasing number of foreign nationals from all over the world buy in Florida, for they view the State as a sound future investment, due to affordable living costs, low priced homes and of course the wonderful lifestyle and sunny weather.
Says Graham Pyle Managing director of UK & US based real estate specialist Florida Countryside; “Since I commenced the extensive marketing campaign of Florida real estate to British buyers, some 20 years ago, I have been constantly reminding our clients to first seriously consider the main reason for them buying.
This should take place from the outset of the interest, for most primarily buy for investment and holiday reasons and in that order. Many would otherwise undoubtedly let “their hearts rule their head” and they would end up buying a home that is more suited to them living in on a permanent basis.
In reality most will require a home for short- term vacation stays which can financially work for them during their absence and at any given time we are fully equipped to establish he very best available property that is for sale at the most completive price, specific for any client's need!”
“Most UK based Florida homeowners only stay in their home up to 4 weeks annually and the remaining time they try to seek tourist rental income.
I should point out that we believe the best way of achieving a great result is to NOT rely on others to make you money.
We always help by educating our clients how they can successfully achieve the desired investment result by way of holiday lets and regretfully this does involves a degree of work. There will never be a free lunch and the more owner effort, the better the result.
You really only get out of it what you put into” says Pyle and we constantly aim to help clients achieve their goals, with total professional guidance.
A “permanent home” has an entirely different criterion to that of a potential rental home and I personally believe the two definitely conflict.”
A suitable “permanent home” often has a higher purchase price tag than a holiday home, plus it can sometimes even have a high running cost, for the homeowners association fees can be excessive, especially when it has associated facilities such as prime golf course within the community.
A suitable primary home will normally carry a 3 or 6 monthly rental restriction that operates within the community and therefore this will have no flexibility for the owner’s personal use, which will prove to be a problem in itself, if it is planned to ever rent out the home during the owner’s absence.
A good rental investment should have the potential to provide a healthy yield together with a good prospect for strong future capital growth and this is currently highly possible in Florida, subject of course to careful research by locating the very best available property at any given time.
Florida Countryside offer a client buying service that can achieve the best possible result, for they have access to every listed property for sale in the region.
A licensed agent has a fiduciary duty of care to protect the client and yet the associated real estate fee is always paid by the buyer and collected and distributed by the title agency.
For a free DVD "The definitive guide to buying in Florida" plus more detailed information regarding properties currently for sale or to obtain an invitation to one of the information seminars being held throughout the UK call 08456444747 or visit www.countrysideinternational.com
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