Florida property: To buy or not to buy?

For awhile, many property owners in Florida had smiles brighter than the sun. Property values increased in some areas by more than thirty per cent over a 1 year period. Unfortunately, nothing lasts forever. In the past few months, American property has no longer represented the sure-fire investment of brighter days. This is due to the well-publicised strength of the pound against the dollar. Many of us are aware that the US economy is weakening and this is having a knock-on effect on properties in the US.

According to Stuart Law, managing director of Assetz, the message to those hoping to invest in the States is to hold off. “It is not yet clear how severe the downturn in the economy and the currency will be, so investors should avoid being tempted by currently high-profile advertising and marketing on US property.”

So should property investors in Florida hold off, or is it still possible to invest safely if one knows where to look? It all depends on the intentions. “The current market favours those who are in for the long-haul,” Suzanne Morrill of World of Florida advises. “People who bought two years ago and were hoping to turn around their property quickly are the ones who have suffered – but if you are looking at a turnaround period of more like three to four years then you should see a return on your investment of around 5 per cent per year.”

The outlook for Florida property isn’t that bleak says Andrew Bartlett, an independent property and relocation consultant. “With the dollar so low against the pound at the present time and the Florida property boom coming to an abrupt end last year, the opportunity to pick up a bargain property in Florida is better today than it has been for several years.”

The experts suggest to make sure that the right location is chosen. “The area around Disney is always going to be popular,” suggests Morrill. “And if you are buying on the coast, then try to find a property as close to the water as possible. Property with nearby attractions such as golf-courses etcetera are also a good bet.”

Bartlett agrees by saying that the location one chooses will have a huge effect on the value of the Florida property investment. “There are areas of Orlando and Rotura at the present time which are saturated by property owned by Brits, who have found themselves in an area surrounded by other investors where prices are declining in value,” Bartlett explains, “It is worth obtaining impartial advice at the very start of the process as to what areas and what type of properties will offer the best investment potential.”

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Florida property: To buy or not to buy?

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