For those buyers looking for a genuine bargain property, that is sure to increase in value and provide a year on year rental income, Florida is a great choice. A major tourist destination, for both holiday makers coming from overseas and Americans enjoying their own sunny shores. Boasting some of the worlds most popular tourist attractions, Disney World, Universal Studios and the Everglades to name but a few, Florida is also a world class destination for golfers and sun worshippers alike and is the most popular property hotspot for foreign buyers looking to invest in the USA.
Due to the international property market crash, the correction in price for Florida real estate has had a positive impact, for new buyers currently looking to get a foothold in this world class destination. For the first half of the last decade, it was not unusual for Florida property prices to have been boosted 30% per annum, making the region an expensive option for many. This is now not the case and Florida is now extremely competitive.
There are some amazing deals to be had with prices ranging from as little as $15,000 upwards into the millions of dollars. But for a relatively small budget, there is probably nowhere in the world where you can get as much for your money in such a great location.
On the west coast of Florida, there are many options that are more affordable and for those seeking sub tropical climate with easy going lifestyle, this is a good place to look. A two bedroom apartment, just a short walk to the beach could be as little as $200,000. A little further inland and the prices start to drop considerably.
The east coast of Florida offers a much more vibrant lifestyle, famed for celebrities, hot nightlife and the type of beaches to see and be seen on. You could pick up a 2 bedroom condo in Miami, on the beach for as little as $250,000. Again, as you go further inland, prices drop.
The market is currently between 30-50% below the asking prices during Florida boom times. However, this will not last forever and signs are that the Florida property market has bottomed out and is now starting to bolster. Last year saw Florida literally giving property away at below 70% of previous market value. With property prices currently stabilized and rising slowly, investment in Florida, at this time, is a pretty safe bet. Now is an opportune time to buy.
Tips for buying property in Florida:
- Make sure you know where you are buying. Florida is a large state and offers lots of different types of environment, from glamourous beach locations to small suburban inland communities. Getting this right will ensure holiday rental return on your investment.
- Ensure to enlist the guidance of a professional agent that is well versed in dealing successfully with foreign buyers.
- Allow for approximately 5% of the purchase price to cover legal costs, title insurer and notary fees plus any property taxes that are applicable.
- After you have negotiated a buying price, it is standard for the buyer to pay a goodwill deposit. This is then followed by formal offer being made with a form of purchase contract and once signed this is binding. Although there are defined clauses that can allow buyer or seller to withdraw, these are rarely implemented in the US market.
- Timing is everything in the USA. If dates are specified in any circumstances on documentation, adhere to them or else risk losing your deposit.
- If you are not a cash buyer and are looking to obtain a US mortgage, finance is currently being offered at 70-80% loan to value.
- Always check visa requirements relevant to the country from which you are a national.
By www.holprop.com (October 14, 2010)
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