Buying Property in Florida
Florida is known as the sunshine state and its good climate attracts visitors all year round. These include not just the Disney enthusiasts but also golfers, scuba divers, fishermen, tennis players and sailors. There has been a big swing in purchasing property from Europe to Florida, purely on the basis of the favourable exchange rate. The UK, where scarcity of land drives up prices, is different from the US, where a lot of land is available. This is reflected in the property prices and goes some way to explaining why British investors get so much more for their pound than they do at home. Capital appreciation is currently running at a respectable 10% per annum in the Orlando region.
The holiday homes available can range from self-contained villas to condominiums with shared facilities. Villas with four bedrooms, air-conditioning, pool and located within a 15 minute drive from Disney World, offer fairly secure rental possibilities during the peak season, but it is important to check whether short-term lets are permitted, before you purchase.
Long-Term Lets
As well as short-term holiday lets, Florida can be a good long-term rental investment as well. Properties further away from Orlando, edging towards Florida 's Gulf Coast, are cheaper and can provide good rental opportunities for those not necessarily interested in the faster pace of life associated with Orlando. The combination of lower capital costs, fewer void periods and less competition can produce a higher rental yield. The property may not necessarily have to be furnished. Other running costs, such as heating and electricity, will be covered by the tenant, unlike short-term lets where the utility costs are included in the rental. It is really a question of what you are hoping to achieve from your investment: a holiday home, which helps finance itself, or an investment property for long-term lets and higher rental yields.
Rental Market Overview
Fewer US citizens are travelling abroad since 9/11 and many are now taking holidays in Florida. As in the UK, if a holiday home is in the right location, correctly priced, it will rent out easily during the peak season. There are currently over 12,000 holiday homes for rental close to the Disney area, but demand falls rapidly for short-term lets the further away your property is located.
The higher standard of specification offered will be an important consideration when aiming to maximise on rental opportunities. Florida is a family market and properties that offer four bedrooms can accommodate two families sharing. When calculating any income from rental, it would be prudent to consider the letting season as lasting 30-35 weeks, anything else would be optimistic. If you are in any doubt about projected rental figures, consult an accountant or tax consultant who is familiar with the local market, before falling for any estate agent or developer's hyped up figures.
