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Why Buy Property in Florida?
The US is the most
popular country after Spain for European people buying second homes
abroad, and the majority of them buy in Florida. Attractions include
the climate, favourable exchange rates and the availability of flights
(and bargain fares) from all major airports. Few purchasers appear
to be put off by travel time – a minimum of eight hours from London,
Amsterdam depending on whereabouts in the state you are flying to.
As the US economy recently slid into recession and the long-standing
property boom came to an end, many developers in Florida have faced
tough market conditions in which to promote their projects. One
consequence of this has been that intrepid European buyers have been
able to get some great discounts on new properties. Another is the
exchange rate between the US Dollar and European currencies.
Some watchers are predicting that the fall in Florida property is
almost at an end, and prices have nearly ‘bottomed out’, so for people
buying now it could be the perfect time for an investment.
Popular locations in Florida
This
guide gives a flavour of the areas of Florida most popular with European
second home purchasers – the central region around Orlando, the east
(Atlantic) coast and the resorts on the southwest (Gulf) coast.
Although there are no restrictions on Europeans buying a property in
Florida or anywhere else in the US, there are limits to how long they
can spend in the country each year (see Passports, visas and residency
section). Many areas of Florida also impose restrictions on the number
of days per year that homeowners are allowed to let their property.
Some ban letting altogether, so if you are counting on your property in
Florida to pay for itself through rentals in any way, it is vital that
you know what the letting situation is as early as possible.
Central Florida
The
central part of the state, particularly around Tampa and Orlando, has
long been a favourite with holidaymakers from Europe, especially families,
as it is there that most of the big attractions are located, including
Disney World, Universal Studios, Busch Gardens and Sea World. Unlike
some other parts of Florida, it is warm all year round, and there is
less rain than in coastal areas.
Its popularity, and the resulting healthy rental market, which offers
owners the best returns in Florida, makes the area a magnet for both
second home purchasers and buy-to-let investors. Prices reflect this,
but generally still represent good value as the volume of new
construction helps keep them competitive. Most purchasers here are
looking for detached villas with pools.
The Gulf Coast
Unlike
the inland areas around Orlando, the Gulf Coast tends to be wet,
particularly in July and August, so the potential for letting
properties, certainly to families, is not as good. However, it makes up
for these disadvantages with magnificent white beaches, azure seas,
plentiful moorings and fine restaurants – attributes that have made it
popular with the super-rich. Around 60 per cent of the US’s wealthiest
citizens winter at Naples, an exclusive resort on the Gulf Coast, or at
Palm Beach, on the Atlantic Coast.
Consequently, the Gulf Coast is a hugely expensive area. Houses on the
waterfront, in particular, command prices easily in excess of twice
those of similar-sized ones in the Orlando area. Properties further
inland or up the coast are slightly less expensive.
The Atlantic Coast
Florida’s
Atlantic Coast stretches from St Augustine through Daytona Beach, Fort
Lauderdale and Miami, right down through the Florida Keys to Key West.
It includes some of North America’s most desirable (and expensive)
locations, such as Palm Beach, where prices routinely run to millions
of dollars.
However, not everywhere on the Atlantic Coast is this pricey, and if
you choose your location carefully, you can find a three-bedroom house
with a pool for around $250,000.
An apartment in a good area of Miami will start from around $300,000 – not bad considering how much the city offers:
beautiful beaches, blue seas, non-stop nightlife, a varied arts and
culture scene, fascinating Art Deco architecture and a consistently
warm climate. Many current buyers are taking advantage of the stressful
situation of developers involved in Miami condo projects to get some of
the best discounts available in international real estate.
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