The sheer quantity of properties being foreclosed, and the number of empty properties littering the state, left many investors nervous about buying property in Florida. However in recent months, interest has started to pick up again.

There are some definite bargains to be had with some flats in some condominiums on sale for as little as $15,000. However as with any property purchase – in Florida or otherwise – caution is advised. Some Florida properties are cheap for a reason – they could be in a rough neighbourhood or need complete renovation.

If you are planning to buy property in Florida, the first question is which area? The two coasts are very different: the west coast has a relaxed feeling with sub tropical temperatures and is centered on the Tampa and Sarasota, elegant and classy; the east coast is defined by Miami, a hectic city full of nightlife and luxuy.

On the west coast, there is plenty of choice although at the lower end of the market, there is plenty of competition. A two-bedroom lock-up flat within walking distance of the beach will probably set you back around $250,000. However it is better to go for a family home rather than a condominium as they tend to hold their price better and tend to have higher resale values and therefore represent a better overall property investment.

For Miami, there are plenty of property bargains to be had with prices down between 30 and 50% from their peak. Property prices are fairly stable now therefore property investment in Miami is a pretty safe bet.

ForeignPropertyBuyer.com recommends looking for land if you are looking for a long-term real estate investment as land values have dropped massively and it may be possible to grab some major bargains.

If you are planning to finance your propety investment with an American dollar mortgage, make sure you factor in fluctuating exchange rates into your calculations. You may also be able to take out a mortgage half in your home country’s currency and half in American dollars to help stabilise the fluctuations a little. Remember that you will be liable for real-estate tax which is an annual fee of 2% of the purchase price.

If you are planning to rent out your Florida property, check the small print of your property carefully as many condominium assoications have rules governing how many rentals you are allowed in a year. There may also be other local restrictions in force.

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“Both enquiries and sales are up”, says Lee Weaver of the Orlando-based British Homes Group, a company set up by Brits for Brits considering buying property in Florida. “These are clear indicators that the market is recovering. While the national housing bust has devastated property values, it has also created some outstanding bargain opportunities for would-be home buyers – if you know where to look.”

British Homes Group is not the only specialist claiming that recovery is at last in sight in Florida, America’s Sunshine State. In a recent independent national poll by IHS Global Insight’s Regional Estate Service, two destinations in Florida appeared in the top five most undervalued places to live in the US. The housing bust in the US has seen property values fall to 32% lower than their 2006 peaks but it has also created some fantastic bargain opportunities for buyers. Jeannine Cataldi, Senior Economist of IHS Global Insight’s Regional Real Estate Service comments, “What we have seen is that those markets that became significantly overvalued during the housing boom such as Florida, California and Nevada are right now very undervalued.”

The first Florida destination to appear in the poll is the upmarket retirement community of Naples, located on Florida’s southwest coastline. Home prices here have fallen by nearly 50% from the first quarter of 2006 to the first quarter of 2009. IHS Global Insight now considers the average home price in Naples ($200,000) to be 33% undervalued.

Similarly, house prices in Sarasota – an upmarket, artistic community on Florida’s west coast plunged by 44% from the first quarter of 2006 to the first quarter of 2009. HIS Global Insight now considers the average price in Sarasota ($141,000) to be 28% undervalued.

The Florida Association of Realtors states that the average sales price for existing Florida homes was $148,000 in June 2009, a 28% decrease from June 2008’s $205,300. The average condo price fell 37% from $180,400 last June to $112,900 this year.
British Homes Group has many examples of bargain properties on its website. For example a 5 bedroom, 3 bathroom home with swimming pool on the Lake Berkley Resort just 12 minutes from Disney in Kissimmee, Florida which is on sale for $215,000 (£133,207). In 2005 this property was valued at $438,850 (£271,592) which represents a 51% drop in price.

Lee Weaver of the British Homes Group comments, “We have an increasing number of Brits requesting bargain-priced holiday homes in Florida and this property is a perfect example of what is available. This a brilliant time for Brits to buy in Florida. Although house prices are so low at the moment. There are indicators that the property market is recovering. We think prices will ‘bottom out’ later this year after three years of spiralling downward and now is the time to buy before prices rise.”

The Federal Housing Finance Agency stated last week that single-family home prices nationally rose by 0.9 per cent from April to May in the US as a whole, marking the biggest jump this year. Signs of life in the housing market lifted shares of homebuilders such as Lennar, DR Horton and KB Homes as much as 6% last week. Ben Bernanke, Chairman of the Federal Reserve, commented that “the decline in housing activity appears to have moderated” and mortgage applications had swelled for three weeks running.

However, economists warned that the real estate market remained fragile. According to the S&P/Case-Shiller home-price index, home prices have dropped by a third since peaking in 2006, and the latest figures from RealtyTrac show rates of foreclosure have reached record highs this year. And year on year figures are still nothing to sing about – home prices nationwide dropped 17.1% in May 2009 compared with May 2008.

Average prices in Florida are still dropping, sales are up, indicating that it won’t be long before prices rise accordingly. The Florida Association of Realtors recently stated that existing single-family home and condominium sales grew in June – by 28% from 12,339 sales in June 2008 to 15,850 sales in June 2009. Similarly, a total of 5,241 condo units were sold in June 2009, a 39% increase from the 3,771 units that were sold in June 2008.”

Lee Weaver continues, “The supply of housing is another important measure. A market with six months of supply is considered by housing economists to be balanced between buyers and sellers. In Orlando, June’s inventory had 17,831 homes available through the Multiple Listing Service, which reflects an 8.4-month supply at the current sales pace. In January, the Orlando MSA had an inventory level that reflected a 23.6-month supply and it has steadily decreased since. It is definitely heading in the right direction towards the optimum level of 6 months.”

Randall Guttery, Professor of Real Estate at the University of North Texas added, “We are finally working through this excess inventory. Once we get that excess inventory taken off the market, we can get back to a more healthy supply-and-demand-driven market.”

Lee Weaver concludes, “For those thinking about buying a property in Florida, now really is the time to act before prices increase.”

About the British Homes Group

The British Homes Group guarantees impartial, professional advice on the current Florida market, on sales and mortgages and much more. BHG’s aim is to make the buying process for the UK purchaser completely smooth and hassle-free.
The British Homes Group is in a unique position in the Florida property market.

Based in Florida, it is staffed by a team of British and American professionals, experts in both UK and US property purchase and financing procedures. Through Florida’s ‘Multiple Listing Service’ and co-brokerage arrangements, BHG’s ‘British Homes Sales’ department has access to one of the largest selections of dream home and investment properties available in Florida.

The British Home Loans division is dedicated to providing personalised, private and unbiased Florida home loan advice on fixed and flexible mortgages from numerous competing lenders and in a variety of currencies.

The British Homes Group also provides excellent customer service up to and beyond completion including ongoing mortgage advice and advice on tax, insurance, immigration and visa matters. It will even help buyers to select furniture packages and interior design services and provides a free villa listing on one of the largest villa rental websites in the area.

For further information, please call Lee Weaver at British Homes Group on 0800 096 5989 or (+1) 407 396 9914 or visit www.britishhomesgroup.com

Kerry Clark, Tideway Communications, +44 (0)20 8878 0787 kerry@tidewaycommunications.com

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So what do you get for your money? 53,000 square feet of floor space (that’s 160 acres) with the main house boasting 10 bedrooms, a home theatre, bowling alley, obligatory swimming pool and a huge wine cellar which can accommodate 8,000 bottles of wine and has a special area for wine tasting with designated areas for different types of wine. And for your guests, there are four specially built cottages. Also included is a garage, which is estimated will fit up to 40 cars at any one time. Work starts on the house this June, and the house is set to be complete within 14 months.

The house has been made of stone and timber, with hand-carved fireplaces and vaulted ceilings. All outdoor driveways, patios and walkways are heated to ensure you are kept toasty, no matter what the weather.

The house is situated in the super-exclusive Yellowstone Club in Big Sky, Mont. The resort is so exclusive that not just anyone with money can buy – first, you must be invited to join. An initiation fee of $250,000 ensures that members are suitably well off, and you must commit to buying or building a property on the resort as well. Certain celebrities are ‘discouraged’ from applying for membership to ensure that the attitude remains good and that the resort retains it’s family-orientated view.

If you do buy, your neighbours will include Microsoft Head Honcho Bill Gates, Dan Quayle, golfer Annika Sorenstam and cycling legend Greg Lemond. In total, there is a limit on 864 propety owners, and current membership stands at about 250 at the moment.

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