What?s Opinion Buying in Florida Buying?

[Damian George]

thought it may be of interest here

[pragueproperty]

Mr,
Damian geroge
I understood your article. US house prices are increasing frequently and drastically. What happened in US. Do you have any reason for this tactical change..
property investment

[wmp]

Very perceptive summary! Do you do palm reading also? I'd be interested to know how such investments went, as I felt the same in 2006 & avoided investing inthe US for the reasons you stated.

Damian
White Mountain

Originally Posted by bennett

I'd be very cautious if I were you!

A good pal of mine has one of these properties close to Disney, it comes to less than 40 weeks rental per-year which means he has to 'chip-in' a lot of his own cash every month.

A 30 year mortgage means you will be paying about US $1,000 per-month just in interest during the early years......ouch!

Also bear in mind that the US property market is probably at the extreme end of a massive bubble..........do you really want to make a 30 year financial commitment?

Even if you do buy this place, you can't even live in the US for more than 3 months (and I think you are limited to a 6 months maximum per-year anyway).

Best avoided my friend.

Good luck.
Bennett

[deejay-55]

Local commentators are saying the Orlando Florida market may have bottomed - straws in the wind include:
Orlando Sentinel 13 Aug Home sales: Good news peeks out from the gloom
FAR 25 Aug Florida’s existing home sales in July could indicate stabilization
FAR 28 Aug Is this the real estate turnaround

[teepeeseller]

Originally Posted by Olly

Hi Raul

Best advice; 'definitely not now'...

I am a British, US Licensed Realtor & International Property Specialist. From the tone of your question this is an entirely new venture for you. While much of the advice given here is fair, the comments are made mostly from people who are based within the UK and not, on the daily scene across the vacation locations of Florida. Equally, many make it clear they represent alternative locations.

Certainly this is not the time to buy if you have little or no experience of the STR (short-term rental) market. As for a property management providing 40 weeks of annual bookings, ask them for a contract guaranteeing same. Plus, the average value guaranteed too. (It's horse-manure; you'll never get this level without the property & location conform to certain criteria - too long an explanation here!)

If you're a seasoned investor looking for LTR (long-term rental) even now is just a tad too early. Why? Because the price of homes is dropping at an average rate across the state by circa 1.5% per month - ouch!!!

A seasoned investor knows how to take advantage of this situation but, with great respect, if you're just putting your toe in the water for the first, please don't. At least for the rest of this year and only after a review of the market by next February in preparation for 'maybe' a buy later next year.

Finally; just because a property is in a STR zone, doesn't automatically mean it will rent well. For example; around Disney in Orlando only two zip codes provide the best returns...34746 & 34747 (Kissimmee). Places such as Clermont, Davenport & Haines City while still capable of attracting business, it's far, far less than Kissimmee locations. Then, there are numerous other factors which come into play wherever you choose. By this I mean 'any' vacation area across the globe.

It's a skill few master unless they approach the subject following appropriate researches, etc.

Whatever you choose to do, please be careful and I wish you every success...

Olly

Great post Olly. Straightforward, no blx, no bs English. Thanks, even I understood the point!
Are you up for a little transatlantic co-operation? My partner is in Georgia and whilst he has his own little network of tried and trusteds if you have something which could fall into the category of investment grade he might wish to discuss it with you (alternatively he might not - I try to assist the US end but I learned a while back and to my cost not to interfere with local knowledge) Where else are you operating?
Look forward to your reply. PM if you prefer.

[Dealhunter]

Originally Posted by teepeeseller

Great post Olly. Straightforward, no blx, no bs English. Thanks, even I understood the point!
Are you up for a little transatlantic co-operation? My partner is in Georgia and whilst he has his own little network of tried and trusteds if you have something which could fall into the category of investment grade he might wish to discuss it with you (alternatively he might not - I try to assist the US end but I learned a while back and to my cost not to interfere with local knowledge) Where else are you operating?
Look forward to your reply. PM if you prefer.

I too am a UK and US based realtor who sells new and forclosed properties and agree with the statement made about the location in relation to the rentals