Is this the time to Buy American Property.

Mick,

The only good months in Florida weather-wise IMO are February and March. Unfortunately so do many others, expect big crowds wherever you go during that period. I would rent if I were you, there are plenty of monthly rentals available.

You couldn't pay me to go to Florida in August. It will be interesting to hear what your friend has to say about his stay.

quote:

Originally posted by John G.:
Mick,

The only good months in Florida weather-wise IMO are February and March. Unfortunately so do many others, expect big crowds wherever you go during that period. I would rent if I were you, there are plenty of monthly rentals available.

You couldn't pay me to go to Florida in August. It will be interesting to hear what your friend has to say about his stay.

And a lovely cat 3 is heading maybe towards the keys.
Not for me. Been there,done that. Cat 4 typhoon on a ship off of Taiwan. Never again.
Marc

Mick

I returned today from Kissimmee, South Florida.

The weather is very hot and muggy, and the place is packed full of Brits. I stayed on a development that has had a 40% foreclosure rate and although the properties are very large and now pretty cheap, I don't think I could live there.

This article in the Guardian may be of interest and another nail in the coffin of the idea...

Chaps

I am having lunch with my friend tomorrow (assuming he recovers from his jet lag which he seems to suffer from every trip) to discuss the Florida / American property issue.

Thanks for your inputs. It is all pointing to a big NO to be honest.

Regards

Mick

Florida is a buyer's market with no buyers. Obama has the US confidence in the economy at an all time low. The citizens are holding onto their money, the stock market is going nowhere and real estate values are way down as well. We are poised to see what happens to the Bush tax cuts that are to expire at year end. I wouldn't be surprised if many folks are upside-down with their mortgages. People were using their equity to pay for their kids college education, home remodeling projects, autos and other big purchases. That party is OVER!

I'd also recommend steering clear of Florida as far as real estate goes–better to look at inexpensive single-family rental properties around major growth cities (e.g., Charlotte, NC) as these will be easy income streams and give you the best chance to flip them when things right-side-up. Yields might be smaller, but solid.

The number of rentals foreclosing are beginning to skyrocket. Those who could rent them out are now competing with the rest of the market.
A friend who rents in Palm Springs is being evicted due to the owners unwillingness to pay the monthly nut.
It's getting quite ugly and should be much worse in 6 months.
MN

Chaps

I had lunch with my friends today including the chap who visited Florida.

Basically the entire scene scared him and his advice was to stay well away. Everything to do with property seems to be a complete and utter mess.

So no American properties for any of us.

Many thanks for your advice/input.

Regards

Mick

If I had the money, I would be tempted to buy propery for student let in Coral Gables, FL. Student let can still be very profitable in UK university towns, for example Canterbury. Yesterday I paid my daughter's accomodation fees at University of Miami, and it came to 21k USD for the year (actually 9 months). Private student rental seems largely unexplored in South Florida.

LA Times Business Section headline Aug 29
"Mortgage meltdown is upwardly mobile"

Goes on to talk about multimillion dollar estates are half price or being foreclosed. Nick Cage's $35Mil Bel Air "castle" is going for a reasonable $11.8 by Citibank. He bought it years ago with great fanfare saying he always wanted a gothic castle. He sold off his car and bike collection 2 years ago, poor guy can't seem to catch a break....

I seriously wouldn't get into the market unless it is just unbelievable. Rentals you can pick up and move. My mom was great at that being an Army/corporate housewife and moved every few years.

quote:

Originally posted by Mick Parry:
Chaps

I had lunch with my friends today including the chap who visited Florida.

Basically the entire scene scared him and his advice was to stay well away. Everything to do with property seems to be a complete and utter mess.

So no American properties for any of us.

Many thanks for your advice/input.

Regards

Mick

Even in the best of markets, it boggles the mind as to what makes FL attractive to expats.

If you're limiting your choices to FL perhaps the OP should've read "Is it the right time to buy a Florida property?"

Otherwise, there are countless buying opportunities in parts of the country that have a much more favorable climate for weather AND culture.

I might look at some of the more distinctive markets. St. Simons. Charleston. Savannah. Figure Eight Island. All have more going for them than Florida. Only place in Florida that appeals to me is Ponte Vedra or Amelia Island. Maybe Seaside or Rosemary Beach.

If I were flying over, I might look at Spring Lake on the Jersey Shore, or some place outside Boston. The weather in those places should be familiar to a UK resident.

Until our economy turns around, which will mean an election or two from now, US real estate truly is the home of the brave.