Property in Florida
Discussion
Ok. So not generally a business topic but close.
Just got back from Florida recently and saw first hand the problems they are having with their property market. In the Orlando/Kissimmee area, 4 bedroom/ 3 bathroom villas are selling for around $230,000 on the open market but at foreclosure auctions, I saw one go for $125,000.
My query is would this be the right time to buy? I have heard the bottom wont hit for around another 6 months but will it ever get back to previous years levels.
I am concerned by the lack of renters out there versus the amount of rental properties available. Are UK banks still offering mortgages for holiday property and if so I guess the rates are appalling.
If anyone has recent bought or currently selling I would be interested to hear your views and any problems.
Thanks
I've been keeping an eye on new build condos.
If the offer/sale ratio you suggest is correct then they are looking like a bargain from the headline offer price.
I do however believe that the potential for shirt loss is still quite high, we will probably wait until we see a small quarter to quarter price increase on property and get in then.
If the offer/sale ratio you suggest is correct then they are looking like a bargain from the headline offer price.
I do however believe that the potential for shirt loss is still quite high, we will probably wait until we see a small quarter to quarter price increase on property and get in then.
As you've said there are certainly bargains to be had.....if buying for your own use then its certainly tempting...however, as you mention, the problem with buying to rent is that there are so many already available, and with economic conditions as they are, not enough renters to go round imo...
Plotloss said:
we will probably wait until we see a small quarter to quarter price increase on property and get in then.
Safest option and probably a wise decision. Buying now is still risky as although i think property prices in Florida are going to increase long term, they could still go down a bit further short term.Again, the right property in the right location is absolutely key
We know a couple of people with property in Florida.
One has a bog standard 4 bed villa in a location that a lot of the tour operators dump people, but is somewhat out of the way if you know the Orlando area. The owner is busy with work and lets a management company handle rentals. He was getting so little occupancy and getting so little cash from the tour operators after the management company had taken their cut, paid for repairs etc, that he's stopped renting it out and would love to get shut of it.
The other has just had a 6 bed / 7 bath two story place built. It's in a pretty good location. It was finished towards the end of last year. I don't know him well enough to ask him how much it cost but looking at other new-build property that is being offered on his estate then it was certainly $600K+. I thought his timing was unfortunate and he'd really struggle. His wife handles all the marketing and rentals and it's booked solid for the whole of this year at between £900 and £1300/wk depending on the season. In fact it's pretty booked for 2009 too. Apparently handing the marketing and management of the property, bookings etc is pretty time consuming and can take up several hours per day.
Draw your own conclusions.
One has a bog standard 4 bed villa in a location that a lot of the tour operators dump people, but is somewhat out of the way if you know the Orlando area. The owner is busy with work and lets a management company handle rentals. He was getting so little occupancy and getting so little cash from the tour operators after the management company had taken their cut, paid for repairs etc, that he's stopped renting it out and would love to get shut of it.
The other has just had a 6 bed / 7 bath two story place built. It's in a pretty good location. It was finished towards the end of last year. I don't know him well enough to ask him how much it cost but looking at other new-build property that is being offered on his estate then it was certainly $600K+. I thought his timing was unfortunate and he'd really struggle. His wife handles all the marketing and rentals and it's booked solid for the whole of this year at between £900 and £1300/wk depending on the season. In fact it's pretty booked for 2009 too. Apparently handing the marketing and management of the property, bookings etc is pretty time consuming and can take up several hours per day.
Draw your own conclusions.
My tuppence. *if one is waiting to pounce when the bottom is reached....it may well be very wise indeed to lock in the current FX rate at as near $2 as you can get.
Afterall it's no good if property over there slides by another 5% but the FX rate shifts and the £/$ rate has gone to 1.70 by the time you're looking to transact.
Afterall it's no good if property over there slides by another 5% but the FX rate shifts and the £/$ rate has gone to 1.70 by the time you're looking to transact.
I got back last week and I was surprised, based on the doom and gloom stuff that I'd read, how much building was going on in the holiday parts of Orlando. I know a lot of it would have started before the downturn, but I didn't much any evidence of abandoned sites etc (not saying there weren't any but didn't see any). Saw several new hotels being built.
I guess though, that if property is selling for half its original price at auction, then that's not a good sign.
I guess though, that if property is selling for half its original price at auction, then that's not a good sign.
evolutionvalet said:
All great info and some well informed suggestions.Many thanks.
Although,I read in the paper on Sunday that Florida is somewhat bucking the trend in house prices in the US and hasnt dropped by as much as other locations.....
So sitting tight and revisiting in a month or two.....
Case Shiller Composite 20 Although,I read in the paper on Sunday that Florida is somewhat bucking the trend in house prices in the US and hasnt dropped by as much as other locations.....
So sitting tight and revisiting in a month or two.....
High 7/6 206.52
2/8 175.94
Down 15% from peak
Miami
High 12/6 280.87
2/8 218.74
Down 22%
Tampa
High 7/6 238.09
2/8 188.59
Down 21%
Suggest you
a). Find where the paper is getting its numbers from
b). Revisit in a few years rather than months - both Miami and Tampa fell ~3% between Jan and Feb
NoelWatson said:
evolutionvalet said:
All great info and some well informed suggestions.Many thanks.
Although,I read in the paper on Sunday that Florida is somewhat bucking the trend in house prices in the US and hasnt dropped by as much as other locations.....
So sitting tight and revisiting in a month or two.....
Case Shiller Composite 20 Although,I read in the paper on Sunday that Florida is somewhat bucking the trend in house prices in the US and hasnt dropped by as much as other locations.....
So sitting tight and revisiting in a month or two.....
High 7/6 206.52
2/8 175.94
Down 15% from peak
Miami
High 12/6 280.87
2/8 218.74
Down 22%
Tampa
High 7/6 238.09
2/8 188.59
Down 21%
Suggest you
a). Find where the paper is getting its numbers from
b). Revisit in a few years rather than months - both Miami and Tampa fell ~3% between Jan and Feb
Miami 208.88
-4.51% MOM
Tampa
182.26
-3.3%MOM
Edited by NoelWatson on Tuesday 27th May 14:08
evolutionvalet said:
Ok. So not generally a business topic but close.
Just got back from Florida recently and saw first hand the problems they are having with their property market. In the Orlando/Kissimmee area, 4 bedroom/ 3 bathroom villas are selling for around $230,000 on the open market but at foreclosure auctions, I saw one go for $125,000.
My query is would this be the right time to buy? I have heard the bottom wont hit for around another 6 months but will it ever get back to previous years levels.
I am concerned by the lack of renters out there versus the amount of rental properties available. Are UK banks still offering mortgages for holiday property and if so I guess the rates are appalling.
If anyone has recent bought or currently selling I would be interested to hear your views and any problems.
Thanks
I would say that over the long term, today's prices are value.Just got back from Florida recently and saw first hand the problems they are having with their property market. In the Orlando/Kissimmee area, 4 bedroom/ 3 bathroom villas are selling for around $230,000 on the open market but at foreclosure auctions, I saw one go for $125,000.
My query is would this be the right time to buy? I have heard the bottom wont hit for around another 6 months but will it ever get back to previous years levels.
I am concerned by the lack of renters out there versus the amount of rental properties available. Are UK banks still offering mortgages for holiday property and if so I guess the rates are appalling.
If anyone has recent bought or currently selling I would be interested to hear your views and any problems.
Thanks
However, I wouldn't use the opportunity to buy cheap. I feel it is essential that you use the opportunity to buy the absolute best property in the best area for your budget or not at all.
Some of the new developments and streets are completely empty and while things look cheap there is a really good chance of the area collapsing and you ending up owning prime estate in junkie paradise.
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