Buying Property in Florida

mr-mad_2

We are thinking of buying a Villa in Orlando, on one of the top Golf Communities.

Anyone have any experience of buying there?
Any owners on here?

We may pay cash or mostly cash with a small percentage of top up loan
to pay closing costs and up front management fees.

It is hoped that rental income would cover general running costs of the property.

Any advice would be greatly appreciated.

gfplux

I have family in Florida who run a business. They confirm that people are hurting from the recession. House prices are in free fall and this lack of perceived wealth is hurting many business's.
This is not a time to buy property as any bargain will be cheaper in 6/12 months.
You have to do what you have to do but in my opinion you should rent a nice place for holidays and review your position in 6/12 months.
If you are convinced that the USA is for you perhaps you should change your (I assume) Sterling to dollars. The exchange rate can always get better but it could go against you.
Good Luck

gfplux

Sorry
I should have added that inward investment in real estate from other parts of the USA is very slow, close to stop and European buyers with strong € are being very, very careful.

lynnexxxo

Ditto what gfplux says. I don't think now is the time to be investing in a florida property.

IveSeenTheLight

My parents have a place in the Orlando area.
They have had it a number of years now (maybe about 10) and have had pretty regular renters in their.
Of course being next to Disneyland has helped.
I think their last / current tennants were are in for more than 3 1/2 years.

It's good you will be buying most with cash, As I believe it is nigh on impossible to get a loan in the US (even before the credit crunch) if you are not a citizen. I do think though that you will need to get a US bank account set up.

My parents were looking to sell, however really it's probably not the best investment time to buy.

mr-mad_2

Thank You

Yes I have a US Bank Account, The negative changes in property prices may be offset by the change in exchange rate, currently around $2/£1. So buying now or in 6 months may incur the same cost for the property.
(Wish I had a crystal ball?)

This would not be a short term investment, so with no mortgage, I could stand a fall, with a prospective long term raise in price.

The main issues are that during 2 recent visits I saw many properties falling in to bad state of repair. Some properties had red warning possession stickers from the local county taxation departments.
And I wondered if this was due to US and foreign owners finding they were unable to cover Motgage and general running costs by Rental income.

With no mortgage, We would have the advantage of only having to cover general running costs with rental income.

I was informed by a US bank that Mortgage interests rates to foriegn clients are higher because, they can walk away from the mortgage, without any comeback.

I was interested in hearing from foreign property owner, regarding any problems they had covering costs? And what had happened when they found themselves in that position.

Thought I might find some discussion on the internet, if this is in fact the case? But not found anything?

SouthCoast

Good luck...............

You will need it!

http://listings.ebay.com/_W0QQsocmdZListingItemList?sofocus=pf&sbrftog=1&dfsp=2&socmd=ListingItemList&catref=C3&from=R2&satitle=&sacat=12605%26catref%3DC6&a9=1044&a10=-24&a20=-24&a15=-24&a16=-24&alist=a9%2Ca10%2Ca20%2Ca15%2Ca16%2Ca3801&pfmode=1&reqtype=2&gcs=9&pfid=10&pf_query=&sargn=-1%26saslc%3D2&sadis=200&fpos=ZIP%2FPostal&sabfmts=1&saobfmts=insif&ftrt=1&ftrv=1&saprclo=&saprchi=&fsop=2%26fsoo%3D2&fgtp=

mr-mad_2

SouthCoast wrote: »

Good luck...............
You will need it!

Based on what? Property values?

gfplux

mr-mad wrote: »

Thank You

Yes I have a US Bank Account, The negative changes in property prices may be offset by the change in exchange rate, currently around $2/£1. So buying now or in 6 months may incur the same cost for the property.
(Wish I had a crystal ball?)

This would not be a short term investment, so with no mortgage, I could stand a fall, with a prospective long term raise in price.

The main issues are that during 2 recent visits I saw many properties falling in to bad state of repair. Some properties had red warning possession stickers from the local county taxation departments.
And I wondered if this was due to US and foreign owners finding they were unable to cover Motgage and general running costs by Rental income.

With no mortgage, We would have the advantage of only having to cover general running costs with rental income.

I was informed by a US bank that Mortgage interests rates to foriegn clients are higher because, they can walk away from the mortgage, without any comeback.

I was interested in hearing from foreign property owner, regarding any problems they had covering costs? And what had happened when they found themselves in that position.

Thought I might find some discussion on the internet, if this is in fact the case? But not found anything?

I was going to post a long reply as to how you are not "getting it" but I now wonder if it is a wind up and you are taking the micky.
Here is an article from business week that you should read
http://finance.yahoo.com/real-estate/article/104340/Housing-Meltdown
and I suggest if you are real you need to do a lot more reading so that you do "get it"

vivatifosi

I have many friends who are American and live in Orlando. Their house prices have gone down and are expected - as has been said above - to continue to do so. While you say that the cost of the investment is offset by the exchange rate, this won't be the case if you are renting the place out in US $$. If you are only renting out in ££ then what is your guarantee that you will be able to cover your costs when other people have houses that they bought there years ago and they can afford to reduce their prices if necessary? Also, is it in a community zoned for short-term rental, a must if renting to Brits?

California, Michigan and Florida are the States currently worse hit by the housing market problems over there at the moment, and people are really hurting. I've been watching the market there for a long time as I would like a home in Florida, but currently I wouldn't touch it with your bargepole, let alone mine!

lynzpower

but why isw now such a bad time to buy?

OP is paying cash
Prices are in freefall
Yes they might be cheaper in 6ms but hey, they also might not be
Id suggest that theres some serious good negotiation that can be done here from a moneysaver, if its says 100k, you should be able to dshabve a fair amount off that as US owners are chasing the market
As a cash buyer with sterling, OP is in a brill position to pick up a bargain

just because the worlds thinks its a bad idea doesnt mean it is.... after all fortune favours the brave & all that.

If the OP was going to need loans and finance etc, then id probably tell him not to bother, but paying cash.... * i certainly wouldnt rule it out*