Background to Florida

Known as the ‘Sunshine State’, Florida has the 4th largest population of any state in the USA with over 18 million people residing there; as such it is one of the largest states in the USA. There is a diverse range of housing and accommodation ranging from condominiums, detached family homes to multi-million dollar mansions located around the highly desirable Gulf Coast in areas such as Naples and Fort Myers.

Florida has the 4th largest economy in the US with a GDP of $734 billion. The average income per capita in Florida is $38,417, ranking 20th across all states in the USA. Unemployment in the state currently sits at 11.5%, slightly higher than the national average.

One of the main areas of interest for many people visiting Florida is the expansive Disney World resorts located just outside Orlando. Disney World attracts nearly 60 million tourists to Florida each year, providing a multi-billion dollar knock-on effect to the local economy through shops, restaurants and family entertainment. Disney World is currently ranked as the number one tourist destination in the USA. As a result of this huge tourist attraction, it?s no surprise that there is a vast demand for short term holiday rentals.

Traditionally, the coastal regions of the USA have seen huge growth in property prices over the years, and Florida is no different. However, the global recession over the past two years had hit Florida particularly hard.

Real Estate Prices in Florida

Over the past 12 months, property prices in Florida have decreased by 14%, with the average property now worth $139,600. This is nearly half their peak value in 2006 where the average property in Florida cost $256,600.

This is not at all bad news for savvy property investors. Some of the worst affected cities in the USA are located in Florida (Miami is now seeing record low property values) allowing well-funded investors the opportunity to take advantage of massively distressed property prices, buying with discounts up to 70% below peak value.

Condominiums (apartments) provide some amazing opportunities for buy-to-let investors looking for pre-tenanted units which will often return double digit net rental yields.

All of this means that there is now a great chance for buyers to purchase their dream holiday home or an investment property which will return fantastic net rental yields, often around 14% net!

Sunshine on the horizon...

With the US housing market showing signs of recovery, and government-backed incentives to get people back into the property market working, Florida?s property market looks like it has seen the worst of a turbulent two years. More people are now buying property and prices are stabilising.

However, this is now the time to buy, taking advantage of huge price drops on properties which are not going to be around forever. If ever you wanted to inject a little sunshine into your life, this is the time and place to do it.