| Investment opportunities in the Florida real estate | | | | of beaches, its 1200 golf courses, its theme parks and |
| market After many years of spectacular growth, | | | | myriad of other attractions. 350,000 people each year |
| Florida property, like the rest of America, has seen a | | | | move to make Florida their home, many of them |
| recent decline. High interest rates have taken their toll | | | | British, keen to live in a better climate and a vibrant |
| but less well recognised, 2005’s above average | | | | English speaking community. Daniel and Judith did |
| hurricane season has been a major factor in the | | | | exactly that. They moved their family from London to |
| Florida story. Obtaining property insurance in Florida is | | | | Tampa and for $500,000 (approx £266,000) their |
| difficult. Most insurance companies won’t take | | | | home has four large bedrooms and an office, three |
| the risk, and so home owners have to obtain cover | | | | and a half bathrooms, room for a pool table, and a |
| from the insurer of last resort —government | | | | garden with a private swimming pool. They live on a |
| subsidised "Citizens Insurance". This has caused | | | | tree-lined boulevard with community spirited neighbours, |
| premiums to soar (by Florida standards) to | | | | fine schools for their two children and plenty of leisure |
| approximately 1%. A $500,000 house, insured for | | | | activities, parks and other amenities. Both hold real |
| $350,000 to exclude the plot value, would be about | | | | estate licences and a mortgage license and are in a |
| $3500 annually, with a 2% excess for hurricane | | | | unique position to monitor the market and see the |
| damage claims. There is much political activity to | | | | tremendous values that now abound. They have |
| resolve the issue and Congressman Jim Davis has | | | | bought several properties themselves and have helped |
| promised to slash these rates by at least 40%. | | | | many clients find the right property to suit them. As |
| However, for many homeowners it is already too late | | | | Daniel says "where else could you find the value of |
| and they have been forced to put their homes on the | | | | property we now have in Florida, in a country that has |
| market or are having their homes foreclosed on. This | | | | historically proven to be politically and financially stable |
| increased inventory, in a market that is already full and | | | | with tremendous growth potential?"For those British |
| has few buyers, is resulting in falling prices. | | | | trying to get to the US permanently there is currently a |
| There is opportunity in crisis and UK and other | | | | 2 year backlog for visa applications. Many are |
| international buyers are moving in. They realise the | | | | choosing to apply for E2 business visas. By buying a |
| greenhouse effect or the risk of terrorism or disaster | | | | business they can usually get a visa much more |
| of one sort or another applies virtually everywhere. | | | | quickly. A buyer of any business over 150,000 pounds |
| Weathermen are predicting 30 years of instability | | | | is almost certain to get one. Many business brokers |
| worldwide, and even in Britain the Environment Agency | | | | have a wide choice of suitable business opportunities |
| is issuing flood warnings all across the UK so the risk in | | | | from motels to tea rooms. |
| Florida has to be put into perspective. In reality the | | | | So, why Florida? According to Daniel the housing |
| 2006 Hurricane Season, which was billed to be even | | | | market has bottomed and cannot fall much further. |
| busier than 2005, was uneventful. | | | | Developers across the State are offering all sorts of |
| Unlike Louisiana, Florida is above sea level which | | | | attractive inducements to shift their stocks of new |
| reduces the damage caused by a hurricane. Added to | | | | homes. "As is so often the case feast has turned to |
| that, a hurricane is one of the few natural disasters | | | | famine but these things are usually overdone. In my |
| that can be both anticipated and action taken to avert | | | | experience now is the time for the bottom fishers to |
| much of the effect. Floridians are used to shuttering | | | | cast their lines. For about $300,000 we can find many |
| their homes and either sitting it out or moving away | | | | very nice homes that can be rented to provide a |
| from a direct storm. Even if the hoped for insurance | | | | break-even or small positive cash flow based on a |
| premium reductions do not take effect, at 1% | | | | 75% mortgage at current US rates. And if that |
| insurance is still a viable protection and more than | | | | wasn’t appealing enough, British buyers stand to |
| compensated for by the huge savings in the price of | | | | enjoy the added buying power of Sterling’s |
| Florida real-estate. The sunshine State has a lot to | | | | strength as it appreciates against the dollar". |
| offer, 75 million visitors each year flock to its 1500 miles | | | | For more information contact Julius Nehorai at julius. |