This was a good question, but not one that is difficult to answer if you drill down into what it is you want to achieve from your property investment. At the end of the day it really boils down to whether you’re a holiday investor or a serious investor.

If you’re a holiday investor, there is nothing wrong with that, you might crave the excitement Florida has to offer, the beaches, Disneyland, the fantastic climate in fact you name it, Florida probably has it. This is why people are so attracted by the idea of a property in America’s Sunshine State.

Thanks to the great USA real estate downturn, property is now so cheap you can pick up villas in Florida with a pool for less than half the price of a 2-bedroom apartment in Bolton, UK.

Sounds tempting doesn’t it? However, before we dive into that pool let’s take a closer look at the options…

As I mentioned this friend of mine was asking me to tell him which route I would go down, the tenanted property or the holiday home. If I were to go for the latter, I would have my villa in Florida, preferably in a location that attracts a fair amount of tourism so that I can enjoy the twin benefits of a rental income in peak season and a place to spend my holidays and get away from the cold grey winter days back in the UK.

Perfect!

Not quite. When we look beyond the obvious attractions and take off the rose tinted specs we find there are costs associated with running this particular holiday home that we didn’t foresee at the time. Consider the following:

• Council Tax
• Community Fees
• Property Booking Fees
• Property Management Fees
• Property Cleaning
• Building Insurance
• Contents Insurance
• Furniture
• Pool Cleaning
• Electric Bills
• Water Bills
• Telephone Bills
• Internet Bills
• Lawn Cutting
• Annual Hotel Licence

“Have a nice day” as they say in the USA!

So as you can see owning a holiday home in Florida can be an expensive business even if the property appears to be a bargain. That said, depending on the area and the season you might also see the benefit of $700 to $1,000 a week for a four-bedroom detached property in Florida.

This is great if you can let the property for more than 30 weeks a year, but outside of peak season this is unlikely without putting in some hard work on advertising your property and even more work dealing with the needs of multiple tenants.

On top of this you might not even cover your mortgage payments, which is the trap many overseas investors often find themselves in.

But don’t despair, there is another way, and that’s tenanted properties in Florida…

Like any good investment this will require a degree of sacrifice, you won’t be able to spend your holidays in it, but it will turn the notion of a “holiday  home” on its head.

A tenanted property in Florida will fund your holiday and more importantly pay for itself with steady cash-flow. Your tenanted property is then your “holiday property” for a few reasons:

• It will reduce your associated property costs by more than half
• It will produce a constant and steady flow of income
• You can use the savings and profit to spend on holidays

A famous economist named Paul Samuelson once said “investing should be more like watching paint dry or watching grass grow, if you want excitement take $800 and go to Las Vegas.”

Before you fly west, the exciting thing about Florida tenanted property is that there are now opportunities to earn a profit of up to $8,000 per annum based on net yields of between 7-10%. This is after you have paid out the following:

• Council Tax
• Community Fees
• Property Management Fees
• Building Insurance
• Contents Insurance

Now doesn’t that sound more exciting than watching paint dry? And just think of the extra holidays you could have with that sort of rental profit.

This leaves us with one more concern, what if my property doesn’t have a tenant?

The sub-prime challenges in the US have pushed many to change their attitudes to renting. The most stable markets, from a property investment perspective, are ones where you have strong local demand for property.

In Florida’s case, demand for rental property is huge – as its inhabitants simply do not want to buy in the current economy. The state is actually on track to reach a new sales record this year thanks to demand from those investors who are taking advantage of the distressed market.

You may also have read the report by Florida Association of Realtors, which revealed that the average price for existing homes is now 21% higher than a year ago.

This tells us that the bottom of the USA property market is now well and truly behind us, but the potential of Florida tenanted properties is right there ahead of us. So, instead of taking a bet on a holiday let, I would recommend a more relaxed route to property wealth generation, where the tenant pays your mortgage and costs – allowing you time off to enjoy your holidays!

Click here to review our tenanted Florida real estate.

Click here to review our tenanted Atlanta real estate.

If you have any questions, we would be delighted to assist you. Please feel free to Call: +44 (0) 207 100 2393 or Email: info@colordarcy.com.

We look forward to the opportunity of assisting you to invest securely and successfully.

Kind regards,

Loxley McKenzie
Managing Director

P.S. Are Florida Tenanted Properties a Better Bet Than a Holiday Let? Please leave feedback below.

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Property remains the number one investment choice for financial gain; however, 2011 will not go down in history as one of the more successful years for some property investors! With this in mind, we have compiled a report outlining “The 5 Worst Property Markets To Invest In 2011.”

5. The Czech Republic

In fifth place was the Czech Republic where annual property price increases of between 20 to 30% are a distant memory and now a combination of high prices, oversupply and some of the lowest rental yields in Europe have made this a property investor’s bohemian nightmare.

4. Bulgaria

In fourth place was Bulgaria which was once regarded as the ‘the new Spain’ for overseas investors, not anymore! Property prices are in freefall and with the exit of British and Irish buyers, Russian investors now dominate the market and their strong bargaining skills result in continued falling prices.

3. Greece

In third place was Greece. With a debt to the tune of 340 billion Euros and property prices falling by 10% in the first half of 2011 alone, it is deserving of its podium placing.

2. Cyprus

In second place was Cyprus. A long time favourite with British investors, but now even its biggest advocates are losing interest. A stagnant economy and its vulnerability to the Greek crisis with two of its largest banks exposed to a total of 5 billion Euros doesn’t bode well.

1. Ireland

Finally in first place was Ireland. It seems that ‘the luck of the Irish’ has finally deserted them. Once the envy of the world when the property markets boomed between 2000 and 2006, the sheer scale of their downward spiral becomes apparent when you recognise that apartment prices fuelled by yet another painful 15% fall in 2011 are now down by a massive 60% from their peak.

Download Your FREE “The 5 Worst Property Markets In 2011” Report

To download the full report – “The 5 Worst Property Markets In 2011”, please click the link below.

Click here

Loxley’s Views

For a property market to be of interest to savvy investors it needs certain qualities in order to make it viable; a stable economy, good capital growth prospects, a reliable rental market and accessibility to mortgage finance.

Ultimately, property should be an investment that pays for itself; however, anyone investing in any of the 5 featured countries will probably have ended up losing money in the last 12 months.

It is significant that all five countries are from the European arena and no surprise following the recent rekindling of the debt crisis in the Eurozone and the impact this has had on those countries struggling to recover from the economic slowdown within its borders.

The current market conditions pose a challenge for the portfolio property investor in 2012 and on the flipside, opportunities. With uncertainty still a major factor in Europe it is no longer the case that focus can be switched to other countries and markets that show signs of growth without doing the research.

The interesting thing about this current property slump in Europe is that it has spread to all areas from the emerging capitals of Central and Eastern Europe, to popular coast and ski resorts.

Some are showing signs of recovery, but the property markets within weak economies are still sliding, which is why it is no coincidence that those who have struggled most in 2011 are all in our top five.

So as we take a break to consider what’s in store for 2012 it is right to feel cautious, but there is also cause for optimism. There are now unprecedented opportunities to invest in the types of housing that would have been unthinkable back at the peak of the market in 2008. These kinds of opportunities also exist beyond Europe’s borders in the US.

Understanding the market you invest in is now more important than ever. Bulgaria, Ireland and Cyprus should provide a warning for those who don’t consider the underlying fundamentals of a property market before investing.

In a market where the some of the old rules don’t apply, we still believe it is important to ask yourself one basic question before you invest; will this be a property that pays for itself?

Download Your FREE “The 5 Worst Property Markets In 2011” Report

To download the full report – “The 5 Worst Property Markets In 2011”, please click the link below.

Click here

Kind regards,

Loxley McKenzie
Managing Director

P.S. What other property markets should be included in the worst places to invest in 2011?  Please leave your comments below.

You’ve read the report by the Florida Association of Realtors, which details the fact that average sales prices, for existing homes is now 21% higher than a year ago. It is clear that the bottom of the USA property market is now well and truly behind us.

Today you can invest in a newly refurbished, fully managed, Florida Tenanted Villa with 7-10% NET yield, joining the smart investors, who have invested in property that pays for itself.

Deal Summary – Actual Example

What Makes Florida Villas With Tenants In Place So Special:

Prices from $76,000 / £47,000

• Tenants in Place
• Net Yields in the Region of 7% to 10%
• Fully Managed
• A Reduction of More Than $200k from Peak Prices
• 3 and 4-Bed Villas
• Fully Refurbished
• Two Car Garage
• Top Location

An Early Investor Testimonial

“My wife and I owned two holiday villas in Florida. We sold in 2006 (thankfully), because we could not make enough money to cover the running costs. We then decided that investing in Florida Tenanted Villas would make much more sense. We have bought three properties from Colordarcy and it is nice for a change to look into our bank account and see money coming in – rather than going out!”

Phillip and Rebecca Maslen, United Kingdom – invested in 3 Florida Tenanted Villas

Don’t Miss Out, Call or Email us Today

If you would like to discuss this opportunity in more details, please Call: +44 (0) 207 100 2393, Email: info@colordarcy.com, or simply let us know a suitable time to call you back for FREE.

Click here to request your FREE CALL BACK

We look forward to the opportunity of assisting you to invest securely and successfully.

Kind regards,
The Colordarcy Team