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.

Homeowners who are unemployed or whose salaries don’t cover their basic needs will be able to apply to the Hardest Hit Fund, and money from this fund will also be used to bring mortgage arrears into line for those homeowners who have recently found work or a higher paying job.

Homeowners will be expected to contribute 25% of their monthly income or $70 per month towards the cost of the scheme, and they will only be eligible to receive mortgage payments for six months.

They will be able to receive up to $12,000 in mortgage payments or $6000 to repay mortgage arrears. This amount has been reduced from $35,000 to enable twice as many people to be helped, and it’s expected as many as 40,000 people could receive aid under this scheme.

Florida received $1 billion last year which was part of a federal initiative to help those states hardest hit by the economic downturn.

According to figures released by Zillow.com, some prime neighbourhoods in Florida showed price increases of up to 9.3% from February 2010. These figures are based on the median value of homes in a particular postal code. However prices remain artificially low in many areas due to the continued prevalence of distressed homes.

One reason these homes are so cheap is that property specialists are talking to distressed developers directly and are able to negotiate bulk discounts on high-quality pre-tenanted properties. These are then offered the sale to holiday home buyers and investors so that they can purchase a property at a price that is up to 70% less than the prices at the peak of the market.

These property specialists are also sourcing foreclosed homes directly and refurbishing them to be sold to investment buyers ready tenanted. These homes are still up to 65% cheaper than they were before the financial crisis and represent a great buy. This is because the homes are in established areas while the tenants provide a steady income.

These opportunities will not be around for much longer as sales of apartments in Orlando in January were 26% higher than in January 2010. The inventory of homes is also down by 9.5% while the numbers of people who are more than a month late paying their mortgage is also in decline. Anyone purchasing homes in Florida needs to be prepared to invest for the long term and to buy conservatively.

View Florida property for sale

A property expert in Florida has blamed the lack of finance available for foreign buyers and the fact that it’s taking 4 to 5 months to finalise finance for US buyers.

The tax breaks during the first quarter of 2010 did help make things easier and the estate agents were correspondingly busier. After the tax breaks expired the number of sales declined once more before steadily increasing throughout the year.

Florida property is being seen as an increasingly good investment, with a number of hedge funds putting together deals to buy properties in recent months. Inventory levels for homes in Orlando have hit a five-year low and prices are definitely beginning to rise once more.

The property market in Florida is also being held back by sluggish sales throughout the US and over 1000 people used to move to the area every day but are now unable to sell their own homes and complete the move. Florida remains an attractive prospect for many people as it offers a good quality of life, sunshine and good employment opportunities. There are still distressed properties available for sale and an online foreclosure auction service was launched last month in Florida by the Orange County Clark of the Court. It enables buyers to bid on a property from anywhere in the world once they have registered and placed a deposit before the sale.

According to data from the LPS Mortgage Monitor, while repossession starts are still higher than last year, mortgage delinquencies — of which Florida has the highest number — are starting to ease.

The data shows that the number of delinquent loans; those 30 days behind on payments was down 14.2% in August compared to last year, and down 1% compared to July. The number of seriously delinquent loans, those 90 days behind fell 11.5% on the year and 1.3% on the month.

The inventory of delinquent loans as a percentage of the US mortgage market is now 9.22%. With the exception of a small rise in a May blip this has been falling month on month from the January peak of 10.97%.

Foreclosure inventory now at 3.80%, on the other hand has been rising since June, although the data does show that it was falling each month between February and June.

Delinquencies maybe falling, but it is when you look at the foreclosure starts that you realise the banks are still far from coming to terms with the level of write downs still needing to be made. Unlike delinquencies and foreclosures, which have risen and fallen consistently for long periods of time, the foreclosure starts table is like a rollercoaster.

In September 2009 starts rose from 272,058 to 277,034. In October they fell to 255,863 and fell again in November to 220,429, before rising again in December to 234,593, and rising again in January to the new high of 287,865. They fell drastically again in February to 236,279. Rose in March to 250,174. Fell in April to 219,666. Rose in May to 237,198, fell to 225,807 in June, back up to 279,838 in July, and up again in August to 282,528.

As you can see, we are still dealing with huge numbers here, but everything in the US is on a bigger scale, and that includes buyers and investors. Tens of thousands of investors from around the world are joining their US counterparts in snapping up these properties. According to recent data from the National Association of Realtors, Florida property is most popular with foreign buyers, as it has been for the last several years.

Dowload LPS Report

Download NAR report: research_intl_survey_2010

“We have seen broad improvement in home prices for most of the past six months,” says David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s.

The number of Brits investing in property in the US has risen over the past few months, with more UK buyers tempted to the country by improvements in the sterling and dollar exchange rate.

According to Deane Roe, from Moneycorp, the firm has seen a rise of 23 per cent in the number of Brits investing in homes in the US over the past half a year.

Florida overseas property specialist Colordarcy ? have seen a further surge in international buyers looking to take advantage of prices at the bottom of the market. Enquiries over the last quarter has increased by 60%.

The window of opportunity is starting to close and those who have been considering purchasing a property for sale in Florida, should now be looking to take advantage of a market that has clearly reached the bottom.

Click here to view discounted Florida properties for sale:
http://www.colordarcy.com/property/florida/latest_florida_property_for_sale.php

UK based property investment company report success with new Florida Property Investment Guide which has had over 10,000 downloads and is aimed at overseas buyers seeking property in Florida.

Real estate investors and buyers now have a new resource to help them look at property in Florida, the Florida Property Guide. This information piece has been put together by Colordarcy Investment and has already been viewed by over 10,000 potential buyers. The guide is available for free download from the Colordarcy website.

A combination of factors has made this the ideal time to invest in Florida property, and the Florida Property Guide can show investors how to be successful in this market. Some of the reasons that make it a great time to buy in the Sunshine State are historically low prices with plenty of bargains available; favourable currency exchange rates; easy access from the UK and just about anywhere in the world; great weather and a popular holiday and retirement destination; and a market that is beginning to rebound, so prices are still low but won?t be for too much longer.

It has all the information anyone who is interested in buying in Florida needs to make a good decision. It begins with an Economic Outlook and Investment Overview, with insights into the 10 fundamentals driving the market. It also reveals the property hotspots in the state, so buyers know where things are heating up and where they aren?t.

This extensive resource also provides the legal information that buyers need to know and understand before purchasing in Florida as well as the buying procedures. It concludes with some expert tips for buyers and mistakes to avoid. In short, the Florida Property Guide is an essential resource for anyone looking to invest in this popular holiday, second home and retirement destination.

Notes to the editor:

Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Their aim is to provide their clients with properties that offer the unique combination of strong growth returns and cash flow positive income. Investing in positive cash flow property significantly reduces the risk because the property will pay for itself regardless of market conditions, employment status or other financial commitments.

Colordarcy provides complete support before, during and after a sale, including finding tenants, financial assistance, viewing trips and currency services. Colordarcy are proud members of the ?Association of International Property Professionals? (AIPP), and abide by its code of conduct, one established to protect the buyer, by ensuring members follow professional guidelines and procedures.

For more information, supporting pictures or logo artwork, please contact:

Loxley McKenzie
Colordarcy Investment Ltd
New Broad Street House
35 New Broad Street
London, EC2M 1NH
Telephone: 0207 100 2393
Email: press@colordarcy.com
Web: www.colordarcy.com

House prices in Florida have seen their first monthly rise since July 2006, up 0.5% between April and May, according to Standard & Poor?s Home Price Index. The National Association of Realtors (NAR) said house sales had seen a ?sustainable? gain of 3.8% over the second quarter of the year.

Florida home sales rose in July to their highest level for 2 years. Agreed sales have now risen for 6 consecutive months. Max James of Barclays has already seen the change, ?The US Florida market is definitely improving?. This is confirmed by figures from the National Association of Realtors (NAR) showing that 43,000 homes were sold in Florida in 2nd quarter this year, 8,000 more than the same time last year.

Here are some recent stats on sales in Orlando:

Members of the Orlando Regional REALTOR® Association in July sold 65.23 percent more homes than in August of last year, contributing to the area?s year-to-date sales increase of 49.40 percent.

The sales of apartments in the Orlando area increased by 259.48 percent in August when compared to August of last year.

Osceola County Property Sales: 111.75 percent above 2008 (3,551 homes sold to date in 2009 compared to 1,677 in 2008).

Don?t Miss the Boat

The window of opportunity is starting to close and we encourage our VIP Members to contact us today to discuss their investment goals and objectives. Our central database system gives us access to every single property for sale in Florida. Naturally, we are unable to display all the properties for sale in Florida on our website. So if you do not see what you are looking for, do contact us and we will send you a list of properties that matches your requirement.

Please visit http://www.colordarcy.com/property/florida/latest_florida_property_for_sale.php to view our portfolio of properties.

Kind regards

Loxley McKenzie
Managing Director

Florida Property Buyers Guide

This must read guide, with over 20 pages packed full of invaluable advice, real life case studies and up-to-date facts and figures, will provide the astute investor with all the information they need to know before buying a Florida holiday home or investment property.

Florida affords the astute investor with opportunities to benefit from property prices at the bottom of the cycle, while taking advantage of an area with outstanding economic prospects.

Our FREE ‘Florida Property Buyers Guide 2009′ will give full details on how to take advantage of this lucrative market.

Florida Buyers Guide in a Nutshell

Economic Outlook: An overview of Florida’s booming economy.

Investment Overview: Insight into the 10 key fundamentals that are driving Florida’s property market.

Property Hotspots Revealed: For the first time, we reveal the areas that give the investor the greatest opportunity to maximise returns.

Legal Implications: All your legal questions answered and details of how to avoid any pitfalls.

Buying Procedures: The most complete and up-to-date insight of the buying procedure in Florida.

Expert Tips: Florida property experts reveal some common mistakes made by others and how to avoid them.

‘Probably the best priced property market in the world today – one that is set to rise over the medium to long term’.
Source: www.ft.com

‘An outstanding opportunity’.
Source: www.dailymail.co.uk

As with all markets at the bottom of the growth cycle, the earlier you invest, the greater your profit potential – the time to buy in Florida is NOW! Get your FREE ‘Florida Property Buyers Guide 2009′ today and learn the secrets of Florida’s property market.

Click here to download your FREE copy: http://www.colordarcy.com/buyers-guide-florida/property-investment-florida.php

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

Kind regards

The Colordarcy Team

Our last tenanted opportunity (The Madison) was sold out within one month of release and those who missed out are now presented with the opportunity to secure a super investment deal before the market starts to increase. One of the fundamentals of property investing is to buy low and sell high!

We have a selection of 1 and 2 bedroom properties available on a strictly first come first served basis. Many of these properties have lake and pool views, however, these will be the first to go, so please contact us immediately to register your interest and check availability.

This super development is priced 20% below bank repo prices and it is very well positioned to benefit from strong rentals through our established management company, as well as capital appreciation over the medium to long term. This is a hassle free opportunity; we take care of management, maintenance, transfer of profits and more!

Deal Summary – Cash flow Positive Investment

Actual Example of a 1 Bed Unit
Purchase Price: $49,990 / £30,000
Size: 673 sq ft

Monthly Rental Income
Income: $710

Monthly Running Cost
Management @ 10%: $71
Real Estate Tax (Council Tax): $141
HOA Fees (Community Fees): $195
Insurance: $30

Monthly Net Cash Flow: $273
Net Rental Yield: 7%

If you are looking for a hassle free property – with income from day one and priced lower than a bank repo – this is it.

Click here for more details: http://www.colordarcy.com/property.php?id=156

Here are a few words on why this is such a good deal:

The developer has been renting 100 of these properties successfully. This strategy was implemented in order for the developer to keep hold of the properties during the current economic climate and then sell at a higher price in a few years time when the property market recovers and we start to see growth returning to the more natural levels of around 10% per annum.

However, the bank that provided the developer with the initial construction loan is not as patient and would like a loan repayment of $5 million to be made within 60 days. In light of this; the developer is now willing to sell the last 100 of his properties to investors with tenants in place at prices far below equivalent bank repo properties, in order to speed up the sale of all remaining 100 units within the next 30 days. The eagle eyed property investor should ensure that they take advantage of this window of opportunity.

Click here for more details: http://www.colordarcy.com/property.php?id=156

Prices

1 Bedroom apartment from: $44,000 / £27,000
2 Bedroom apartment from: $55,000 / £33,000

FREE LEGAL FEES!

Colordarcy VIP Members will benefit from free legal fees – making owning your Florida investment property that much cheaper.

Don’t Miss Out – Reserve Your Tenanted Florida Property Today!

We are in no doubt that this super investment offer will sell extremely quickly. After all, where else can you find a 1 bedroom – cash flow positive – tenanted property for less than £30,000?

Property prices in Florida are starting to increase and properties are selling quickly, to avoid disappointment we encourage all interested parties to contact us today to reserve your property. Units are allocated on first come basis. The time to secure your Florida property investment is NOW!

If you are looking for a hassle free property – with income from day one and priced lower than a bank repo – this is it.

Kind regards

Loxley McKenzie
Managing Director

Contact: +44 (0) 207 100 2393 or email: info@colordarcy.com.