Stock Markets Are Up And So Are Florida Home Prices – Which Should You Invest In?

Florida PropertyWe are into well into September, most investors in Europe and the US are now back from their holidays. Two things have changed since they have been away, stock markets are up and so are Florida house prices – here’s why we think you should put your money on Florida Property for the long term…

There have been several events lined up in September that could have an impact on investors, not least governments around the world considering extending their quantitative easing programmes or in lay person’s terms pumping more money into their economies to keep things on track.

When governments have decided to pump extra money into their economies this has helped calm the stock markets and kept economies growing and out of recession, at least in the U.S. The problem is, it also stokes inflation and inflates stock indices.

This is not necessarily a bad thing for property investors who are investing money in hard assets like Florida property. For stocks and shares investors, it makes things a lot less certain with the fear always lurking that they are floating on a sea of cheap money.

It also makes things a lot less certain for savers who see their savings suffer badly from a combination of low interest rates and inflation. As I have mentioned in previous blogs, anyone who puts money into a savings account is actually losing money unless it pays very generous interest.

Also as investors well know, time and time again we have seen stocks rise and fall with every piece of good and bad news.

This month a lot depends again on what happens in Europe , will the German government  accept EU  bailout plans ?

Meanwhile across the Atlantic in the US we are seeing Florida property prices on the rise again and faster than anybody expected even as the economy moves slowly on the path to recovery.

Low stock levels and those same low interest rates are what is making Florida property such an attractive alternative to stocks and shares or putting your money in savings at the moment.

When it comes to the so-called ‘underwater mortgages’ i.e. those home owners who owe more to the bank than their property is worth, the percentages are still high at 43% in Florida. This will continue to hold owners back from putting their homes on the market.

This in turn puts further pressure on stock and it is a good bet that as an investor you will make a good return on Florida property by investing now.

A Reuters poll this week forecast that house prices would rise 2.5 percent next year, up from 1.8 percent in their July poll.

Confidence is returning in the Florida property market, can you afford to miss out?

Kind regards

Brett Tudor
Property Expert

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Categories: America Property Investment / Property Invest


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