Hot property locations in Florida in 2013A property investment firm has picked out hot locations to buy in Florida in 2013.
Miami, Orlando, Tampa and Fort Lauderdale are all showing strong signs of growth, says Colordarcy.com, with Miami condo prices up almost 20% year-on-year, according to the Miami Association of Realtors.
Around 30% of Colordarcy's Florida property investment inquiries come from two regions, Far East Singapore, China /Hong Kong and the UK. Another 20% are from Canada and 10% from Brazil/Argentina and Sweden.
Colordarcy Managing Director Loxley McKenzie tells OPP Connect, “We currently receive around 500 enquiries per month for properties in Florida.
“Miami is a popular choice for investors, particularly from South America where Brazilians view owning a property there as something of a status symbol. We also see a lot of interest from Sweden and Canada.
“The Miami property market is roaring ahead at the moment with prices rising nearly 20% year-on-year. That said, I don’t expect prices to rise by as much as this in 2013, however I am expecting Miami to deliver at least another 10%.
“Many wealthy middle Brazilians are investing in Miami property because they see owning a property in the city as a symbol of affluence. This is just one of the factors that are driving up prices in the city and there is no reason to expect that this won’t continue in 2013,” says Loxley McKenzie.
The median list price of Miami property has risen 11.6% year-on-year according to the latest data, down from the highest recent rise of 19.4%, but still impressive.
"The big draw in Miami is sunshine and beaches and there have been plenty of cash-buying sun seekers from countries including Canada and Brazil who have moved in to take advantage of prices that are still well below their peak,” says Loxley McKenzie.
“It is now possible to find downtown apartments in Miami for around $210,000 at a 50% discount, combine this with a market that is growing at a rate of more than 10% a year and Miami is an ideal option for cash investors."
The situation is quite a turnaround from 2008-09 when there seemed no end to property price falls. “Back then all the talk was about how could Florida and other bubble-hit states in the US ever possibly recover?"
The Colordarcy Managing Director says prices in Orlando could rise a more conservative 5-8%. “The reason for this is the fact that most investors looking for Orlando property will be from the UK and the Far East. Investors from these countries and those still suffering from the financial crisis will be far more conservative than those in Latin America.”
Elsewhere in Florida, Mr McKenzie expects more moderate growth. Tampa, for example, should see prices rise by about 5% in 2013. Tenanted property is currently on the market for as little as $64,000, with prices rising 7.1% a year.
Another cheaper option is Fort Lauderdale, where apartments in a luxury resort can be bought for under$130,000, half their original asking price.
“Fort Lauderdale attracts the more sophisticated buyer, however, you can still expect net rental yields of 5 to 6% and at 25% cheaper than Miami, it can be an excellent alternative but without the spectacular growth of Miami. I expect prices again to increase by a conservative 5% in Fort Lauderdale in 2013,” says Mr McKenzie.
“The city actually an excellent alternative to Miami and only a 15-minute drive away, which is just down the road for most Americans.”
Compared to Florida and other US states showing growth, most countries in Europe are at least 2-3 years behind in their property cycle. Colordarcy says there are few mature markets in the world offering such a strong combination of low prices and high growth and with housing stock still low.
Colordarcy, based in London, UK, aims is to provide clients with properties that offer strong growth returns and cash flow income, which significantly reduces risk because the property will pay for itself regardless of market conditions, employment status or other financial commitment.