Is a purchase of Florida real estate still worth it?
All signs are pointing to rising prices over the past several months, so you should not miss your chance of getting your piece of paradise at a reasonable price.
The appeal of a house in Florida is obvious: Sun and warmth 365 days a year and real estate prices that fall well below the average prices in Europe. Many people make a purchase decision based on the fact that that they want a home for their yearly vacation or for later retirement. Others soberly view the real estate as an investment or rental property.
Both proposals are made a reality every year by thousands of Europeans. Properties in Naples, Fort Myers und Cape Coral are the most popular. The linguistic environment here is also a match because there are tens of thousands of countrymen living here. There are countless foreign-speaking stores and service providers such as tax advisors, caretakers or hairdressers.
Why should you buy a real estate property in Florida right now? There are numerous reasons: Because of the economic crisis in the USA, real estate prices have reached historically low levels. In some regions the process are headed up again and the low point appears to have been surmounted. Although the number of foreclosure auctions is going back down in many regions, there are still always numerous real estate properties available for bargain process from "foreclosures" and "short sales". The exchange rate of Dollars to Euros is also recovering and currently is at approximately $1.40 (as of September 2010). You could say that you, as a European, get 40% more value for your money here. One aspect that cannot be ignored by investors is the fact that the "Baby Boom Generation" of Americans is standing at the edge of retirement. Experts have estimated that in the next 10 years, approximately 70 million Americans will retire and many dream of a home in the sunny south.
What can you get these days for your hard-earned Euro? Getting straight to the point, about 140,000 dollars (calculated for approximately 100,000 Euro) will get you a modern house with a heated pool, air conditioning and many other amenities. Those who can do without the pool, can find reasonably priced properties for significantly less than 100,000 dollars, however those are not the typical Florida buyers.
Waterfront properties are sought after, the closer to the beach, the more expensive. By contrast, properties situated on canals as are frequently found in Cape Coral, for example, are relatively reasonable. Properties directly on the beach are usually in the seven-figure range, whereas those who buy two streets away from the water can make a purchase for 300.000 dollars – clearly a better catch. Of course these prices are just rough indications. Those who want to live in a high rise with a view of the ocean will have to get accustomed to much higher prices. For many Europeans this is not an issue since they are happy to simply fulfill the dream of owning their own home.
The buying process in the USA is, in principle, a simple and quick matter. First forget the European notion that a house is purchased for all of eternity. In America it is an object that one buys today and sells again tomorrow. Thus an American is thinking of the resale chances even as he is making the purchase.
Europeans frequently fail to do this, or they evaluate the property incorrectly. One example is the size of the house. Don't be blinded by 200 square meters because in the USA that is closer to the smallest size. In addition, two bedrooms are considered few, three or four are good. A two-car garage is an absolute minimum, and a three-car garage even more desirable. A pool is nothing special in Florida and therefore you should not do without one, and certainly not if the neighbors have one because you will not be able to sell your house otherwise. This is true of all of the other points mentioned. Only those who are certain they will never want to sell again can disregard these issues.
Inform yourself as to how long the property you want has been on the market. More than six months indicates that something is not right and most likely it is the price-quality ratio. It is precisely these properties that could be of interest because of there are no other interested parties, the seller will have to really consider whether to reject your offer even if it is markedly lower than the asking price.
As you can see, even Paradise has its own conditions but he who has found his property will probably live happily with it.
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