Florida Property Prices In 2006

Florida is a popular destination for those who wish to buy an investment property or second home in the sun. Each year more than 10,000 Brits make a move into the Florida property market. They are joined by thousands more from across North America, and indeed from many other countries right around the world. Demand is high, so high in fact that property supply can hardly keep up!

Florida's popularity is all down to one thing - lifestyle! For second homeowners this means a chance to relax in a sub-tropical climate where the sun is virtually guaranteed to shine throughout the year. There are miles and miles of golden beaches, a wealth of stunning attractions, including the Disney World and Epcot theme parks in Orlando, and over 1400 golf courses. In short, there really is something for everyone.

For investors the same applies. If it wasn't for the climate, the theme parks and the golf, Florida would not be the year-round resort that it is. It is what makes the 'sunshine state' a property rental paradise - a paradise that is made all the more attractive by the relatively low prices of property in Florida.

Florida Property Prices

When compared to property prices in the UK, Florida property prices yield more home for your money. A 4-bed Florida property of 1800 square foot with a private swimming pool can be acquired in Orlando in 2006 for as little as $350,000 USD. By today's exchange rates that is equivalent to around £195,000 UK Pounds or 280,000 Euros. In Southern England you'd be able to acquire the same size of home for not much less than £350,000 UK Pounds.

What's more the specification to which Florida properties are built and furnished is much higher than you'd find in the UK too. Typically a newly constructed 4-bed Florida property for $350,000 USD will have three en-suite bathrooms, one family bathroom, air conditioning, fitted kitchen with all appliances and cable TV in all principal rooms. Now, you won't get that with a new home in the UK for the same price!

Potential for Capital Gain

The investment potential of Florida property though does not just hang on its low purchase price and the potential for a high rate of rental occupancy. Capital appreciation figures too. In 2005 Florida property in some parts of the state rose by as much as 45%, and there's every indication that double figure capital gains will be made in 2006 and 2007.

Orlando leads the way. A combination of historically low property prices compared to elsewhere in the state, and the fact that the city has become an important tourist destination courtesy of Disney World means that the Orlando property market is booming. NorthEast Florida has a buoyant property market too, as do areas along the Gulf Coast (Naples to Fort Myers), the Florida Keys and Miami.

The bottom line is folks, if you're looking to buy a property that has the very real potential to offer you a strong double-figure return on investment over the next few years, Florida is the place to invest.