Budget homes in Florida
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Florida's real estate scene is bracing itself for a new round of frenzied buying as plane-loads of bargain-hunting holiday-home buyers arrive to take advantage of record-breaking rates of exchange. Since the dollar hit a 15-year low against the pound in April 2007, a fresh influx of house-hunters has targeted Floridian shores to exploit the fragile greenback. According to a recent study conducted by the National Association of Realtors and the Florida Association of Realtors, 11 per cent of the state's real estate professionals say that 25 to 50 per cent of their sales involve foreign nationals. Almost ten per cent of realtors deal exclusively with foreign buyers - many focusing on Brits. Since the dollar began its freefall five years ago British buyers have bought more property in Florida than ever before. More than 4.2 million Brits journeyed to the US last year, according to the Commerce Department's Office of Travel and Tourism Industries - the largest single group of foreign visitors excluding Mexico and Canada.
On average, each spent about $1,500 (£752) a person during their trip, according to the Travel Industry Association. More than 55,000 spent considerably more shelling out over $230,000 (£115,400) - the average price for a home in Florida - for the ultimate souvenir. According to the US Census Bureau, Florida will overtake New York and become the third most-populous state in the country by 2030. This will mean that the population will have jumped by 80 per cent to 29 million - all good news for investors with an eye on the Sunshine State.
"The widely publicised drop in the value of the US dollar has been a huge boost to those looking to buy property in the States," says Justin Figgins, head of Rightmove Overseas. "The weakening of the US dollar will hugely increase the number of people entering into forward contracts, when buying US properties"
At first glance finding property for sale in Florida for under £80,000 seems like a tall order - it's been almost 15 years since the property statewide average had a price tag this low. Yet, buyers prepared to look away from the swish, new-build resort developments of the prime tourist areas can still snap up some bargains - especially in regions relatively unknown to Brits. In Pensacola on Florida's picturesque panhandle and Ocala in Marion County £80,000 is still the average price of a family home - Florida's cheapest real estate. As America's first settlement, Pensacola boasts a lengthy historic and cultural tradition - with several fine museums and 52 miles of beautiful silver-sand beaches. Ocala sits amid horse farms and fruit plantations and is home to a handsome National Forest with the coast and the attractions in Orlando just an hour's drive away. Prime residential neighbourhoods in Pensacola include Perdido Key, Pensacola Beach, Cantonment, Gulf Breeze, Navarre Beach, Navarre, Milton and Molino. In scenic Gulf Breeze, a charming three-bedroom, two-bathroom single-storey resale home comes with a wooden dock and fishing area just four miles from Navarre Beach - all for $160,000 (£80,285). A four-bedroom, three-bathroom brick-built resale in leafy Milton, with a full-enclosed garden, a screened porch, outdoor lighting, outbuildings and pebbled pathways, and close to a world-class 18-hole golf course, is priced at a very reasonable $159,750 (£80,175). Highlights in Ocala include a pretty, red-roofed three-bedroom, two-bathroom single-storey home in the Silver Springs area complete with range cooker, dishwasher, oversized refrigerator and waste disposal, priced at $125,000 (£63,725). A freshly decorated two-bedroom, two-bathroom condominium with vaulted ceilings and stunning country views costs just $120,000 (£60,215)- complete with open patio and wooden dining deck.
"In just the past five years, Marõon County's population has grown by 17.8 per cent - far greater than both state and national averages," says Jaye Baillie chief executive officer of Ocala/Marion County Chamber of Commerce. Thousands of new residents are attracted each year by Ocala's healthy economy, excellent quality of life, diverse recreational activities, and pristine environment. Forecasters predict that Marion County's population of 305,000 will increase by an additional ten per cent to 335,000 residents by 2010.
Officially, some of the most inexpensive condominiums in Florida can be found in Punta Gorda in Charlotte County where the average price currently stands at $136,700 (£68,585). Spanning total area of 47.9 square kilometres with 11 kilometres of coastline, Punta Gorda is home to a population of 17,215 at the point where the Peace River meets the Charlotte Harbour. In the past, this small Gulf Coast city was an important frontier town and the southernmost stop on the American railroad. Today, Punta Gorda is one of the fastest developing towns in the area. After the 2004 hurricane season, the city took the opportunity to replace some of the damaged buildings with new, beautiful boutiques and cafes. As a result Punta Gorda is tipped to become one of Florida's most beautiful cities - CNN Money Magazine has already ranked Punta Gorda in the nation's top five survey of 'Best Places to Live' surveys, including Best In Florida and Best in the South.
"A two-acre lot can cost as little as $17,500 [£8,780] in some of Punta Gorda's up-and-coming waterfront communities," explains a spokesman for Punta Gorda Realty. "I've seen a two-bedroom home in the Coconut neighbourhood on the market for $159,000 [£79,755] while a resale home on a golf course I viewed recently had a price under $160,000 [£80,285]."
On the Atlantic Coast the historic town of St Augustine is actively courting British investors keen to get more for their buck. Although this quaint, character-packed city isn't a dirt-cheap option it does have some bargains - even in the desirable neighbourhoods of St Augustine Beach, Crescent Beach and Vilano Beach. In the upscale community of Las Palmas a stylish one-bedroom, one-bathroom condo with den and luxury kitchen costs $159,000 (£79,755) complete with a fully fitted kitchen with white goods. Communal leisure amenities include a sauna, tennis courts, gym, pool and clubhouse bar and restaurant in a city famous for its fine architecture, world-class dining and excellent golf. Another gem can be found in fashionable St Augustine Shores where a recently modernised two-bedroom, two-bathroom home priced at $161,000 (£80,755) has a conservation deck overlooking jogging paths close to lakes, tennis, a fishing pier and communal pool, and is ess than six miles from a beach.
"As America's oldest city, St Augustine boasts plenty of old world charm," says Roy O. Barnes Jr, a broker at St Augustine Realty. "However, it is a city well served by modern conveniences. Located between Central East and North East Florida, St Augustine is particularly well served by Daytona, Jacksonville and Orlando airports - and the weather is less sticky than the state's humid central regions."
Elsewhere in Florida, the city of Miami has experienced rapid expansion and soaring real estate prices on a phenomenal scale. In 1997 a condo in the city would set you back just over $114,000 - a figure that has almost trebled a decade on. A swanky business district has spawned numerous high-rise towers and apartment blocks with million-dollar price tags. Gleaming designer stores line resplendent palm-edged boulevards on a backdrop of open water and art deco architecture in bubble-gum hues. City-slickers adore Miami's wheeler-dealer culture while party animals soak up the sexy, sassy vibe that prevails in Florida's salsa city. Chic beach bars and nightclubs are some of America's most lively hangouts in a city that is fast becoming one of the most exciting on the planet. Highlights include a condo in Buckley Towers in North Miami where a one-bedroom, one-bathroom unit with marble floors and all appliances has recently come onto the market at just $148,000 (£74,235).
"Almost half of my buyers are international clients," says Miami realtor Maggie Munoz. "The city is an important global trade hub and gateway to Latin America. Today, it is this worldwide reputation that attracts many potential buyers to Miami. Rising property values are also part of the appeal."
As every property pundit will testify, real estate close the thrills and spills of Orlando comes at a premium, especially if it falls within a 20-minute drive of Disney World. Buyers keen to tap into Orlando's holiday rental market maximise location to their advantage, purchasing in the so-called tourist corridor where Mickey is close at hand. Those prepared to look on the periphery of this area may be forgoing rental income but the trade is lower property price tags - a small concession when it comes to saving up to $100,000 (£50,165). At just over half an hour's drive from Orlando, Haines City has attracted considerable attention from canny investors. Located in the heart of Central Florida, a short drive from Orlando airport, the upmarket Southern Dunes Golf and Country Club has been a pioneer in tempting buyers away from Kissimmee. This gated development overlooking Lake Joe boasts shops and restaurants within walking distance and is home to a fine public golf course, swimming pool, tennis courts, fishing dock, picnic area, business and computer centre. A one-bedroom ground-floor condo comes complete with dishwasher, microwave and refrigerator and is currently on the market for $155,000 (£77,765).
Closer to Disney is the Sunset Lakes development, a gated resort complex containing two championship tennis courts, clubhouse, a fitness centre and stunning swimming pool. On-site amenities include tanning decks, picnic areas and a fully equipped business centre in landscaped groups of mature plants and fishing lakes. A selection of one- and two-bedroom condominiums just released onto the market boast large open-plan living space, well-fitted kitchens and balcony terraces. Prices start at just $110,900 (£55,635) on these bargain properties and have already attracted the attention of numerous investors from UK.
Equally as tempting are the brand new low-priced condominiums at the Tradewinds Resort in Downtown Orlando in the Metro West district close to shops, bars and restaurants. Prices are surprisingly reasonable at $147,900 (£74,235) for a one-bedroom, one-bathroom unit - a figure all the more remarkable as it includes designer baths and kitchens, granite countertops, quality carpets, tiles, hardwood floors and cabinets at no extra cost. Each property has a private patio or balcony with fully equipped kitchens that feature brand new Whirlpool appliances in a choice of stainless steel, black or white. On-site amenities include a lakeside pavilion with summer kitchen, a beach, two swimming pools, two heated spas, a racquetball court, two floodlit tennis courts, a fully-equipped fitness centre, a clubhouse with catering kitchen, bar and lounge area, and golf membership available at an adjacent club.
More eye-boggling prices can be found at Palm Parkway at Lake Buena Vista in Orlando, a sprawling resort community equipped with every conceivable amenity, from a state-of-the-art gymnasium and swimming pool to a restaurant, bike rental, and shuttle service to Disney attractions - and beyond. Turnkey condos sleep a family of six just a short walk from the shops, bars and attractions of the Downtown district. Prices at Palm Parkway start at just $140,000 (£70,250). In February 2007, the average price of a condo in Orlando topped $170,000 (£85,300) - up from $164,000 the previous year.
"With prices like these and the dollar so weak we don't expect the units at Palm Parkway to hang around for long," admits Graham Pyle at Florida Countryside. "It's incredible - Florida is opening up again to people who thought they'd been priced out of the market less than a year or so ago."
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First published in Homes Overseas Magazine June 2007.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
