We all know that the UK housing market is going through “difficult times” and as the newspaper tell us it’s largely as a result of the market in the US, which is even worse. With the sub-prime mortgage being such a popular option for those struggling to get on the property ladder in the last few years, the numbers of houses being handed back to banks has sky-rocketed in recent times.
Florida, despite its warm weather and proximity to huge theme parks, has now won the dubious honour of having the 2nd highest foreclosure rate in the US, according an article in The Times this week. But those properties are now starting to sell and at lower prices than anyone might have thought. In fact, some flats or condos are selling for as low s £9700 and auction sites are selling some homes with no reserve and starting at just one cent.
While buying off the internet might not be the best idea, it is worthwhile travelling to Florida to see what is on offer. For example some mansions which previously might have been worth £1.5m are now flying off the shelves at a mere £500,000. Even a large home with a pool can be bought for just £390,000.
While prices in the UK have dropped, an average 3 bed home still goes for £167,000 and you are not going to get the year round sun, the golden beaches or the space you will normally get in an American home.
While this might sound great, remember that buying property is not always as easy as it seems. The exchange rate must be taken into account and could affect your monthly mortgage payments significantly. Also the States have taxes for everything and restrictions do apply to renting out properties.
But a holiday home fit for a movie star does sound like a worthwhile proposition…
Megan Collins Quinlan April 26th, 2010
Posted In: Travel