Foreign Investors are Buying the American Dream in SW Florida

Posted by Mary Ray on Sunday, January 24th, 2010 at 1:48pm.

The credit crunch has taken its toll on many families across America, preventing certain individuals from investing in Florida property during a time when prices have reached an all time low.  But what about foreign investors, especially those coming from the U.K? The British pound has remained very strong against the dollar - with one pound currently worth $1.65. So, what does this mean as far as foreign investment prospects go?

According to the Association of Foreign Investors in Real Estate, over 50% agree that the United States provides the best opportunity for capital appreciation. This figure has risen steadily from 26% in 2007 and 37% in 2008. The majority of foreign investors in real estate have plans to boost their United States investments in 2010.

In areas that were hard hit, such as Southwest Florida - Cape Coral waterfront property, has dropped to the most appealing prices of the past decade. The current problems will be extremely beneficial for those who invest now. Markets such as the Lee County area have experienced an increase of new and seasoned real estate investors, and these numbers are expected to increase.  Right now, there is a sizeable oversupply of properties and excellent deals to be had. As a foreign investor, you can definitely walk away with a lot of investment property for your pound.

Tips for the foreign investor to consider when investing in Florida Real Estate include the following:

Weigh the potential rewards against the risks.

One of the most appealing qualities for Florida investors is its unique rental market, which pulls in visitors all year long. Florida enjoys over 300 days of sunshine with an average temperature of 70+ degrees. Over 75 million people visit the Sunshine State each year. These are important figures to look at if you plan on producing an immediate positive cash flow by using your investment as a vacation rental.

Cape Coral waterfront property, especially homes located on saltwater canals with easy boating access to the Gulf of Mexico have the potential to bring in nice returns when rented out seasonally to fishing enthusiasts, boaters, and retirees who like to spend their winters in Florida's tropical climate.

Count on having a sizable down payment. Financing is not as loose as it once was. Twenty percent is the least deposit you should count on in order to secure financing. With prices so low, a full cash purchase should also be considered.

Location - Florida waterfront property will recover quickly. Projections show a turn-around by the fourth quarter of 2010. Right now is an ideal time to target prime property in Cape Coral, where there are over 400 miles of beautiful canals and excellent economic projections.

To learn more about investing in the Cape Coral real estate market, please contact DavidSproleder.com

By David Sporleder | Sporleder-Ray Realty Group | david@davidsporleder.com| Google+

 

1 Response to "Foreign Investors are Buying the American Dream in SW Florida"

wrote: [...]Foreign Investors are Buying the American Dream in SW Florida[...]

Posted on Tuesday, January 26th, 2010 at 10:08am.

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