It's a fascinating, challenging and exciting time if you're thinking of buying Florida property - especially if you're in the market for a holiday home. But with turmoil in the economy, especially with all the bad news we're hearing about real estate, banking and job prospects, it is not a purchase to take lightly!
Just a few short years ago the situation was very different: there were more buyers than sellers, builders held waiting lists for properties in the most popular new communities and many out-of-State and UK buyers simply took the view "how soon can I buy and where do I sign".
How times change! Instead of sunshine and relaxation springing to mind, the first topic for many people when the subject of buying Florida property is discussed now is "foreclosure", followed by an intense debate on how things might go in the next few years. How much of a faraway dream a holiday home has become and how quickly.
Looking back, and it's easy to see now, the late 90s and the first part of the 21st century were a once-in-a-lifetime occurrence as far as buying Florida property is concerned. Before that, most people buying a holiday home in Florida were careful to look at realistic expectations of income and expenses before deciding whether to go ahead. Even if they took a rose-tinted view of their plans, finance companies applied sane criteria in an attempt to rein in over-ambitious borrowers and safeguard their loans.
Then came the boom years. Financial prudence went out of the window and a level of hysteria took over. Loan restrictions were eased. Stories about buyers "flipping" properties for an instant profit were commonplace and fired up a whole new wave of investors. And some less-than-honest sales people were able to get away with wild stories about likely rental income because property price increases more than covered any shortfall.
Eventually the game came to an end, as it was always going to. Property price increases were unsustainable. Reality has re-emerged: buyers need to take a realistic approach and recognize that a return to the normal rules of business has happened: don't buy what you can't afford to "carry" in the event of a downturn, take a pragmatic view of income and expenses and realize that prices can occasionally go down as well as up. Buy for the medium to long term and expect some "bumps" along the way. Equally important: don't believe the salesman's claims without extensive checking.
It's a major purchase you're planning, so make sure you avoid the pitfalls and try this website for lots more information: Buying Florida Property.
Good luck and happy buying!
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