New homes real estate leads the market in Florida
30 April 2013
According to Morgan Stanley, the momentum of the housing market in Florida is “running well ahead of the pace we had expected”. As a result, home price appreciation has been predicted to rise between 6% - 8% in 2013 and a further 4% - 6% increase in 2014. With rising costs of materials and labour as well as increasing demand for great quality new builds, now is the time to invest in Florida real estate.
Since the housing market crash in 2007, many investors have succeeded when investing in Florida through buying property at rock bottom prices, with a focus on yields. This strategy can prove to be fruitful in a market that shows no signs of recovery, however is fraught with issues as well as on-going costs and no clear exit strategy.
The market has now changed however and as a result, analysts are talking growth, new home starts and longevity. As such those looking to purchase Florida real estate are adjusting their strategies and developers are seeing a transitional period from a low-value/high-yield strategy, to real market pricing with a new generation of home owners looking for quality houses, reliable jobs, a superior lifestyle and decent standard of living.
New build developments in Floridaare currently fuelling price rises for a number of reasons – none more important than the increasing costs of raw materials, labour and land.
Simon Myers, Managing director of GREG Homes and an established developer in Florida has also added:
“There is a lack of good “key ready” / second hand inventory now available in the market, whilst there is a competitive landscape for exciting inventory from investors that are able to make new construction a more simple and attractive process.
New builds also benefit from everything in the property being under warranty, which largely reduces on-going costs. Furthermore, stable HOA’s also assist by making it easier for lenders to finance home owners as many won’t lend to developments with unstable associations.”
Callista Cay, Tarpon Springs has proven this trend. A development of 68 fantastic quality town-homes in a prime waterfront location, just 40 minutes from Tampa Bay and Clearwater have been selling fast to keen investors looking to exploit this exciting time within the market.
The development features 58 wet slips, and promises a fantastic outdoor lifestyle that will appeal to those looking for the balance of careers, family and lifestyle. With an on-site HOA and property management services, investors will be safe in the knowledge their property will be well managed and maintained, even if they aren’t in the country, and know that their on-going costs will be kept low.
15 properties were sold prior to the official launch of the development. Investors will benefit from the transition of the market and as such maximise their ROI, further fuelling belief that this is a great real estate investment opportunity being offered at the optimum time in the housing market cycle. To learn more about this Florida investment opportunity, please contact Select Resorts and request the investment overview brochure.
Anyone interested in this development, or investing in overseas real estate should contact Select Resorts. The dedicated and passionate team will expert advice on a vast range of international property areas to assist in reaching more profound decisions on purchasing overseas.
As the only UK based associate of Savills International the company investment specialists offer in-depth knowledge and experience to meet the needs of overseas property and land investors.