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Which parts of the market are likely to grow
whilst others overheat?
This is an important but all too often neglected consideration, prior to taking out a long
term mortgage. If you are guided towards an area where prices may have peaked and you need
to rent your property out in the face of competition from other British owners in the same
boat, what you were assured was a great investment opportunity may become a millstone
round your neck.
To add to your woes if you find you have bought in the wrong location but want the
flexibility to move to a better performing location, not only will it be hard to sell in
the face of competition from others doing the same thing, but you may also find that your
mortgage has a hefty early redemption clause which of course only becomes a problem if you
need to cut short your ownership of the home.
Attempts to crystal ball gaze the direction and pace of the property market is never easy
and although many investors have done very well unfortunately others have come a cropper
in the process.
One thing that is clear, is it is critical to obtain the most recent and balanced advise
when contemplating when, where and how to invest and importantly how to finance that
investment, which for the reasons explained below can be easier said than done.
To help explain this further one needs some understanding of the real estate structure in
Florida and how those advising you (although not paid directly by you) usually earn their
commissions.
These commissions can and do vary, for example some developers of new properties have been
known to offer 10% commission to real estate agents, some real estate companies in the UK
strike deals with developers and commissions can also vary on resale properties - bonus
payments can be offered on a property particularly those that takes a long time to sell.
Another pitfall is that a number of companies offer the apparent convenience of one stop
shops which cover not only the actual property purchase but the mortgage and currency
arrangements as well– never has the old proverb of not putting all your eggs in one
basket been truer. In particular the scenario where a company benefits from the property,
currency and mortgage commissions, checks and balances can go out the window
Equally if you are like me one of those fiercely independent people who prefer to rely on
undertaking your own research and then arranging your own property purchase think again
– doing this on an overseas transaction is akin to reading a medical text book and
then removing your own painful teeth (though I know with the shortage of dentists in the
UK this sometimes happens!)
We receive so many requests from people that are convinced they can do this and have come
a cropper, after owning the property for a few months they discover an unforeseen problem.
It’s particularly pointless to do this when using the right agent costs you
absolutely nothing.
At the present time most of the Florida property market is hot - just look at chart below.
However this can alter quickly. If it would be helpful to talk through trends and
direction in the various markets or if you are having problems finding an appropriate
experienced well qualified agent in your area give Andrew Bartlett a ring on 01892 547447.Florida Sales
Report
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