Finding your feet in the Florida property market

How do you see property development evolving over the next five years in Florida?

Continued growth! Florida property sales have posted record volumes consistently for each of the past 12 years - despite the hurricanes! The Daily Mail wrote that 18,000 homes, most of which were around Orlando, were bought by the British alone in 2004.

And home values are rising along with sales volumes. Homes in the Orlando area, for example, appreciated some 16 percent last year alone - the fastest rate of increased value in 25 years.

Only recently the Orlando Sentinel mentioned the Brookings Institute report which projects Orlando will need another 649,000 new homes in the next 25 years, that's a 94 percent increase on current numbers.

A remarkable 6,000 people a week move to Florida. That type of influx coupled with millions of visitors and thousands of international investors lays a solid foundation for continued growth for many years to come.

What would you say makes Florida such a desirable property hotspot compared to other destinations?

Walt Disney World! Without a doubt, Disney, the related theme parks and the substantial natural diversity and beauty of the 'Sunshine State' as it is known, are the top reasons for Florida's success.

Over 50,000,000 visitors - and potential short-term renters - came to Florida last year. That's equivalent to almost the entire population of the UK. All of these holiday-makers came to enjoy Florida's sunshine, sandy beaches, excellent shopping, excitement, familiar language, easy access, safety and cleanliness. The current near-record UK pound to US dollar exchange rates are just icing on the cake for investors from the UK.

The sunshine of course plays a part, but, as we all know - the sun is not unique to Florida; Cyprus, Spain, the Canaries, Bulgaria, France, etc., can all boast glorious sunny days. Florida however, and Orlando in particular, is the only property market in the world that is abundant in every commercial element necessary for a successful property investment abroad.

Has the Florida property market changed with regards to the (type of) investor over the past decade?

Yes in a word...Democratisation. Ten years ago owning a second home in the Sunshine State was cost-prohibitive to all but a very few affluent Brits.

The arrival of Mickey Mouse 30 years ago and the phenomenal growth of global tourism to Central Florida has given birth to an industry that didn't exist 10 years ago - the short-term rental market in Florida.

Now middle-class, middle income Brits can fulfill their parents dream of owning a place in the sun - by renting it out for part of the year to help with the mortgage.

And that is a large part of why Orlando is unique in terms of property hotspots around the world: it is the only destination, due to it's over 50,000,000 visitors a year, that promises a real opportunity of renting out your villa enough weeks each year to take the sting out of a second mortgage.

Is Florida still an investors market?

Yes - Florida continues to be an investor's market not only in terms of 'return on investment' but also in terms of 'return of investment'!

Many investors in the stock market lost much of their investment portfolio value and net worth in the last decade. This has played a large part in investors looking for other areas of opportunity. As far as I know the property market in Florida has not gone down in living memory, so there is a place, we believe, in everyone's investment portfolio for real estate. And a Florida villa gives you an added and enjoyable return - what we like to call a 'sunshine dividend'!

What are the common requirements clients look for in a new Florida home?

Just as there are three golden rules in property investing generally Location, Location and Location - so too there are three golden rules in Florida property investing, especially if you are interested in short-term rentals - Close to Mickey, Close to Mickey and Close to Mickey!

After that it's the pool. I can still remember when growing up what a huge deal it was if someone had their own pool and you didn't need a ride to the local swimming baths - which were sometimes 10 to 15 miles away. If anyone in your village or town had a pool chances are they were very popular! It's still probably the same today in the UK, whereas in Florida, private pools are common place. After the 'How close to Disney'? question the next words are invariably, 'we want a pool'.

Is the property market in Florida facing change? If so what or where are these changes being made?

Yes - it's going up! Orlando (particularly Osceola County where short-term rental is permitted) is virtually sold out of new single-family villas.

You have to go further and further away from Walt Disney World and the other area attractions to find sufficient land to build a single-family estate on now.

Enter the condominium and condo-hotel.

The few remaining parcels of land surrounding Disney are now so expensive that developers are now building multi-family luxury apartment towers with large pools and extensive on-site amenities.

And condominiums offer certain advantages over individual villas for many UK families. Closeness to Disney, communal pools, no repair or maintenance hassles, security, social interaction, convenience, relatively inexpensive prices and more short-term rental flexibility are some of the positive factors of condominium ownership.

That's why both single-family villas and condominium apartments have become equally popular to UK investors in Florida now.

New countries are coming into the market place - particularly from Eastern Europe - Do you think this will have an impact on the Florida property market?

New countries coming into the market will provide UK investors with more choices - always a good thing! Evaluating other overseas property investment opportunities will, we believe, further increase Florida's value as comparison will re-enforce Florida's advantages.

Obviously there are opportunities for greater increases in property values in some parts of Europe, especially in places like Bulgaria, which is on the verge of being accepted into the European Union. The investment risks of these new and relatively unproven property markets, however, is normally more of a deterrent than a positive for many UK investors.

Now about the British Homes Group. Briefly, what kind of support and advice do you offer your clients?

We strive to be a complete one-stop shop for UK property investors seeking to purchase, mortgage or rent a Florida villa.

We also offer a full range of related products and services to compliment our primary mission. We are structured to assist with:

• Villa purchases and sales throughout Florida - prospective clients can search over 20,000 Florida properties on our website. BritishHomesGroup.com
• A variety of UK or US currency mortgages and an
• Advisory panel of professionals expert in all aspects of owning property in Florida.

We own and operate both an estate agency - British Home Sales - and a mortgage company - British Home Loans.

We have also assembled an advisory panel of professionals to provide additional services in the areas of tax, insurance, immigration and the like. We receive no compensation from the panel and their appointment is based purely on feedback from clients on the quality of advice given.

How long has the British Homes Group been established?

Over 20 years. About 15 years ago, for example, one of our companies, arranged for an Abbey National Group company to offer British currency personal loans to British families purchasing Holiday Ownership interests at some of the top resorts in Orlando. These companies include the Disney Vacation Club, Marriott Vacation Club International and Sheraton's Vistana Resorts.

How is the British Homes Group approaching the Florida property market in 2005 and beyond?

From a sales perspective we have expanded our operations into some of the markets popular with UK investors in Florida. These markets include Sarasota and Naples on the west coast, for example, and others as UK demand dictates.

We are also increasing our internet exposure and providing some helpful internet based services for our clients. These now include an online search feature with over 20,000 Florida properties listed, forums for UK villa owner discussions and a free internet rental listing for our clients - unique to the UK/Florida investment market I believe.

As far as our loan products are concerned we continue to innovate, explore and fine tune the financing options available to UK property investors in Florida. We now have relationships with a selection of leading UK, US and other international property lenders. We can offer, therefore, mortgage products to suit just about everyone's needs.

Whatever the financial needs of the UK investor - long or short-term, fixed or variable interest rates, interest only or fully amortised repayments- British Home Loans has a mortgage product to meet it.

What advice would you give to first time buyers in Florida?

Sensible advice such as, be careful, use a proven company and don't be afraid to ask questions. The emergence of the one-stop shop has definitely made the Florida property buying experience so much more convenient and less over-whelming.

So look for a company that can assist in all aspects of villa ownership in Florida. Be realistic in the property's income expectations and look for a loan product that recognises the seasonality of the short term rental market. For instance the British Mortgages Abroad loan, from GE Consumer Finance in the UK, offers the ability to miss a payment when times are slow and it still affords all the tax benefits of a US based loan.

The British Homes Group is based in Orlando and has a full compliment of friendly British and American staff. All of my British colleagues here made the move from the UK to the US at varying times over the last 15 years.

Our goal is to help everyone in the UK achieve their dream of owning a little piece of the 'Sunshine State'

To make the initial enquiry easy and inexpensive we have set up a freephone number direct from the UK to the US: 0800 096 5989.

BRITISH HOMES GROUP customer feedback

How does one begin to say thanks to a great team? Whereas with other companies 100% is great, with you everything was 110% or above! From the very first meeting we were put at ease and we can honestly say there is no closure to your help. You dealt with all our obstacles (and there were many). Our case was unique in difficulties but you made us feel special. From your help and guidance we would have no hesitance in referring you to all Brits buying in Florida.

Beryl, Erica & Alan, (the Walsh-Taylor Gang) Manchester

I would have no hesitation recommending British Home Loans. The paperwork was professionally prepared and presented for ease of understanding. In fact, my refinancing was conducted in a very expeditious and courteous manner, which made the whole process much easier and far less stressful than I thought it would be.

Grant Pearcy, Nottinghamshire

Thank you so much for your valued assistance, time and detailed information as we transferred our mortgage from the US to the UK. We really appreciate your thoroughness and helpful manner. It has been a pleasure working with you.

Roger and Claire Waring County Down, Ireland

I would like to take this opportunity to thank you for making the purchase of our new Florida villa both smooth and hassle free. I was very impressed with your professionalism and particularly your provision of continuous updates as to which stage we were up to and what to expect. I would definitely recommend your services to anyone who is thinking of buying a second home in Florida but may be nervous of the process.

Chris and Elaine Storey East Riding, Yorkshire