Property in USA
USA has been a favourite amongst British buyers for some time, but when the pound is strong against the dollar and America's property market is struggling, it suddenly becomes even more appealing. Florida, with its beaches and theme parks, is the only true hotspot but don't discount the lesser known states
Prices for USA Properties from £100,500
Key facts
- Population: 295,734,134
- Capital: Washington DC
- Approx. exchange rate: £1 = $1.87
- Visas: Not for first 90 days
- Time difference: GMT -5 to -11
- Flight time from UK: 7 to 11 hours
- Major airports: New York, LA, Chicago, Atlanta, Houston
- Dialling code: 00 1
Property in USA
The Market: Condo country
It’s good news for buyers in the US, the third favourite overseas property destination for British people, and not so good news for owners. In the second quarter of this year, US house prices showed the biggest slowdown for at least a decade. Florida is among the few states where the five-year housing boom has now cooled substantially, as sales there have declined by roughly 26 per cent from 2005, and the median price in Orlando increased by just two per cent in a year to the end of August.
The US National Association of Realtors said in September that prices had now stabilised and growth should return early in 2007; National Bank Financial believes that prices could still fall another 10 per cent. “It’s going to be a good time to buy [in the US], very soon”, predicts Lesley Dolby of Dolby Properties Inc.. “It’s probably safe to say now that the days of buying properties to ‘flip’ [sell on quickly] for a quick profit are over. Instead, we should see a return to the original way of investing in real estate – that is as a long term investment, seeing steady, moderate growth”.
Central Florida remains a hub for British buyers, namely in the Orlando/Disney areas such as Kissimmee, Davenport and south Clermont. Detached villas with a pool – ideal for short-term lets – priced $250,000 to $320,000, traditionally have been the preferred purchase. But Dolby notes a change: “Now we are seeing more condos and townhomes being bought, being typically in the low to mid $200,000s. We are also starting to see an emerging trend of people buying a unit in a condo-hotel, where the owners then enjoy the facilities of the hotel and usually have their unit in the hotel rental programme.”
An hour from Orlando, Daytona Beach has transformed itself and is considerably cheaper than the beachfront hotspots of Miami and Fort Lauderdale. Further south, Dolby highlights the south Polk County area of Lakeland, Winter Haven and Auburndale as creating interest among investors. Elsewhere in the US, North Carolina and Vermont are becoming increasingly popular.
