However,
it is all too easy for British buyers to be blinded by the photographs and videos showing
beautiful new American-style houses and nicely landscaped plots all in a pristine setting
in the “Sunshine State”. They forget what the golden rule of property buying
– location, location, location – really means.
Sitting in the dismal UK winter, they think the “location” is Florida, and that
everything – anything – in Florida is an attractive alternative.
They forget that Florida is a massive state, and there are the same regional variations
within the state as there are in the UK. The decision to buy a property in Miami or
Orlando, on the Gulf coast, the Atlantic coast, or in central Florida can be critically
important – especially if some or all of the mortgage is to be paid by holiday
rentals. You wouldn’t think that buying a property in Liverpool was interchangeable
with buying in the Lake District, so don’t make the same mistake with Florida.
Let’s look at a few of the key areas around Florida.
REGIONS OF FLORIDA
ORLANDO
Orlando
is a world-class, large-scale tourist destination, with some 60 million visitors each
year. With a massive range of established and new tourist attractions, reasonable
proximity to the coast and easy air links to the UK, this is the largest single area for
property investment in Florida.
At first, life in Orlando may seem very exciting – frenetic even – based around
theme parks (Orlando is home to Disney World, Universal and MGM Studios, Pleasure Island,
Sea World and many, many more), shopping and eating out. However, the scale of the area,
careful zoning and surrounding countryside mean Orlando can also be a location that is
peaceful, private and relaxing.
Although Orlando and nearby Kissimmee are about as far inland as
anywhere in Florida, the coast is still only about 45 minutes
away. Being inland does mean that properties here are not
subjected to the same weather extremes as those on the coast –
which could mean a saving on insurance if nothing else! However,
Orlando is also the location where many properties are over
priced and some are poor investments - Even if you think you
know the area it is critical not to take nothing at face value
and seek independent advice.
Visiting Orlando? Why not have an alternative to a Hotel Room? See the rates and
facilities at LynxVilla
THE FLORIDA COASTLINE
Over
1000 miles of glorious sandy beaches, palm trees and warm clear blue water, combined with
a great year-round climate means the Florida coast can be a good choice to maximise rental
income.
Extending over such a large area means “the coast” takes in a wide variety of
different locations, each with their own local flavours.
Gold Coast
A narrow coastal strip with golden beaches bordering the Atlantic Ocean and the
Everglades, is where you will find many popular locations such as Fort Lauderdale, Boca
Raton, Miami and Palm Beach. Life on the entire Atlantic coast is considered to be a
little more hectic than on the relaxed Gulf coast. Space Coast
The area in the centre of the Atlantic coast is where you will find famous names such as
the Kennedy Space Centre, Cape Canaveral and Daytona Beach.
Gulf Coast
The west Coast of Florida is an area of exceptional beauty, featuring a shoreline of coral
inlets with white sandy beaches. Outdoor living is the norm here, whether your tastes
extend to golf and tennis, or the more adventurous scuba diving and water skiing. Equally,
properties in this area are very varied – from waterfront homes to condominiums in
beach and golf course developments.
This is an area where life tends to go at a more relaxed pace and areas such as Sarasota,
Fort Myers and Naples are becoming more and more popular with US and UK citizens looking
for the climate and lifestyle benefits of Florida without the brashness of Orlando and
Miami Beach.
THE PANHANDLE
The northern region of Florida borders the states of Alabama and Georgia, so cities such
as Pensacola have a character closer to “the deep south” than to the glitzy
glamour of Miami for example. You can get a “visitor’s-eye view” of Florida
at VisitFlorida.com, the official tourist website for the state. This will give you a
destination-by-destination view of the kind of official promotion that goes into bringing
visitors to Florida, and how the state is branding the different areas and promoting them
to different target groups.
In short, you will have to prove that you have committed significant funds to the creation
of a US business that can support you, your dependents and will create employment for
local people.
WHEN LOCAL REALLY DOES MEAN LOCAL
Even when you have narrowed down your search to a region, and then further to a specific
city or area, you have to be aware of an important location factor that will influence
your choice of property – local zoning.
In many areas, local zoning is similar to the broad classification of land in the UK
– specifying what it can be used for; residential, agricultural, industrial etc.
However, there are local zoning restrictions in Florida that go into much more detail,
specifically in relation to residential properties. These can influence all kinds of
things, from the number, size and style of houses in the area – to what you can do
with them.
The most significant zoning restriction is that only certain areas allow short-term
letting, so you can’t buy a property as a primary or secondary home (that is –
where only you will live in it) and assume you can later decide to start renting it out,
as there may be zoning restrictions that prevent this. Some zoning restrictions even apply
to things like the number, size and shape of swimming pools in an area, so you really do
need to dig right into the detail before committing to a Florida property.
Some areas have very few properties zoned for short term letting, which may tempt you to
dismiss them as a potential place to buy. However, if the area is attractive and the
location is right, it’s likely that those few properties can enjoy high rental rates
and occupancy levels.
LOCATION, LOCATION, LOCATION
Narrowing down your area of interest to a region according to the general lifestyle you
want to live – or that you want to offer to your paying guests – is a good
start, and it will certainly make the rest of the task more manageable. Making sure your
area of interest is zoned for the kind of use you intend means another important hurdle
has been jumped.
However, the true meaning of “location, location, location” only comes into play
when you look at the next level of detail – the location of specific properties.
It’s critical when you are evaluating each potential property that you are able to
take some time to blank out completely the building itself, and consider where the
building is located – don’t fall in love with a building, a swimming pool, or
style of décor and allow that to blind you to where it is situated.
Remember – you can change anything about a property except its location!
Warning signs that signal “bad” location:
- On a feeder street
- On a flight path
- In or near a gang territory
- Too close to night life
- In a rundown block or area
- Next to a school or school playground
- Next to apartments or commercial property
- In close proximity to a freeway, expressway or railroad
- Next to a petrol station
- Near any disposal or waste facilities
- In an area of high unemployment
- Within reach of odours from factories or farms
COASTAL
CONSIDERATIONS
Properties on the coast are of course more exposed to the elements than those inland
– with implications you must consider when thinking about buying property there.
The most serious implication of course, arises from the fact that Florida is the most
hurricane-prone state in the USA. In practical terms, this translates into two risks for
homeowners along the coast – wind and flood (the tidal storm surge from a hurricane
is termed flooding for insurance purposes).
Along with the asking price of a coastal property, you should also consider the
availability and cost of insurance against these risks. It is quite possible that the cost
of insuring a coastal property will be twice as high as a property inland, adding a four
figure sum every year to your costs
It is certainly advisable to make any agreement of sale contingent upon getting adequate
and affordable insurance.
Wind insurance is generally required if the property is in a 25 mile wide coastal strip,
whereas flood insurance is based on official flood zone maps – but many large
national companies have stopped offering insurance in Florida because of these
requirements. That restricts your ability to shop around, and increases prices.
On the Atlantic coast, the wind insurance is likely to cost much more than flood
insurance, while on the Gulf coast the situation will be reversed – but in total the
additional cost will be significant on both sides of the peninsula.
I’m certainly not saying that it’s a bad idea to buy on the coast –
obviously millions of Floridians are doing it quite happily and enjoying the lifestyle
– just to make sure you factor in the extra elements to your calculations.
|
