A switched on investor from Cambridgeshire has bagged a bargain in Florida after snapping up a property for nearly half what the previous owner paid for it.
The British buyer paid $145,000, around £95,000, in May for his four-bedroom single storey home in the Lake Wilson Reserve area of Davenport. The property was last sold in 2007 for $270,000, $125,000 more than the most recent sale. Fully furnished, it includes a heated pool, garage/games room, cable TV and wi-fi.
“It’s difficult to think of another location in the world where right now you can get this sort of property in a popular holiday destination for less than £100K,” said the investor, who chose to remain anonymous. “I chose the property for its good condition, reasonable size, location in a community of mixed rental and residential homes – well looked after by the homeowners association, and proximity to attractions, including Disney World. An added bonus is that the property was already under management for short-term rentals, so I’ve kept the same management company to ensure rental income is not interrupted.”
The investor plans to use his Florida home for holidays for four to six weeks a year and let it for the remaining weeks. However, he’s realistic about income potential. “I don’t expect to make a profit from the rentals, but am hoping to cover costs. Buyers must be aware that the maintenance costs can be high in Florida. I have to budget approximately $1,300 per month to cover all outgoings, including insurance, tax, utilities, management, pool and homeowners association fees. So for rental income, to cover costs is actually almost the best case scenario. I’m hoping that property prices may go up modestly in the next few years to compensate.”
The buyer found his Florida home after contacting the buying advice website www.usabuyingguide.com, part of the Overseas Guides Company, which put him in touch with their recommended realtor who he visited in the Orlando area. “I made a short list of six properties,” he said. “Making a decision based on the feel of an area and actually seeing the property is crucial. I would advise against buying unseen. If you are organised, you can do the whole visit in three days – I managed to see properties, open a bank account, get my property surveyed, sign up my management company and sort out insurance!”
As a British buyer, his investment could have cost him more if he had used his bank to send payment for the property. Instead he used currency specialist Smart Currency Exchange to swap his pounds into dollars and transfer them to his account in the USA. “I saved around $5,000 on my transaction by using Smart. Using them was very simple and they were very helpful. In fact, I have used them once more since the purchase to send £2,000 to my US bank account. Despite their nominal charge of £10 on dollar transactions under £3,000, this is definitely the way to make currency transfers. You get better rates than a bank and do not have to pay £23 for a CHAPS transfer. I don’t think I will ever buy dollars through a bank again, now that I have a US bank account!”
For details of more property for sale in the USA, visit the American listings on Rightmove Overseas. One way to save money when buying or living in the USA is to use a currency specialist when transferring your pounds into dollars. For more information on this, contact Smart Currency Exchange.
To understand the full step-by-step process to buying a property in America, collect The Overseas Guides Company’s ‘USA Property Buying Guide’