The Gulf Coast of
Florida is one example of an area popular with investors,
due to the robust increase in property prices over
the past few years, combined with a shortage of certain
types of rental accommodations. On the right type
of property you can currently expect approximately
a 12% rental payment annually (based on a monthly
rental of $2200 on a 2100 sq ft home purchased for
$220,000), plus annual property appreciation, which
has been increasing at very satisfactory rates over
the past few years. However, it is vital to select
properties that will appeal to the American market
when you decide to resell at some future date to
maximize your capital gain.
There are certain developments, which have proved
popular with investors where it is necessary to
only put down 5% of the total building cost at
the signing of the contract. This ensures the contract
price cannot be increased, and therefore, when
the property is completed some 6 to 8 months later
there is usually a substantial financial gain.
A number of investors then sell the property straight
on, prior to the final payment being made, thus
capitalizing on the gain.
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