Overseas Property Investment Consultancy & UK Property Investment Consultancy

The Halifax house price survey for January shows a slightly stronger increase of 0.6% whilst according to the Nationwide house price index, house prices increased in January by a very respectable 1.2%. Bringing the average price of a UK property to £163,481, 8.6% more than at this time last year.

Commenting on the figures Martin Gahbauer, Nationwide’s Chief Economist, said: “House prices strengthened their upward momentum at the start of 2010… Unless there is a fall in property values in February, annual house price inflation is likely to move into double-digit territory next month for the first time since May 2007.”

With the spring fast approaching – a time when traditionally the housing market experiences a bounce in activity and prices – it is difficult to see anything other than price increases.

Total unemployment stood at 2.46 million for the three months to December, down 3,000 on the figure for the previous three months. Although this figure is small it is very significant especially as last months figures also revealed a fall in unemployment. The rate of unemployment in the UK currently stands at 7.8%, somewhat lower than other major economies such as France, Germany and especially the United States where the figure is almost 10%.

The general feeling is that the peak in unemployment will now almost certainly be substantially lower and earlier than previously expected. Much of this is as a result of more flexible working practises within the UK, such as reduced hours and voluntary pay freezes.

The ONS figures re-enforce this, indicating that wage growth remained subdued – rising by an average of 0.8% in the three months to December compared with a year ago. Excluding bonuses, average weekly earnings rose by 1.2% for a third month running. This rate is the lowest since the data began being collected in 2001.

Ultimately it is this flexibility that will protect workers and the wider economy.

The most southerly state in the continental United States, Florida conjures up images of warm sunny days, long stretches of White sandy beaches, theme parks, and holidays, but visitors to the Sunshine State leave in the knowledge that Florida offers so much more, including excellent property investment potential.

The 22nd largest state by land area but the fourth most populated in the US, Florida continues to attract wealthy retirees from across the country and indeed from many other regions of the planet but there is also a very young, multi cultural and vibrant feel to many of the cities such as Miami and Orlando. Florida is truly unique, a place of cultural extremes which co-exist in a very laid back and understanding level of acceptance.

Florida is fast becoming an investor’s paradise and many professional investors are starting to return to the state to take advantage of the huge potential for capital growth that currently exists.

Investors in Florida property have access to a number of different rental options. In and around the cities, especially Miami and Orlando (home of the theme parks) holiday lets are plentiful with visitors flooding in from around the world. Holiday lets can prove very lucrative and a well placed apartment or villa will be in great demand even in today’s climate.

Florida also has another quite unique rental market. Each Winter millions of retirees known locally as ’snow birds’ flock to the State from across the northern United States and Canada to take advantage of the sub tropical weather and avoid the harsh winters of the north. This influx of people swells Florida’s population hugely and rental properties (particularly around the coasts) experience very high demand. Many of these people choose to return to the same property year after year making this rental market very appealing to property investors, especially if their property is more of a second home than a pure investment.

The real estate market in Florida has been particularly badly hit by the global financial crises and subsequent recession. However, prices now appear to have bottomed out in most areas with a number of regions starting to see a return to property price growth. With increasingly strong growth expected to return in the near future and greater numbers of visitors to the region, right now offers a window of opportunity that will soon close.

We are currently able to offer incredible bargains, for instance apartments and villas for as low as $30,000, well below even current market value. Or half acre plots of land in a great location for as little as $19,000. The state undoubtedly offers truly outstanding investment potential.

If you are interested in investing in the Sunshine State give us a call on 01235 553569 to talk through our current investment opportunities.

Now don’t get me wrong, UK property offers superb investment potential, especially in today’s market with so many incredible bargains. The problem is that this particular chap didn’t have much money to invest which would have resulted in difficulty getting a large enough mortgage to buy a decent property in a good rental location. Our Caribbean opportunity clearly offers a better route for him and he could quite easily afford to invest in a nice unit with a greater potential return on his investment.

Anyway, after listening to me run through the deal in detail he was still opposed to the idea. It was clear that something else was bothering him and so I asked what the real reason was for not considering such a great investment opportunity. His answer is one that I have heard many times over the years – “It’s too far away”.

In many respects he is falling into the trap of investing with his heart and not his head. He feels that he needs to see his investment, be close to it. Even though he would rarely visit it, it needs to be physically accessible and he just isn’t comfortable with the idea of investing in a property that is not just down the road.

Many people feel like this and really what is required is a change in mindset. Really, it makes no difference where the property is, you’ll probably rarely visit it, if at all. When investing in property there are 2 primary questions that need to be considered:

1. How much will I need to invest?
2. What will be my return on this investment?

It makes no difference what the investment is, a stock market investor for instance will ask exactly the same questions. They will not need to visit the company in which they are investing. They do not feel the need to meet with the company’s CEO, and it really makes little difference where the company is based. Their decision will primarily be based on these 2 simple questions, because that’s really all that matters.

Now in the case mentioned, by looking at the investment this way it became obvious to him that actually this opportunity makes a lot of sense. The initial investment is small and quite affordable, yet the return is enough to excite the most adamantly opposed investor. Needless to say he is now seriously considering investing in our Caribbean offering.

It is essential when looking at property investment to be sure to view the opportunity from an investor’s point of view. By changing your mindset you will open up a whole new area of opportunity.

To your success