The Inside Track Group

March 08, 2007 08:39 ET

The Inside Track Group:Florida Booms as US Housing Market Softens

LONDON, UNITED KINGDOM--(CCNMatthews - March 8, 2007) - Fears over the health of the wider US housing market have disguised the Florida market's continuing boom with prices in the prime markets of the Orlando-Kissimmee area rising 18% during 2006.

Continued strong demand both from within the US and abroad, together with ongoing undersupply, have delivered the best returns for investors of Britain's biggest buy-to-let company, the Inside Track Group (ITG).

The average return on investment for ITG investors in Florida is now 58%, a full 10% higher than the next best performing market, Spain, and 20% higher than in the UK (see table).

Overall, the Florida real estate market grew by 15.1% last year, double the rate of growth for the US market as a whole (7.75%), and has delivered growth of more than 100% over the past five years(i).

Florida continues to be a leading US holiday destination with 84.6 million(ii) visitors during 2006, a figure that is expected to strengthen further in the future. Orlando remains by far the most popular Florida destination with 71%(iii) of UK visitors visiting Disney World and its neighbouring attractions. It is for this reason that the Inside Track Group has sourced property for its clients exclusively within the Orlando catchment area.

Pierre Williams, Head of Communications for the Inside Track Group, said: "With an increasing number of buy-to-let markets now delivering reduced rental yields and lower capital growth, identifying markets which offer consistent and growing demand for holiday lettings is an excellent way of maintaining capital growth and yields.

"Florida as a whole is seeing rapid growth in tourism and inward migration and its population is expected soar from 17.5m today to 29m by 2030. Increasing numbers of wealthy US retirees are choosing to move to Florida and the state has one of the fastest growing economies in the US, helped by the fact that it is one of the few states in the US that has no state income tax.

"The Orlando-Kissimmee area is ideal in that it is home to Florida's main tourist attractions but prime development sites within a 20-minute radius of the Disney complex are now very limited. On the few suitable remaining sites, planning restrictions are such that it can up for five years to get consent for new development.

"As we know from experience in the UK, investing in prime areas where future housing supply is likely to be severely constrained, is an excellent strategy for capital growth.

"Whilst the real estate market in much of the US is currently in the doldrums, investors need to know Florida is an exception and the Orlando area even more so."

Click on the hyperlink below to view the image:

http://www.ccnmatthews.com/docs/RealEstate.jpg

(i)Data from both the Office of Federal Housing Oversight (OFHEO) and the Florida Association of Realtors (FAR) indicate house price growth in excess if 100% for the period 2002 - 2005.

(ii)Data from VisitFlorida

(iii)Total no of UK visitors to Orlando (1,060,000 - Orlando Convention & Visitor Bureau)/Total no of UK visitors to Florida (1,500,000 - VisitFlorida) x 100

Notes:

About the Inside Track Group:

- The Inside Track group is the country's leading property investment specialist, having written over GBP2.1 billion of property in the UK and abroad. It offers a full 'one-stop-shop' service for property investors:

- Inside Track Seminars runs two-day intensive seminars on property investment

- Instant Access Properties provides access to highly-vetted and heavily discounted investment properties in the UK and overseas

- Fuel Investments is a specialist mortgage intermediary providing expert investment financing assistance and was named 'Best Buy-to-Let Broker' at the Pink Service Awards 2006

- Aftercare Solutions provides bespoke management services for the buy-to-let investor including sales, letting and management, landlord protection insurance and a variety of furnishing solutions.

- More than 60,000 people have attended Inside Track's free introductory workshops and 24,000 have been educated through the two-day intensive seminars.

- Instant Access Properties has more than 7,200 members and has sourced more than GBP550m in residential property over the last 12 months. Instant Access Properties members have consistently been the largest buyers of new build property in the UK, Florida and Spain investor markets.


Contact Information

  • Pierre Williams
    Inside Track Group
    Head of Communications
    Direct Line: 020 8481 1581
    Mobile: 07985 986162
    Email: Pierre.williams@iaprops.com
    or
    Inside Track Group
    Surrey House
    34 Eden Street
    Kingston-upon-Thames KT1 1ER