The US property market has long been a favourite destination for investors, with its diverse mix of property and climate combined with an ever-popular tourism market making it a favoured destination for professional and amateur investors.
In addition, the favourable exchange rate that exists between the dollar, pound and euro means that buyers have an increased amount of power for many property transactions in the US.
However, the recent economic crisis has caused the real estate market to stall somewhat, as an increasing number of distressed properties flood the sector and investors avoid the volatile market
The rise in the number of foreclosed properties can be attributed to an increasing number of property owners falling behind on mortgage repayments because of increased rates.
Factors that helped contribute to the rise in rates in the country included national debt, pressure on inflation - with increased fuel and housing costs - and changes in foreign investments in the US economy.
The proliferation in the number of sub-prime loans handed to US homeowners over the past few years has had a negative effect on the property market, as it has caused house prices to fall dramatically.
However, it is not all bad news for potential investors, as property tycoon Warren Buffet recently claimed that the market was likely to begin its recovery by next year and some regions are even posting price increases.
The glut of foreclosed properties available to investors should mean that there are plenty of opportunities to pick up a bargain and with popular destinations such as Florida leading the way in terms of distressed properties, individuals may wish to buy as a long-term investment.
With the destination hosting a number of attractions such as Disney World, Universal Studios, casinos and in excess of 1,000 golf courses, there is a good demand for rental homes throughout the year.
Figures released by RealtyTrac show that the number of foreclosed properties in Florida grew by 28.79 per cent in the first quarter of 2010, compared to last year, making the destination a potential opportunity for savvy investors.
- Friday 07 May 2010