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Bargain USA

23rd October 2008 | back to article listings BACK    print this article PRINT

When the subprime crisis broke in the US, Florida and California were identified as two states in which the situation was particularly bad. Stories of widespread foreclosures (repossessions) and plummeting prices were the prelude to the credit crunch that has spread inexorably outwards until matters came to a head with the recent concerted action by governments across the world to stop the whole financial system collapsing.

Amid such toxic debt, some may wonder if a state like Florida is one worth investing in. But it was the mortgages and the lending strategies that were bad, not necessarily all the other factors. Florida remains a place with sunshine, a cornucopia of tourist attractions for second-home owners and those renting buy-to-let property.

Moreover, those who either fancy a piece of the action in the sunshine state now or who want to invest in the hope of a long-term gain when the market climbs off its sickbed may be able to find some exceptional bargains.

Firms involved in the property market in the US have noted the increasing availability of property through auctions after foreclosures. For instance, real estate auction company Hudson and Marshall of Texas announced this week that it is to recommence its Home Buyer auction programme due to a recent surge in foreclosures in the Orlando area. The firm stated that some of these are "upscale homes that are turning buyers' heads".

Another firm involved in auctions - British Homes Group - has also suggested the time is good for purchasing in the state. Director of operations Lee Weaver commented earlier this month: "In all our years helping UK buyers find Florida dream homes, there has never been a better time for Brits to buy in Florida."

Nick Marr, the chief executive officer of Homesgofast, said that such auctions in Florida could theoretically see a house bought for "just a few dollars" as there is no reserve price, although in the event the usual outcome is that homes are sold at "50 per cent below market value".

Some of the best bargains, however, come not in auctions but in short sales, Mr Marr said. These are occasions where a homeowner takes advantage of a short period in time before a foreclosure becomes effective to sell a property on, something he said can generate "extreme bargains".

This is not just happening in Florida, either. Mr Marr noted: "Western New York State is attracting investors and here we find hard-nosed investors buying complete houses with tenants and a monthly income."

With some of these going for as little as £8,500 they are "going like hot cakes", he concluded.

So for those who can spot a bargain and move quickly enough, the US could offer some exceptional offers.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/4445.html. Alternatively, please see our full press release archive.

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