It's surprising how much affect a single property development can have on an area – how a city, state, region or even country can be completely rejuvenated by the addition of one new attraction. For example, who could have known that a steel tower erected in the heart of the French capital amidst fierce protests from locals who considered it an eyesore, would go on to attract almost six million visitors a year? Who could have predicted that a badly constructed cathedral in Pisa, Italy, would prove to be such a hit with tourists? Okay, so, while in Florida's case, given the development in question increased tourism wasn't so much a surprise as an inevitable consequence, the role this development has had in transforming the state from a southern US backwater into a property buyer's dream was perhaps not so expected.  The development I am referring to is, of course, Disney World.

Hard as it may be to believe at a time when the popularity of the 'Sunshine State' is at an all-time high with Brits. Indeed Florida was recently ranked first in a survey carried out by Internet travel agent Ebookers to find the most popular holiday destination for British residents, while recent data from the Office of National Statistics suggests that around 2,000 British residents were involved in buying a property in Florida between 2003–04. How things change. Just over 40 years ago the state had the smallest population in the southern United States [it now has the second largest] and wouldn't have featured on many, if any, holiday wish lists. This all started to change in 1963 when the Disney brothers, Walt and Roy, decided that some wasteland south-west of Orlando in central Florida would be the perfect location for a new, bigger version of the Disney Land Resort theme park that had opened in California eight years earlier. Disney World Florida opened in 1971, and has since grown massively, both in size and popularity. Today, Disney World – which comprises four theme parks, five world-class golf courses, two water parks, and covers a total land area of 116 square kilometres – is visited by over 40 million tourists a year. As a result, property around the area has become a much sought-after commodity, not just with those looking for a holiday home, but also for investment purchasers keen to take advantage of the region's mass tourism appeal, by letting it to the millions of tourists drawn to the area by Mickey Mouse et al.

More than just Disney
While Disney World has been the main factor in propelling purchasers to Florida, and Orlando still remains the favoured destination for Brits seeking a second home there, other areas have also started to appeal to would-be property purchasers. "More UK-based purchasers than ever before are now discovering the Gulf Coast, stretching between Tampa Bay and Naples", says Andrew Batty of The Florida Consultancy. "This is particularly true of 40-somethings with grown or no children, who want reasonable proximity to the theme parks but don't want to be in the 'vacation rental' British ghetto", he adds.
Gordon Robinson, of Florida Gold, concurs with Batty. "There are thousands of people who have done the theme parks to death and don't mind three or four days there but want to get out and experience the 'real Florida'. The Gulf Coast is awash with nature, boating, beaches, friendly local people who have time to talk to you, great restaurants and culture, making the area an ideal alternative to Orlando", Robinson adds. Even cosmopolitan, vibrant but expensive and thus often overlooked Miami, located on the Atlantic coast in the south-east of the state, is expected to become a more prominent destination with British second home seekers in the coming years. "I see Miami becoming far more interesting for British buyers in the future as there is currently a huge amount of growth and investment in the area", says Karen Evans of Executive Villas 4 Florida. Of course, year-round sun – the average annual temperature in Florida is 22.4oC, hence it's nickname, 'The Sunshine State' – and relatively affordable property prices have also played their part in ensuring that it's not just Disney World that attracts British property purchasers to the state.

Exchange for the better
While sun will almost be guaranteed when you visit Florida, the prices of property staying as low as they have traditionally tended to be, is not. As overseas interest in buying property in Florida has continued, and continues to grow, so too have property prices in the state started to rise, and at quite a dramatic rate. "The Florida Association of Relators says the median price of homes in the state in April 2005 was US$218,600 – a 26 per cent increase from April 2004", comments Batty. However, statistics such as these shouldn't necessarily put you off a purchase. Thanks to the currency exchange rate being heavily weighted in favour of British purchasers over the past year or so – at the time of writing one pound was buying 1.72 US dollars, but had peaked as high as 1.91 in December 2004 (1.50 is considered a standard exchange rate) –  property in Florida is still fairly affordable, especially when compared against prices for similar types of homes in established popular European second home destinations. "A good three-bedroom, two-bathroom home within 20 minutes of Disney on a development with basic amenities, like a basketball court and swimming pool, is likely to set you back somewhere between US$259,000–345,000 (approximately £150,000–200,000)", says Suzanne Morrill of World of Florida. "For upwards of US$345,000 you will probably be looking at purchasing a four-bedroom home on the same type of development", she adds. Away from Orlando, properties on the Gulf Coast and in Miami tend to be a little more expensive, as people seek homes more for their own use and occasional letting. Properties in these areas can often command better rental values than those in Orlando where the letting market is already highly-saturated, largely because of the huge number of foreign-owned properties. "For under US$400,000 (approximately £231,350) in the Gulf Coast resort of Sarasota, you will be able to afford a two-bedroom, two-bathroom condominium, while on the fringes you will be looking at a three-bedroom, two-bathroom villa with a swimming pool", estimates Batty. In Miami, Evans suggests that entry prices for a condo would start at around US$605,000 (approximately £351,000), but says that for over US$778,000 (approximately £450,000) a "posh pad" in the city could be yours. With prices expected to continue their recent upward momentum for at least the next 12 months, it could make financial sense not to put off any potential purchase you may be considering for too long. Miss the boat and not only will you find yourself paying more for a property, but any capital gains appreciation potential will also be diminished. And all the time the exchange rate remains so tantalising to British purchasers, the widespread interest in buying property in Florida over the past few years is unlikely to subside.

Blown away
Even hurricanes cannot deter the British from buying property in Florida. Each year between June and November the state endures a torrid hurricane season. Last year, Florida was beset in quick succession by three of the most damaging storms in its history – Charley, Frances and Ivan, while already this year the state has endured yet another fairly substantial storm when Hurricane Dennis struck north-west Florida in July. However, the storms seem to have little affect on Florida's popularity among homebuyers. "In my experience I don't think the hurricanes make a significant impact on the decisions of Brits looking to purchase, and I have never seen a drop in prices due to a storm", Morrill reassures. But with the threat of hurricanes a possibility, relevant home insurance for any Floridian property owner is essential. "You have to have 'hazard insurance' which is equivalent to buildings and contents insurance in the UK", Evans continues. "This should cover most things that can happen in the event of a hurricane, including loss of earnings if you have a rental home.
 
Caution advised
Taking out adequate insurance is not the only consideration a Florida homebuyer should be aware of. While the state's property market may be established, there are still pitfalls any potential buyers should be aware of, particularly regarding renting restrictions. "Outside the south-west Orlando vacation rental area buyers will need to be aware of the restrictions on renting that may affect the property", warns Batty. "These may be through zoning but often they are through community deed restrictions. Very few communities allow vacation rentals, although most allow long-term rentals for winter residents." "Your real estate agent will be able to tell you if an area is zoned for short-term rentals", adds Evans. In addition to rental restrictions, Robinson stresses the need to deal with a licensed real estate agent when purchasing a property. "It is imperative to deal with a state licensed real estate broker", he says. "Any party who is not licensed is trading illegally and there are many agents selling property in Florida who are flouting the law. If you deal with one of them you are asking for trouble. "Always ask to see their Real Estate Person licence – they have to show them to you – and try and meet them at their office. This way you can judge if they are worthy of your business or just fly-by nights." Take heed of the warnings given and no matter if you are drawn to Florida by the fun and frolics of Disney, the relaxing climes of the Gulf Coast, the affluent lifestyle of Miami or even solely for investment reasons, your purchase will be all you hoped for. As Morrill says, "To achieve buying your own home in Florida is a dream and one you must enjoy."

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For further information:
Executive Villas 4 Florida
Florida Gold  
The World Of Florida

Image courtesy of Visit Florida

Article first published in March 2006