Are you one of these lucky property investors who just kept buying and buying in the late ‘90s and early this century…and saw everything you bought just go up and up, and up? Or, are you now looking at the current UK market and thinking to yourself ‘If only I had bought then…?’

Even now, the UK property market is still showing growth in certain areas, and if you go for off-plan developments, then at least you have no mortgage or tenanting issues to concern yourself about just yet.

But you’ve probably seen all the buzz in the Press about how people are still making really quick fortunes in property, and although you know that property prices, in the main, do tend to double every 7 to 10 years… you want it NOW!

If that is the case, you really should be considering an investment (or many) in Florida. Not just in the Orlando region either, the whole of Florida is literally buzzing as we speak, with no sign of a slowdown in view.

According to the National Association of Realtors, house prices continue to sizzle in Orlando with gains over the same time last year of a whopping 36.5% as opposed to the over all Florida wide average of 28.9% and the National US average of 13.6%.

But – get this – prices in the Cape Coral – Fort Myers metro area showed a gain of 45.2%, and Palm Bay area marking up just over 40%, showing that it is not just the ‘tourist ‘ area of Florida that is making tremendous gains, highlighting the whole of Florida as a red-hot investment spot!

Overall, the American property market in the main has shown remarkable growth across most of the States, with a few such as Kalamazoo in Michigan, with 3.5% decrease.

So, what’s making the Florida area so hot for properties - especially for UK investors?

• The tourism market in Florida is really massive, and it is worth reviewing the fact that this State attracts in excess of 75 million visitors a year (*data from www.flausa.com)

• The average US interest rates have been hovering at historic lows for some time, and although have started a slight increase, according to the Orlando Sentinel, they do not expect much of a change for some time, at least later next year.

• The Florida climate (hurricanes aside) is so much warmer in the winter months and with so many theme parks, and excellent golf courses, just attracts US residents from all over the States as well as for our cold grey island.

• Despite a construction boom, demand continues to outstrip supply. Rising costs of construction materials are putting further upwards pressure on prices.

• Orlando benefits from having the best job growth in the State of Florida, putting even more pressure on the housing market..

• The strong exchange rate for the UK against the $ makes US deals so much more attractive for UK investors.

• Gated accommodation is proving to be the most popular and in greatest demand.

• Strong rental demand, covering the capital outlay while capital growth continues upwards, protecting your investment.

• Bargains for both investors and second home buyers alike, so whether you are looking for a long term investment opportunity, or just a second home in Florida, the time has never been better.

• With the changes in the UK SIPPs (Self Invested Pensions Plan) next April, there could be some substantial tax savings to be made.

However, as with all investments, it is always worth considering your full exit policy.

Investing in condo-hotel style properties should always be considered as a long-term investment. Be ready to accept low and irregular rental income while your development matures. If you can, try to buy as far ahead on off-plan projects as you can, as there will be a shorter period where there is still building work going on, the facilities are not quite in place, and there will not be the numbers of units coming on-line to dilute the rental effort of the resort.

I can actually speak with some authority on this, as Jane (my wife) and I (and Debbie, one of our partners), bought several units off-plan into a development at Bahama Bay in Orlando some 18 months ago, and we completed last August.

We went out to stay there in January, and were really impressed with the development, the buildings, and the furnishings. And, of course, Jane being a ‘Theme Park Freak’ loved the fact that Disney was less than 20 minutes away.

However, although most of the facilities were in place when we arrived, the development was still only about 50% completed (360 units out of an eventual total of 760 condos), and final completion is still probably about a year away. This has had a number of effects.

• First of all, the management fees are quite high in relation to our rental income, as we have to pay for facilities that are in place that will handle double the site’s present capacity (swimming pools, restaurants, clubhouse, boating lake, games areas etc)

• Secondly, with the rate of expansion of the available units coming on line, the rental income has to be shared, with a higher possibility of voids occurring.

• Thirdly, the promised Southern Connector access road, straight from the development on to I14 at the entrance of Disney itself, had still not been completed, and is due to be opened early in 2006.

So, for a while to come yet we are still having to subsidize this investment, until the site matures, with about 80% of the mortgage being covered by rental income.

But then, what’s a loss of $2,200 a year compared with a capital growth in the region of $50,000?

But, as far as capital growth is concerned, a typical three bedroom condo on the initial phase sold for around $127,000; we bought ours in phase 2, and paid $198,000 each for a similar unit. These are now selling for around $249,000 with a targeted value in the range of $280,000 by the end of next year.

When the whole site is fully operational, we are then looking for quite a substantial rental return, as our monthly mortgage is around $971, with our units currently being advertised at $108 per night, on an 80% occupancy, would result in a gross income in the region of $2,592 per month. I’ll leave you to do the sums here, but double digit capital growth, with such a high rental yield as well, makes it a very attractive long-term investment.

The moral of all this is that there is definitely an opening for investors to make quite healthy double digit capital growth in Florida for the foreseeable future, - but just make sure you build in an allowance for your erratic rental income until the development matures.

As an added incentive, every person who signs up to our property club web-site, and enters Florida News in the comments box, will be entered into a totally free competition to win 5 nights / 6 days at our 3 bedroom condominium at Bahama Bay worth $540. We will be giving away one of these tremendous relaxing breaks every month now until January 2006. Winners will be posted on our main property horizons web site.

Geoff Morris has built up a multi-million pound property portfolio in less than 18 months. He has written a number of articles aimed to help others follow the same path to financial freedom. Imagine the peace of mind that you would achieve if you follow the advice to be found in his Free reports and consumer guides to be found at www.propertyprofits4you.com

Geoff Morris may be contacted at http://propland.horizon-homesellers.com/ or geofftrader@gmail.com