(PRWEB UK) 15 October 2012
Warren Buffet thinks single family homes in Florida are cheap and now another major investment firm has decided they are now such good value they are prepared to invest a cool $150 million in 1,200 repossessed and foreclosed property in South Florida. This, according to Colordarcy, confirms their analysis that Florida property is one of the best investments in the US even though we are only just seeing signs of a tentative recovery in the state housing market.
Loxley McKenzie, Managing Director of Colordarcy commented, “Florida property is extremely attractive to investors right now. A combination of high rental yields, heavily discounted prices and a market that finally seems to be following a sustainable path towards recovery is what has drawn the attention of big investors this year.”
The latest funding group to invest big in Florida property are the Vulcan group which is made up of Mexican investors who are pretty clear about why they want to invest in South Florida property. Their CEO Inaki Negrete said in a press release, “We’re buying properties once valued at $200,000 or more for $75,000 and making them available within six weeks for a reasonable $1,500-a-month rent.”
McKenzie added, “Buffett, one of the world’s richest investors, saw the potential right back at the beginning of the year and this latest investment only reinforces the idea that Florida property is an extremely good long term bet – certainly in contrast to most property markets in Europe at the moment.”
Vulcan pointed out in the press release that the residential home market in South Florida is “definitely on the rise.” The fund is so optimistic about their investment, they expect to liquidate it in 2017, with a 100 percent increase in the values of the properties in its portfolio.
Analysts at Colordarcy point out that even though smaller investors cannot invest on the scale of the large investment funds, they can still enjoy the same percentage of growth on their investment. This latest move by Vulcan should alert investors that time is running out when it comes to some of the larger gains as property values steadily increase.
Only last month, a Reuters poll forecast that house prices would rise 2.5 percent next in Florida next year, up from 1.8 percent on their July poll. In August the average price of a Miami Condo rose 9.1% to $404,927 from $371,205 a year earlier. Colordarcy also highlight that average rents are climbing 4.4% annually according to the latest data.
Analysts at Colordarcy conclude that rising rents and prices happening in one state at the same time is unusual , yet this is what is happening now as a result of tight lending conditions and the influx of foreign cash buyers from Canada and Brazil as well as the big fund managers.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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