A Florida Mortgage for UK Citizens
Investing in property in Florida has become a very hot topic among UK citizens. Spurred by value pricing, strong inventory and rental growth in Florida, along with favorable currency exchange rates, UK investors are earning sizeable returns with little or no upfront investment. As of this writing, 1 British pound is worth almost 2 US dollars, more than 20% more than historical averages. This means that a prime US$500,000 beachfront property that would have cost £320,000 just a few years ago can be had today for just £250,000. What makes this even more attractive is that today, unlike in previous years, US dollar-denominated mortgages are available to UK citizens with minimum payments as low as 1%, allowing borrowers in the UK take advantage of deferred interest and positively oriented cash flow against rental income. These mortgages can be obtained with almost no documentation of income, employment or assets, ushering in a new boom in Florida property.
Florida has long been a popular investment destination for borrowers from the UK, Europe and Latin America. Warm weather year-round, thousands of miles of beach, and numerous attractions make it a popular investment and vacation destination, and it’s comparatively inexpensive. Florida also has several major attractions, such as Walt Disney World and Universal Studios in Orlando, as well as bona fide international destinations like Miami Beach. While UK investors have traditionally favored Florida’s Atlantic coast, rapid development in the central and gulf coast regions, in cities like Tampa and Ocala, is attracting increasing numbers of Brits each year.
Due to the large amount of new construction inventory throughout the state, property prices are very reasonable, especially when considering the value for money. The exchange rate further increases the value. Today even £100,000 can buy a luxury 2-bedroom condo, with pool and clubhouse, in a prime beach town. £200,000 is enough for a pretty impressive spread across many Florida holiday destinations. Due to the abundance of attractions and year-round warmth, Florida, known as the “Sunshine State,” enjoys strong demand for vacation rentals every month of the year. And unlike Dubai, which is considered by many to be at the top of its market, Florida real estate values are rebounding from 24-month lows and are showing strong upward momentum. Buying at the current market turning point promises that rental income will be coupled with strong appreciation of the underlying property, which when taken together with an eventual rebalancing of the sterling-dollar exchange rate over time , bodes well for ROI.
You’ve probably already heard much of the reasoning behind investing in the Florida real estate market, whether from friends who have already moved or from the growing number of real estate brokers who specialize in marketing these properties, however, it is possible wondering: “How can I finance this company?” This is where exploring the growing number of home loan options available to foreign nationals in the US can pay off. While UK property brokers often claim to offer financing to their clients, it is rarely the best option available. Before purchasing a property anywhere in the US, buyers would do well to consult a foreign mortgage specialist located in the US, to take advantage of the same, rather amazing, deferred interest mortgage programs that they were once available only to US citizens. Now it’s possible for UK citizens to take advantage of these amazing financing options to buy property in the US with no money down, no employment or income verification, and a minimum down payment of just 1%.