Florida Property Market Could Struggle to find a Bottom

International property investment consultancy Property Frontiers has given a stark warning on the future of the Florida property market. In a recent news article, the firm pointed out the possibility that the buyers of today, which are predominantly investors, could hamper future recovery in their attempts to resell for a profit.

Director David Cox said:

"Since the middle of last year, sales have been increasing in Florida as Americans join international buyers in snapping up distressed and repossessed real estate at bargain basement prices. This has undoubtedly been a good thing in the short-term, because repossessed properties are nothing but trouble for a number of reasons; they drag a neighbourhood down, and prevent it from bottoming, and so the quicker they can be sold the better.

"However, most of the people buying property now are not buying to use, they are buying to resell when the market recovers. Thus, we run the risk that every time the market starts to recover; floods of Florida property for sale will swiftly snuff it out again.

Cox then goes on to say that those who have dispelled the possibility that this could happen because of the investors being predominantly professional, may be proven wrong because we have no way of knowing how the investors circumstances will change over the coming months and years.

However, Cox concludes by explaining how those investors that invest for rental income over and above capital gains, have no need to care about how or when the recovery brings price growth.

With that logic, those investors who have invested for rental yields will surely not be tempted to sell at the first hint of recovery. Though, again, circumstances can change and even those earning a good yield could have found out that being a landlord in the states is not for them, and want to sell at the first opportunity.

We are talking about America here, where everything is on a much bigger scale to what it is in the UK, and even though it is only the state of Florida that we are discussing, we are still talking about tens of thousands of people here. With such a large number of people, it is very hard to predict what volume will feel compelled to sell early in any recovery, or rather, whether that volume will be sufficient to dampen the recovery. The only certainty is that we will all find out in time.

Brazil Property is Feeling Hot Hot Hot

The positivity surrounding Brazil property, building it up as one of the top investments of our age is still showing no signs of abating.

In fact it has just recently been vindicated: Sao Paulo-based Brazilian Company Property Studies, (AKA Embraesp), has found a 22 per cent increase in the price per square metre of property in Sao Paulo in the first four months of 2010. This, a growth of 51 percent on 2009 prices is a massive testament to the incredible growth potential of Brazil property in the north east, especially as it is during a global recession.

It is little wonder that Sam Snell, one of the world's wealthiest and most prominent real estate investors has just announced that he plans to put another $500 million into the Brazilian property market, to focus on the emerging markets in the north east of the country.

Last year Snell made the news when he said that he didn't think there was a better environment for investment in the world than Brazil. At the time Snell was only announcing his intention to enter the market; he now operates six Brazilian property companies.

Brazil property is currently such a hot-investment, because the economy just has everything going for it; everything to suggest massive growth in the future, and very little to put a dampener on that growth.

Companiesandmarkets.com has recently pinpointed surging consumer demand as being a big driver behind future growth. This is the first time a research report has pointed to domestic demand, as most focus on exports, the services sector and the fact that Brazil is to host the World Cup and Olympics as drivers of growth.

It makes sense though; we would be foolish to think that all this positivity exists only outside Brazil. Inside Brazil right now, consumer confidence is likely at an all-time high, and increased consumer spending is a logical outcome of this.

Brazil property is equally well positioned for growth. Economic growth will automatically breed property price growth, as it pushes up the price of materials and labour. However, when you look at the economic growth in Brazil's future, you can't fail to see the potential for a massive increase in demand for housing, and for second homes as the population becomes more affluent. Add the massive growth in tourism, which can only be fuelled by the sporting events, and you can see why Brazil property is so hot with foreign buyers right now.

Like the big-hitters and the economic growth, the north east is most popular with foreign buyers, with Natal one of the major hotspots.

Student Accommodation Investment Benefits from Low Risk Status

Student accommodation investment is a low-risk investment. So, as we are currently operating in a risk-averse investment environment, obviously student accommodation investment and other products like it are attracting more than their fair share of attention and investment.

Now, no doubt some (hopefully not many) people will have scoffed at the words "low risk investment" in the first line. That serves to prove the risk adverse environment that the credit crunch and the damage it did have given birth to:

During the last boom practically every property investment product on the market was being bandied about as having very little risk attached to it, as many people even grew sufficient Gaul to state unequivocally that property could no longer lose value, because of the international demand characteristics that emerged from budget flights etc. So now calling any property investment product low risk is liable to get people's backs up

However, when it comes to student accommodation investment, the term low risk is applied because:

You have a large pool of potential tenants, all of which need somewhere to live, and all of which are being driven to the purpose built accommodation that these investments exist by a multitude of reasons: affordability, their friends living there and the facilities, but mainly because of the affordability factor.

Also because the universities are actively promoting the property for you, out of all that, student accommodation investments are low risk because they have a set term for which occupancy can almost be guaranteed, in effect a yield as close to being guaranteed as you get in UK buy to let property investment.

According to Property Frontiers, who have recently entered the Liverpool student accommodation investment market, the field is seeing a massive surge in popularity. The firm has just sold out a development in Liverpool, and is currently marketing a second, the Streatlam towers development. In a recent press release, David Cox, director of the firm said:

"People are back out there and making property investments again. Just like people were investing in property in 2006 and 2007, but that is where the similarities end. In 2006 investors were chasing hard for the biggest returns, and desire to make a fortune superseded common sense in a lot of cases. Not today it doesn't. Those who are investing in property today are putting safety first and doing extensive due-diligence before making any kind of commitments."

In fact, when it comes to student property investment, their success is a testament to the quality of the product. We all know that the market is currently very adverse to risk, and that every investor is scrutinising everything to the finest detail before putting anything in. So, knowing that, and looking at the success of student investments, we can judge their quality.

Belize Property: Value for Money Cannot Go Unnoticed Forever

Belize property is set to benefit from the return of low budget buyers now that Belize property is a lot more affordable than it was.

In the last few weeks several portals, including Rightmove Overseas and Primelocation (arguably the big two) have reported a significant spike in searches for low budget destinations such as Cyprus and Bulgaria.

It is easy to think that this is also because of their locality to the UK. When risk-appetite takes a beating as it has the past few years, to an all time low, the desire tends to be to buy closer to home, which gives a feeling of increased security. To put it another way, it is only when risk-appetite is high among property buyers and investors that they will even consider investing in far flung Asian or Belize property.

However, lest we forget the mini-boom that is currently happening in Florida, as bargain hunters from around the world snap up distressed and repossessed properties at rock bottom prices. In fact demand for such properties has increased so much that it can no longer be called a mini-boom; and that prices of those properties have incredulously started to see some growth in recent weeks and months.

As these properties start to decrease in availability and/or quality people will start to look at other parts of the continent to find bargains, at which point they will find -- if they don't already know -- that Belize property has seen property prices fall by up to 100% in some places. In fact, it needn't take any such reduction in American foreclosures to drive buyers to Belize; it could quite easily happen simply based on quality of life, quality of property and value for money.

When a property is to be foreclosed upon by a bank, it is offered to the bank staff for first refusal, at which point all the best properties; the best bargains are swiftly snapped up. In Belize, right now you can buy a brand new, ultimate luxury 1 bedroom villa in an eco-boutique resort in a Belizean nature reserve from just £72,500.

The villas, in the Cayo District Nature Reserve are being marketed by Property Frontiers. The villas (although half acre plots are also on sale for £20k), of which only a handful are available, are built around a central boutique hotel with exclusive facilities. Those who do have villas built at cost price receive free rental management as an extension of the hotel. A top investment or lifestyle buy, and fantastic value for money like this can't go unnoticed forever.