Hi Newbie here with a Florida question!

[CockneyPlayboy]

Been tracking the market prices for a while now and would ask advice reguarding buying a property in Florida.

I am looking for a long term investment, rather than perhaps an immediate rental but IF I found an interested tennent then of course I'd consider it.

My question is whether or not now is a good time to buy in Florida? I am not too sure of the areas yet having only been there once (something I intend rectifying before taking the jump) but possibly something around the Kissimmee area (Osceola or somewhere perhaps?)

Prices seem really low still. What are the pitfalls? I might even look at taking some equity from my property here to buy?

All input very much appreciated!

Pauly

[forumlord]

Now is a very good time to buy in Florida with market values being somewhere between 25-40% of what they were 3-4 years ago. However, what you must understand is that the market is saturated with "short sales" which are very troublesome.

Short sales are when the owner has defaulted on the mortgage and the bank has agreed to allow the property to go onto the market with the aim of selling it at a lower than market value and the bank swallows the loss. The process of buying a property sold short is very protracted and can at times be very difficult. if you are looking to tie up a less than troublesome deal, I would advise that you buy a property that is being sold conventionally or is completely bank owned.

If the property is bank owned, the likelihood is you can get it for a good price and the deal can be wrapped up in around 30 days max. But be careful with your choice of property... most bank owned foreclosures are "sold as is' so could have various problems that you will have to rectify i.e damage or repairs, a/c unit, structure, roof etc.