Angry White Pyjamas

House prices in this part of FLA tripled in some areas in the last 5 years. Expecting another 25-30% hike next year in central FLA.

Of course DYOR, not legal advice, if you get burned/loose all your cash/bankrupt then its your own fault, blah blah blah.

scrubbedexpat099

Back..

Anyway I only know the deal from his perspective.

His group were bulk buying properties from developers keen to shift stock.

So they firstly hope for some appreciation between contracting and the properties being completed.

Obviously those with shite credit are not in a position to deal so much so they should be able to sell for more than the market price.

They then rent to buy at effeictively a higher then normal rental, with the people having an option at a certain point time, what exactly that option is depends on the market.

This theoretically allows those with poor credit time to turn themseleve saround and qualify for a conventional deal.

They then sell the property having hopefully made on the original purchase price, having sold the property above market, having made on a premium rent that has more than covered their interest costs and a bit more at closing.

If you have good UK Credit then you should be able to get a good rate through an International Credit Report.

If you have bad UK Credit, no US credit and for whatever reason want to buy now, then I can see it might work.

Just got to go into it with your eyes open. Never assume anything.

Not sure about the need for a Inspection, you are not initially buying, depends on how the deal is structured as far as the buying bit is concerned and what get outs you have.

All I know about gated comunities is that I did not want to live in one.

Angry White Pyjamas

One word (or is it 3?) HOA. Now those f***s should get the death penalty.

fatbrit

But wages haven't kept pace, presumably? I know there's a lot of new money in FL from up north, but even so if a local, say, teacher, can't buy the smallest des res, even on a 40-year adjustable, it can't carry on in the long term.

Angry White Pyjamas

Which is precisely what I tell people here. The current boom is being propelled by the baby boomers retiring in from up north and when they dry up theres going to be a correction in prices. Locals south of Okachobee cannot afford housing units at all. When the average price for a single family home is around $700k and the average wage is around $28k something has to give.

As an example theres a mobile home park near here that happens to be on the beach. Its about 30 years old and all the residents are "old timers". The whole place is about 35 acres. A property developer has offered them all $1mil each to vacate so he can build condos which will then be sold in the region of $2mil each.

fatbrit

50-year, interest-only mortgage with balloon payment, anyone?

Angry White Pyjamas

Ouch.

TouristTrap

Agreed.
Agreed.
Agreed.

If someone hasn't lived in a city for a fairly decent period of time, I always suggest they rent for the minimum, which happens to be 7 months in FL, so they get to know the areas to avoid, etc.

There are certain builders I wouldn't touch with a barge pole and many of them happen to build homes in the more up and coming closed communities in town. (Try going to a model home and nearly fall down the bannister because it was not set in properly, or my fav, a friend who is a remodeler made so many thousands of $ from fixing 3 to 6 month old houses in a certain part of town that is heavily congested..cough cough....that he was seriously thinking of sending the CEO of said company a huge gift basket as a thank you gift!!!!).

If you live in a city and do some footwork, you'll know what / who to avoid and thereby make costly mistakes.

But each to their own I guess.