Real Estate in Florida, USA
Investing in real estate in Florida and loans secured by real estate is a financial tool in trend for capital preservation and extracting of dividends. Arnos Group maintains long-term relations with reliable partners in the state of Florida that allows us to assist our customers with their investment plans.
There are many reasons to invest in Florida, both from an economic point of view and the unique climate and developed infrastructure. Despite the current advantages, purchase of real estate in Florida has not always been favourable. Prior to the 2008 financial crisis, the real estate in Florida was overevalued and did not reflect the real market situation.
The growing residential and office space prices were largely supported by high consumer demand, which in turn gave rise to questionable practices, such as the provision of loans without prepayment (funding 100% of the loan amount), low standards of due diligence procedures and so on. Thus, before the financial collapse of 2008, such activity led to a large number of unfinished projects being constructed 4-5 years ahead in contrast to the decreasing market demand. After the crisis real estate prices began falling abruptly and are currently at their lowest.
Despite the negative crisis effects, Florida persists to be a very popular destination for toursims and for the living, and the entire infrastructure has remained at the same high level as before the crisis. Given this, experts predict a rise in property prices by 5-10% and a steady demand for real estate. Tightening of the local real estate and loan regulations has also increased quality and security of purchases, decreasing chances for another collapse of the market.
Our company offers two types of investment schemes in Florida: purchase of real estate and real estate-secured lending.
Purchase of real estate and real estate secured lending
Purchase of real estate - main advantages:
- Income from the capital gains and operating income
- Higher income level than through lending
- Possibility of selling at any time
- Prestige that comes with the ownership rights
- Possibility of obtaining resident status
Real estate secured lending - main advantages:
- Lower financial risk than for direct purchase
- Stable income
- Less responsibility – loan amount is less than the value of actual property
All transactions related to real estate investments are conducted via professional agencies with extensive experience and appropriate business license. In the case of real estate secured lending, the ratio of loan value to the mortgage price of the real estate amounts to 50-60%, which guarantees a secure refund in case the borrower cannot meet their financial obligations. All borrowers undergo detailed KYC reviews, including proof of solvency and a credit history before they are referred to clients. The real value of the property at issue is concluded by a professional evaluator.
For more information please contact us by phone or via the online contact form.