The influx of buyers into the Florida market comes as the state largest commercial institution is in the midst of selling off nonperforming real estate loans that triggered $80 million in losses. Florida’s largest credit union is preparing to auction off at a deep discount a waterfront site slated for a condominium development in Palm Beach County.
While the institutional buyers begin to move into the Florida housing market, it’s not difficult to see why individual investors are also focused on the sunshine state. The influx of foreclosures has caused prices to drop by as much as 50 percent in some areas. The Florida real estate market was particularly hard-hit, by the implosion of the housing bubble that characterized the past 10 years. Distressed properties are starting to sell, and buyers - especially foreign buyers - are already eyeing the market.
Property values won't really dive until bank regulators get tougher and banks start foreclosing. That's when sellers will become realistic about how far they need to drop prices. To date banks have been ill equipped to deal with the magnitude of requests. Investors have begun purchasing these properties, oftentimes at surprisingly low prices, and turning them into rentals.Purchasing these homes at distressed property prices and converting them into rental homes not only helps the investors, it helps many families get into a new home and possibly one they could never afford to purchase outright.
The Heathcote Group
The Heathcote Group is a real estate investment firm with a concentration in conveyancing, foreclosure and title issues.The Heathcote Group lends money on commercial property and non-owner occupied residential property and also buys defaulted mortgages and distressed property, both in New York and Florida.
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