Florida property seekers advised to do homework

While buyers of foreclosed US property can pick up many bargains, it is important they apply the same principles to investment that they would with any other purchase, an expert has said.

Head of research at investment portal Property Frontiers Christopher Chadd stated: "Do your market research; if the underlying fundamentals don't exist, do not invest."

He suggested that this means people should ignore some cheap opportunities - such as Detroit where homes can be bought for just GBP 10,000 but economic prospects are poor - in favour of places like Florida, where widespread tourist attractions offer better prospects.

Mr Chadd noted that this factor sustains the state as the most popular place for Americans to holiday in, with the result for tourist rentals being that it "occupancy levels remain high and in turn yields remain healthy".

Recent figures showed that Florida has a plentiful supply of foreclosed properties, with data from property research firm RealtyTrac showing that 268,064 filings occurred in the first half of this year, 41.95 per cent up on a year before.

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