Foreign investors create a 'mini-boom' in US market

Foreign property investors are capitalising on the increasing amount of foreclosed property that can be found in the Florida housing market, it has been reported.

Individuals looking to get their hands on cheap property in the popular tourism destination could take advantage of the bargains on offer in the sunshine state.

Overseas Property Professional (OPP) reports that 70 per cent of all transactions within the distressed market are by foreigners.

Jenny Huertas, international sales director of distressed broker Condo Vultures, explained that many buyers were from South America, but European investors had also been getting involved.

"They are creating a mini-boom … thanks to the weak dollar and 60 per cent price falls, they can sometimes buy property cheaper than in their home countries," she added.

The fragile market in the US is yet to reach its bottom, with experts predicting another seven million homes will be eligible for further foreclosures this year.

Latest figures from Realty Trac show that the number of distressed properties available in Florida rose by almost 15 per cent in February on a month-on-month basis.

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