Longboat Key, FL — December 15, 2007
If you’re fishing for a good property investment in a tropical paradise where the cost of living is half-price, consider Sarasota, Florida. "The dollar is on sale," says Susan Wachter, a professor of real estate at the University of Pennsylvania’s Wharton School, pointing to the declining value of the dollar against European currencies. Adding to the exchange advantage, local prices have dropped in response to the sub-prime crisis.

Sarasota is one of Florida’s recently overbuilt markets where the boom has ground to a halt and inventories are at an all time high. Banks holding unwanted properties surrendered by their prior owners are liquidating their holdings. Mark Zandi, chief economist at Moody’s Economy.com, says: "The market will only hit bottom after builders cut construction and sellers slash prices." That slashing and cutting has now taken place, as evidenced by the substantial discounts when compared to last year.

“There is a synergy to these events, creating perfect buying conditions for overseas investors”, says Joseph Vermeren, managing broker of Longboat Realty. “We are nearing the bottom of a cycle where oversupply resulted in significant price erosion. You only need visit our property listing service (www.LongboatRealty.co.uk) to witness a large inventory of deeply discounted homes and villas for sale. These are beautiful golf club and seaside homes at giveaway prices - and that’s before you factor in your substantial exchange advantage. After adjusting for currency, you’ll be downright giddy with anticipation.”

Today, a British buyer needs only £250,000 to buy a luxury home with pool, or £150,000 can purchase a nice seaside villa. Slightly inland villas can be bought at £65,000 or less. After a 20% down payment, local mortgage rates are similar to the UK and many of these properties have professional rental management on site. If you’re angling for a good holiday property investment, Sarasota’s timing is clearly on your side.

Sarasota is a posh, small town cultural center on the Gulf of Mexico, conveniently located just south of Tampa International Airport and southwest of Orlando. Its barrier islands - Longboat Key, Bird Key, Siesta Key, Casey Key and Anna Maria Island - boast beautiful sugar-sand beaches and warm turquoise waters. Even if you could resist buying a luxury property at these prices, visitors are sure to enjoy a sunny holiday and the sale priced shopping. Don’t forget to pack your sunscreen.