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More Foreclosures Ahead for U.S. Property Owners, While Brits Sweep Into Florida - 17 March 2010

With more than 5 million homes slated for foreclosure in the U.S. this year, real estate experts are encouraging Brits - with long-term investment on their mind - to jump into the market soon.

The much-maligned U.S. property market, which saw more than 2 million vacant homes for sale in the last quarter of 2009, has yet to get out of its hole. Experts say up to 7 million homes are still eligible for foreclosure this year, and property value gains aren’t likely be significant until 2015.

This second wave of foreclosures shouldn’t worry those who purchased distressed property in the last two years; values are still expected to appreciate, though slowly and steadily. As news of more deals and foreclosures come to light, real estate agents are noticing a growing number of inquiries by Brits, especially in Florida, where they make up an estimated 16 percent of foreign investors.

Of all U.S. regions, the Sunshine State remains one of the hottest locales on the overseas property radar. Prices have fallen over 50 percent in Florida with apartments going for as little as £15,000.

Experts say that homes near Disneyworld in Orlando are creating the most interest. Though prices tend to be higher near the amusement park than in other areas, currently, a four-bedroom home, only 12 minutes away, is on the market for £85,000. When in it was built in 2006, it sold for £244,000.

Investors should be warned, however, that properties in this ideal holiday region shouldn’t be purchased with rental profits in mind. As people across the globe remain weary about spending money on holidays, investors buying property in Florida, or anywhere in the U.S., should be prepare to hold on to their homes for at least five years and thus adopt a more long term property investment strategy.

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