Foreign Home Buyers Betting On Florida
It looks like an Israeli company is betting on condos in Florida according to The Wall Street Journal. And why wouldn’t they with prices as low as they are and a weak dollar. Their strategy is a smart one, buy, rent the unit out for a few years, and then sell. This is buying and holding. That isn’t to say there aren’t people out there making money flipping properties because there are but it is certainly a riskier strategy.
The company is looking to buy at less than replacement cost. The reason I bring this up is because there are properties in South Florida that you can buy for below replacement cost. Meaning you couldn’t even build it for that amount of money and that doesn’t even take into account the land. A lot of the value of a property in Florida comes from the land.