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24th November 2006

Is Florida ready for the Rooneys?

Celebrities are spending millions on Gulf Coast homes, but is it a good investment?

WHAT'S ALL THE FUSS ABOUT?
Harbor Pointe in Port Charlotte, a quiet waterfront community with an historic centre south of Sarasota on west Florida's Gulf Coast.

Port Charlotte and nearby Punta Gorda, also on the waterfront, are separated by the narrow Peace River. On the doorstep are beaches, parks, golf courses and shopping malls.

WHO’S BUYING?
Who isn’t? Harbor Pointe could be the world’s most star-studded resort. Some 20 Premiership footballers, including Wayne Rooney, a number of top golfers, among them Lee Westwood, and 50 other A-list sports figures, including a handful of England cricketers.

WHAT ARE THEY BUYING?
Luxurious apartments – there are 96 in total – in a new development which overlooks the marina. There is a gym, pool, club house, tropical gardens and a full-time concierge.

Chances are the celebrities won’t be visiting very often, let alone living there. Instead, it rather looks like their financial advisers have seen the wisdom of sending their wealthy clients’ money across the Atlantic to America’s second most popular holiday destination (after New York).

The apartments are 1,800-1950 square feet and cost from £237,000 to £265,000, a touch more than a fortnight’s pay for these Premiership stars. The development was finished in February 2006, with around 70 apartments already sold and the remaining 26 available through Your Place Abroad.

Buyers have the added perk, on completion, of receiving $60,000 (around £32,000) cashback or their mortgage and running costs paid for two years. There is also a six per cent guaranteed rental income for the first two years.

‘Harbor Pointe has an incredible waterfront location and it is hidden away so it offers celebrities complete privacy,’ says Chris Davies, chief executive officer of Your Place Abroad, most of whose well-known buyers insist on anonymity.

‘The sports stars are also drawn by the year-round sub-tropical climate and the huge amount of activities on offer locally, including golf, sport-fishing and yachting.’

Florida is a magnet for the jet-set, particularly Orlando, where Justin Timberlake, Wesley Snipes, Michael Jackson and Pete Sampras own homes. Stephen King has just bought a £3.5 million waterside villa near Sarasota.

‘The Gulf coast tends to attract people who are looking to use their homes themselves, not rnet them out, as the coast is very seasonal,’ comments Graham Pyle from Florida Countryside. ‘Port Charlotte is very much based on affluent retirement and holiday buyers. It’s not he local economy that drives a place like that.’

WHAT ELSE CAN YOU BUY?
In Punta Gorda, the average house price is $200,00 (£105,000) and you can still buy a waterfront home for $250,000 (£132,000). A new four-bedroom family home in Port Charlotte will cost around $300,000 (£158,000) and apartments from $230,000 (£120,000).

‘One good value place in the area is Cape Coral, where you can buy a large detached house overlooking the water for $400,00 (£211,00),’ says Graham Pyle. ‘Nine months ago, that would have been on the market for $500,000 because prices were falsely inflated.

‘Now they have found their true level and it’s the best time there has been in the past few years to buy. Florida has seen an amazing boom over the past six years, with house prices up 100 per cent and now it’s the calm after the storm,’ he adds. ‘The market has slowed down and opened up a whole load of bargains.’

WHY BUY IN FLORIDA?
With 361 sunny days a year, mild winters and long, hot summers, 1,250 golf courses, 30,000 spring-fed lakes – some so big it feels like you’re out at sea – plus theme parks galore in Orlando, which alone attracts 52 million visitors a tear, Florida has massive worldwide appeal.

And you are never more than a 45-minute drive away from a beach – with 12,000 miles of coastline.

‘People want to return to Florida time and time again,’ says Pyle. ‘It’s as large as the UK with incredible diversity, from the warm waters of the Gulf coast and the wild Atlantic beaches on the East coast to fascinating wildlife and Native American reservations in the Everglades. You never get bored with it.’

Property prices are still a third of those in California but are predicted to double in the next ten years. There are also fiscal perks as the Sunshine State has among the lowest taxation in the country and no state income tax.

Rental demand is high too, not just from holidaymakers but from the 1,000 people who are moving to Florida every day. Employment opportunities are now as big a draw as tourism.

‘Florida’s population growth is very strong at about ten per cent per annum. This is one of the biggest factors stacked in Florida’s favour,’ says Michael Doig from Colliers CRE, who are marketing trendy design-orientated company Yoo’s new development, The Icon Brickell, on Miami waterfront. Here, the 1,760 apartments cost $400,000-$1.1m (£211,000-£582,000).

THE DOWNSIDES?
Hurricanes – Florida’s west coast is particularly prone so properties come with weighty insurance premiums. ‘It’s the price you pay for that climate,’ says Colliers’ Michael Doig. ‘Hurricanes are a consideration, but there are warning systems in place. People are prepared to just up and leave if necessary,’

And it pays to be close to the water. After boom years, the market is now slowing and Mr Doig adds: ‘In a market that’s a bit tough, it’s good to have a water view.’

Then there are zoning restrictions to consider. This is the way the state determines how you can use or rent out your home – and it can affect your purchase. Some Properties can only be rented out for a minimum of 30 days at a time.

Finally, Florida’s large retirement community – the average age in Punta Gorda is 64 – may not suit younger buyers or those looking for all-night parties. One wonders how the WAGs will manage…