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House prices crashing in Florida catches out many Brits
Hundreds of British investors who pumped their money into Florida's soaring housing market have been caught out in its spectacular collapse...
Many bought apartments off-plan, hoping to sell them on at a huge profit as soon as they were built.
However, they have been left with property they can't sell - even for less than the original price - because of rising interest rates and a glut of condominiums for sale.
Florida house prices have been plunging for 18 months, but research shows investors in high-rise condos have been hurt the most.
Miami lawyer James Ryan said he had 40 clients, including British investors, trying to get out of contracts even if it meant losing substantial deposits. One client abandoned a £170,000 deposit rather than complete on a £800,000 condominium now worth only £600,000.
Condominiums in America are like flats in Britain - only usually much larger.
The market had been rising since 2003 and speculators, tempted by glossy advertising, rushed to buy as prices soared 25 per cent a year.
Florida property consultant Jack McCabe said:
"Out of staters and foreigners, especially the British, flocked here and pushed the market to the point where about 70 per cent of all sales were to investors who never intended to live in what they were buying."
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