Why invest in a Floridian property?

A peninsula lying at the foot of the US and dividing the Atlantic and the Gulf of Mexico, Florida is commonly considered one of the world's leading tourist destinations and entertainment capitals.

Why invest in a Floridian property? Many also consider it to be one of the globe's top destinations for property abroad - with the US the second most popular country after Spain for Brits looking to invest in foreign homes.

Initial attractions for the UK buyer include a pleasant climate year-round, easy travel links, availability of bargain fares from most British airports and favourable exchange rates. Price appreciation has been significant in recent years, but, as the peninsula's construction boom continues, the market is expected to cool over the coming months.

Foreign buyers tended to be attracted to three main areas when buying in Florida.

The first of these, in the centre part of the state around Tampa and Orlando, is where the majority of the big tourist attractions are located including Disney World, Universal Studios, Busch Gardens and Sea World. It is warm all year round in these parts and rental yields tend to be good because of the area's popularity.

The Gulf and Atlantic coasts host magnificent white beaches and clear blue waters - with around 60 per cent of the US's super rich wintering here in exclusive resorts such as Naples and Palm Beach. Rental yields are not strong however - as the coasts tend to be hit by storms and wet weather in July and August.

Purchase prices usually equate to around five per cent of the property value. Although the US has a very complex system of taxation, with payments due to four different levels of government, Floridian rates are fairly low compared to the national average and a double taxation treaty with the UK prevents the double payment of taxes.

Florida has the fastest-growing economy out of the ten largest US states.