Sunshine on profit

While other US States lay claim to successfully attracting British buyers, few have yet to enter Florida's league. Millions of Brits travel to the state each year and more than 80,000 now own homes there, with more on their way. The traffic is largely attributable to the continuing seductive dollar-sterling exchange rate.

Despite four noteworthy hurricanes over a two-year period, consistent gains and substantial yields attracted record numbers of UK investors during 2005, with appreciation rates topping 20 per cent in markets such as Miami, Fort Lauderdale and Naples; waterfront property in particular is developing at a dizzying pace, with green-field sites scarce and older hotels being rejuvenated and turned into luxury condos.

"The macro-environment is extremely attractive for serious, long-term investors," says Eddie Henry of Florida Homes International. "Rental yields are running at about 8 per cent, but the real return is from capital growth, with hardcore investors getting steady, strong appreciation. Inventory choice is also unrivalled, with everything from gated communities to waterfront living and modern condominiums, the notable difference being an upsurge in demand for resort property with a generational focus, where families have access to a raft of tailored on-site facilities in a home-from-home community environment."

ORLANDO

When Disney arrived in 1971, few had any inkling of how central Florida would be transformed. On day one traffic stretched 50 miles out of town and swamps became homes. Today, nearly five million Britons a year visit this family destination, many trading up to home ownership, with four-bedroom villas with pool near Disney being snapped up for as little as 200,000. "Orlando ranks second nationally in terms of population growth, all of which creates demand with a market for both international and American renters," confirms Jay Holly of Macanthony Realty. "Holidaymakers want more space than is available in a typical resort hotel, and for families who want to put some distance between themselves and the frenetic atmosphere of the resorts, villa rental is the obvious choice."

Typical of community-style living is Reunion Resort and Golf Club located just south of Orlando in Osceola. Spacious three-bedroom Colonial style homes through Florida Homes International are selling for 300,000, with golf courses designed by Arnold Palmer, Jack Nicklaus and Tom Watson on the doorstep.

Located on the shores of Lake Davenport and minutes from Disney's attractions, The Resort at Bridgeford Crossing offers a raft of on-site facilities including a pool, tennis court and media centre. Three-bedroom one and two-storey 1,600 sq ft homes with Macanthony Realty start from 210,000, rising to 250,000 for a 3,100 sq ft six-bed detached villa, with private pool, jetted spa and fully equipped kitchen as standard.

A small but burgeoning niche market is fractional ownership. Set in 1,000 acres of landscaped gardens with private marina, running and biking trails just 30 minutes from Disneyland, Grenelefe Golf and Tennis Resort has one to three bedroom apartments on a 28-day per year basis in perpetuity, with 90 per cent finance available. Prices start from 15,000 for a one-bed unit in low season up to 32,000 for a three-bed condo peak season. Owners are exempt from maintenance and management fees for the first five years.

CHARLOTTE HARBOUR AND GULF ISLANDS

Nestling between Tampa and Naples and home to the second-largest harbour in the States, the altogether less sanitised Charlotte Harbour has largely been overlooked by property-hungry British buyers, but brand new air links and a revamped airport at Fort Myers have fuelled a real estate growth, bolstered by comparatively low property prices. Voted by Money magazine three years running as the best place to live in south Florida, the area boasts one of the largest protected marine estuaries in the world, white sandy beaches around Englewood and Manasota Key and a slice of upper crust cachet on Gasparilla Island, a favoured hideaway for George Bush. "The area enjoyed modest property price gains of 15 per cent in 2003, but growing investor interest has led to a jump in prices up to the first half of 2006 of 25-30 per cent," says Ged Pal of Florida Suncoast Vacations.

Laid out in a curious pie-shaped grid system, the community of Rotonda has homed in on the hi-spec golf course market, with land subdivisions including Pine Valley, Rotonda Lakes and Long Marsh now being built out for home sites.

"Buyers to date are largely from Canada, the US and Germany, with building lots overlooking freshwater canals, golf courses or preserves," says Jay Holly of Macanthony Realty. "Many are just under a quarter of an acre in size, which is generous compared to modern developments, with an average house price coming in around the 180,000 mark." Short-term rental restrictions are also few and far between. "A three-bedroom family villa with private pool can net in the region of 700 per week, with peak-season running from mid-December to late April," says Pal.

Florida Suncoast Vacations offer a comprehensive custom-build design and construction package complete with mortgage financing and property rental programme.

Owners can choose from six property styles ranging from the 2,345 sq ft Sunset villa for 177,000 rising to 225,000 for a 3,115 sq ft four-bed three-bath Gulfsands model. Properties come with luxury, heated pool, extended deck area and choice of furniture style as standard.

NAPLES AND BONITA SPRINGS

The Gulf Coast enjoyed gains of 24 per cent in the latter part of 2005, the loftiest prices being asked in Naples, with few locations more prized than the city's canal-carved Port Royal and the beach-bordered Gordon Drive, where a land-locked detached home will set you back 1.65m and an extra 2.2m just for a water view. These are prices that real estate entrepreneur Barron Gift Collier could only have dreamed of when he settled there in the 1920s and become the largest landowner in the region. Ranked by the American Automobile Association as America's 10th most upscale coastal resort, downtown Naples is still a subtropical genteel playground for millionaire retirees, with beautiful beaches, gourmet dining and chic shops, but the area's profile is moving with the times to penetrate younger markets. Developers catering to the new influx of 30-something "value conscious" buyers are moving outward to less expensive land, where the same quality home can be snapped up for a fraction of the price. "Resort communities are now selling east of main 1-75 motorway as far north as Fort Myers and south towards Marco Island," says Henry. "Many of the established developments have already experienced rapid appreciation and are slowly adjusting to the area rate, with an average house coming in around the 270,000 mark. With scores of developers - cash and upgrade incentives offered to new buyers are not uncommon."

Close to the beaches of Marco Island, Lely Resort's 2,800-plus acres offer up three championship-golf courses and a separate Players' Club and Spa, with property options ranging from Mediterranean style semi-detached villas to custom designed houses in small communities.

Two-bed Whitestone homes with Florida Homes International in the Player's Cove community start from 350,000 rising to 410,000 for a three-bed 2,743 sq ft home with a private pool and two-car garage. Annual maintenance fees of 2,700 cover garden and property maintenance. Scheduled for completion in 2015, one community seeking to preserve the area's natural assets is Fiddler's Creek, a 4,000-acre community with a 5.5-mile creek to restore water flow to conservation land. Three-bedroom villas with optional canoe dock start from 285,000.

Tucked along Old US 41 just outside Naples and bordered by the scenic Imperial River, Bonita Spring's downtown district is undergoing a transformation thanks to the city's 2004 Master Plan. One of developer WCI's flagship resorts, The Colony Golf and Bay Club includes concierge service, a 34-acre private island beach, spa and fitness centre and Jerry Pate-designed championship golf course thoughtfully woven through acres of pristine natural preserves. Detached four-bed villas start from 875,000, Ravenna three-bed condominiums from 465,000 rising to 1.4m for a furnished 3,000 sq foot penthouse in the La Scala Tower Residence. The smaller neighbouring Palmira Golf and Country Club covering 318 acres features two-four bed Tuscan style homes from 275,000 with Macanthony Realty.

FORT LAUDERDALE

Criss-crossed by canals, creeks and rivers and boasting more than 300 miles of navigable waterways, Fort Lauderdale's renaissance unofficially began a little over a decade ago with the revitalisation of Las Olas Boulevard, the city's hub of hip. This former quaint district of small shops has exploded into a lively downtown village, with upscale restaurants such as Mancini's and Jackson's, designer boutiques and urban chic property taking hold. "The market has changed greatly from this time last year, due largely to the worst hurricane season ever and a building boom," says Rob Rose of Rob Rose Real Estate. "Statistics from the Realtor Association of Greater Fort Lauderdale show a 102 per cent gain in the number of properties on the market since the same period last year, which puts buyers in a strong bargaining position." Golnaz Yeganegi of Montecito Investments adds. "Mixed-use projects - combining low-rises, high-rises, townhouses and commercial space - are the most prominent real estate trend, driven by a conscientious city government keen to ensure efficient use and sympathetic restoration of existing downtown residences."

Part of a ten-acre development at the heart of Fort Lauderdale's Riverwalk, Montecito is marketing Las Olas by the River, a residential community with 1,200 feet of river frontage, access to a park, nature trail and water taxi service. On-site resident amenities include a swimming pool, Pilates studio and controlled access-garage parking. One to three bedroom apartments and deluxe penthouse units have large balconies, vaulted ceilings and king size baths. Prices for a one-bedroom apartment start from 152,000, rising to 263,000 for a three-bed. Situated on the Intra coastal Waterway just a few minutes from Las Olas Boulevard, Gallery One Residence features one and two-bedroom fully furnished condo suites with balconies sporting city and ocean views. One-bedroom units with Sunrise Homes International start from 235,000 rising to 270,000.

MIAMI

The place to watch the world go by, Miami epitomises the "anything goes" philosophy. The last few years have seen an influx of design-conscious hoteliers breathing new life into neglected Art Deco buildings, with tasteful pockets of construction a telltale sign that the real estate sector means business. Property prices range from the affordable to the stellar, a quality apartment in a good area setting you back upwards of 190,000, but more than likely offering great views due to the Miami obsession with high rises. Condo-hotels are the latest property sensation to hit the ultra-fashionable South Beach, alongside the chic boutiques and buzzing nightlife - the Miami Downtown Development Authority reports 85 projects either planned, under construction or recently complete in a four-mile square area.

A former nursing home, The Sanctuary has been converted into 30 identically furnished one-bedroom flats starting at 260,000. Owners have the right to use their property 52 weeks a year, paying 250 per month management fees, which is a contractual requirement. For those who choose to rent out their apartment, the management will do it for you and keep half the profit. "Room rates can reach 240 a night peak season, so returns are pretty favourable," says Adele Bridges of the Miami Visitor Bureau

On a larger scale and designed by award-winning architects the Rockwell Group, the Flamingo Residence's bay side location on South Beach offers great city views, with studios starting from 135,000 and rising to 490,000 for a three-bed through Sunrise Homes International. The residence will feature 24-hour concierge, a business centre and marina drop off and pick up. Rental rates start on 500 per month for studios, up to 1,000 for two-beds with rental options tied to monthly or yearly lets.

www.montecitoinvestments.com

www.fhiinc.com

www.macanthonyrealty.com

www.floridaSuncoastVacations.com

www.sunrise-homes.co.uk

www.thelasolaslife.com

American Airlines flies to Florida from Heathrow via Miami. Options available via Boston or Chicago. Returns from 457.50 including tax and surcharges. For bookings and flight information go to www.americanairlines.co.ukor call 08457 789 789.

• Don't buy purely on anticipated rental income. You need a cushion, although you can be confident of good capital appreciation.

• Check zoning regulations preventing or limiting short-term lets.

• Buyers must apply for a tax ID number, which can take six weeks.

• Tax is complicated in the US, so seek independent financial advice.

• Use a lawyer to ensure good title and no debts on the property. Sterling may be better if buying for your own use, but a dollar mortgage means you can, if letting, match income to expenses in a single currency and probably get US tax relief.