Overseas property news - Homeless struggle on disney's doorstep

Homeless struggle on disney's doorstep

Photo: Rhys A

They may not be on the signs, but the homeless families struggling in Florida are as much a part of the state's housing market as Mickey and friends.

Disney World is one of the most popular attractions in the world, drawing visitors from around the world to Florida, employing locals, driving the local economy and helping to hike up rental incomes for investors.

There are those, though, who are being left behind by the area's economic growth. In Osceola County, homelessness is a serious problem for many: 1,200 families cannot afford accommodation, reports the Associated Press.

Indeed, US house prices have been rising steadily for many months. The median existing home price jumped 7. 9 per cent year-on-year in March 2014. Florida has enjoyed even stronger growth: condo prices have soared 16.7 per cent annually, according to the Florida Association of Realtors, with prices now rising for real estate for 28 months in a row.

Closed sales volumes for single-family homes increased, but decreased for condos. Indeed, across America, sales have slowed down thanks to rising house prices and rates impacting affordability of property.

This is good news for some, as rental property continues to prove a popular option, supporting the country's strong buy-to-let market. Indeed, the US has been the most popular destination in the world on TheMoveChannel.com for international buyers for a long time.

For those struggling to make ends meet, though, the story is far from happily ever after: the homeless, some of whom work at Disney World for minimum wage, are spilling over into the state's tourist corridor, hopping between motels along West 192, which leads to Mickey's doorstep.

Motel owners are now appealing to the sheriff's office to evict those breaking the lodging law, with some not only forbidden from accepting long-term guests but also unable to support them, particularly if they stop paying the room fees.

One motel owner, Dianna Chane, tells The Huffington Post she has stomached over $200,000 in unpaid room fees since 2012.

The sheriff's office would not comment, but a court filing from an attorney read: "Hotel owners simply cannot engage long term guests... then turn on a dime when they stop paying and pretend they are tourists."

The reports follow figures from RealtyTrac that highlight Florida's market as one of many top markets - alongside Detroit and Atlanta - for buy-to-let investors able to capitalise on affordable prices and high demand for rental property.

"When you’re talking about median home prices that are in the $100,000 to $200,000 range, you can rent those properties out for about $1,000 to $1,500 a month," RealtyTrac Vice President Daren Blomquist tells WJCT. "In Duval County, we’re showing the return of 15 percent on your money. It’s hard to get those types of returns in the stock market or elsewhere.”

As investors enjoy Florida's housing recovery, locals keep trying to find a home they can afford. All the while, the visitors to Disney World continue pouring in.

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