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Government Foreclosure Properties Fail to Discourage Developers

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By : John Cutts    99 or more times read
Although the supply of bank and government foreclosure properties in Florida remains high, real estate developers and home builders are finding enough reason to re-enter the state's building market as several rental construction projects are being started in the southern part of the state. Kolter Group LLC and Ram Development Co. are reportedly planning rental community projects in South Florida.

Properties under Hollywood foreclosure listings and under distressed property listings in the rest of the state remain at almost record levels, but most analysts believe that the Florida residential property industry is starting to recover as demonstrated by increased interest from developers. Kolter is said to be planning a 204-unit apartment project at Lantana Road, while Ram has announced that it is looking for a possible site for its apartment venture.

The interest from these developers is being seen as an injection of confidence on the state's residential market, particularly since these apartment ventures will have to compete with thousands of Florida foreclosed properties for sale. In addition, officials from Kolter have revealed that a lot of business entities have shown an interest in purchasing units from the project.

Developers have stated that with the state's housing market buried deep in bank and government foreclosure properties, rental housing demands have risen which created an opportunity that they plan to take advantage of. Real estate developers further added that interest from buyers is also a sign of an improving credit market which can help their development efforts in the state.

Housing industry analysts have stated that building rental housing is a viable move, particularly since the foreclosure crisis seemed to have left a lasting memory on state residents. They stated that most people will likely prefer renting an apartment rather than buy a foreclosed property. For now, homeownership is a scary concept for most Americans.

Although this will eventually change, most analysts agree that the older generation will probably stay put in rental housing for a long period of time, especially those who have witnessed the impact of bank and government foreclosure properties on statewide economy. They added that younger people might purchase homes once the market improves, but right now, most of them are also likely to rent apartments or condominiums.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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