Good rentals are pretty much guaranteed for those buying property within a half-hour drive of the magic kingdom of Disney World. Fiona Tyrrell reports

With the dollar trading at around $1.30 to the euro, more and more Irish investors are casting their sights to Florida, the Sunshine State, where year-round good weather, a host of theme parks and fantastic golf are among the big attractions.

The fall in the value of the dollar in the last two years has made properties in Florida much cheaper for euro-zone investors and has resulted in a substantial increase in Irish interest in Florida properties.

The fact that Florida has been a popular Irish family destination for years has also helped. This was also boosted last December by a new Aer Lingus direct flight to Orlando from Dublin, three times a week.

"You can buy a four-bed house with garden and pool for €300,000 ($389,600). You just can't do that in Ireland," explains Darragh MacAnthony from MacAnthony Realty, an international agency based in Malaga. who said that Irish buyers are attracted by the good climate and bargains to be had in Florida.

A 25 per cent increase in business in the last 24 months has been experienced by the Eden Partnership, a Dublin-based company, which works with the stateside real estate company Coldwell Banker Team Realty to offers Irish property buyers houses in Florida.

This has also resulted in an increase in value of most properties in the area, which is good for investors. A conservative estimate would put capital appreciation at seven per cent in the last two years, according to Eden Partnership.

Karen Piper from Images of Florida puts the increase in house values at 15 per cent and more. The demand was so high for a new development in the Orlando area that units were $20,000 (€15,340) more expensive in January 2005 compared to November 2004, she explained.

The Orlando area is the hot spot in the state, which receives some 44 million visitors a year. Most of these are North American families on a two-week holiday incorporating a visit to Universal Studios and Disney World.

As a result the rental potential in the immediate Orlando area is "extremely good", according to one agent.

Up and coming areas are to the southwest of Orlando, such as the Davenport area, which is very close to the Interstate Four and Disney World. Once you go outside the greater Orlando area, half an hour away from Disney World you are going into "no man's land" in terms of the rental market, according to a spokesman from the Eden Partnership. Beyond that, property on the coast is more expensive in terms of both property prices and insurance costs.

In the Davenport area of Orlando, unfurnished three and four-bed houses, will cost in the region of $285,000 (€218,639) to $300,000 (€230,200).

Many new four-bed houses now come with three bathrooms, catering for the new trend of two families renting out houses together. Needless to say, the obligatory pool and sun deck come with all houses.

A two-bed apartment in a resort-style complex just 15 minutes from Disney World costs €155,000 ($209,000). A three-bed townhouse in the same development will cost €216,000 ($289,000).

At the high end of the market $600,000 (€460,400) will get you a very large property, verging on a mansion, in a good location.

A three or four-bed house with private pool in a good location will get at least 20 to 25 weeks rental income at about $900 (€700) a week, according one agent.

However, most agents point out that one thing potential Irish property buyers should be aware of is the relatively high running costs in the USA.

At the outset, househunters should expect to pay between 3 and 3.5 per cent of the purchase price in closing costs on their new property - this covers estate agents', legal and accountants' fees and the cost of opening your own bank account, according to Eden Partnership.

Property tax, the equivalent of council tax, can be quite hefty and vary from county to county. Then there is insurance, management costs, state licence, pool cleaning and pest control to consider.

On an average, maintenance fees for a four-bed house could cost in the region of $12,000 (€9,200) per annum. However some agents say it is as low as $5,200 (€4,000).

If you purchase an unfurnished property, up to $12,000 (€9,200) could be spent fitting it out to the standard required for holiday rental in this competitive market.

Given the costs, most homeowners are lucky if the property pays for itself. On the upside, with these costs, the owner is unlikely to have to pay any US income tax. Property owners can even write off travel costs for two trips a year against tax.

Typically Irish investors opted to get mortgages at home, where a rate of 3.3 per cent is much more attractive than the 5 to 6 per cent average being charged in Florida. Most investors are happy to watch the capital appreciation, hope that rent will cover their costs and enjoy a two-week family trip to Florida every year, explained an agent from Eden Partnerships.

Of course the prospect of a change in the fortune of the dollar down the road means that, aside from capital appreciation, selling at the right time could reap even greater rewards for eurozone investors.

"Americans are incredibly organised and state and realty laws are so tight, it does reduce the risk of things going wrong. Nobody will arrive at your house and say that you don't own it, as can happen in other countries," an agent from Eden Partnership explains.

Typically, people who get the most out of their Florida investments are those who are prepared to do a little bit of work from the home side, he said. Not just relying on your management company to rent out your premises and advertising the property at home can bump up your rental income.

Also choosing your management company and keeping in regular monthly contact with them is very important.

"People who do best are those who have a good management company who work well for them as well as doing a bit of work at home to get Irish people as well as Americans into their house."

When something goes wrong, as can happen anywhere, it's better to find out straight away rather than seven months down the road, he reasons.

Typical investors in the Florida property market are Irish families who hope to use the property for a family holiday once a year. They may have a bit of cash handy and like the sound of Florida.

In the past Irish investors were normally aged over 50 but now more and more young families are getting in on the act and hoping to the use the property for family holidays as well as rent it, explains Darragh MacAnthony.

Some are very organised investors who have properties in Spain or Portugal and maybe even elsewhere in the US. Then there are the "serious cash investors" looking to get into the commercial end of things.