How we can gain an insight into foreign investors?
We can use some general information such as the country from which these buyers originate
and what their buying potential is, to understand a little more about these investors. We can also
consider the kinds of properties that they are investing in. What is currently know, though, is that
international purchases rose to over $16 billion last year and focused on residential properties.

Where is the investment coming from?
Additional information has been gathered to show that over half of international investment comes
from five countries, including Mexico, China, India, Canada, and unsurprisingly, the United Kingdom.
We also know that the majority of these purchases were made in the states of Arizona, Texas, and of
course, California, and the popular holiday destination of Florida.

What is involved in the decision-making?
The main factors that were involved in the decisions to make these purchases included how close
these locations were to the country of origin of the investor, as well as transportation links and
climatic conditions. How similar the climate and the general lifestyle of the area is to the investors
country of origin was also found to be important. The assessment that the investors made of the
area in terms of its similarity to the climate in their own country tended to depend on word of
mouth or the number of people living in the area that were of a culturally similar background, which
is understandable. There are also notable reversals of this trend, were investors from colder climates
have purchased property in much warmer climates for the purposes of vacationing or a temporary
residency for work purposes.

What do we know about foreign investors?
There are some points that we have come to learn about our investors such as the reasons behind
their purchases. For instance, Canadians seem to purchase property near places that have a great
deal of recreational opportunities such as lakeside properties. We also know that a number of
investors purchase property once they have begun working in the US and then bring over the
remainder of their families. Some purchases are made by parents in other countries to provide
their children with accommodation whilst studying in the US. Investors from Singapore and China
tend to make their purchases in the view that the US will provide them with a good return on their
investment or an opportunity.

There have also been some interesting findings from research into the nature of the transactions in
foreign investments. We also know that half of purchases made by overseas buyers were made by
immigrants who had relocated to the country. Well over half of all purchases were made in cash,
which is a proportionally higher percentage than seen in domestic purchases.

The report shows that the average price of a residential property in USA appreciated by 0.4% in the 12 months to February – the first 12-month increase since July 2007.

Furthermore, a new report by Zillow reveals that USA property prices increased 0.5% from February to March, representing the largest monthly increase in almost six years.

“Home prices are slowly bottoming out,” says Steven Ricchiuto, chief economist of Mizuho Securities.

Zillow projects that no fewer than 19 of the 30 U.S. property markets that it covers will reach the bottom of the downturn this year.

The Florida property market is among those expected to lead the property recovery. Miami property prices, for instance, which posted a 0.6% month-on-month property price rise in February, are expected to rise by an average of 5.6% in 2012.

The Florida property market has endured significant price falls since the market crashed in 2008. But a hike in demand from domestics and international property investors and holiday homebuyers, attracted by rising property prices across parts of the sunshine state, is helping the market recovery.

Original Article Colin Murphy, Torcana.

The volumes of Residential construction have been falling over the past two years as builders reduce their output in response to an uncertain economy.

This reduction in new homes coming onto the market has added to the supply-demand imbalance across parts of the country, helping to push property prices higher in the process.

According to Case-Shiller, property prices have increased for five consecutive months in Phoenix, including a 1.2% rise in February compared to the previous month. Miami property in Florida posted a 0.6% month-on-month gain.

While housing supply falls in Phoenix and Miami, demand continues to soar, as more buyers seek to take advantage of significant price falls in recent years.

However, new homes sales nationwide fell by 7.1% in March to a seasonally adjusted annual rate of 328,000 units, following a leap in February, according to data provided by the Commerce Department.

The average sales price of a new home was $234,500 (€177,400/£145,600) in March, down 1% from the February price.

Why Florida — Why Now?

Retirement Mecca
Industrialists, corporate executives and Wall Street investors have always been drawn to the Sunshine State for getaways, seminars and corporate outings. Those reaping profits in the current stock market will be searching for a second or retirement home. Buying property in Florida will ratchet up in the coming years as these retirees and second-home buyers seek homes southward. The bustling cities of New York, Chicago and Washington will be left behind as these transplanted residents seek out Florida’s state-of-the-art infrastructure, lower cost-of-living and mild climate. Retirement communities, in many cases, have developed into self-contained small cities that offer a wide range of amenities. As such communities develop, Florida’s economy will continue a vibrant upward spiral, driving up home, condominium and apartment prices. Buying property in Florida now represents a stable and unique investment opportunity.

Original Article Colin Murphy, Torcana

The pending home sales index is currently at 101.4 which is a 4.4% increase on the Feb figure of 97.4. This is nearly 13% above the level a year earlier and is at its highest level since April 2010.

Lawrence Yun, NAR chief economist states that “First quarter sales closings were the highest first quarter sales in five years.  The latest contract signing activity suggests the second quarter will be equally good”

“The housing market has clearly turned the corner.  Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses,” Yun said.

New enquiries to The Overseas Guides Company (OGC), a UK-based resource for people buying or moving overseas, increased significantly by 38% during Q1 2012 compared to Q4 2011.

OGC’s latest data reveals that demand for homes in USA is hotting up, particularly as far as properties in Florida are concerned, with new enquiries reaching 1,002 during the first three months of 2012, representing rise of 61% on the previous quarter.

Richard Way, editor of OGC, says that he is not surprised by this surge in interest, given the Florida property deals that some property firms are now able to offer British people looking for a good value overseas home in Florida.

Way said that there are enticing deals to be had across Florida, especially in the Orlando property market, with a “four-bedroom detached home in Kissimmee available for just $75,000, around £43,000”.

Mr Way also points out that homes in Orlando generally constitute a good rental investment, with double-digit rental returns available.

Original Article Colin Murphy, Torcana.

The overall trend in applications
Mortgage applications are definitely on the rise. A like on like comparison between
this year and the same time last year shows an increase of 10% for applications for
loans from the Government, which is quite substantial. The most likely reason for this
is the impending hike up in insurance rates, which seems to have driven mortgage
applicants to put in their applications sooner than they perhaps would have.

The four week moving averages
The moving averages for the Market index and Refinance index are both down,
whilst that of the purchase index is higher. Since the summer of last year, the
refinance share has dropped to its lowest point, however, the ARM activity increased
in comparison. The share of mortgage applications showed that well over three
quarters were for fixed rate loans over a period of thirty years, but only just slightly
over six and a half percent were for loans over half this period of time. Even fewer
were for adjustable rate mortgages. Mortgages that were for periods other than 30 or
15 years accounted for only around two percent.

Average Contract Rates per loan type
Contract rates for loans over a thirty year period have lowered to around the
four percent mark. This figure only applies to mortgages on a balance less that
around 400,000 dollars, although the percentile for balances higher than this figure
decreased to a similar degree, at 4.46%. The rates for loans taken out over the same
period at a fixed rate and backed by the FHA decreased to almost four percent.

Contract rates for adjustable rate mortgages decreased to approximately three
percent. More information can be sought from mortgage banking sites, which show
like on like comparisons throughout the year and from week to week, with seasonally
adjusted and non-seasonally adjusted calculations.

Despite ongoing concerns about the global economy and Eurozone woes, three U.S. economists recently said that Florida’s real estate market is entering 2012 on an upward trend.

One of those economists, Dr. Lawrence Yun, chief economist for the National Association of Realtors, commented: “Many Florida markets are showing sharp drops in inventories of homes for sale – a sign that demand is picking up and prices are stabilizing. That’s a major change from just a year ago.”

“Buyers have stepped back into the Florida market,” he added.

Increased absorption of inventory units is seen as crucial to the recovery of the market for buying property in Florida, especially as the recent crash was caused in part by a chronic oversupply of unsold properties in the state.

From February 2011, the inventory of residential listings in Miami-Dade County, for instance, has decreased 45.1% from 24,792 to 13,610 in February 2012. Compared to the previous month, the total inventory of homes dropped 3.4%.

Original Article by Colin Murphy, Torcana.

A popular tourist hotspot
Although Florida is larger than the UK, the population remains at around four million, but with perhaps 70 million tourists per year, which can be attributed to low-cost direct air travel to the region from most major airports. Florida has for a long time been, and for a long time will be, one of the most popular holiday and tourist destinations across the globe.

Your choice of property in Florida
The choice of property in Florida is vast, from re-sales to new builds, and can be found right the way through the region and not just in the holiday hotspots. If you are looking for property in Florida, broaden your search to include all of the areas in the state. You could go for a Condo or a gated community depending on your own preferences and requirements. There is something for everybody to suit almost any budget.

The process involved in buying property in Florida
There is a stringent process you will have to follow when looking to buy property in Florida. A contract will be drawn up between you, the buyer, and the seller, although most likely you will be represented by an agent. If you are buying a property in Florida, but you are based in the UK you might want to think about asking someone to act on your behalf as a power of attorney. You will also need a deposit in place so you will need to know the value of the property and the amount that is required upfront.

The taxes and fees you can expect to pay
Although taxes do not apply to the purchase of the property, other taxes will apply on an annual basis so you will need to be aware of what these are and how the taxes and fees will apply to you as the buyer. These taxes or fees may alter according the mortgage you take out.

Health care and Visas
If you are thinking of relocating from another country then there are cultural elements that you will need to become accustomed to. These include the kind of health care you can expect and what insurance you will need to take out. You will also need to think about Visas and how to secure permanent residency in the country. Although you should be able to visit for up to three months, staying longer will require a visa, which will also involve a certain degree of bureaucracy. More advice can be sought from the America Embassy in your home country.

Arranging your own legal advice
Lawyers tend not be used in the purchase of property as insurance firms tend to handle all of the documents involved in the sale but this does not preclude you from hiring your own lawyer to provide you with legal advice. This may help you understand the process a little easier and leave you feeling more confident about the transaction.

Aside from some incredible Florida property bargains, the Sunshine State’s favorable winter climate is proving extremely attractive to many Canadians seeking a holiday home in USA.

In fact, 58% of all international sales in 2011 came from just four states, with 31% recorded in the Florida real estate market, followed by California at 12%, Texas accounted for 9% and Arizona at 6%, according to the National Association of Realtors (NAR).

NAR’s 2011 Profile of International Buying Activity found that location (43%) is generally the most important factor to an overseas national when buying property in USA, which probably explains why they are opting for homes in Florida.

That was followed by 27% who stated their clients’ top reason to buy in the US was that they view USA property as a profitable investment. Canadians specifically purchase due to a perceived positive return on their investment.

In the 12-month period ending March of 2011, Canadians accounted for 23% of all foreign buyers – the largest of any country. The vast majority bought real estate in cash, but there are mortgages available.

Original article by Colin Murphy, Torcana.

Price:

Feature:

Nationwide housing affordability, as measured by the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), increased to a record level during Q4 2011.

Meanwhile, the average rate on the 30-year fixed mortgage is currently at an all-time low of 3.87%, offering greater incentive to those seeking to buy U.S. real estate.

The average on the 15-year fixed mortgage is 3.16%, marginally above the record low of 3.14% reached in early February 2012.

Despite cheap borrowing costs, many prospective homebuyers have struggled to qualify for a mortgage due to tighter credit standards and a fragile economy. Consequently, many would-be purchasers are being forced to rent property instead.

High demand for rental accommodation is driving rental values higher across many parts of the country, acting as a greater incentive for many property investors to buy homes in USA with a view to letting them out.

Investors buying into the Florida property market, for example, can generally expect to achieve double-digit annual rental returns, while future prospects for capital appreciation in the sunshine state also look good.

Original article by Colin Murphy, Torcana.

Official figures show that median Florida property sales prices in January increased 18.8% to $95,000 (€71,000/£60,000) for condominiums and 5.3% to $129,000 (€96,500/£82,000) for single-family homes. The national median existing-home price for all housing types was $154,700 (€115,700/£98.300) in January, a 2% drop from January 2011.

In Broward County for instance, single-family home sales increased by 15%, from 813 to 911, last month compared to January 2011, according to the 26,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems.

The hike in property sales in the region has pushed property prices higher, which is great news for Florida property investors buying homes in the region.

In January, the median sales price of single-family homes in Broward County was $177,000 (€132,400/£112,400), up 7% compared to January 2011. The average sales price for condominiums also increased 7% to $73,500 (€55,000/£46,700) compared to a year prior. Broward County condominium prices have increased 12 out of the last 13 months.

The average sales price for total single-family homes increased 0.4%, from $246,579 (€184,400/£156,600) to $247,635 (€185,200/£157,300). The average sales prices for condominiums rose 11.2%, from $105,895 (€79,200/£67,260) in January 2011 to $117,795 (€88,100/£74,800) last month.

“The Broward County housing market is experiencing consistent strengthening and price appreciation as a result of robust demand and diminishing supply,” said Rick Burch, 2012 president of the Broward County Board of Governors of the MIAMI Association of REALTORS.

“Despite a significant percentage of distressed sales, prices continue to rise. Loosening unnecessarily strict lending standards would further enhance the performance of the Broward real estate market.”

Original article by Colin Murphy, Torcana.

The figures reveal that there were 830,000 U.S. foreclosures nationwide in 2011 compared with 1.1 million in 2010.

On a month-on-month basis, there were 55,000 foreclosures in December 2011, down from 57,000 in November 2011.

The December 2011 completed foreclosures figure was also lower compared to the corresponding month in 2010 when it stood at 67,000.

Although highly distressing for homeowners who have had their homes repossessed, foreclosures can offer investors a great opportunity to buy property at below market value.

Lots of investment properties in Florida have been secured through the foreclosure process. Florida still has the highest foreclosure inventory at 11.9%.

From the start of the financial crisis in September 2008, there have been approximately 3.2 million completed foreclosures.

But the dramatic fall in foreclosure levels, including a recent decline in the Florida property market, suggest that the USA property sector is embarking on the long road to recovery.

Original article by Colin Murphy, Torcana.

In January 2012, cash sales accounted for 66% of all residential Florida property sales, 44% of single-family and 84% of condominium closings. Nearly 90% of overseas nationals purchasing homes in Florida did so in cash.

Nationally, all-cash U.S. property sales were unchanged at 31% in January, reflecting the stronger presence of international buyers in the Florida real estate market.

A wide range of buyers from around the world, including people from Canada, Britain and Asia, have been buying up homes in Florida, attracted by significantly reduced prices.

Many international buyers have their sights set on the Orlando property market which offers good prospects for capital growth in 2012.

Recent research by Californian based property research firm, Clear Capital found that the property market in Orlando, Florida, will lead the nation in 2012 for home price gains.

The analytics company projects that home prices in Metro Orlando will increase by 11.7% during the year, compared with 2.1% for the nation overall.

The company cited a decreasing number of foreclosures as the prime reason for its forecasted gains. While 44% of the region’s housing market consisted of bank-owned properties at the end of 2010, by the end of 2011 only a quarter of the market was made up of foreclosed houses.

The interactive chart, based on data from the National Association of Realtors, compares each state’s foreign-born residents to show that close to one-third of all U.S. real estate transactions takes place in the Florida property market.

Almost 80% of foreign-born U.S. residents owned a home in 2009, Credit Sesame reports, which is higher than the national home ownership rate of 65.4%. Foreign investors represent $82 billion of U.S. real estate.

“35 states combined make up 17% of all real estate purchased in the United States by foreign buyers”, says the report.

Florida property market leads the way, accounting for 31% of all foreign property transactions, followed by California, with 12% of the country’s international purchases.

Canadian buyers account for the majority of international sales in Florida, followed by buyers from the UK. There is also high demand from people in Western Europe and buyers from Latin America, while more Asian investors are eyeing up Florida property investment opportunities.

Original article by Colin Murphy, Torcana.

The number of existing home sales in Florida increased 7 percent to 42,038 units in Q4 2011 compared
to 39,355 units sold in the same period the year before. Meanwhile, sales of existing condos in the state
increased 4 percent in Q4 2011 compared to the sales figure during the same period the year before.

The statewide existing-home median sales price was recorded at $132,000 for the last quarter of last
year – dropping 1 percent from $133,400 during the same period the year before.

Existing condo sales rose 4 percent in Q4 2011 compared to the previous year — rising from 17,922 units
to 18.858 units sold. Florida’s existing condo median sales price was up 5 percent from $84,400 in Q4
2010 to $88,800 in the final three months of 2011.

Chief Economist of Florida Realtors, Dr. John Tuccilo, said that the quarterly numbers reflect a steady
improvement of the housing market in Florida. With prices stabilizing and the economy in the state
improving – he expects the housing activity in Florida to keep growing.

As for mortgage rates, they reached an all-time low in Q4 2011. Data from Freddie Mac reveals that the
average national commitment rate for a 30-year conventional fixed-rate mortgage stood at 4.01 percent
in Q4 2011 – lower than the registered 4.41 percent during the same quarter in previous year.

This will be the final sales data release from Florida Realtors and University of Florida’s Bergstrom
Center for Real Estate Studies – as the association will launch a new statewide housing market
starting in January 2012 partnering with 10K Research and Marketing – a division of the Minneapolis
Area Association of Realtors and the Industry Data and Analysis Department. In cooperation with
10K, housing sales data from 63 local Realtor organizations will be collected and organized. More
comprehensive statewide housing market statistics can be expected from Florida Relators beginning
from January 2012.

Richard Way believes that the uncertainty over certain countries remaining in the Eurozone will continue to steer property buyers towards countries outside of the Eurozone, with USA property generally among the most popular long-haul destinations.

He said: “The appeal of countries outside the Eurozone will continue, notably the USA, where buying property in Florida is still incredibly affordable.”

The average price of a property in Florida has fallen significantly since the height of the last property boom in 2006, when the price of a family home in the state was $248,300 (€192,000/£158,700).

And one of the worst-hit regions of the state is the area surrounding Orlando, a haven of theme parks, lakes and golf courses that appeal most to sun-loving expatriate Brits.

The British consulate in Orlando estimates that around 400,000 British expats live in Florida and 1.5 million tourists visit the state each year, ranking Britain second only to Canada among the origin for overseas visitors.

The association reported that the national Housing Affordability Index in 2011 shot up to an all-time
high of 184.5 since it started keeping record back in 1970. This indicates stronger household purchasing
power last year. From 152 metros being surveyed, only 24 recorded an affordability index below the
median point of 100. Geographically, homebuyers in the Midwest have the strongest purchasing power
with the South closely behind.

Meanwhile, there was an increase of median price for single-family home price in 29 out of 149
metropolitan areas compared to the same quarter the previous year – with 188 metropolitan areas
experiencing price declines and two unchanged.

NAR chief economist, Lawrence Yun, explains that while sales at the upper end of the market – sales
have improved in the lower price ranges compared to the year before. He said that there’s “… a
consistent trend of declining inventory, which means supply and demand conditions are becoming more
balanced in more areas, which will help stabilize home prices.”

The national median price for existing single-family home price in Q4 2011 was down 4.2 percent from
$170,600 to $163,500 compared to Q4 2010. 30 percent of those sales in Q4 2011 came from distressed
homes – or short sales and foreclosures that are sold at 15 – 20 percent discount. The number stood at
34 percent during the same period in the previous year.

The market sees an increase of 5.9 percent in total existing-home sales, which includes condo and
single-family, and brings the units sold to 4.42 million – compared to 4.17 million in previous quarter.
In comparison to Q4 2010, there was an increase of 9.2 percent. By the end of Q4 2011, 2.38 million
existing home were still on the market – compared to 3.02 million in Q4 2010.

NAR President and broker-owner of Veissi & Associates Inc. said that despite the record high housing
affordability, the market conditions in the country differ widely. For buyers and sellers to know what
works best in their local market, he recommends Realtors as the best resource when it comes to
knowledge of local market options and conditions.

The number for all-cash home purchases reached 29 percent in Q4 2011 – similar to the number
registered in the previous quarter, but slightly down from 30 percent in Q4 2010. Investors accounted
for 19 percent of those transactions in the fourth quarter.

In Q4 2011, sales from first-time homebuyers amounted to 33 percent – down from 32 percent in both
the previous quarter and Q4 2010.

National median price for existing-condo was $160,800 in Q4 2011, down 1.7 percent from Q4 2010.
This data cover condo sector, metro area condo and cooperative prices in 54 metro areas — where 10
metros showed increases, 43 areas experienced declines and one unchanged.

Regionally, existing-home sales in the West lead other areas with an increase of 8.1 percent in Q4
2011. The figures for Midwest, Northeast and South were 7.0 percent, 6.3 percent and 3.8 percent –
respectively. The median existing single-family home price in the West dropped 4.2 percent to $205,200
compared to the previous year. The numbers for Midwest, Northeast and South dropped 3.3 percent,
4.6 percent and 3.8 percent with $134,100, $229,200 and $146,500 — respectively.

The number for existing home sales increased by 7 percent in the last quarter, which amounted to 42,038
houses, compared to a total of 39,355 homes that were sold in the last quarter of 2010. All in all, the state
sees an increase of 4 percent in existing condo sales in Q4 2011 in comparison to the year before. During
the last three months of 2011, the median sales price for existing home was down 1 percent from the
same period in 2010 at $132,000. Given that half of the homes in the state sold for more and the other
half for a loss, this is in line with the typical market price.

Meanwhile, existing condo sales in Q4 2011 were up 4 percent where a total of 18.558 units were sold
compared to 17,922 units in the last quarter of 2010. While in Q4 2010 the existing-condo median sales
price was $84,400, there was an increase of 5 percent in Q4 2011 to $88,800.

Florida Realtors Chief Economists Dr. John Tuccilo attributed the improvement of the housing market in
Florida to the improving economy in the state. With sales picking up across the board, he expects there
will be “continued growth in housing activity.”

According to Freddie Mac, the average national commitment rate hit a record low of 4.01 percent for a 30-
year conventional fixed-rate mortgage in Q4 2011, which was even lower than the average 4.41 percent
registered in the same period in 2010.

The housing statistics were released by Florida Realtors in cooperation with the University of Florida’s
Bergstrom Center for Real Estate Studies. The Florida Realtors will work with 10K Research and
Marketing, a division of the Minneapolis Area Association of Realtors, for the upcoming January 2012
existing sales statistics – where there will no longer be reports of sales data in the metropolitan statistical
areas in Florida but only statewide numbers instead.

The housing sales data from 63 local Realtor organizations in Florida will be collected and organized by
10K Research and Marketing as a way to provide Realtor members with unique and localized market reports.

A Reuters poll of 23 economists and analysts found a consensus for no change in the S&P/Case-Shiller home price index in 2012, compared with an average decline of 0.3% which was forecast in the last poll in November.

“I think we are seeing stabilization” said Lindsey Piegza, economist at FTN Financial.

A recovery in the USA property market would offer an enormous boost to the country’s economy and provide property investors with an ideal opportunity to invest in properties in USA.

Property prices across the States have depreciated by a third since the peak of the market in early 2007, contributing toward the 2008-09 financial crisis and subsequent recession.

But with USA property market conditions improving, homes across the country appear to now offer plenty of room for capital growth, particularly those considering buying property in Florida.

Properties in Orlando, Florida, for instance, are expected to appreciate by a whopping 11.7% in 2012, according to Californian-based property research firm, Clear Capital. If accurate, this would almost certainly represent the greatest appreciation in prices across the USA.

With the low interest rates at the moment more people are making the move and taking out a mortgage to purchase their homes. People are also refinancing with an increase of 3.3% from the previous week.

According to Freddie Mac 30 Yr fixed-rate mortgages have averaged at historical lows of an average of 3.91%.
The 15-year, fixed-rate mortgage increased to 3.40% from 3.37%,

Many existing homeowners struggling to keep up with mortgage payments could be about to
receive a major boost, after it was unveiled that as many as one million homeowners would get
write-downs in the size of their mortgages under a proposed deal with banks over underhanded
foreclosure practices.

Speaking at a Conference of Mayors meeting in Washington, Shaun Donovan of Housing and
Urban Development, said: “We’re very close to a settlement that would both fix the servicing
problems, but also help over a million families around the country stay in their homes and get help.”

Using Donovan’s estimate, the settlement could provide a reduction of about $20,000 (€15,500/
£12,400) for each of the one million borrowers.

“Principal reduction can have a substantial impact on the housing market nationally,” Donovan said.

With over 30% decline in home prices since 2007 and a large volume of vacant, foreclosed homes
flooding the market, the USA property sector has struggled to recover from the crash. It is
estimated that about 22% of U.S. homes are in negative equity, according to Core Logic.

But with more national and international purchasers entering the market, including astute property
investors, residential inventory levels across parts of the country are falling.

The Orlando property market, for example, has seen a significant fall in the glut of homes on the
market in the past year, with inventory levels reportedly down by in excess of 50% year-on-year.

Type: Residential/Apartment (Condo)
Price: $69,900 | €51,900 | £44,600
Disclaimer: Exchange rates can fluctuate. All investments sold in local currency.
Area: Fleming Island, Jacksonville
Location: Jacksonville, Florida, USA, FL32003

Features:

• Jacksonville is a thriving city with a highly diverse job market
• Fleming Island is a wealthy, idyllic and peaceful neighborhood
• A selection of spacious 1 & 2 bed condos are available from $69,900!
• Cobblestone is almost fully occupied with a strong reserve fund
• Properties sizes range from 786 – 1104 sq ft
• Many units feature vaulted ceilings, fireplaces and stainless steel appliances
• Amenities include lakes, 2 pools, clubhouse, playground and BBQ areas
• Completely hassle free investment with full aftersales service

Description
Jacksonville has consistently been one of the fastest growing cities in the USA, has a highly diversified economy and is home to hundreds of national and international companies from just about every facet of business and enterprise. It is currently ranked eighth nationwide for business expansions & relocations and ranked 5th in Forbes Magazine´s top ten cities to retire.

This community is based in Fleming Island – a beautiful master planned neighborhood that is surrounded by water on three sides. Cobblestone at Eagle Harbor contains five lakes and is bordered by a nature preserve with walking trails. The entrance into this community is seriously impressive – everything is immaculate, with imposing fountains, perfectly maintained landscaping and a beautiful clubhouse manned by polite and professional staff.

A total of 328 units are spread across 41 low rise buildings, the majority of which are owner occupied. Very spacious one and two bed floor plans range in size from 786 sq ft to 1104 sq ft. The construction quality is excellent with many units featuring vaulted ceilings, wood burning fireplaces and stainless steel appliances. All units have high speed internet, cable, kitchen appliances, central heating and air conditioning.

The spacious, modern and high spec one and two bed condos we have exclusively secured can be purchased for an amazing $69,900 – $79,900. Many have long term professional tenants in place with current net yields ranging from 6-8%.

Location
Cobblestone at Eagle Harbor is a short and scenic drive from downtown Jacksonville. Driving out of downtown, along scenic US17, on the banks of the St Johns river, you can´t help but admire the spectacular bayous, bays and stunning waterfront homes.

Siteplan
Completed in 1998, a total of 328 units are spread across 41 low rise buildings, the majority of which are owner occupied. Very spacious one and two bed floor plans range in size from 786 sq ft to 1104 sq ft.

Purchase Process

• Check availability list with your account manager and select appropriate unit(s)
• Once selected a $2,500 deposit should be wired to the title company and confirmation of transfer supplied
• Closing documents will generally be produced within 30 days
• Client must close and pay full purchase price (less deposit) before the specified closing date
• Closing costs will vary but generally range from $1,200 – $2,200

Further Information
We have compiled a 24 page brochure which contains further information on:

• Development summary & history
• Area description
• Site map & availability list
• Resort Amenities & Property Features
• Photos & Floorplans
• Purchase & Aftersales options

For a copy of this brochure please complete our enquiry form by following the link below

Let’s take an example of 1 bed Condo at one of our exclusive investment property locations.
The cost of the condo is $77,000 and comes with a sitting tenant on a short term lease.
The monthly income and expenditure relating to this property is as follows:

Income
Monthly Rental Income                                                $800

Expenditure
HOA (Home Owners Association) Fee                            $188.81
Property Insurance Fee                                                  $34

Management Fees                                                         $80
Property Tax                                                                 $42.06
Total Expenditure                                                        $344.87

Net Monthly income                                                     $455.13     (Income $800 – Expenditure $344.87)
Net Annual Income                                                     $5461.56     (Net monthly income $455.13 x 12 mts)

Return as a percentage of Investment                     7.1%

The percentage return or yield on investment can be seen as the net annual income of $5461.56 divided by the capital or cash investment of $77,000 and multiplied by 100. This gives us 7.1%.

So the yield or return on investment ( ROI as sometimes called) is $455.13 per month or 7.1% of capital invested.

With the turmoil in the stock markets of the past few years this has become a poor option so an alternative has to be secured. One of these key alternatives is to invest in a specially chosen or selected investment property where consideration has been given to the key questions i.e. the property price, location, rental demand, property management, etc.

With a carefully chosen investment property, there are a number of ways in which to realize a superior return on your investment

Regular cash flow with rental income
Investing in a managed rental property will provide you with a monthly stream of income or cash flow in the form of rental payments. This percentage return on capital investment is called the yield with a solid investment earning a net yield of 6-8% on average.

Increase in the property value e.g. Capital appreciation
With the drop of property values from their market peak of a few years back you can pick up a carefully chosen investment property which has been discounted by up to 70% off these highs.
Price will start to appreciate again as the investors buy up the available stock and a steady increase should be seen in the future

Stronger demand leads to higher rental income
With the growth in population and also the inward migration of workers a strong demand for rental accommodation will push up rental income over time. This rental income should exceed inflation giving a net real increase on your yield or return on investment

Potential for improvement in property
The rental income from the property can be used to improve the appearance and facilities or infrastructure of the property and therefore increase its resale value when you come to sell the property in the future.

Property as collateral for future investment
You may be able to use the regular cash flow provided by your investment property  to pay down any loans used in the purchase of the property or as collateral for future borrowings to be used for further investment in property

When you look at these 5 ways in which you can obtain a return on an investment property it makes sense to make that purchase an realise your investment potential.

With the drop in property prices from their market highs of a few years back it now seems a great time to take advantage of these competitive prices. The key to this investment is to select properties in prime locations where there is strong demand and therefore good annual returns on your investment. Capital appreciation on the property is the cherry on the cake.

At US Properties Direct we have teamed up with Torcana investments who have the experience and expertise to select a small group of properties for your investment potential.

Why choose Florida Property Direct
With all the competing offers in the market place you are wondering why should I invest in one of the investment properties as advertised in the US properties Direct website. Some of these Reasons include the following:

1. Many of the properties have sitting tenants
2. The chosen developments have a Healthy HOA (Home owners association)
3. Developments have strong reserve fund
4. Their locations have strong local rental demand
5. Prices discounted by up to 70% in some cases.
6. Strong realistic yields on investment from 6-8%
7. Excellent track record of delivering good investments over the past few years.

Our colleagues in Torcana will guide you through the process and provide you and your financial adviser with all the relevant information and details you need to make an investment decision.

The analytics company has projected that home prices in Metro Orlando will increase 11.7 percent during the year, compared with 2.1 percent for the nation overall.

The company cited a decreasing number of foreclosures as the prime reason for its forecasted gains. While 44 percent of the region’s housing market consisted of bank-owned properties at the end of 2010, by the end of 2011 only a quarter of the market was made up of foreclosed houses.

Some analysts have noted that banks put the brakes on foreclosures last year after reports surfaced of illegal and hastily drawn mortgage documents, but researchers said they took that into consideration.

“This could be due to a slowdown in litigation, but the fact remains, since REOs are dropping from one-in-two sales to one-in-four sales, it’s allowing the market to recover and not compete with those distress listings,” said Alex Villacorta, the firm’s director of research.

Property in Orlando was second in the country for home-price increases last year, with prices rising 6.7 percent. Only Dayton, Ohio exceeded that gain with an annual increase of 11.5 percent. Miami had the third-largest gain for last year — 5.6 percent. The report takes into account factors such as sales of the same properties, unemployment rates, and the number of foreclosures on the market.

The sharpest drops in price are expected in Atlanta, where they are forecast to fall 14.4 percent, and in Los Angeles, with a predicted drop of 10.3 percent.

Sources: Clear Capital, Orlando Sentinel

Original Article by Colin Murphy of http://www.torcana.com

Mortgage delinquency rates i.e. the ratio of borrowers 60 or more days behind on their payments, has increased significantly in recent years as a consequence of the recent USA housing crash.

But with the USA property sector (particularly property in Florida) and the economy improving, TransUnion expects delinquency levels to fall, but not before a short-term rise.

Although the credit reporting agency expects to see a 6% increase through the first three months of 2012, it does expect levels to fall by 5% by the end of 2012.

A fall in mortgage delinquencies would be highly beneficial to the USA property market as it would lead to a reduction in foreclosure levels, thus lowering the volume of distressed homes for sale, which has placed downward pressure on property prices in some parts of the country in recent years.

“We have a long way to go to get back,” said Steven Chaouki, a TransUnion vice president.

Original Article by Colin Murphy of http://www.torcana.com

“Today’s report adds to the growing evidence that demand for new, single-family homes is finally starting to firm up in an increasing number of markets nationwide,” says Bob Nielsen, chairman of the National Association of Home Builders.

He added: “This emerging trend is allowing builders to put more crews back to work, and could be even stronger if not for the overly tight credit conditions that prevail for both builders and buyers, as well as the continuing foreclosure crisis and the challenges of obtaining accurate appraisal values on new homes.”

By the end of 2011, overall housing production reached 606,900 units – 3.4% better than the overall number of starts in 2010.

Regionally, December housing starts increased by 54.8% in the Midwest following a big decline the previous month. The Northeast posted a 41.2% fall that offset a big gain in the previous month, while the South and West also posted declines of 3% and 17.6%, respectively.

Original article Colin from Torcana

In the USA, property prices are now considered to be 8% under the average price-to-income and 22% under the price-to-rent ratios, suggesting plenty of room for future capital growth.

However, the magazine does not expect to see an immediate recovery in USA property values because of high unemployment levels and historically high foreclosure levels, with much of this distressed stock expected to flood the U.S. housing market in the near future.

Meanwhile, the price-to-income and price-to-rent measures used to calculate the index, reveals that property prices in Australia, Belgium, Canada, France, New Zealand, Britain, the Netherlands, Spain and Sweden are considered to be overvalued by at least 25%.

“In some countries, such as Australia, Canada and Sweden, prices wobbled but then surged to new highs. As a result, many property markets are still looking uncomfortably overvalued,” the magazine claims.

It added: “The bursting of the global economic bubble is only halfway through.”

Original Article by Colin Murphy of http://www.torcana.com

Mortgage borrowing levels are currently at an all-time low, with long-term 30-year fixed mortgage rate having fallen to a new record low of 4.68%, according to Bankrate.com’s weekly national survey.

According to Bankrate’s weekly survey, the average conforming 30-year fixed mortgage fell marginally to 4.24% while the 15-year fixed mortgage held steady at 3.48%. Adjustable rate mortgages were mostly lower, with the average five-year ARM sliding to 3.18% and the 10-year ARM inching down to 3.8%.

Despite record low mortgage rates, a glance at the benchmark interest rates such as 10-year Treasury suggests that mortgage rates could fall even lower.

When available, shrewd property investors prefer to take out mortgages when buying property in Florida rather than pay in cash, as this allows them to use leverage to maximise returns.

Borrowing to support an investment is known as gearing and can make a substantial difference to a buy-to-let investment.

Original Article by Colin Murphy of http://www.torcana.com

Florida Realtors chief economist Dr. John Tuccillo told delegates at a Florida property conference in Orlando this week that the Florida real estate market is prospering from a “mini-recovery” thanks to a significant rise in demand for property in Florida.

He said: “Sales are trending up, listing inventories are falling, the supply of lender-related properties has stabilized, and we are seeing multiple offers on homes in some local markets.”

Tuccillo even suggested that property in Florida is generally undervalued, complimenting a recent Global House Price report by esteemed UK-based magazine The Economist, which also found that USA property prices, including homes in Florida, were generally undervalued.

Tuccillo added: “A buyer who plans to own the home for five to seven years can get some great bargains today.”

Mark Vitner, senior economist at Wells Fargo in Charlotte, N.C., believes that the Florida property market will continue to go from strength to strength next year, on the back of greater demand and an improving U.S. economy, despite wider concerns about the European debt crisis.

“Florida’s economy is recovering, with tourism and healthcare leading the way,” Vitner said. “International tourism has been particularly strong in Miami and Orlando.”

Dr. Lawrence Yun, chief economist for the National Association of Realtors said that Florida property investment prospects were being helped by a dramatic reduction in inventories of homes in Florida for sale – a sure sign that greater number of buyers are absorbing much of Florida’s housing stock.

Original Article by Colin Murphy of http://www.torcana.com

• Spacious 1 and 2 Bedroom Condos
• Affluent local area – Lake Mary Boulevard “No 1 place to live in Florida”
• Prices from $77,000 (70% Discount on peak sales price)
• All properties with sitting tenants providing immediate cash flow
• Annual Yields of approx 7% Net
• Financially healthy HOA (Home Owners Association)
• We have exclusivity on just 21 units, many of which
  are likely to be snapped up within 10 days.

Introduction
With the inventory of available condos in Orlando now critically low,
finding high quality units at a competitive price is both more difficult and more important than ever.

The reason is simple – these properties tend to have stable tenants and a large pool of local buyers.
We are therefore thrilled to be in a position to promote a selection of spacious 1 bedroom condos
in the stunning “Notting Hill” community located in Lake Mary Boulevard, North Orlando.

(Manicured lawns, main clubhouse in front of pool, entrance)

Or Partners Torcana have been imparting their observations of the Orlando
and central Florida property market for several years now and we have argued
that the essential route to building a successful property portfolio is to purchase the
highest quality assets in the best possible locations you can.

We live in an uncertain environment and smart decisions must be taken now to ensure future success.
In the medium to long term you will not reap your rewards from
other investors – it will be end users and owner occupiers.

It will be Florida’s vibrant young professionals who ultimately provide your secure
exit strategy and that all important capital appreciation.
These people will look to purchase their first home in the best location their money will get them,
where they can get FHA financing now because the community is healthy and
where there are minimal foreclosures or HOA delinquents.

We also continue to adhere to our strategy of investing solely in communities where owner occupiers constitute the majority of residents, where there is NO deferred maintenance and where there is a satisfactory reserve fund built up over the years to cover future maintenance work.

Future local buyers and owner occupiers are most concerned with these issues and we strongly feel that the most successful investments will be properties that are closely aligned to their hopes and desires.

Our latest offering, “Notting Hill” is located in the affluent middle class residential
area of Lake Mary, Orlando and it displays ALL these characteristics.

We have exclusivity on just 21 units, many of which are likely to be snapped up within 10 days.

Project Summary
A private gated paradise with spectacular lake views; Notting Hill is one of the
most impressive communities we have had the pleasure of bringing to our clients. Built in 2000 and remodeled in 2006, this is an immaculate community consisting of 452 spacious homes.

(Selection of photos from the fabulous landscaping within the community)

Notting Hill is strategically located on the stunning affluent Lake Mary Boulevard,
15 miles north of downtown Orlando. Following numerous site visits and
detailed due diligence we are thrilled to offer just 21 units exclusive to our Torcana clients.

We have negotiated pricing down to start at an incredible $77,000
(a 70% discount on peak sales prices), and with yields in the 7 to 8% net range,
we know this project will provide the medium to long term investment success our investors demand.

Primarily owner occupied, and with a build quality and curb appeal rarely seen elsewhere,
this investment stacks up on every level –  it boasts a strategic location close to high
end employers and global corporations; proximity to the best schools in central Florida;
aesthetic beauty, a well maintained community and a financially
healthy home ownership association (HOA).

(Wide angle view of the elegant Notting Hill Clubhouse)

Notting Hill offers huge rental desirability and genuine purchase demand from owner occupiers -
FHA finance approval already exists in this community, another excellent added layer of reassurance,
if one were needed. The specific location of the Notting Hill condominium community is why it is so desirable.

It should come as no great surprise to learn that the biannual rankings of CNN/Money
Magazine in 2008 ranked Lake Mary as the 4th best town in America and number 1 in Florida to live.
The crime rate is one of the lowest in Florida and the area boasts one of the highest average household
incomes in Orlando at $84,000 per annum.

Small wonder the residents we met with on site were all delighted with their decision to reside here,
they enjoy a lifestyle unrivalled in Central Florida, and they know it!

Put simply, this perfect mix of low crime, access to global high end employers and corporations,
world class shopping, and provision of superior educational opportunities has played a huge
part in making Lake Mary such a highly attractive and desirable location to live, work and raise a family.

These are exactly the reasons why we are sure it will also be of great interest to
our knowledgeable and savvy investors.

If you would like to receive a complete information pack* please complete the enquiry form below and
one will immediately be sent to you.  * information pack includes local area information,
resort amenities, property interiors, floorplans, siteplan, price/availability list and general market commentary.

Purchase process:

- Check availability list with your account manager and select appropriate unit(s)
- Once selected a $2,500 deposit should be wired to the title company and confirmation
of transfer supplied- Closing documents will be produced within 30 days
- Client must close and pay full purchase price (less deposit) within 30 days
- Closing costs will depend on the unit but will range from $1,200 – $2,800

Contacting Us
If you would like more information about this property, please complete our online inquiry form
or call us on 850-254-8760 or email info@florida-property-direct.com

Type: Residential/Apartment (Condo)
Price: $74,900 | €53,800 | £46,800
Disclaimer: Exchange rates can fluctuate. All investments sold in local currency.
Area: Sun Lake Court, Kissimmee. 2 miles from Disney World!
Location: Kissimmee, Florida, USA, FL34747

Feature:

• Tremendous investment potential at a low price point in a world class location
• Located adjacent to the 192 and just 2 miles from Disney World
• One minute walk from 12 restaurants, shopping center and supermarkets
• Huge 2-3 bed condos available from $75,000 – $90,000 (65% discounts!)
• Property sizes range from 1250-1632 sq ft and come fully furnished
• Amenities include pool, jacuzzi, tennis, game room and fitness center
• Owners can keep for personal use or rent out on a long or short term basis

Description :

Sun Lake is located in the epicentre of the tourism business in Orlando – right off the 192, two miles from Walt Disney World and adjacent to the Formosa Gardens Shopping complex. This is quite simply the most convenient location possible for both tourists and people working in the tourist industry.

Despite the fabulous location, this is a secluded resort with beautiful lake views surrounded by privately owned, high end vacation condos and pool home communities.

These are huge and fully furnished apartments ranging in size from 1250 – 1684 sq ft and in price from a jaw dropping $74,900 – $91,400. That equates to $54-$59 per sq ft! Even with materials costing less than they used to, you still couldn´t build a development like this for less than $100 per sq ft.

All of the properties we are offering can be rented short term, long term or kept as full time vacation homes.
The Sun Lake Resort provides easy access to all major central Florida attractions including Sea World, Aquatica, Universal Studios, Islands of Adventure, Busch Gardens, Kennedy Space Center, Lego Land (newly opened) and a host of major golf resorts and shopping malls.

Location :
Sun Lake Resort is located in the epicentre of the tourism business in Orlando – right off the 192, two miles from Walt Disney World and adjacent to the Formosa Gardens Shopping complex. This is quite simply the most convenient location possible for tourists and Disney employees.

Siteplan :
Originally completed in 2004, the community comprises just 112 spacious two and three bedroom units spread across 11 buildings.

Investment Rating
Aside from its location adjacent to Disney World, the most fundamental reason to purchase in the Sun Lake Resort is its proximity to shops, supermarkets and restaurants. In most countries, having shops, restaurants and supermarkets within walking distance of an apartment is no big deal. It is definitely a big deal in Orlando – which is the unique selling point of Sun Lake.

Purchase Process

• Check availability list with your account manager and select appropriate unit(s)
• Once selected a $2,500 deposit should be wired to the title company and confirmation of transfer supplied
• Closing documents will be produced within 30 days
• Client must close and pay full purchase price (less deposit) within 30 days
• Closing costs will depend on the unit but will range from $1,200 – $2,800

Further information
We have compiled a 22 page brochure on Sun Lake which includes:

• Development summary & history
• Area description
• Site map & availability list
• Resort Amenities & Property Features
• Photos & Floorplans
• Rental options & running costs

For a copy of this brochure please complete our enquiry form by following the link below

• The present rates: Without checking the current rates in the market, it is always wrong to take out a refinance loan as you may make the mistake of taking out a loan that will not help you save a considerable amount of dollars. Get multiple quotes from multiple lenders so that you can check the various terms and conditions that are offered by different companies and then choose the best among the lot.
• Your credit score: Check your credit score before taking out a refinance mortgage loan as the loan amount and the interest rate will be decided on the basis of your score. Without an exceptional credit score, you can never get a mortgage loan at a rate that is within your means. If you have enough time before taking out the loan, you can even look for some effective credit repair steps so as to boost your credit score and grab the best loan in the market.
• Check the term of the loan: If you want to refinance into a longer term loan, you have to take out a 30 year term mortgage loan so that you can repay it throughout a longer period of time in small and affordable monthly payments. You can change the term of the loan and also take out a mortgage loan with a shorter term so that you can repay the loan and become debt free within a shorter span of time. Though you may have to pay more every month, yet this is better than staying in debt for a long time.

Therefore, when you fear to fall back on the monthly mortgage payments, you should opt for a refinance loan and save your home from a forced foreclosure. Manage your finances and make the payments on time so that you don’t miss your payments and then again require taking out another loan.

While the Sunshine State is seen as a great place to retire to, the availability of discounted property in Florida is also presenting solid investment opportunities, with prices widely expected to increase moving forwards.

Although it is extremely unfortunate that many Floridians lost their home during the recession, the distressed nature of the Florida property market is creating some extremely attractive opportunities for buying property in Florida, with some homes being sold at a fraction of their old value at the height of the market in early 2007.

The fact that many locals now do not qualify for a mortgage to buy a property in Florida means that demand for rental accommodation is soaring, creating plenty of fresh buy-to-let investment opportunities in the process, with some stunningly high double-digit rental yields achievable.

With high rental returns on offer and good prospects for capital growth, many more overseas nationals see now as a great time to secure a Florida real estate investment, which explain why sales are rapidly increasing statewide.

Original Article by Colin Murphy of http://www.torcana.com

The latest figures supplied by the Harvard’s Center for Housing Studies show that around 2.3 million single-family homes became rentals during 2005 to 2009, representing a major increase on the 700,000 or so single-family homes that became rentals during 2001 to 2005.

Ron Abrams of the Chicago Association of Realtors told the press: “The good news for the owners or the reluctant landlords has been that the rental market has been so good, they’ve been able to cover pretty much all their expenses and just been able to basically go on with their lives.”

Rents have increased across most parts of the country, quite substantially in some cases, as a consequence of greater rental demand for homes in USA, caused in part by a slowdown in the property sales market.

Data released by Axiometrics Inc earler this month revealed that rents are rising at an average annual rate of 5.17%, up from last year’s 4.72% rate. Furthermore, rents are expected to continue rising, and are projected to reach as high as 6.18%, based on their current level of growth.

With record low prices and increasing rental demand, US property investment increasingly appeals to both domestic and international buyers.

Original Article by Colin Murphy of http://www.torcana.com

The reason for the flip-flop: Government-backed mortgages that helped fuel the Orlando area’s overheated apartment-to-condominium conversions five years ago have all but disappeared, even as a growing number of would-be owner-occupants are looking at condos as potential starter homes.

Explanations for why mortgage money has become particularly tight for condo purchases vary. Beyond the troubled finances of many homeowner associations, condominiums have lost their mortgage backing in part because federal lending policies discriminate against multifamily properties, according to a growing number of real-estate brokers and agents.

“Right now, condos are almost impossible to finance, and it has little to do with the homeowner associations,” said Orlando property expert and real-estate agent Roberto Baldor, who specializes in foreclosed properties. “It’s the Fannie Mae and Freddie Mac rules and guidelines that deter owner-occupants on those condo properties, which could be a could starter home for a family.”

Government-backed Fannie Mae has had to balance pressure from the real-estate industry to spur the condo market by easing its lending requirements with the need to protect its assets from mounting mortgage defaults.

John Tucillo, chief economist for Florida Realtors, the statewide trade association, said Fannie Mae and Freddie Mac need to step back and take a holistic look at how best to heal Florida’s condominium market, rather than tinkering with quick-fix changes and looking at programs in isolation.

“Yeah, there are problems,” Tucillo said, but, “quite generally, Fannie and Freddie — how shall I put this? — have overreacted.”

The median condo price in the Orlando area has fallen 64 percent since 2006, near the height of the homebuying frenzy, dropping from $166,100 then to $60,500 as of September. House prices, meanwhile, have fallen 52 percent during that time, from $262,900 to $125,200, according to Florida Realtors.

Source: Orlando Sentinel

Original Article by Colin Murphy of http://www.torcana.com

Shrewd investors and international buyers continue to flock to South Florida to buy up distressed homes, helping to support the market, with many people buying properties in Florida with a view to letting them out. Sharp elbows and top bids are required to secure the best homes in Florida – and that’s just to rent. Families are in the midst of a bidding war for properties in some parts of the sunshine state. The problem is exacerbated by more house hunters from all around the world.

October saw a total of 1,202 condo sales, up a staggering 63% compared to the corresponding month last year, but down 8% month-on-month. In Miami-Dade, 769 single-family homes were sold, representing a 41% increase from the same month in 2010 but a decrease of 9% from September. In Broward, 992 single-family home sales were sold for an increase of 16% over 2010 but an 8% fall from September’s figure.

Cash buyers make up around 60% of all Florida property sales in October, reinforcing the old adage that ‘cash is king’ when it comes to securing Florida property investment.

Original Article by Colin Murphy of http://www.torcana.com

Rents are increasing at an average annual rate of 5.17%, up from last year’s 4.72% rate. But according to Axiometrics Inc, if rents continue to rise at their current rate, they could reach the all-time high of 6.18% reached in 2000.

With many people finding it difficult to gain access to mortgage finance to buy USA property, the volume of people renting in America has increased by around 1.4 million in the past year.

Research suggests that tenants are increasingly opting for single-family homes, which suggests that property investors wishing to enter the buy-to-let sector may wish to consider buying this type of property.

Greg Rand, CEO of OwnAmerica, commented: “Rents are a steady return on your investment through the years, leaving you with an attractive asset when prices improve. And they will. The best profits in real estate accrue to long-term investors who take a long-term view.”

Last month, figures provided by Capital Economics showed that for the first time in 30 years the average monthly mortgage payment is about the same, or less, than the average rental payment.

Original Article by Colin Murphy of http://www.torcana.com

Florida property sales of single-family homes were down 7% from August, but increased 10% compared to September 2011.
The Florida Realtors, which released the September home sales statistics, said homebuyers have been elevated all year as foreclosures and short sales continue to attract investor attention.

“One of the reasons for this stabilization is the distressed property market,” said Florida Realtors Chief Economist John Tuccillo. “There’s a degree of certainty that is helping the market.”

The median Florida property sales price also dipped, falling 1% to $133,900 (€97,200/£84,700) from September 2010. Palm Beach County’s median sales price in September 2010 was $225,900 (€164,000/£142,900).

The National Association of Realtors also released its September sales numbers for existing homes, showing a seasonally adjusted annual sales rate of 4.91 million.

All-cash sales accounted for 30% of purchases in September, a sign of the strong investor activity in the market.

Ron Phipps, president of the National Association of Realtors, bemoaned a lack of credit access for homebuyers for slow sales.

“All year we’ve been discussing the fact that many creditworthy homebuyers are being denied mortgages,” he said. “We need to remove the roadblocks to a housing recovery – not place more obstacles in the way of financially qualified buyers.”

Original Article by Colin Murphy of http://www.torcana.com

Florida’s net domestic migration, the largest of any state, came primarily from states in the Northeast,
particularly New York, which had the largest net contribution to Florida. Illinois, New Jersey, Ohio, and
Pennsylvania also had substantial net migration to Florida. This flow has been sizable for a number of
decades and reflects in part substantial retiree migration.

The sunshine state
In addition to the sunshine, Florida has one of the best tax and asset protection climates of any state in the country. Florida has no state income tax, no fiduciary tax, no intangible tax, and arguably the most generous homestead laws anywhere in the U.S.A.

Eight of the top 20 counties in the US
There is no real surprise in the above data as most of America’s wealthy like warm weather and low taxes.
This can be seen from IRS data, analyzed by Forbes, on moves between counties in the US.
It can be seen that 8 out of the top 20 counties that people are moving to in big numbers are based in Florida.
Topping the list is Collier County, Fla., which includes the city of Naples. We can see from Tax returns that 15,150
people moved to Collier County from other parts of the country in 2008, the latest year for which IRS data is available.
Other counties included in the top five are Nassau County, Fla., near Jacksonville and Walton County, Fla.,
80 miles east of Pensacola.

Here is a summery of some of the reasons why New Yorkers are looking at Florida for purchasing a
property to live in or rent.

• Annual average temperature of 70F/21C
• No state income tax
• Fastest growing state in the US
• Over 1500 miles of coastline
• Strong local demand for affordable housing
• Landlord/Investor friendly state
• Strong local business and tourism economy

Some other Interesting Florida Facts

• Number of people who move to Florida each day – 1,000
• Number of major commercial airports – 19
• Number of international airports – 12
• Number of deepwater ports – 14
• Miles of sand beaches – 1,200
• Miles of coastline – 1,800
• Number of golf courses – more than 1,250
  -Florida has more golf courses than any other state
  -Palm Beach County has more golf courses than any other county in the country
• Number of hotel rooms in Florida – more than 370,000
• Number of campgrounds – 700 (100,000 campsites)
• Number of people who camp in Florida each year – 6 million

Home Type
Single Family

Description
Offers a really nice flow from kitchen to family room.
The owner’s suite is on the first floor with a large walk-in closet and bath.

[nggallery id=9]

The plan offers formal and informal areas in the home that are great for entertaining.

Oversized Laundry Room offers for lots of storage.

Plus a spacious game room that is great for the entire family!

Community info, schools & amenities

The Overlook at Lake Louisa

Welcome to The Overlook at Lake Louisa by Meritage Homes.

Located west of Orlando in Clermont, Florida, this community of new homes

is surrounded by the best that central Florida has to offer. Lake Louisa State Park

is practically in your back yard, several golf courses are within minutes, and the Withlacoochee

State Forest is just to the west for hiking, biking, canoeing and more.

And with the Florida Turnpike nearby, downtown Orlando is a short drive away.

These new homes offer quality craftsmanship, stylish designs, and custom options

to make your dream home possible.
If you want to buy in Clermont,

plan your visit to The Overlook at Lake Louisa soon.

Area Schools

Lake Co SD

Local Area Amenities

Views

Directions

Hyland Lane Clermont, FL 34711

From Orlando: I-4 to Hwy.50/Colonial West to Clermont.

South on U.S. 27, approximately 5 miles to Lake Louisa Rd. Proceed west (right) on Lake Louisa Rd.,

approximately 2 miles to community on right.

From Tampa: I-4 E to US-27N exit 55 toward clermont. Head north on US 27 for approximately 20 miles.

Turn left on lake louisa road, approximately 2 miles to community on right.

Contacting Us

If you would like more information about this property, please complete our online inquiry form

or call us on 850-254-8760 or email info@florida-property-direct.com

In good times and in bad, the lowest prices will always be available in low income areas with poor transport links, low owner occupancy, high levels of foreclosures, high levels of delinquencies on community fees and lots of deferred maintenance.

Chasing a low purchase price with a high rental yield is what I consider to be a “too good to be true” strategy. Your rental income isn´t going to be very reliable in these kinds of areas. Tenants here are less creditworthy, less responsible and more transient. This will lead to high vacancy periods, high management fees and high repair costs. Finding a profitable exit strategy for that kind of property five years time will be difficult if not impossible.

The best investment locations, and the best properties in Florida, in good times and in bad, are those closest to the best schools, jobs and amenities where young families and professionals rent, live and buy property. For these reasons, they will never be the cheapest properties on the market, but they will certainly be the most stable.

A person seeking a reliable rental income and a solid exit market should choose properties with the following characteristics:

1. FHA financing available to owner occupiers

2. Low foreclosures levels

3. High owner occupancy and low vacancy levels

4. Low levels of delinquencies and deferred community maintenance

5. A satisfactory HOA reserve to cover future maintenance work

6. Close to quality schools and major employers

Junk mail filter

If you are receiving a dozen emails every week with deals that all look great – just ask the seller to confirm the above and you´ll very quickly find out which ones are duds.

The six bullet points above are obvious, anybody could come up with them after a few minutes thought. The trick is finding properties that match these characteristics and securing them at a competitive price. That´s not so easy and not many people are doing it.

There are different levels of risk in real estate, and plenty of ways to earn a living from it. Not everybody will agree with my take above. That´s ok – one size doesn´t fit all in this game.

Original Article by Colin Murphy of http://www.torcana.com

Original Article by Colin Murphy of http://www.torcana.com

Original Article by Colin Murphy of http://www.torcana.com

Around 1.3 million new home sales were being recorded at the peak of the market in 2005. But the annual rate fell to just 298,000 units in July, the lowest level since record keeping began in 1963. Consequently, house builders are being forced to slash prices further in order to entice more buyers, presenting fresh investment opportunities for astute investors.

The opportunity to buy property at or below build cost is quite probably a once in a lifetime investment opportunity, particularly for those investors buying new homes in Florida, where there is plenty of long and short term rental demand, which in turn is boosting rental yields in some parts of the Sunshine State.

Despite the sluggish nature of the new homes market, many house builders continue to add to their land bank in anticipation of an eventual upturn in the market.

Developer Hovnanian, for example, spent around $125 million (€88.6 million/£77.6 million) on purchasing about 1,440 lots and to develop land in the second quarter of this year.

“They’re [Hovnanian] not changing their philosophy on land buying,” said Vincent Foley, a builder analyst with Barclays Capital. “Their view is that they need to buy a healthy dose of land in order to be able to participate in any upturn.”

Other house builders are adopting similar strategies ahead of an eventual market improvement. But for now, it remains a buyer’s market, and that means lots of opportunities for active property investors.

Original Article by Colin Murphy of http://www.torcana.com

When you do invest in these Florida properties careful consideration has to be given for the tax implications for this investment.  Most people don’t seem to realise that you may have to pay taxes in your own resident country as well as local US state taxes.
The same can be said for inheritance tax, income tax and wealth tax where the value of the property can have an influence. It is wise to hire an accountant or tax advisor to make sure all taxes are accounted for and paid.

The issue of double taxation will have to be considered to make sure you are not paying the same type of taxes twice e.g. in the US and in your resident country. Your accountant or tax advisor will check if there is a double taxation agreement in place between the 2 countries and make sure this will not happen.

If you are thinking of making a substantial investment in Florida property you could also look at the option of setting up a Shell company to make and handle the investments. There could be tax advantages to using such a method.  It is important to find out how a company as opposed to an individual will be treated Tax wise before making such a decision.

You will need to make all these enquiries in advance of deciding how to proceed. In the end you will have to be advised on the what Florida property investments to select, their location, rental incomes and resale options to make sure the investment is the best you can make.

The HOI shows that almost three in four U.S. homes in the second quarter of this year were affordable to families earning the national average income of $64,200 (€44,715/£39,000).

Lakeland-Winter Haven in Florida was named among the most affordable areas in the USA, along with Syracuse in New York state, Indianapolis-Carmel in Indiana, Dayton Ohio. But it was Ohio-Pennsylvania which topped the index as the country’s most affordable, large-scale housing market, where a staggering 94% of residential properties are now considered affordable for families earning an average wage.

With the housing market showing further signs of recovery, a growing number of property investors are eyeing property investment opportunities in the USA, particularly places like Florida, where there is now stronger national and international demand for properties.

Charlie Young, president and chief executive of ERA Real Estate, recently commented: “Now is a great time to invest in real estate but it’s critical that people new to the game watch out for common pitfalls.”