Good morning and welcome to our Blog.
New Attitudes within the Industry
Someplace Else exhibited at an overseas property trade show called OPP Live last week. This was the fourth year I've been to the show and as usual it was very well organized and I met a lot of old friends plus a wide variety of interesting people who work in the industry.
The atmosphere at this years' show was very different to the previous ones though. Previous OPP Live shows were all held in very different economic environments, where profit margins were wide, the public's appetite for overseas property was insatiable, and financing for builders and buyers was very easy to come by.
As most employers reading this will no doubt agree - property companies who take too long to trim unnecessary overheads and refuse to adjust their product offering to suit a changing marketplace will soon find themselves out of business.
Meeting a Changing Markets Needs
We've certainly no intention of making those kinds of mistakes in my organisation, and judging by the recent media interest and the huge response to our Florida Foreclosure services, there is still a huge demand for property that buyers can identify as being a great value medium to long term investment. Some of our readers may also be interested in our Florida property of the week below.
Outside of the USA, Panama remains very popular due to its uniquely international economy, although there is a firm emphasis on purchasing developments that are already under construction.
Berlin, a sluggish market compared to some, with guaranteed long term rental yields that were written off by many as being too small, is now being seriously reconsidered. With many cities experiencing sharp contractions after a decade or more of growth, investors are now more confident regarding the long term value of buying high quality finished property in the capital of Europe's biggest economy at 25-30% of the cost of other major European cities.
Still The Best Asset Class
All in all, I remain convinced that property is by far the best asset class to invest in. It also remains a uniquely fulfilling experience. I just can't bring myself to leave surplus cash in a bank account with meager interest rates and I certainly won't be putting it in our ridiculously volatile stock markets.
But you have to choose carefully
Big profits are definately there for the taking in the property industry but your investments absolutely have to be in the right locations, at the right prices and you must research them thoroughly and examine your personal finances carefully before committing.
These are all fundamental rules to abide by in both booms and recessions. The difference is that people ignoring them will suffer a lot more now than they would have done 5 years ago.
Please feel free to comment and get in touch
As always, myself and my colleagues are always delighted to speak to investors or to hear your feedback and comments regarding these posts.
Warm Regards,
Colin Murphy
Director
Saturday, December 6, 2008
Great Opportunities Presented by a Downturn
Hello and welcome to Issue 30 of the Someplace Else Blog
Firstly - I must apologize for the gap between this post and the last - these past two months have been much more hectic than normal.
Secondly - to all those who have gotten in touch with us and bought a wide variety of our Florida Foreclosed properties, many thanks. We have been amazed at the response and would ask that you please bear with us while we work though the backlog of enquiries.
Why Florida?
While Florida is certainly not an emerging market in the traditional sense, we are convinced that current market decisions are presenting some incredible investment opportunities.
The USA has been suffering from the credit crunch for almost 18 months now and yet it is still receiving half of the world's total foreign direct investment. That is an incredible statistic. This unique country has also consistently demonstrated a remarkable ability to reinvent itself and recover from economic slowdowns.
Florida, traditionally one of the strongest and most stable markets, with a diverse economy, fast growing population and year round tourist industry has been particularly hard hit over the past year with many regular families struggling to pay the mortgages on their homes. The average price of a Florida home has fallen between 20-40% and while they may fall a little further; we are very near the bottom of the market. One indication is that for the first time in over a year the amount of available property listed in central Orlando is decreasing rather than increasing.
The reason that foreclosed (i.e. bank owned) properties are such an amazing opportunity is that they are being sold by the banks at 60-70% less than their previous value. Below you will see a description of a 2 bed 2 bathroom property in the Metrowest area for $68,900. The previous sales price was $236,000 and the current appraised value is $137,865. Even if the appraised value does drop another 5% or so you still have an incredible bargain that is cash flow positive from day one (we provide complete turnkey solutions to all listed properties).
I must emphasize that there is a very limited window of opportunity to buy these distressed properties. The best will be snapped up by a wide range of national and international buyers over the next couple of months and the market will simply readjust. It is for cash buyers only (although financing is available further down the line) and is one of the fastest moving micro markets I have experienced.
Weekly Listings
We send out a list of 10 properties every Monday to people who have subscribed over the past few weeks and if you'd like to add yourself to the list please email investments@someplaceelse.ie with "Subscribe to Foreclosed Property" written in the subject heading. If you'd like to speak to myself or one of our consultants please include your phone number and a suitable contact time. You can also click here to see a copy of last week's version.
New Panama Project
Panama is also a fascinating option for would be property investors and in a global slowdown it is confirming our earlier emails that it is one of the world's most robust and diverse economies. One project I have always admired since I first looked at Panama has been Denovo Apartments, which you'll find described below. It has been sold out for quite some time and we have just received notice that six units have come back on the market.
Construction is well under way (they are up to the 14th floor) with an estimated completion of July 2009. The location is terrific and has just about everything an international investor will look for. Myself and my colleagues will be delighted to discuss further with those who are interested in learning more. Bear in mind that this is an extremely well known and respected project and we are certainly not expecting these units to be on the market for very long.
Downturn Opportunities
Just as the major Irish & UK developers sowed the seeds of their fortunes by purchasing land and property at knockdown prices in the 1980s and early 1990s when everybody else was selling, there are now market niches everywhere waiting to be exploited - especially in the US dollar economies.
Warm Regards
Colin Murphy
Director
Warm Regards,
Firstly - I must apologize for the gap between this post and the last - these past two months have been much more hectic than normal.
Secondly - to all those who have gotten in touch with us and bought a wide variety of our Florida Foreclosed properties, many thanks. We have been amazed at the response and would ask that you please bear with us while we work though the backlog of enquiries.
Why Florida?
While Florida is certainly not an emerging market in the traditional sense, we are convinced that current market decisions are presenting some incredible investment opportunities.
The USA has been suffering from the credit crunch for almost 18 months now and yet it is still receiving half of the world's total foreign direct investment. That is an incredible statistic. This unique country has also consistently demonstrated a remarkable ability to reinvent itself and recover from economic slowdowns.
Florida, traditionally one of the strongest and most stable markets, with a diverse economy, fast growing population and year round tourist industry has been particularly hard hit over the past year with many regular families struggling to pay the mortgages on their homes. The average price of a Florida home has fallen between 20-40% and while they may fall a little further; we are very near the bottom of the market. One indication is that for the first time in over a year the amount of available property listed in central Orlando is decreasing rather than increasing.
The reason that foreclosed (i.e. bank owned) properties are such an amazing opportunity is that they are being sold by the banks at 60-70% less than their previous value. Below you will see a description of a 2 bed 2 bathroom property in the Metrowest area for $68,900. The previous sales price was $236,000 and the current appraised value is $137,865. Even if the appraised value does drop another 5% or so you still have an incredible bargain that is cash flow positive from day one (we provide complete turnkey solutions to all listed properties).
I must emphasize that there is a very limited window of opportunity to buy these distressed properties. The best will be snapped up by a wide range of national and international buyers over the next couple of months and the market will simply readjust. It is for cash buyers only (although financing is available further down the line) and is one of the fastest moving micro markets I have experienced.
Weekly Listings
We send out a list of 10 properties every Monday to people who have subscribed over the past few weeks and if you'd like to add yourself to the list please email investments@someplaceelse.ie with "Subscribe to Foreclosed Property" written in the subject heading. If you'd like to speak to myself or one of our consultants please include your phone number and a suitable contact time. You can also click here to see a copy of last week's version.
New Panama Project
Panama is also a fascinating option for would be property investors and in a global slowdown it is confirming our earlier emails that it is one of the world's most robust and diverse economies. One project I have always admired since I first looked at Panama has been Denovo Apartments, which you'll find described below. It has been sold out for quite some time and we have just received notice that six units have come back on the market.
Construction is well under way (they are up to the 14th floor) with an estimated completion of July 2009. The location is terrific and has just about everything an international investor will look for. Myself and my colleagues will be delighted to discuss further with those who are interested in learning more. Bear in mind that this is an extremely well known and respected project and we are certainly not expecting these units to be on the market for very long.
Downturn Opportunities
Just as the major Irish & UK developers sowed the seeds of their fortunes by purchasing land and property at knockdown prices in the 1980s and early 1990s when everybody else was selling, there are now market niches everywhere waiting to be exploited - especially in the US dollar economies.
Warm Regards
Colin Murphy
Director
Warm Regards,
Subscribe to:
Posts (Atom)
