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,