Good afternoon all,
I am very happy to report that 2008 was a profitable year for Someplace Else Ireland with turnover increasing significantly from previous years and for that we must thank all our loyal clients very sincerely.
Thoughts for the year ahead
While we pride ourselves on being more nimble and better able to spot trends than many of our competitors, 2009 is probably the first year for over a decade where all types of businesses will be forced to change their strategies and cost bases dramatically to survive (and hopefully thrive) this year. In terms of my thoughts for the year ahead, well, as I indicated in Issue 32, I don't think we will see much enthusiasm for offplan property at all in 2009, which will cause heartache for many Irish developers, estate agencies and investors.
Unfortunately, you cannot be certain anymore that financing will be available for properties on completion and they may not increase in value either during the construction stage. This is especially true if there is an oversupply in the area where you purchased and a high percentage of buy to let investors with short term exit strategies (the South of Spain and the Black Sea coast of Bulgaria are two stand out examples of the above).
Safer options
The truth, as I can see it, is that the economic crisis of the past six months has presented better and safer alternatives to placing a 20-30% deposit on a property that is supposed to increase in value during a 2-4 year construction period. Our focus in 2009 is very much going to be on promoting highly discounted, cash positive and finished properties in areas that should recover quickly from the global downturn.
If you'd like to view examples of these kinds of properties, please call us or visit our website to see some excellent properties in Central Orlando, Florida. Florida might seem a strange recommendation from an emerging market investment property specialist, but it is by far the most exciting place for cash buyers to invest at the moment and the time to take advantage of the highly discounted bank owned properties is now. In addition to this week's hot properties illustrated below we have a very wide range of information available to view and download on our website, including investment slide shows, podcasts, area descriptions, tax & legal information and much more.
Florida - Low prices, low taxes, high rental yields
Apart from having the comfort of investing in an area that has been offering foreign property investors security and legal protection for decades, there is no stamp duty or state tax in Florida and both income tax and capital gains tax can lowered to trivial amounts due to the sheer amount of allowable deductions available.
Someplace Else Investors are purchasing property at less than 30% of their previous sales prices, which ensures a high net rental yield. These properties are also much easier to rent as tenants prefer and actively seek properties owned by cash buyers. They do this because it minimises their chances of being forced to leave again if their landlord misses mortgage repayments and the bank forecloses. Accurate Sales Prices & Rental IncomeAs previous sales prices are on public record for every property in Florida and as the current market value estimates we provide are sourced from the Orlando Appraisers office, investors can easily calculate the huge value in the low purchase prices of the bank owned properties we carefully select.
While there are often large differences between a property agents optimistic rental income estimates and the reality on the ground, investors in Florida can verify that the gross and net income figures we quote are extremely accurate. Firstly, there is a monthly publication called Apartments for Rent that lists units for rent across Metro Orlando with guide prices. Secondly, our partner management company has many years experience of renting properties in the micro areas we focus on, and thirdly, there are many other rental companies offering units to rent across metro Orlando which can be quickly compared against our quoted figures.
Conclusion
In short, Someplace Else does a lot of work behind the scenes to provide a completely hands off purchase process for this unique and very time sensitive investment product. The best properties are selected daily, the legal paperwork is processed efficiently, tenants are in place within weeks of closure, accountants are in place to take care of tax affairs and secure online bank accounts are quickly opened.
There's lots of further information on our website. As always, my colleagues and I look forward to hearing from you soon.
Regards
Colin Murphy
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