US Housing Market Showing Signs of Recovery

Good afternoon and welcome

At the end of a very harsh week, both in terms of snowfall and political fallouts, it is very easy to forget how flexible and adaptable the US economy is compared to our own. When I was in Florida a couple of weeks ago, I was immediately struck by the no nonsense approach individuals, banks and companies were taking in response to their property crisis. These were clearly people who had identified their problems and accepted the severity of the solutions needed to solve them.

Let me illustrate by way of examples I found on the ground:

- Property prices are considered overvalued? Keep reducing them weekly until people start buying. Those who reduce quickest will sell quickest.

- A huge property developer is struggling to sell the remaining 20% of a project? Reduce the prices by 40%, offer financing, pay the taxes for a year and offer free furniture.
- An investor defaults on a mortgage? Foreclose the property and sell it at a 55% discount. If that doesn't work, try 75%. It sounds brutal, and it is, but it looks like it is working.

Consider the following figures just released by the Orlando Regional Realtors Association:

1. After more than a year of monthly falls, December 2008 was the 4th month in a row that sales volumes increased, with January likely to be the 5th month.

2. There was 21% more properties sold in December 2008 than December 2007 and the average time a property spent on the market before being sold also fell in December 08.

3. The median price of a property sold in Orlando in December 08 was $169,900. This is 2.3% higher than the median price in November. Has the bottom of the market been reached?

4. The median price of the foreclosed properties sold to Someplace Else Investors to date is $70,300 - over 60% lower than the average price of all Orlando properties being sold. This very clearly demonstrates the value of the investments we are sourcing (which are all located in affluent neighbourhoods).

Because of the drastic measures taken to attract new buyers, it is starting to look like supply is finally starting to decrease again. This is a market that deserves to be taken very seriously. Once you've done your homework and purchased in the right areas, it is becoming increasingly clear that Orlando's economic strength will deliver both stable rental income and capital appreciation for you.

A Landlords Point if View

Let's take another look at this from a landlords point of view - even though prices have taken an absolute beating over the last 18 months, rental rates have remained remarkably stable. Why is this? The answer is simple: people need to live somewhere. Orlando's population continues to increase (it is the 2nd fastest growing city in the whole country), and as the numbers of foreclosures increased, mortgage lending standards tightened, forcing sales volumes down.

Regular people just can't get a mortgage right now. Most young professionals have to choose between living with their parents and renting a nice property.

How can Someplace Else help me make a profit from this?

We have a local team of professional and licensed experts on the ground in Orlando, who continuously research and carry out due diligence on well regarded and affluent local neighbourhoods with strong local amenities. We only list properties which have a high rental demand and are offered in excellent condition.

Absolutely everything we sell in conjunction with our local partners is 100% turnkey.

We source properties
We organise viewing trips (Aer Lingus have a great sale at the moment),
We process paperwork
We open bank accounts
We apply for non resident tax numbers
We find tenants
We offer rental guarantees
We file annual tax returns.

If this is something you want to get involved in, please download and read our brochure and have a look below at the properties available as of today.


Kind Regards

Colin Murphy