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Irish Government takes on foreign property debt | investment property sales

While Irish taxpayers will understandably be galled at the thought of paying for non performing investment property sales loans; I don’t really see what variation it makes whether the loans based on the purchase of Irish or foreign land. The purpose of the National Asset Management Agency or the “bad bank” as it’s more commonly known, is to offer certainly about Irish banks balance sheets by removing assets whose value is worrying investors.

This should give investors a measure of reliance, as the government is effectively forcing the banks to write down the value of the loans before taking them over. However, they’ll be concerned about the (vague) levy that could be charged back to the banks (and hence their investors) if the Irish government makes a loss on these assets down the line.investment property sales

I really think the worst executing loans are going to be those given to buy scandalously overvalued Irish land investment property sales(a prime example being the Jurys Ballsbridge site in D4). I don’t see why they wouldn’t be able to recoup a decent percentage of loans given to purchase in places like Florida and Birmingham (given time), although I’d imagine most of the Eastern European loans (a very small percentage of the total) will simply be written off.

Recession ‘likely over’- Fed Reserve Chief | investment property sales

Federal Reserve Chairman Ben Bernanke said today the bad US recession since the Wonderful Depression was likely over but warned the recovery would be slow and take time to create new jobs.investment property sales

“Even though from a technical point of view the recession is most likely over at this point, it’s still going to feel like a very weak economy for some time,” Mr Bernanke told a questioner after giving a speech to a Brookings Institution conference.

“The general view of most forecasters is that that pace of growth in 2010 will be moderate, less than you might expect given the depth of the recession because of ongoing headwinds,” he said, warning that this would delay job creation.

US unemployment has soared to 9.7 per cent since the recession began in December 2007, and is forecast to push to 10 per cent in the months ahead.investment property sales

Elsewhere, US retail sales rose at the fastest pace in three-and-a-half years in August and a gauge of New York State manufacturing hit a near two-year high, offering hope of a solid recovery from recession.

A separate report today showed charges received by US producers rose more than expected last month, suggesting business was improving.

Economists are generally in arrangement that the US economy is in the early phase of recovery from the worst recession in seven decades.investment property sales But many remain worried about lacklustre consumer appeal, with rising unemployment decimating incomes.

The Federal Reserve will look at the data at a conference next week at which officials will resume debate on how best to withdraw the extraordinary support they are providing the economy.

Knight Frank figures suggest that signs of recovery are now very evident | investment property sales

As costs in the world’s most popular 2nd home destinations for international people hit rock bottom, interest rates fall and stock markets remain volatile, a growing number of industry specialists believe that the first signs of recovery in the market are being seen.

Leading the price are high net-worth (HNW) individuals, according to the latest Wealth Report from Knight Frank, with 55% recognising present fundamentals and planning to increase their exposure to residential investment property sales over the next two years.

“In turbulent times the wealthy want their investment opportunities to be both tangible and clear,” said Liam Bailey, head of residential research at Knight Frank.

HNWs are not the only ones looking for a relative safe-haven for their cash at present. In spite of very hard economic conditions and significant falls in the value of Sterling, searches for international investment property sales on Primelocation.com increased in January 2009 by 72% month-on-month and broke through the one million barrier in February, according to data released on Friday.

Some analysts believe that the resurgent mortgage market in the UK is also behind the sudden rise in confidence.investment property sales

“Further evidence that the pick-up in buyer interest in the housing market [UK] is feeding through into actual activity is evident in the latest mortgage approvals data from the Bank of England,” said Simon Rubinsohn, chief economist at RICS. “The number of mortgages sanctioned in February climbed to the best level since May 2008.”

Canadians vision USA investment property sales

A staggering 20 per cent of all Canadians would presently weigh purchasing investment property sales in the USA, a new survey from BMO Bank of Montreal, conducted by Leger Marketing, shows.

Lower USA property prices and a strengthening Canadian dollar have fuelled higher demand for homes in the States.

General property prices in the USA have declined by round 30% since the market place peak of 2007, but costs in Canadian snowbird destinations, including Florida, have dropped even more.

According to the account, Miami property prices have fallen by 49%, while greater investment property sales cost declines have been recorded in Phoenix (-54%) and Las Vegas (-57%).

“Now, with the American economy and employment gaining power, residence sales should pick up and put a floor under soft prices,” said Sal Guatieri, senior economist, BMO Bank of Montreal.“We expect prices to rise over time as the overhang of unsold homes eases.”

Guatieri projects that the U.S. dollar will strengthen in the next few months, which would add to the investment potential for Canadians who buy property in the USA now, as they would realise larger returns, should they choose to sell their USA property and repatriate funds back to Canada.

Overall international appeal for homes in the USA is growing among investment property sales investors across many parts of the world, which could ultimately help push property prices higher.

investment property sales | Sterling hits 15-month high against U.S. dollar

The UK pound’s amount has appreciated to a 15-month high against the U.S. dollar after beneficial data showed developer prices in the UK rose faster than desired in March.investment property sales

Sterling advanced to latter high of $1.64 against the dollar, which is good news for Brits presently looking to buy a home in the USA, or any other nation which possesses a cash pegged to the U.S. money. This is because the more favorable exchange rate inevitably lessens the cost of buying property in USA for Brits.

The pound has risen more than 5% against the struggling greenback this year, and this latest sterling/dollar exchange rate is the highest since January 2010.

The recent weakness in the dollar has seen the UK pound recover by very nearly 25% from the 23-year low of $1.35 it hit in January 2009.investment property sales Though, the British currency even now remains way down below the $2 level witnessed in July 2008.

The fact that sterling is weakening against the euro acts as even more of an incentive for Brits to look beyond property markets in the eurozone and buy property in USA, with Florida typically the most popular place to invest.

Alejandro Zambrano, currency analyst at FXCM, told Reuters: “Against the euro, the British pound will suffer, and we have just upgraded our outlook for euro/sterling.

“We expect the euro to hit 91.50 pence within the next three months.investment property sales Inflation is the key, and while the BOE’s Mervyn King does not appear too keen to raise rates, we expect the ECB to be on the watch for inflationary pressures.”

Property Florida | How home prices affect our everyday lives

There are nevertheless wonderful units remaining in our fully accomplished and tenanted growth in Property Florida – one bed apartments start at less than $50,000 (€35k / £30k). With a higher (and effectively guaranteed) net rental yield these units are worth serious consideration. This has been by far our most popular Orlando development.

Golf enthusiasts may want to have a look at our cheaper Spanish growth in Almeria (pictured above) – this is a true quality growth that meets all my option criteria.

Encouraging Home Rate Stats

After a (very) long winter, spring seems to have brought a touch of natural light to American home costs. The newest Case Shiller indices were released last week and they showed that average costs continued to fall in April 2009: the ten city index was 0.7% lower the 20 city index was 0.6% under the previous 30 days. What’s interesting to me is that these are the lowest falls since June 2008. The case for those declaring the worst is over continues to gain momentum.

Despite continued pessimism in some sectors of the industry, the statistics point to comparable converting points in the UK; with Nationwide reporting price rises of 0.9% in June and the Bank of England announcing four several weeks in a row of rising mortgage approvals in May.

Shouldn’t we be concentrating on something else?

Most people (although hopefully not too many audience of these newsletters) Property Florida can be forgiven for wishing journalists and commentators would simply shut up for a while about the trends in the housing and mortgage areas and concentrate on more important things like reducing joblessness and improving healthcare.

I am also especially concerned about the crazy tax burdens in Ireland – €13 billion was collected via income tax in 2008 (it will be less in 2009) but the government is about to pay €50-70 billion for the poor assets in our banking system. You know what they say – €10 billion here and €10 billion there and before you know it, we’re talking true currency.

Link between house costs and client spending

However, and whether we like it or not, the focus on the housing industry needs to continue since it has direct links to many other sectors and residence prices directly affect client spending. Merely put, if people know that their residence is increasing in value, they will tend to spend more funds (and vice versa). In economic jargon, this is referred to as the Wealth Effect and it is very influential. The economic policy models of the Fed Reserve assume that a person whose house appreciates by $100,000 will increase his spending by the same proportion as a person who receives an extra $100,000 in stocks, shares and regular income.

Declining home prices also limit a banks willingness to lend money – not just for houses but also for cars, business start ups, vacations and general Property Florida. Far too most people who should have known greater lost sight of these forces.

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Property Investments Florida | New ways of purchasing discounted/distressed properties

As usual, please feel free to skip my opinion piece and go straight to this week’s Property Investments Florida deals – we’re promoting half price and high yield projects in Orlando Florida & Birmingham city centre, with plenty more available on www.torcana.com.

We have had an interesting couple of weeks, with a lot of Birmingham units sold to American investors and quite a few Orlando units sold to British investors. As always, our Irish investors are purchasing a wide variety of products with the levels of research & due diligence prior to reservation markedly higher than previous years.

Most of you know that we have been selling foreclosed properties in Orlando since last autumn, and it is a very good way of purchasing an undervalued buy to let asset. However it can be a frustrating experience as well, as clients are usually bidding against several people for the same property, and once an offer is made, you usually have to wait 2-3 weeks to receive an answer. If the bid was unsuccessful we need to start again. Once a good bid is accepted and processed, the management company process starts, with the lucky landlords obtaining new tenants within 4-6 weeks.

Torcana manages this whole process (and much more) from start to complete and we do good to minimize the work a client needs to do. However, once we’d processed a lot of these units and set up a very robust network of local contacts, it became evident that there was also a much better way of doing this, both the agents and the buyers point of view.

Is there a greater way of purchasing these properties?

As has occurred in Ireland & the UK, when the credit crunch was causing misery for local Orlando developers several decided to try and ride out the storm by furnishing and renting out the remaining units themselves while waiting for the market to turn. Makes sense right? But what if we could obtain a developer who owned and rented high quality units and was about to be foreclosed by a bank? Let’s say we find one who needs to raise $5 million in 30 days or the bank will seize his assets. Would he be willing to sell 100 of his properties to investors with tenants in place at a foreclosed price level (say $50,000) in order to avoid the excruciating foreclosure process? If you can convince him that you’ll be able to sell them, then yes, he certainly will, which is what our Tradewinds development is all about.

This ticks all the boxes in terms of location, superior, price and rental yield. It has all of the benefits of a foreclosed Property Investments Florida (highly discounted price, v high rental yield) with none of the headaches (bidding method, red tape, finding tenants). Over the next 3-4 months we will be sourcing more of this development kind, although it will be difficult to another Tradewinds with one beds at $49,900 and two beds at $59,900. You’ll find more information below, or you can contact us straight if you would wish to learn more.

New Distressed Property Mortgage in Spain

Don’t forget about Spain though – the director of one of the banks we deal with called my office on Wednesday to let me know they’ve launched a new mortgage product specifically for people purchasing distressed Spanish properties. Loan to value of up to 90% available for anybody resident in an OECD country, with low application fees (0.35%), low interest rates (around 3%) and terms up to 40 years.

It’s a big deal that a Spanish bank has launched a 90% mortgage product specifically for these properties, as most of them have their heads completely in the sand. For instance, myself and my (Spanish) wife can’t even obtain 90% for a regular Property Investments Florida in Madrid!

This new mortgage is perfect to utilize with our Granada product, which will achieve net rental yields of up to 8%. If you would like full details, please let me know asap.

That’s it from me this week. Don’t forget that all previous newsletters are published in our archive. You can also leave comments and read further articles on the Torcana Blog.

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Property Investments Florida | What has changed and what new trends are emerging?

As usual, please feel free to skip my viewpoint piece and go straight to this weeks Property Investments Florida deals – we’re promoting brand new projects in Tampa Florida (waterfront from $90k) and in Birmingham UK (canal views from £58k), with plenty more available on www.torcana.com.

I am happy to report that June is shaping up to be our busiest month of the year, with a very wide range of discounted properties purchased by our clients at 45-65% below retail rates.

Jan-Jun 2009: What has changed?

This probably owes a lot to the massive change in investor sentiment over the past 6 months; it’s been like night and day.

Don’t obtain me wrong – I still feel strongly that our wider economies have several hard and very sluggish years ahead. The disease may have been diagnosed and we may have been moved out of the ICU, but the necessary medicine is going to be extremely unpleasant for us all. Governments who refuse to take it will get eventually themselves back on the operating table.

1997-2007: The Typical Investor Strategy

The profitable strategy of the past decade is fairly easy on paper – find a reputable builder, reserve in a good location with strong local demand which will be built in 2-4 years time, negotiate generous reservation and finance terms, find good legal advice, and wait for capital appreciation during the construction stage. Sell a couple on completion to obtain your deposits back, rent some out for a few years then sell them too, and keep the majority for the long term. The reality is way more complicated than that, but hundreds of thousands of people have been doing it skillfully.

Same hardened buyers, completely new rules

Times are changing though, and these same hardened buyers are now pursuing a new strategy with equal vigor – instead of putting down small deposits on overpriced offplan apartments or condo hotels they are snapping up completely finished Property Investments Florida at discounted prices in prime locations.

Why? As we all know, just as global provide reached its zenith, finance dried up and demand fell off a cliff. Developers are really struggling to sell excess stock, which means they’re under pressure from the banks that financed them. When reserves run out new cash must be raised. If the developer doesn’t drop his prices dramatically to stimulate demand the bank will seize the properties and will do it for him. Pretty tough, but that’s the business they’re in and they knew the risks involved.

Which developers still have their heads in the sand?

Ireland’s developers have more energy than most over their lenders, so they haven’t been forced to face this fact yet, but they will soon and a marketing brand called Nama has been created to deal with it.

As you can clearly see from the three projects below, companies and financial institutions in the USA and the UK have been facing their liquidity demons, and investors are only too pleased to provide them cash in exchange for the bargain of a lifetime. In Florida’s case – 2000/2001 prices; and in Birmingham – half price on the current retail rate.

Property Investments Florida can afford to be very choosy, and they need to be, because the truth is most distressed properties are simply not worth buying. If it’s not in a excellent location, if it’s not at least 70% sold, if the local demand isn’t there, if they’re too many similar properties nearby and if the build quality isn’t great, then my advice is to stay away.

Where does Torcana come into all this?

Our job is to guide you through these hurdles (and more) and to make sure you obtain it rented out at a high yield. We also make sure that your legal, banking, currency, tax and accountancy affairs are all in order.

This is our market niche and we’d love to talk to you about it.

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Property Investments Florida | Offplan Emerging Market vs Discounted Developed Market

Apologies for the longer than normal delay between issues – a very hectic travel schedule over the past 10 days taking in conferences in Brazil, meetings in London and site visits in Granada, Almeria and Birmingham has robbed me of the time I generally set aside to write these newsletters and blog postings.

However, our website www.torcana.com has been updated daily with new projects and my colleagues have been kept extremely busy from a big influx of enquiries from PR exposure in Business & Finance Magazine, The Sunday Times and Homes Overseas Magazine.

I wasn’t in Fortaleza Brazil last week to look at local property developments (although I did do that too); I was actually there to deliver a series of presentations to a big real estate conference attended by international property investors. I was the only person there promoting European property and the only person discussing the strategies available to those seeking to purchase highly discounted property from distressed sellers.

Hardened Property Investments Florida who had arrived with the intention of purchasing offplan condo hotel or vacation property in South America were surprised to find themselves really seriously considering purchasing city centre property in Birmingham or vacation homes in Andalucía instead. They simply weren’t expecting an Irishman to stand up and offer them top quality ended properties in these locations at lower prices and higher rental yields than their offplan South American equivalents. It was a great success for Torcana overall, and if any of our normal clients would like to view one of the presentations I delivered please click here.

Tips for Spain

There is an enormous glut of properties in Spain currently, and we are really picky regarding the kinds of developments we select. My top tip for those seeking the perfect mix of Property Investments Florida and vacation is our new 288 unit development in Granada. We have negotiated exclusive discounts jointly with the bank and developer and independent research forecasts net rental yields of 8%. It is a beautiful resort in an unbelievable location with access to beaches (10min), golf courses (15 min), ski slopes (35 min), airport (25 min) and the historic town centre of Granada (20 min). You can find further information below.

Generally speaking, I would advise buyers to stay clear of big developments (I get nervous when they are bigger than 300 units) and high density developments (more than 3 storeys). You should be purchasing units that are least 30% lower than the previous purchase price and that are at least 65% sold (to avoid risk that community fee method will collapse). And of course, don’t even think about purchasing offplan, with hundreds of thousands of unsold finished properties available all over the country at bargain prices, there’s simply no need to take that risk.

Birmingham

Those seeking a good value city centre Property Investments Florida and a steady rental income in sterling should definitely download the brochure for our Flatiron Development. Birmingham might not be the most incredible city in the world, but it’s the UKs second most necessary after London with five universities, a thriving business sector and 42% of the countries exhibition and conference trade. Most importantly, properties are half the price of the capital city and we have secured 35 units at a 40% discount on a 2009 valuation in a modern and centrally located residential development. This is a safe bet for medium term capital appreciation with rock solid rental yields and low interest mortgage financing. Prices begin at just £71,000 (previously on sale for £156,000).

That’s it from me this week, wish you are enjoying these newsletters and looking forward to your questions, feedback and enquiries.

As always, there’s a great selection of properties for you to look through below.

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Property Investments Florida | Top ten points on purchasing discounted property in Florida

I´ve written this article as a tip to those considering a purchase in Property Investments Florida. While property prices are at report lows and incredible bargains are available, it is just as simple to make the wrong purchase decision now as it was during the boom years.

Many of these methods are universal and can be applied to any property market. I would imagine that a lot of our viewers would adhere to this criteria automatically but its usually helpful to present this type of data in an quickly digestible format.

Here are my top ten methods:

1. Do your homework on the neighbourhood

2. Visit the property yourself, or have someone you trust do so

3. Check out the rent roll

4. Foreclosures: Make sure the number is manageable

5. HOA Reserves: Be sure they’re adequate

6. Budget for repairs and vacancy periods

7.Closing and running costs: Make sure you know what they’re

8. Get a decent management company and be aware of all fees

9. Get a referral from the selling agent

10. File your tax returns

1. Do your homework on the neighbourhood

You can look up the average household income and crime statistics for any neighbourhood in a matter of minutes and it could save a small fortune. Imagine that you´ve a choice between one Property Investments Florida selling for $50,000 in an area with an average household income of $25,000 and another property selling for $60,000 in an area with an average household income of $40,000. You´d be much best paying $10,000 extra for a better rental and resale market.

2. Visit the property yourself, or have someone you trust do so

An advert promoting a $30,000 property within 12 minutes of Disney might sound like a no brainer. The thing about Orlando is that nearly every neighbourhood, good and bad, is within a 10-20 minute drive of hotspots like Disney, Universal Studios, Sea World and Restaurant Row.

Like most big cities, good neighborhoods with large mansions can be less than a mile away from horrible ones with rows of boarded up properties. You need a lot more than Google maps to determine if the area is good or not.

3. Check out the rent roll

If you are buying a pre tenanted property with the aim of earning a regular income, then ask to see an up-to-date copy of the rent roll. This offers invaluable information such as how many units are vacant, what each unit is renting for, when each lease started and when each lease will expire.

4. Foreclosures: Make sure the number is manageable

The more stable a community it is, the greater for all home owners. If you are thinking of buying a unit in a community of 300 homes and 80 of them are in foreclosure, you could be in for a rocky ride. These properties will probably be sold for much less than what you´re paying for yours and rented out for less than you can afford to rent yours out for. Try and buy somewhere where less than 10% are in foreclosure.

5. HOA Reserves: Make sure they’re adequate

In Florida, all condo home owners have to pay HOA fees which often range from $200-$300 per month. Your Home Ownership Association (HOA) is responsible for looking after the common areas and facilities of the whole community and insuring the common areas and exterior structures of all buildings (i.e. walls & roofs).

Ask for a copy of the HOA accounts before purchasing a unit. This should tell you how many people are paying their HOA fees and what reserves they have in place. If either of these is inadequate, you could be in big trouble as your fees will be improved dramatically if a) the clubhouse roof needs to be replaced and they have insufficient reserves or b) not enough people are paying their fees to maintain the resort on a monthly foundation.

6. Budget for repairs and vacancy periods

All properties, from the top to the very bottom of the food chain are going to have vacancy periods and repairs that will eat into your income stream. Budget at least one month’s rental income each year being spent on these issues. Older properties, less expensive properties and properties in low income neighborhoods will have much higher vacancy and repair costs than newer properties in middle class and upper middle class areas.

7. Closing and running costs: Make sure you know what they’re

For properties priced in the $50,000 – $150,000 range, you should budget approx $2000-$2500 to cover simple legal and title insurance. Running costs include HOA, real estate taxes, property management and home insurance (optional but highly recommended).

8. Get a decent management company and be aware of all its fees

A professional management company that manages your property and your tenants well over a number of years is worth its weight in gold. In almost every scenario, it does not pay to appoint a small inefficient company who undercuts bigger and larger competitors with low-cost commissions.

The best your management company is at doing his/her job, the happier the tenant will be and longer he/she will stay. All management companies cost additional fees for placing a new tenant or renewing the lease of an existing tenant, so you should make yourself aware of these and input them into your calculations.

9. Get a referral from the selling agent

If your agent has been in business for a few years, he/she should be happy to put you in touch with a couple of satisfied clients who can confirm that they’re happy with the service received. This is especially important if you are dealing with overseas agents who are promoting properties in an area where they are not based full time.

10. File your tax returns

All property owners in the USA must file tax returns in the USA every year, even if the Property Investments Florida is not earning any income. Overseas residents will need to get a tax number (ITIN) and a non resident social security number. This is a very easy process and filing returns every year shouldn´t cost more than a couple of hundred dollars and there are plenty of specialist companies who can take care of everything for you.

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