With a 13% increase in Floridian home sales, the future of the ‘Sunshine State’ becomes brighter

by United States

The Floridian housing market may well be heating up according to a recent report from the National Association of Realtors, seeing sales of existing homes climbing by 13% in Q1 2011 compared to the same period last year, with 17 of 19 metropolitan areas in the Florida state recording more property sales.

In light of increased sales, data sourced exclusively from TheMoveChannel.com, a leading overseas property search portal, has shown that enquiries for Florida property are up by 61% in June 2011 compared to June last year whilst the total number of enquiries in H1 2011 are more than double that of H2 2010.

Additional data from TheMoveChannel.com indicates that 2 and 3 bedroom condos are the most popular searched for properties in Florida and that peak enquiries for the ‘Sunshine State’ take place during the winter months between December and February.

The major city of Orlando, located in the central region of Florida saw 62.53% of sales completed in May this year for distressed properties; however Orlando has slowly started experiencing a rise in traditional sales, indicating the market is moving in the right direction, given that non-distressed properties sell at higher prices. And certainly, as tourism continues to surge, with the city being the first to surpass the 50 million mark last year with Buddy Dyer, Mayor of Orlando and Florida officials announcing that Orlando pulled in 51.45 million tourists in 2010, beating New York to the post as the most visited place in the US, property sales are likely to continue to rise as Orlando’s popularity grows and buyer confidence strengthens.

Ray Withers, Director of Florida property investment experts, Property Frontiers, comments,

“Florida, in particular Orlando, recognised as a ‘world city’ remains one of the most sought after vacation destinations especially for families due to the guaranteed sunshine and wealth of activities and entertainment available.

The market is on the up and it is certainly a good time to buy, particularly in Orlando where shrewd buy to let investors will be able to take advantage of the remarkably affordable property prices seeing as high quality homes such as Highgate Residences at Regal Palms, are now on the market for less that 50% of what they were priced at five years ago.”

Typically, Brits are considered to be one of the largest foreign buyers of Floridian property; however it appears that Canadians are starting to drive property sales, particularly in Orlando according to data from leading realtors Coldwell Banker Feltrim.

It has been stated by the Bank of Montreal that one in five Canadians would currently consider buying American property not only for personal use but for investment purposes and considering the current strength of the Canadian dollar as well as the country’s general economy, Canadian property buyers have superior opportunities for property investments spawned from greater borrowing powers.

One established resort development located in Davenport, only a short drive to Orlando, Highgate Residences at Regal Palms, is receiving serious interest from both British and international buyers keen to snap up the 3 and 4 bedroom fully furnished townhouses available from just $99,000.

These high quality properties are located only minutes from Walt Disney World and SeaWorld and provide a two acre swimming pool complex complete with lazy river, waterslides and sundeck making them ideal family holiday homes. Furthermore with an experienced onsite rental management company in place and average holiday rental occupancy rates of 64% being achieved forecast owners can be confident of receiving income when they are not using the property themselves.

A limited number of 3 and 4 bedroom townhouses are available at Highgate Residences at Regal Palms so contact Property Frontiers today on +44 (0) 1865 202 700 or for more information or visit www.propertyfrontiers.com.

 

The best of both worlds – why now is the right time to buy in Florida say experts

by Charlotte Ashton United States

The real estate market in Florida has undeniably been in decline since the heady boom years of 2006/7 however with property prices now reaching levels seen nearly a decade ago, it is savvy international buy-to-let investors who are snapping up prime properties at bargain prices. 

Floridian property experts Property Frontiers believe that the sunshine state has finally reached the bottom of the cycle and that home prices will slowly but surely begin to once again increase. This feeling is echoed by the Florida Association of Realtors (FAR) who has reported a 24% increase in existing home sales in March 2011 compared to the same time last year.

"A variety of housing opportunities are available at attractive prices across the state, while mortgage interest rates remain historically low," said Patricia Fitzgerald, 2011 Florida Realtors President.

Condominium style properties in particular are leading the way for sales with 9,703 units sold in March 2011 alone and it is foreign investors driving this come back. Non-US citizens, especially European residents are seeing low bank interest rates in their home countries and Florida today offers exceptional value for money in terms of the size and specification of property that you can purchase, the positive prospect of market recovery as well as homes offering appealing returns. Buyers can become the proud owners of a four bedroom condo with pool close to Disneyland for $150,000 in today’s market; prior to the market crash these properties would be sold for at least double that.

Florida remains one of the most popular global holiday destinations, something that British Airways is capitalizing on by increasing their long haul flights to Tampa to a daily service in response to the demand for travel stateside. This continued popularity for Florida tourism, some 82.6 million visited in 2010, an encouraging 2.1% increase on 2009 numbers, reinforces why buy to let investors with a keen eye on the market are now dipping into their pockets to secure their Floridian bricks and mortar, right at the beginning of the recovery in order to make maximum returns.

Ray Withers, Director of Florida property investment experts, Property Frontiers, comments,

“As with every market the old adage reins true of location, location, location. It is important for buyers not to be blinkered by some of the really cheap deals on offer in Florida; most of the time, cheap is simply cheap. You won’t attract the crucial holiday rental market to a low specification property in an out of town location, also the poorly located properties will be the last to come through the market depression and at a time when on the whole the property market appears to be at rock bottom spelling future positivity for investors, this would be a critical and costly mistake to make”.

Highgate Residences at Regal Palms for example in Davenport, just one hour from Tampa, unlike many below market value property offerings, is zoned for short term rentals which allows owners to let to holiday makers seeking fun and adventure at the nearby themes parks such as Walt Disney World and Sea World. These holiday lets will earn investors a guaranteed 8% net yield per year with only a modest 64% occupancy rate required to achieve this. Highgate Residences is a turnkey and hassle free investment opportunity which also offers plenty of personal usage for owners so they can make the most of their 3 or 4 bedroom upscale townhouses.

A limited number of townhouses are available at Regal Palms from $99,000 so contact Property Frontiers today on +44 (0) 1865 202 700 for more information or visit www.propertyfrontiers.com.
 

Look to America’s Heart for a High Yielding Property Investment

by Charlotte Ashton United States

With Sterling’s value increasing to a 5 month high against the US Dollar and the numbers seeking rental accommodation rising due to continuing foreclosures, it would seem that the window of opportunity to invest in the US remains very much open.

Over the past 18 months a steady wave of international buyers have snapped up below market value properties at bargain prices with the states of Florida and Michigan receiving the lions share of interest however now, as these markets stabilise in line with national economic recovery, savvy investors are looking for the next buy-to-let hotspot.
And it is to Heartland America that attention is turning. The mid-western states of Missouri and Ohio, home to the growing cities of St Louis, Kansas City, Toledo and Columbus, present a highly appealing investment environment with sustained demand for rental accommodation generated by the large employment base and detached family homes available at up to half below replacement build costs.
Steven Worboys, MD of US property investment experts, Experience International, comments,
“There is huge demand for rental accommodation from working families in the mid-western cities such as St Louis and Toledo. Up to 50% of residents in St Louis rent their homes with the majority seeking detached family homes. Property prices in these cities are well below the national median of $182,600 (Zillow.com) and owners can expect rental incomes of up to 12.5% in addition to capital gain.”
Combined these cities hold a population in excess of 6 million and have faired the economic storm better than many other higher profile cities. According to the U.S. Department of Labor, Kansas City has held a lower unemployment rate than the national rate with the healthcare and service industries replacing most jobs lost in the manufacturing sector and Columbus has been ranked the nation’s 6th most stable market by Standard & Poor’s as well as one of the 10 safest real estate markets in the US by the P.M.I. Institute.
Data from the National Association of Realtors (NAR) revealed that property prices in St Louis for Q1 2010 were higher than the previous 12 months with appreciation at 15.1%, Toledo showed 13.3% appreciation, Columbus 6.3% and Kansas City 3.2% over the same period
Worboys continues,
“Many believe that the entire US was affected to the same extent by the recession but this is simply not the case. Indeed some states saw significant unemployment and as a consequence thousands of foreclosed properties but many states such as those in the Heartland due to diverse employment sectors avoided worst case scenarios and now as the economy shows continued albeit slow growth these cities are the first to recover.”
It is this recovery that shrewd international investors are keen to capitalise on. With 3 bedroom detached family homes available from as little as $24,500 (with 50% LTV finance) entry into the Toledo property market for example requires low cash outlay. Fully refurbished properties in sought after areas can expect to generate up to $860 per month and are sold with tenants already in place on long-term leases. 1 year’s home maintenance is also included and investors can take advantage of exclusive finance packages available.

To find out more about investing in property in Heartland America then contact the experts at Experience International on + 44 (0) 207 321 5858 or visit www.experience-international.co.uk.

Detroit ranks No.1 US Housing Market in 2010

by Charlotte Ashton United States

 

Known as the “Renaissance City” the regeneration of Detroit is unequivocally underway with the latest Housing Predictor forecasts ranking the city number 1 housing market in the US with 21.5% growth forecast for 2010.
 
There remains a shortage of some 30,000 rental homes in the Metro Detroit area and savvy buy-to-let investors are purchasing refurbished family homes in the most sought after locations at prices as little as £32,000, up to 40% below market value.
 
Steven Worboys, MD of Experience International which is marketing properties in Detroit, comments:
 
“Since launching this unique investment opportunity in 2009 response has been overwhelming with over 250 units purchased and clients are already benefitting from rental income and yields of 21% per annum.”
 
 
US Auto Industry Back on Track

The US automobile industry, which plays a key role in the ‘Motor City’ of Detroit’s economic recovery, is also very much back on track with Ford Motor Co. posting a $2.1 billion profit for Q1 2010, continuing the run of four straight quarterly profits since 2005.
 
In a recent address US President Barack Obama remarked on the turnaround of the motor industry saying “the industry is recovering at a pace few thought possible”. In addition to Ford, Chrysler has announced an operating profit for Q1 2010 and it is reported that General Motors has created over 45,000 jobs with an additional 1,200 expected to be saved this year by the construction of a new vehicle in a factory just north of Detroit.
 

Employment Prospects Strong for Detroit

Detroit is very much a working city generating demand for affordable accommodation and prospects for future employment look strong as private and government investment flows in. The proposed construction of the $5.3 billion Detroit River International Crossing project which will connect Detroit to Windsor, Ontario on the Canadian side is forecast to create 10,000 construction jobs and more than 221,000 jobs in Michigan.
 
If you are considering investing in Detroit and capitalising on the demand for rental accommodation then 3 bedroom family homes are available from as little as £32,000 including buying costs and a complete refurbishment by The Home Depot, with ongoing tenant management and the first 2 years of maintenance costs paid making this a truly hands free property investment.
 
As Steven Worboys concludes:
 
“When purchasing in Detroit it is essential to select the right properties in the right locations. We work with expert local partners based on the ground in Detroit who are able to identify for our clients the premium roads and suburbs in which to buy and can gain access to the most desirable properties as soon as they become available.”
 
For more information on the properties available or a detailed Detroit Investment Report please contact Experience International on + 44 (0) 207 321 5858 or visit www.experience-international.com.

Be the “buyer who benefits” – Top 10 Reasons to invest in Florida

by Charlotte Ashton United States

With billionaire real estate investor Warren Buffett proclaiming recently that “within a year or so, residential housing problems [in the US] should largely be behind us”, investor confidence in the US and more specifically the perennially popular Floridian real estate market has returned.

Despite the outlook for the US economy being more positive in 2010, recovery is not expected overnight and there still remains substantial Below Market Value housing stock available. In the Sunshine State of Florida in particular up to 72% discounts are available from most recent selling prices.
Steven Worboys, MD of international real estate experts, Experience International comments,
“From our extensive research we believe that Below Market Value property in Florida remains one of the most attractive investment opportunities available today. Working in partnership with Florida’s most trusted and experienced real estate experts we have sourced a selection of premium properties in highly sought after locations at up to 72% below recent selling prices.”
 
Top 10 reasons to invest in Florida
For those considering purchasing property in the US, here are 10 top reasons to invest in Florida to ensure that you are, in the words of Warren Buffett, the “buyer who benefits”:
 
 
  1. Robust economy – Florida’s accounts for 5% of the nation’s total economic output and industry diversity has ensured stability over the last 12 months
  2. Key location for international trade – 40% of all US exports to Latin and South America pass through Florida with Miami airport handling more international cargo than any other airport in the country
  3. Business-friendly taxes – Florida remains among the top 10 states in the nation when it comes to having “business friendly” taxes (Jacksonville Observer 2009) in turn boosting the local economy
  4. A growing population – the 4th most populous state in the US is still experiencing growth with University of Florida´s Bureau of Economic & Business Research forecasting an increase from the current 18.75 million people to about 24,971,000 in 2035.
  5. An affluent population – Not only increasing in numbers but also in wealth, the per capital person income of Floridians is $39,267 (2008) showing continued year-on-year growth.
  6. Low property prices – Median real estate prices for Florida average 25% less than the national average, $138,200 vs $184,700 respectively (Zillow Jan 2010)
  7. Abundance of BMV housing stock – More than 500,000 homes received foreclosure notices in 2009 bringing to the market large numbers of high quality stock at up to 70% Below Market Value prices.
  8. World class tourism destination – Florida attracted over 80 million visitors in 2008 and with attractions such as the new Harry Potter theme park opening in Orlando, expectations for sustained levels of tourism are high
  9. Highly developed infrastructure – first class interstates, highways, train and air links ensures that accessibility to and within Florida is quick and easy
  10. The Sunshine State – with a year round sub tropical climate, Florida’s 350 days of sunshine per year are a real draw not only to overseas visitors but US nationals alike
To view the latest Below Market Value opportunities in Florida please contact Experience International on + 44 (0) 207 321 5858 or visit www.experience-international.co.uk.

Detroit turns to motoring its property market

by Charlotte Ashton United States

 

Detroit, once the centre of America’s automobile industry, is now probably better known by investors as the ‘property investors dream’. Hit heavily by the US economic downturn and property foreclosures, Detroit has a large supply of under market value property. The city is said to have coined the $1 home phenomenon, and despite $1 being an extreme case, it can certainly be said that you can buy a home for less than the cost of one of Detroit’s newly manufactured cars.
 
Detroit is the largest city in the State of Michigan and one of the most important cities for research and development in manufacture in the US, attracting over half a million high tech workers (the fourth highest figure in the US) including the 70,000 in the automobile industry. However, despite the continued government investment in the city’s economy and infrastructure, a shift in urban sprawl to the suburbs and the subsequent housing crash has left the metro Detroit area seriously lacking in affordable housing.
 
Detroit’s real estate market is now fighting back with the help of the Department of Housing and Urban Development scheme (HUD), plus a collaboration of city officials, business people, politicians and property investors. President Barack Obama has himself pledged to support the regeneration of Detroit in the American Recovery and Reinvestment Act 2009. Property investors can benefit from an ethical investment that recycles houses, turning foreclosed and uninhabitable properties back into homes for the employed, low-income sector. And with a waiting list of over 9,000 people hoping to be one of the lucky ones to live in one of the newly desirable homes, there certainly is the demand.
 
But how does the HUD programme work? Well crucially the HUD and HCV programme has a ‘one strike policy’, unlike the UK and other parts of Europe where unruly tenants get re-housed, this does not happen under this scheme, which is a huge attraction for investors. Tenants that are evicted from the HUD scheme lose any future right to a HUD scheme home anywhere in the USA thereby securing the investment homes. Through HUD the government pays the tenant’s percentage of the rent, normally 80-100%, directly to the owner’s management company so investors are not reliant on collecting rents from the tenants personally.
 
Currently the City of Detroit has a waiting list of more than 9,200 pre-approved families with Housing Choice Vouchers (HCV) who are currently in unsuitable, emergency or temporary accommodation, some simply cannot find a suitable home. Understanding the HUD scheme leaves three more crucial elements to the investor puzzle, purchasing the houses, refurbishing the houses to government standards and managing the properties and tenants. Experience International, has enveloped this up for investors into an easy hands-free package, their ‘high yield, high quality, Detroit property investment’.
 
For the investment to work for both the investors and the re-housed tenants, only certified, quality companies are involved. The Home Depot Inc, a Fortune 500 US company, takes care of the property refitting plus provides a 24 month guarantee on all fixtures and fittings; Management Systems Inc, providing property management in Detroit since 1973, handles all the property and tenant management for the investor. It is Experience International that selects the properties through their local business partnerships, and yes, although properties for as little as $1 dollar are available they are in undesirable areas or even ‘no-go’ communities, hence better quality units being selected from £27,575 / US$45,500.
 
‘Regenerating’ the Detroit real estate has a massive impact on the community as a whole. If houses are left empty, they attract vandalism and have a huge negative impact on their surroundings, further driving out residents from the area, creating a spiral of decline. When properties are maintained they appeal to employed and more desirable tenants, who will in turn continue up the economic ladder, eventually creating housing and community stability. The fact that Experience International recommends the ‘Lease to Own’ scheme to investors further reinforces the positive effects of maintained housing in the community. 5 years after purchasing your 40% under market value home, you can sell the property to your tenants for a pre-agreed price, normally higher than the current appraisal or market value. Your tenant will of course want to look after their property within that 5 years with the knowledge that they will be owning it in the mid-term.
 
Exit strategies are the key to any sound investment and the ‘Lease to Own’ scheme is a valuable and ethical strategy. Other options include long term hold allowing investors to gain further yields from capital appreciation.
 
For further information on investing in the City of Detroit contact Experience International on 0207 321 5858 or visit their website on www.experience-international.com.
 
 
——– ENDS ———
 
High yield, high quality properties, Detroit, State of Michigan USA:
 
·         3 bed houses £27,576, 4 bed houses £28,484 – 40% below market value (plus approx £3,500 buying costs)
·         Freehold – clean, clear and debt free
·         21% yields, Government backed (HUD – US Department of Housing and Urban Development) scheme. Secured rental paid back by the US government to you the owner (not tenant)
·         All initial refurbishment costs and work covered by Home Depot Inc. A Fortune 500 company
·         Fully managed and regularly inspected by Management Systems Inc. Management services in Detroit since 1973
·         Large waiting list for qualified tenants (over 9,000),
·         Choice of 3 exit strategies. Tenants ‘lease to own’ scheme, long term hold, short term refinance – long term hold.

An American icon comes to Thailand

by Charlotte Ashton United States

It’s not hard to imagine that anyone given the names Christopher and Columbus by his parents would have to be interested in boats. This was certainly the case with Christopher Columbus Smith, born in 1861 in Detroit. He was fascinated by boats, building his first wooden one – a rowboat – at the age of 13. By the time he was 20, he and his brother, Henry, were working full-time building high-quality boats to order.

In 1910, the brothers, with partners, registered the Smith Ryan Boat & Engine Co. The name was changed in 1924 to Chris-Craft Inc. The rest, as they say, is history and the company earned a reputation for producing high-quality, sleek, mahogany powerboats. As early as the 1920s, Chris Craft was offering a one-year warranty against manufacturing defects, claiming its boats were “so nearly trouble-proof that this guarantee has cost an average of only $6.00 a boat”.
The good looks and quality attracted high-profile buyers such as car manufacturer Henry Ford and newspaper magnate William Randolph Hurst. Various members of leading American families – the Vanderbilts and the Firestones, the Sloans and the Morgans – also bought Chris Crafts.
Stars of the stage and screen also had to have a Chris Craft. Among these were movie star Katherine Hepburn and singers Frank Sinatra, Dean Martin and Elvis Presley. Chris Craft boats also made significant appearances in a variety of movies, particularly On Golden Pond (starring Hepburn), in which the boat is crucial to the plot, as well as Indiana Jones & the Last Crusade, The Godfather II and many others.
The boats were not just glamorous, they were also fast. As early as 1915, Smith had built two proven race winners, the Baby Speed Demon and the Baby Reliance which won the American Power Boat Association’s Gold Cup. By 1921 he was advertising a 26-foot runabout that would do 35 knots; the following year he offered four different designs, the largest being the 33-foot Baby Gar, which would hit 50 knots and cost US$7,500.
It wasn’t just moguls and movie stars who dreamed of owning a Chris Craft – and the company tried to ensure that just about anyone could realise this dream. Standardized production – in effect a hand-crafted assembly line – meant that the boats, though of high quality, were also affordable. In addition, Chris Craft offered payment plans, putting its boats within reach of those who could not afford the full price in one go.
In short, thousands of people bought Chris Crafts, each becoming the proud owner of a sleek, graceful, fast icon, the American equivalent of the revered and much-sought-after Rivas made in Italy at the same time. These were the glory days.
Chris Smith died in 1939, but is still revered in the boating community. The Mariners’ Museum of Newport News, Virginia, which acquired the complete company records from 1922 to 1980, describes him as “the dean of American standardized boatbuilding”. His son Jay took over, and then his grandson Harsen.
By that time – the late 1950s – Chris Craft had 10 factories and 5,000 employees making more than 8,000 boats a year and generating income of US$40 million. Harsen appeared on the front cover of Time magazine in early 1959, described as “the man who perhaps, more than any other, put the U.S. family afloat”.
Less than a year later – possibly recognising that the whole industry might be about to change radically with the advent of fibreglass which would mean massively expensive retooling – the family sold the company. The following two decades were less happy. Chris Craft, still making mahogany boats, began to lose out to competitors working in fiberglass. Ironically, it had been the first to make use of fibreglass, in its 19-foot Silver Arrow, launched in 1958, which had a wooden hull covered with a shell of the new material. But less-than-sparkling sales – 92 Silver Arrows sold in two years – had convinced management at that time to go back to timber hulls.
The last wooden-hulled boat, the 57-foot Constellation, was made in 1971, and all hulls were made in fiberglass after that. But the company continued to struggle, changing hands a number of times before going out of business in 2000 when parent company Outboard Marine Corp collapsed.
Chris Craft was swiftly resurrected by turnaround specialist Stephen Julius. In 1988 he had restructured the similarly ailing Riva and then sold it on to Italy’s Ferretti Group. But after the sale he missed having a top-class boat maker and cast around for another legendary brand to make his own. He and friend Steve Heese snapped up Chris Craft, re-hired key employees and set about reviving the company. The following year, Chris Craft – now based in Sarasota, Florida – made its comeback at the Fort Lauderdale International Boat Show. The doors opened on the first day, and a customer walked in and promptly bought a boat. Chris Craft was back on track. Thanks to the company’s lasting reputation for building strong, fast, beautifully finished boats, sales in the first year totalled $26 million.
There are now 20 models in the Chris Craft line, ranging from the 19-foot Silver Bullet, with a top speed of 50 knots, to the 40-foot Roamer express cruiser, which can sleep four or more in luxury (depending on configuration) and has a range of 415 miles. Since its formation almost 130 years ago, the company has built more than 250,000 boats.
The latest development is that boat-lovers in Thailand can now see, try and buy Chris-Craft boats from the company’s new agent, Chris Craft Thailand, based at the Boat Lagoon marina in Phuket. For basic no-extras models, prices range from US$50,000 to US$500,000 plus shipping. Chris Craft Thailand also plans to make boats available for charter and to open more outlets in seaside cities around Thailand.
Frank Van Hooijdonk, Boat Sales Manager of Chris Craft Thailand, said, “We’re honored to be the Chris Craft dealer in Thailand. Now finally people here can experience the boat used by presidents and movie stars.”
As in Florida, Chris Craft made its Thai launch at a boat show – the Phuket International Marine Exhibition and as in Florida, the company sold a boat – a Lancer 20 – almost as soon as the show opened. Mr. Van Hooijdonk was elated. “It’s been fantastic,” he said on the second day of the show. “It was just like Fort Lauderdale. We sold one boat to a client who has a film studio, and we have at least 10 other people who will probably buy. They know the name and the quality – that’s what makes the difference.”
For more information please contact Frank Van Hooijdonk at frank@chriscraft.asia, call +66 (0) 819784740

How healthy is your home? – FEMA brought to task over post-Katrina trailers

by Georgina United States

 

The old adage ‘an Englishman’s home is his castle’ is not just country-specific, with the home in all cultures typically being a place of security and refuge but also something to be proud of and even a representation of who we are as people. Outwardly, we employ all manner of different techniques to make our homes look the very best – wallpaper, paint techniques, stencilling, unusual furniture and furnishings for example – but underneath this bold exterior, the question remains: how healthy is your home?
 
This is clearly a question that is important to many homeowners, with programmes like Channel 4’s ‘How Clean is Your House?’ making stars of presenters Kim and Aggie and in turn raising awareness of the issue of the healthiness of houses. Through such popular programmes it has come to be realised that a home needs to be not just outwardly beautiful, it has to be healthy too, and certainly not have a negative effect on occupants’ health. With illnesses such as eczema and asthma being linked to environmental factors such as dust, detergents and mold, it is important to dig beneath the surface of a house to eliminate any potential factors that could be contributing to household illnesses and to try and make the home once again the bastion of wellbeing that it once was.
 
This is an issue that has become very relevant in the southern state of Mississippi in the USA. Following hurricanes Katrina and Rita in 2005 which brought devastation to many parts of this region, especially along coastal stretches, the government body FEMA (Federal Emergency Management Agency) issued around 100,000 trailers to people displaced from their homes in the aftermath of the storms. Only meant as a temporary measure and built to last approximately a year, three years on around 15,000 of these homes remain due to a lack of built and affordable housing. Not only a problem because these families, often with young children, do not have a permanent dwelling to call home, these trailer-properties are also at the centre of a growing public health concern.  
 
Since 2005, FEMA has received more than 11,000 complaints from residents who claim that their trailer is making them sick. With reported symptoms including headaches, running noses, breathing difficulties and fatigue, the infamous formaldehyde is reportedly to blame. This chemical is also a known carcinogenic (according to the International Agency for Research on Cancer (IARC)) and therefore there have been great concerns raised over the safety of the government owned properties. This lead to an independent test being conducted by the Center for Disease Control and Prevention (CDC) from December 2007 to January 2008 in which a sample of 519 inhabited trailers in the Gulf Coast area were tested and the report results did not make for welcome reading,
 
“Based on what we found and on scientific reports about health effects linked with formaldehyde exposure, CDC recommended that FEMA move residents of the Gulf Coast area displaced by Hurricanes Katrina and Rita out of travel trailers and mobile homes”. This is due to findings of average levels of formaldehyde in the trailers some four times higher than usual: readings of 77 ppb (parts per billion) compared to a normal home reading of 10-20 ppb, all of those studied having some readings that would have an effect on sensitive people and around 5% having levels of an extent to make a healthy adult ill.
 
These results combined with government-set rules including a limit on formaldehyde releases for mobile homes but not trailers, has lead to a lawsuit being brought against both the trailer manufacturers and FEMA. Not only this but a recently released report by the Children’s Health Fund looking at the medical records of 261 children living in a Gulf Coast trailer park has found that 42% had been diagnosed with allergic rhinitis or upper respiratory infection and 24% had a cluster of upper respiratory, allergic and skin problems, thus adding to the case.
 
It remains to be seen if Republican Henry Waxman is true to say that "no one was looking out for the interests of displaced families living in FEMA trailers," but in the meantime it is hard to ignore the evidence being put forward. However, in true juxtaposition to the findings relating to FEMA trailers, BusinessWeek has recently named Biloxi – home to high numbers of displaced families – as Mississippi’s best place to raise children. Based on various factors including affordability, safety, local parks and recreational facilities, being voted family-safe, the city is now is in need of safe and permanent homes for returning residents and those desperate to escape the temporary FEMA trailers.
 
The building of new homes in the Mississippi area is increasingly more eco-focused as A-list celebrity and charity ambassador Brad Pitt has shown through his commitment to the building of 150 sustainable homes for the citizens of Lower 9th Ward in New Orleans through his Make it Right charity; he visited the neighbourhood on 2nd December where six families have moved into their new homes.
 
This green-focus on rebuilding the Mississippi area is also being shown in Bayside Park, Biloxi where 75% recycled steel-framed homes are being built with energy efficiency in mind – water purification systems and the most energy efficient laundry systems that eliminate the need for hot water within wash cycles for example. Foreign investment in these permanent homes is being encouraged, and properties for rent to the local community can be purchased from as little as £88,000 / $159,900.
 
For more information on investing in Bayside Park please contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.

US Property Market Tops the Charts for Second Successive Month

by Georgina United States

 

The US is still a great draw for Brits looking to invest in property overseas, according to overseas property investment portal www.themovechannel.com. The site releases a ‘Top of the Props’ poll monthly based on the number of enquiries on the website for different countries and it was found that in October 2008 the US held the top spot, ahead of popular destinations including Portugal and Italy, and this for a second successive month.
 
As themovechannel.com have shown, the US continues to be a popular choice with Britons looking to buy both holiday homes and investment properties overseas and this was confirmed further still by the release of the National Association of Realtors’ (NAR) Profile of International Home Buying Activity 2008. From surveying 4,000 US realtors, this report showed that buyers from the UK accounted for 12.5% of foreign buyers in the country, ranking in second place only to bordering Canada.
 
The run-up to the new presidency and the optimism generated in response to Obama’s election campaign could have been one reason for this popularity but the high rental potential of certain areas of the US is also a great appeal to those looking to buy overseas, especially for investment. And according to Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), the US’ popularity with foreign buyers is set to continue for the foreseeable future. He estimates that within the next 10 years the number of foreign purchasers buying on American shores may well double to make up 6% of all US property purchases.
 
One region of the US that offers excellent investment potential is the ‘Go Zone’ or Gulf Opportunity Zone, along the Mississippi Gulf Coast – the region that was hit hard by Hurricanes Katrina and Rita in 2005 and is now making real headway with rebuilding and regeneration with the emphasis on stronger and more environmentally sound homes for the displaced families.  Not only a much-needed ongoing project being actively encouraged by the US government, these developments are also attractive as excellent rental opportunities for shrewd investors. Danny Silver, Principal of Property Direct America, which promotes real estate opportunities in the area explains,
 
“This is an excellent time to invest in property in the US. With increasing numbers of people looking Stateside for their real estate purchase, this is the time to snap up the bargains that exist in a deflated market. The Go Zone is an excellent area for investment, with firm rental returns on offer and high quality homes being built for the local people, there is real money to be made for foreign investors.”
 
One such project is Bayside Park in Biloxi, where steel framed, energy-efficient homes are available from as little as £88,000 / $159,900 with attractive rental returns. Excellent 90% loan to value mortgages are also available (subject to status) and for more information on joining the growing number of Britons investing in the US property market, contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.

Will President-elect Obama mean all change for the US housing market?

by Georgina United States

 

With Barak Obama celebrating his victory as the 44th President-elect of the United States, it has been announced that the US remains the most popular choice for Brits when buying an investment property abroad, according to data from themovechannel.com. The overseas property investment portal ranked the US top in their latest ‘Top of the Props’ poll for September 2008, ahead of both Portugal and the UAE. This could be due to a number of factors, the high rental potential of many properties in the country and the weakening of the dollar against the pound to name but two.
 
And this is not the only good news to befall the country of late. The Commerce Department has also announced that September 2008 saw the sale of new homes in the US rise by 2.7% on average when compared to August 2008 figures. With the dawn of a new presidential era in the US it will be interesting to see, once the initial hysteria has died down, whether these positive statistics remain. With a new president, and a new-found confidence, the dollar is known to ‘bounce’ or strengthen for a short period (a show of consumer confidence), but once this initial euphoria has relinquished, what is the effect that Obama will have on the US housing market or this confidence in the long term?
 
Barak Obama’s pre-election policies distinctly showed a view to realistically turning around the housing market, with guidelines for simplifying the mortgage procedure including a universal mortgage credit as well as his clear policy on fraudulent mortgage providers – close down the loopholes exploited and encourage industry insiders to report any suspicious activity. And with the government playing a larger role in the nation’s property industry, hopes are high for the stabilisation of the market, with 58% of Americans having been reported as thinking pre-election that Barak would do a better job with the country’s property market than McCain, according to a survey carried out by Harris Interactive on behalf of Zillow.com.
 
There is a great deal of excitement and anticipation surrounding Barak’s new presidency and Danny Silver, Principal of Property Direct America, thinks that this will have an effect on Brits looking to invest in property in the US, he says:
 
“With the US consistently being voted the top choice for British investors looking to secure a property overseas, the US election and Barak Obama’s win with the excitement surrounding it will surely heighten the appeal further still. Increased market confidence is good news for all as it is this that ultimately fuels the housing market and stimulates property price growth.”
 
The southern US is one region that presents opportunity for positive investment with recent figures showing that new home sales rose by around 1% in September (according to the National Association of Realtors) and with excellent mortgages also on offer. One such project proving attractive to foreign investors is Bayside Park in Biloxi, Mississippi. Here, Brits can invest in steel framed energy-efficient homes in high demand by the local population with 90% loan to value mortgages available (subject to status), from as little as £88,000/ $159,900. For more information contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.