I hear this question daily, and the following is the answer I give. As you might suspect, all that shines is not gold.
Firstly, let me clarify that Torcana work in the distressed market (lots of buyers and sellers), which is quite distinct from the regular market (few buyers, lots of sellers). Within this market we do business with sellers and developers who have relatively small amounts of unsold properties within well run and well built communities. These properties can often be purchased for less than their construction cost. It is a very active and aggressive market - the amount of units available in this segment has halved in the last 12 months.
When comparing one investment against another, it is essential to compare like with like. A new build 900 sq ft 1 bedroom sea view condo in Miami cannot be measured against a 15 year old timber frame 550 sq ft 1 bedroom/studio in Fort Myers.
It seems obvious when phrased like that, but it isn't stopping both amateur and professional investors of falling into the trap of thinking they're comparable. Whether property prices are increasing, stagnant or falling - you still tend to get what you pay for.
Picture the town or city where you currently live and imagine there are many distressed sellers. Would your first reaction be to hunt down the very cheapest property available just because it is cheap and tenanted? I'd imagine the answer for most of you is no, because an investors looking at rental potential and exit strategy would purchase in higher quality areas where the tenants are more reliable and a resale market can be clearly visualized. This is how we feel about Florida.
Not everybody takes this approach. Over the last few months I have seen UK and Irish agents engage in what I can only describe as a "race to the bottom". There is real pressure in this business to source the very cheapest distressed deals possible with scant regard to the ABC's of smart investing.
Visconti is a gorgeous development in one of Orlando most affluent areas. We are delighted to bring you a selection of condos and townhomes in this peaceful community fully tenanted and achieving very high net yields of up to 10%.
