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Hello and welcome to issue 2 of our investment newsletter. 
If you'd like to get straight to our best investments of the week and skip the market analysis/opinion section, please feel free to scroll down. You'll find a selection of bank owned long and short term Florida properties, half price Spanish properties in the Costa del Sol and off market investments in London & Manchester.
It's been a pretty hectic couple of weeks - the was a significant stock market surge after the G20 summit in London agreed a $1.1 trillion global boost, the US government announced a huge scheme to tackle the toxic assets held by its banks and Japan seems to be increasing its latest stimulus to $150 billion. Going against the grain somewhat was Ireland's toughest budget in living memory.
Spotting subtle shifts
Looking beyond these monster headlines though, there are other smaller headlines that seem to indicate that we are in the process of turning a few very important corners. Leading stories in the news section of the Torcana website this week included: "A surprise bounce in UK House Prices", "US Sales of Second hand homes rose unexpectedly in February", "Knight Frank figures suggest signs of recovery are very evident" and "High net worth appetite for property remains undiminished".
Drifting media attention
Speaking of headlines, has anybody noticed the subtle changes in property media content over the past 8 months? It seems that the niche market my colleagues and I started exploring last August is generating some significant editorial attention. If you can cast your minds back to the relatively calm and innocent months of June - August 08, most articles were still concentrating on benefits of investing in offplan property in hotspots like Cape Verde, Brazil and Morocco.
From October - December 08 it was quite negative with most stories describing either our property developers titanic struggle to manage their cashflow or investors reeling from the news that mortgages were not available for their properties. Lately however, the editorial slant has been shifting towards the bargains out there - specifically the distressed properties available at 30-60% below their peak purchase prices.
Distressed sellers vs distressed buyers
The reason these bargains are now available is very simple - there are far more (distressed) sellers at the moment than there are buyers, and there hasn't been as big a gap between these two groups in generations. In the last six months this has created unprecedented opportunities in a whole range of countries and asset classes.
Bear in mind that markets always overshoot: during a boom, stocks, commodities and properties all rise well above their fundamental valuations. During a downturn the opposite occurs - they are priced well below their fundamental valuations. While the emotional temptation during a boom is to purchase before you miss out and the temptation during a downturn is to wait until the market recovers, real wealth is actually created by those who do the opposite - i.e. purchase assets during a downturn and sell them during a boom.
Of course, this is easier said than done, but it makes sense doesn't it? This is what the Torcana business model is all about, with much more information available on our website - www.torcana.com.
Looking forward to hearing from you soon. Don't forget - all our best investments of the week are listed below.
Kind Regards
Colin Murphy
Director
Torcana Ltd
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USA - Bay Hill 2 Bed Condo
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Bay Hill, Orlando, Florida
Price: $89,900
Ref 307
- 1014 sq ft
- 2 Bed, 2 Bath
- Estimated monthly income $1,200
Remarks: Located in the prestigious Bay Hill area where REO opportunities are few and far between. This property is in fantastic condition.
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USA - Windemere 4 Bed Pool Home
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- 2744 sq ft
- 4 Bedrooms
- Financing available
Remarks: This is a very large property complete with pool and in excellent condition next to Lake Spear.
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UK - Manchester Residential
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Worsley, Greater Manchester
Price: £2,060,000
Ref U115
- 30 Units
- 32% Below market value
Remarks: New build development comprises thirty two bed apartments in a well located area giving good access to the local motorway network.
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SPAIN - Puerto Banus
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Calle de las Ventas, Puerto Banus
Price: €193,630
Ref: S108
- 2 Bed, 2 Bath
- 48% Discount, previously sold for €371,502
Remarks: Modern bungalow in peaceful development in this popular location. Development boasts large pool, gardens and play area.
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USA - Convention Centre 3 Bed
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Convention Centre, Florida
- 1391 sq ft
- 3 Bed, 2 Bath condo
- Estimated net monthly income $1,400
Remarks: Finished to a high standard and benefitting from a large living area, gourmet kitchen with granite worktop and high end major appliances.
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UK - London SE3 Commercial
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Blackheath, London SE3
Ref: U125
- Impressive London postcode
- 7 Years remaining on lease
- 7.5% yield
Remarks: Blue chip tenant in up market London location. Currently generates £59,000 pa.
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UK - London N1 Residential
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Islington, London N1
Price: £295,000
Ref U106
- 1 Bed apartment
- Luxury finishes
Remarks: Well located near both tube and overground lines, cental London is only minutes away.
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SPAIN - Costa Calida-Almeria
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San Cayetano / Costa Calida-Almeria
Price €187,000
Ref: S115
- 3 Bed, 2 Bath duplex
- 87 sqm living space with 7 sqm terrace
Remarks: Ideally positioned between the local golf course and beach and within 15 minutes of the airport.
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