What´s so good about the USA property market?
 
If you can find a high quality and undervalued property in Florida right now, it´ll probably turn out to be one of the safest and most profitable property investment you´ll ever make. Consider these three simple questions:
 
Where else can you honestly say that prices have undergone a huge purge, have already hit the bottom of the cycle and are starting to show real signs of recovery?
 
Where else can you buy a completed and fully functional property at a 75% discount that is rented out to locals year round at a double digit yield?
 
Where else can you purchase a property knowing that your freehold title is regulated, guaranteed by the state government and that mandatory title insurance is provided?
 
Very large price reductions will quickly stimulate demand and recovery in the best areas:
I think most of us will agree that prices at the top of the housing boom were irrationally high as emotional investors got swept up in the hype and frenzy - but I also think the opposite is now true. The bubble has burst and prices are much lower than the fundamentals suggest they should be. Markets (crowds) tend to overreact both when times are good and when times are bad.
 
Take the community we are currently promoting: two bed condos used to sell in our Mosaic development at $335,000 per unit back in 2006. That was too high. They are now selling for $92,000 - that a 73% drop. In my opinion, that is a discount is far higher than it should be. The drop in the one beds in Mosaic was even more excessive - 77% (from $260k to $61k per unit). 
 
A yield is often a solid indicator that a property is undervalued. If you are happy with a 10% net yield and are willing to wait until credit and economic growth returns to the world´s largest and most dynamic economy, then these properties will do extremely well for you. At the moment, they are hovering somewhere around 2002 prices. Even if they are at 2004 prices two years from now, you´ll still be looking at a sizable (30-40%) capital return. 

 

 

 

 

Location - Mosaic at Mall of Millenia is one of the most upmarket residential locations in Orlando
Unit Types - Selection of 1, 2 and 3 bed properties
Unit Sizes - 1 beds (678-850 sqft), 2 beds (1036-1174 sqft), 3 beds (1336-1478 sqft)
Price range - From $60,900 (€44,500 / £40,300) to $122,400 (€89,500 / £81,000) 
Occupancy - Achieving 97% occupancy, which speaks volumes for the quality of the community
Rental Yields - Net yields are as high as 10% although we have limited units with double digit yields
Facilities - Tennis, volleyball, pool, spa, cinema, playground, fitness centre & clubhouse
Features - Private patios, alarms, fully fitted kichens & bathrooms and private parking 
Investment Type - Completely hassle free investment with full aftersales service available  
 

 

If you would like a full information pack and availability list, please click here and complete the short enquiry form.

 

Ireland and the UK had property booms every bit as frothy as Florida´s but the crash in Florida has been far more dramatic. If prices in Dublin and London were down 60-70% from 2006/7 levels, there would have been huge activity in 2008 and 2009 and we would be facing far less uncertainly in the property market.

 

The clock is definately ticking on these types of opportunities in the USA. It is tempting to wait for some great headlines and stories from successful investors before jumping in, but as Warren Buffett said in his most recent letter to shareholders  

"A climate of fear is an investors best friend. Those who invest only when commentators are upbeat end up paying a heavy price for meaningless reassurance. In the end, what counts in investing is what you pay for a business - and what that business earns in the succeeding decade or two".