Florida: going from strength to strength
Huge job increases and highest condo sales in 3 years
PLUS: Sneak preview of Vintage Grand in Sarasota
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| Torcana Ltd Investment Newsletter |
May 2010 |
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Good afternoon Colin and welcome to Issue 26 of the Torcana newsletter.
 While European governments are spending their days reacting to an ever wider variety of financial and economic crises, our cousins in America seem to be getting on with putting their house back in order.
To me, it seems all but certain that EU austerity measures are going to continue to weaken the euro against other major currencies for some time to come. Getting big budget deficits under control is hugely important, but in the short term, it means taking a lot of money out of the economy which slows growth prospects considerably and markets will react strongly.
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Torcana.com Interactive Site
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We are at €1=$1.25 and that will continue to fall. What does that mean for you? If you purchase a dollar asset now it will continue to appreciate in euro terms even if everything else stays the same.
Your US rental income will also be worth a lot more - $900 per month now is worth €720. In July it might be worth €820. Use those same proportions with the purchase price of a property and you´re looking at some very serious gains.
A range of positive US news stories has hit my inbox over the past few weeks, possibly the most since the credit crunch began almost 3 years ago (that term seems to have disappeared now, I remember when it was all we used to talk about).
USA April Job Report - Best Gain in Four Years
The April job figures were probably the most surprising - there was a gain of 290,000 jobs, significantly higher than the 230,000 added in March and miles ahead of the 187,000 estimated by economists. In fact, that was the largest number of jobs added to the labour force since March 2006.
In short, after nearly two years of job losses, the economy has now added jobs in five of the last six months. Even construction added 14,000 jobs, the second straight month of gains after nearly three years of uninterrupted job losses.
As you can see, Spring is selling season and new listings spiked upwards in March. New pendings also spiked and closed sales in March jumped significantly to reach 2473 sold homes.
To put this in perspective - this is the highest number of closed sales since June 2006 at the height of the boom.
Foreign buyers kick-start Orlando-area condo sales
Foreign investors are certainly playing their part in these healthy recovery figures. One of the best and mostly publicised examples of this is our very own Mosaic at Millenia community in Orlando. An article published a few weeks ago in the Orlando Sentinel discussed the sharp increase in overseas buyers snapping up bargain price Florida condos at a rate not seen since the heydays of 2000-2005.
Unlike that crazy period though - they are paying in cash and sales don´t come with incentives or inflated rental promises. As our newsletters have consistently argued, this market is ripe for undervalued and cash flow positive properties. Purchase now, earn some great yields and expect some capital appreciation in the future. With median prices for condos down from $159,600 in March 2006 to $49,700 in March 2010 - that´s not asking too much. These same median prices have increased three months in a row now.
We still have some great units available in Mosaic at Millenia by the way - you´ll find some more information by clicking here and if you´d like to receive a full info pack with latest availability just complete the enquiry form or email us directly on investments@torcana.com.
Finally, those seeking a useful list of reasons why Florida so popular right now could do a lot worse than read through a very handy list of "15 market positives" published by the Orlando Sentinel earlier this month.
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Sneak Preview - Vintage Grand at Sarasota
 
Situated only 100 miles from Orlando's hustle and bustle, the city of Sarasota lies 65 miles south of the Tampa bay area and boasts a combined population of over four million residents. Serving as a stomping ground for the upper class and the super wealthy, Sarasota has consistently been voted in the top 20 cities to Live in the USA by Forbes and Money magazine. A clean, attractive, well serviced city with year round sunshine, its main economic drivers are tourism, healthcare and service industries.
After numerous site inspections and high levels of due diligence, Torcana are delighted to put our seal of approval to our latest offering Vintage Grand@ Palmer Ranch. This is a stunning Lakefront community located in the affluent "master planned" neighborhood of Palmer Ranch. Offering its discerning residents the best of both worlds, Vintage Grand is conveniently located just minutes from Sarasota's stunning beaches and close to Sarasota's chic and stylish downtown area with its wealth of arts and entertainment amenities.
Investment Summary
Location - Vintage Grand is one of the most upmarket residential locations in Sarasota
Unit Types - Selection of 1, 2 and 3 bed properties
Unit Sizes - 1 beds (588-765 sqft), 2 beds (1012-1129 sqft), 3 beds (1354-1412 sqft)
Price range - From $59,900 (€48,500 / £41,900) to $99,900 (€80,900 / £70,000)
Occupancy - Almost 100% occupancy, which speaks volumes for the quality of the community
Rental Yields - Net yields of up to 7.5% on selected units
Facilities - Two pools, tennis, volleyball, lakeside BBQ, 24hr fitness centre & luxury clubhouse
Features - Private terrace, fridge with icemaker, self cleaning oven, textured walls & ceilings
Investment Type - Completely hassle free investment with full aftersales service available
If you would like to pre-register your interest please email investments@torcana.com with "Vintage Grand" written in the subject title. |
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Many thanks as always for reading these newsletters and we always look forward to hearing your feedback. Previous issues and blog entries can be found on www.torcana.com.
Kind Regards
Colin Murphy
Director
Torcana Ltd
Ireland +353 1 4433 991
UK +44 207 193 4024
USA +1 321 806 1195
Fax: +353 1 2586 016
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 Torcana Ltd offer a wide range of investment products and services. Please visit www.torcana.com or click on the logos below for further information.
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