Wealth Protection

It´s very hard to predict how where this debt crisis will go next. No one has a crystal ball and no matter how convincing, arguments in favor of impending catastrophes, mild recessions or sharp recoveries are all pure speculation.

What´s a respectable investor supposed to do amid such turbulence and uncertainty? In our daily interactions with clients of all nationalities and professions, the three major requirements I hear again and again are

(a) protect my wealth (b) earn me some income, and (c) hedge against future inflation.

Keeping all your money in a bank is one option, but it won´t help you with (a), (b) or (c) above. Why? Because the gap between interest rates (often less than 1%) and inflation (3% in EU, 3.5% in US, 5% in UK) is getting wider. The real value of your savings will steadily decrease until that changes.

Gold is often touted as the hedge against inflation, but that´s only useful to you if the price keeps going up because (by definition) gold doesn´t earn any income. Although gold has increased by 600% in the last ten years, the price is still very volatile. More to the point, I don´t like the idea of buying anything at historic highs and especially not when everyone else seems to be doing it. Think about all the people who entered the stockmarket just before the dotcom crash or those who bought real estate before the subprime mortgage crash.

The Real Estate Option

Torcana have always believed in the simple principals of property investing: purchasing in the best location your money will get you, buying at the bottom rather than the top of the cycle, crunching the numbers properly and carefully understanding what due diligence is necessary and how to do it.

Over the long term, real estate that adheres to these principals has proven to be a strong wealth preserver, a steady income earner and a smart hedge against local inflation. I´m not suggesting that a large proportion of your wealth should be spent on property. However I certainly think it can safely be considered as a valuable addition to a balanced portfolio.

Our track record

My colleagues and I have been active in the distressed real estate market in Florida ever since it first appeared. Despite the knowledge built up over this time we continue work extremely closely with established partners who grew up here, know the industry inside out and have a lifetime of experience to draw from.

Our patient readers and subscribers have been peppered with blogs and newsletters highlighting the latest real estate trends and statistics in Florida. Monthly sales figures illustrate that buyers have been relentlessly snapping up inventory at record low prices and at a pace exceeding the boom times of 2005 and 2006. Demand is way ahead of supply.

An inevitable consequence of this is that quality inventory is very tight and prices are rising in some sectors. Inexperienced buyers are beginning to lower their standards and are making the same old mistakes all over again - i.e. buying in the wrong place at the wrong price and failing to carry out essential due diligence.

Getting it right first time

It doesn have to be this way - getting the important aspects of purchasing real estate right is not rocket science. The most important thing to remember is that future investors are not your exit strategy. Investors are certainly active now but they will probably be dormant, selling or buying somewhere else in the future.

Owner occupiers, first time buyers and second home owners are your future buyers and that´s who you need to keep in mind when you´re purchasing now. Figure out what these people want and you won´t go far wrong.

Torcana has spent years refining the process where the properties we select adhere to both what an investor wants (wealth protection, income generation, inflation hedge) and what a future home buyer will want (great schools, solid infrastructure, low crime rate, recreational activities, realistic access to bank finance and a well maintained and funded local community).

Over the past three weeks we´ve been working very hard behind the scenes on yet another great value Florida investment that adheres to this formula - i.e. it matches the requirements of both an investor today and a home buyer tomorrow.

It is called Cobblestone at Eagle Harbor. It´s quite special and this is what you need to know:

Location: Jacksonville & Fleming Island

Jacksonville is an affluent city in the historical north eastern corner of Florida and it might just be the Sunshine States best kept secret from property investors. This is the largest city in Florida by area with an urban population of 1.3 million and an average age of 36 - one of the youngest in the country.

It has consistently been one of the fastest growing cities in the USA, has a highly diversified economy and is home to hundreds of national and international companies from just about every facet of business and enterprise. It is currently ranked eighth nationwide for business expansions & relocations and ranked 5th in Forbes Magazine´s top ten cities to retire.

In other words, Jacksonville appeals to job creating businesses and to retirees - that´s a rare and powerful combination. This is exactly the right kind of place to buy a quality property at a knockdown price and rent it out to upwardly mobile locals.

Cobblestone at Eagle Harbor is a short and scenic drive from downtown Jacksonville. Driving out of downtown, along scenic US17, on the banks of the St Johns river, you can´t help but admire the spectacular bayous, bays and stunning waterfront homes.

This community is based in Fleming Island - a beautiful master planned neighborhood that is surrounded by water on three sides. As you approach Fleming Island you are instantly aware you have reached an affluent oasis of calm, with manicured residential communities and tasteful shopping, dining and entertainment options.

The Community: Cobblestone at Eagle Harbor

Cobblestone at Eagle Harbor contains five lakes and is bordered by a nature preserve with walking trails. The entrance into this community is seriously impressive - everything is immaculate, with imposing fountains, perfectly maintained landscaping and a beautiful clubhouse manned by polite and professional staff.

A total of 328 units are spread across 41 low rise buildings, the majority of which are owner occupied. Very spacious one and two bed floor plans range in size from 786 sq ft to 1104 sq ft. The construction quality is excellent with many units featuring vaulted ceilings, wood burning fireplaces and stainless steel appliances. All units have high speed internet, cable, kitchen appliances, central heating and air conditioning.

The community has an affluent vibe - the owners and tenants respect the community and it is very evident. Looking deeper into the finances, the community has not suffered the blight of mass foreclosures - there was a mere 13 (4%) in total in 2011.

Due to its attractiveness to owner-occupiers this has never been part of the investor frenzy and it has avoided distress with little or no delinquent owners. The upside for investors is that the community retains a substantial reserve fund for future repairs and unforeseen expenses. That provides an extra layer protection for your rental yield.

The Prices ....

The spacious, modern and high spec one and two bed condos we have exclusively secured can be purchased for an amazing $69,900 - $79,900. Many have long term professional tenants in place with current net yields in some units as high as 8.9%.

These are going to sell very fast.

Next Steps

We have compiled a 24 page brochure on Cobblestone at Eagle Harbor which includes:

- Development summary & history

- Area description

- Site map & availability list

- Resort Amenities & Property Features

- Photos & Floorplans

- Purchase & Aftersales options

If you would like to beat the crowd and be among the very first receive this please click here or the download button opposite.