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property details
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Florida-
Fort Myers
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Reference |
FORTMYERS |
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Price (British Pound) |
From: 25755 To: 67872 |
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Type |
bedroom(s)
bathroom(s) |
| Garden: | Private |
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| Air-Conditioning: | Yes |
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| Garage: | Yes |
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| Close To Amenities: | Yes |
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| Schools: | Yes |
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Florida property investment opportunity – Fort Myers
Prices average just $80,000 with 60% LTV mortgage available (STS) with yields between 9 and 14% - properties from $42,500 - pre tenanted property – ‘hands off investment’
The investment
• Ready tenanted and refurbished homes
• Yields range from 9% to nearly 14% (dependent on financing used)
• Below market value purchase prices giving instant equity
• Houses as opposed to holiday condominiums
• Cash purchase or 60% LTV mortgage (full status) financing
• Sought after location – a fast growing US city
• Prices circa 60% of the replacement cost
• Fully Managed, totally “hand’s off” investment
• Unique “Fresh Start Plan” program
• “Buy to hold” or an exit strategy - a pre-agreed sale to private or HUD tenants
• Detached properties available as single dwellings or larger properties divided into 2 or 3 rental properties to give even better rental stability in between tenant ‘changeover’ periods.
Summary
History tells us that some of the best investment opportunities present themselves in times of economic crisis. The current catastrophic financial meltdown of the banking sector is a prime example. The sub prime lending practices of US banks has resulted in the foreclosure or repossession of property on an unprecedented scale. Over 6 million properties have been repossessed by US banks creating substantial demand for affordable rental housing for displaced families seeking a roof.
Overall, since 2007 house prices have fallen by some 20%-40% dependent on the geographical location, but now prices are starting to stabalise and in many cases over the last twelve months, partial recovery has been seen. The economic turmoil has taken its toll and Florida now presents a compelling high yield based investment with the opportunity for long term capital growth
Fort Myers
The focus is on Fort Myers in South West Florida, which until 2006 was the fastest growing City in the US, based on population count. In Fort Myers unlike many other US Cities, the foreclosure problem was not driven by declining population it was driven by greed. Owners had seen their regions median home values soar from circa $100,000 to $300,000. The temptation to refinance and buy that dream car or boat proved too much for many. Many mortgage loans were fixed on low rates for only a couple of years. With the downturn many borrowers found their payments rising dramatically. The non recourse loans meant they could return the keys and rent a similar property for half the cost of their previous mortgage. However, many of these new tenants remain motivated to buy their own home again but have found that their credit rating is impaired.
Economic Indicators
Why Lee County? Florida’s Gulf Coast University Regional Economic Research Institute reported in February 2010 that Charlotte, Collier and Lee Counties showed full-year increases from 2008 to 2009. Lee County sales nearly doubled, increasing from 8,272 in 2008 to 16,260 in 2009.
The Fort Myers Rental Market & specifically that of Lee County is ‘work in progress’ but there is a silver lining – higher occupancy rates now mean that if you’re looking for a rental property in the area then you may have a hard time trying to find one. According to news-press.com the Lee County Rental Market is ‘Red Hot’ as more people are looking for affordable housing, Renting has become a very viable option, in some cases it’s the only option. Rental rates have been very low over the last two years but right now they are starting to see a rise with median gross rent: $922 PCM.
So Why Houses and NOT Condos, generally the Florida property market divides into two distinct sectors. The housing market which is populated by working families and the “condo” market usually the preferred choice of the both US and non-US retired, “snowbirds” or second home owners.
There is significant rental demand for 3 bedroom detached family homes in the key areas of Fort Myers. Currently in Lee County, a favored location, rental occupancy is close to 95% according to local Realtors.
We have ‘sourced’ property which is priced at 60% of the building replacement cost which indicates that the current price of these houses provides considerable equity over the purchase cost. Before developers can start building new homes again, they will need to see the median price level reach close to 100% of the replacement cost. The Federal Government is working hard to tackle the issues relating to the housing market, as they have made clear that the US Economy depends upon a housing recovery.
Property Management
This “hand’s off” property investment will only work for you – particularly if you are buying at some distance – if you can rely on the expert property management services of an experienced local operator. The chosen property management company currently manage over 300+ properties throughout Fort Myers. They are retained to oversee your property throughout the lifetime of your ownership, providing a totally turn-key and hassle-free investment. You will never be bothered by your tenant as a maintenance team will deal with any issues directly. You will receive your rental payments directly into a US bank account in your name on a monthly or quarterly basis.
This is a unique program which has been pioneered in Florida by the management company, their aim is to help displaced families repair their credit score and return to the property ladder.
Once a family has satisfied the stringent qualifying criteria and been approved for a tenancy, the system identifies key payments (such as rent and utilities) made by the tenant and reports this information directly to the four key credit reference agencies used by the mortgage lending banks. Month by month the tenant improves their credit score and eventually allows them to qualify for an Federal State Housing Association (FSHA) Mortgage of 95% of their rented property’s value.
In April 2010, the US Government announced that homeowners who have suffered foreclosure, may in certain circumstances qualify for Federal backed mortgages within 2 years, subject to key criteria being met. This rule change will make millions of tenants eligible to buy their own home again, subject to achieving the correct credit score. This provides clients that purchase through us with a clear exit strategy. The Fresh Start Plan also incorporates a unique rental collection system which automatically collects rent from the tenant’s bank account. In the event of non-payment it repeats the attempted collection daily until arrears are collected. It can even be programmed to collect rent directly from the tenant’s employment income or Credit Card.
The buying process
• Confirm property availability
• Reservation Document completed and 10% Reservation Deposit sent to Currency Broker
• Reservation Deposit and Lawyer’s fee sent to US Lawyer Client Escrow Account
• If Applicable, Mortgage Application submitted to Lender for approval
• Contracts prepared
• Title checks to confirm property is free of liens and debt
• Balance of Funds transferred in USD to Lawyer’s Client Escrow Account
• Contracts signed and property secured
• Tax Identification numbers applied for and USA bank account opened
• Closing (completion) usually within 14 - 28 days
• Commencement of Rent Payment into USA bank account
• You also have the comfort of knowing that we will be with you through the whole process and beyond, providing guidance and support
For further information on this property for sale contact us
here.
For further information on this property or other investment
properties call us on 0161 351 2160
Note: Whilst we endeavour to ensure that the information on this
site is accurate, complete and up-to-date, we cannot guarantee that. We are not
responsible for fluctuating currency markets, which may affect the property
prices. Property prices are subject to change without prior notice. We strongly recommend that you engage the services of an English speaking independent lawyer in all transactions.