8 July 2009
Dear APA Friend,
We're currently looking at the impact of the Obama economic initiatives to kick-start the US housng market - a fuller report in a week or two - and the bottom line is that they have had limited success. Looking at the averages, and of course an average masks a range of outcomes, I can see that home sales in May rose 2.4 per cent but that the median price was down 16.8 per cent over the year. Fact is, we still have oversupply in many states and there's uncertainty out there in the home market.
As Andres Carbacho-Burgos from Moody's says, "We have a lousy job market and an excess of around a million extra homes that has to be worked off. The housing market is not going to hit bottom before the middle of 2010." Naturally, there are exceptions to this rule - next week, I'll introduce you to an ex-pat Brit who's bought in and is bucking the trend in Downtown Disney. And big time.
If you're looking for property in the Bahamas, we've got a deal for you. Read on...
We have a foreclosure deal for you in a gated community opposite the beach in the west of New Providence, Nassau. The owners cannot afford to complete and it is now offered for sale as one bulk sale to a developer or as individual homes to property buyers.
There are 5 houses of 3500 sq ft, each with 3 or 4 beds, 3.5 baths and a separate guest studio. All units have good ocean views and access to beach across the road and feature double garages and separate storage.
Homes can be bought separately for $850,000 but must be purchased simultaneously for the bank to accept the sale - so all buyers must put down a holding deposit and wait for the other houses to be purchased. The whole development is for sale at $3,800.000. There is no room for negotiation on these prices as you are dealing directly with the bank.
This is a good opportunity for anyone looking to buy and complete as the project's estimated profit is over $3,000.000 on the overall project. For the individual buyer, this deal offers a property in the best area on the island at well below market value. This is a great location being close to the airport and 20 minutes from downtown Nassau. These homes will rent easily long-term for $3000 a month net $36,000 per annum. Financing may be possible for eligible buyers through the foreclosing bank. Get back to me if you want to know more.
Flying to Panama? The Times Online has a good article for you which gives you the lowdown on flights etc. Copy and paste.
http://www.timesonline.co.uk/tol/travel/your_say/article6657085.ece
If you're looking for land in the Bahamas, we also have something that may interest you. Here it is...
Cash in on cheap land in the Bahamas for a luxury self-build. This is a new community on the north side of Long Island close to Clarence Town. Clarence Town has the island's prettiest harbour and is home to the local Government buildings. It is noted for its twin churches and shops, harbour, bar restaurant and beach.
These 1/4 acre plots have electricity and water supplies and are zoned for homes and villas, single or double storey. Each plot is flat and has great access to the beach and highway that runs the length of Long Island.
Long Island currently enjoys duty free status on construction materials so building your home costs 34 per cent less if you act now. Bahamian constructors, architects and lawyers are on hand to help you with your construction. Each plot costs $15,000 to $20,000.
Things have just taken on a new turn here as, close by, there is a $550 million development being given the green light by the government. This news is not yet out on the open market yet but it will have a big impact on prices hereabouts as soon as it is. So, if you want to know more, get back to me asap!
Over at IPA, I've been writing about an article - 10 reasons to invest in emerging markets - written by the manager of a fund that invests in emerging markets. It's a clever PR piece that has been picked up by various media and presented by some as an independent assessment. Clearly, it's anything but. Some developers and agents are using this as a hook to advertise properties in various 'emerging' locations.
Nicaragua is one such emerging market that really typifies what investors face in such circumstances. It was pitched a few years ago as a hot tourist and retirement sector and lots of investors bought into offplan deals in places such as San Jaun Del Sur. The main buyers - US and Canadian citizens - have now backed out and sales are some 30 to 40 per cent off their peak. I'm not sure how far down the downward spiral we are with prices (I'm checking) but, for me, it's showing all the signs of a classic rise and fall. At IPA, I'm currently working on an article for the next newsletter on the investment criteria you should use before going into an emerging market. I'll forward a copy in a week or two – it's particularly useful if you are looking at some of these lesser-known South American countries.
Good Wishes,
Iain
Iain Maitland
Editor, America Property Alerts
PS. I can't say too much at this stage - we are doing desk due diligence and someone is flying out there for us next weekend. But, in a nutshell, we have access to a development in distress in Biloxi in the US, home to Mardi Gras. These units are on the beach and, all being well, we should have full details in two weeks. I know many of you took up the last offer of this kind that we ran so we will take names at this stage and send out details to you before they go to the whole membership.
America Property Alerts provides free e-alerts on American property news for subscribed members. You can subscribe only by signing up at the website at www.americapropertyalerts.co.uk. You can unsubscribe by clicking the link at the bottom of this e-mail.
News provided by these free e-alerts is for general information only. Subscribers should not rely on this when making decisions. You are strongly advised to take independent professional advice before investing. America Property Alerts and its staff do not accept any liability for losses suffered by subscribers.
You can write to America Property Alerts at Providence House, Little Sampford, Essex CB10 2QQ. You can email the editor, Iain Maitland, at Imaitland@aol.com.
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