D
Deborah Brennan
New Member
An excellent investment opportunity in Orlando, Florida.
BPIOF199 - Cash Purchase - Large 1 Bedroom / 1 Bathroom Condominium
Detailed File Available On Request
Investment Details:
• Purchase Price: $20,000 / £12,500
• Last Sold in 2006 for: $184,000 / £115,000
• Net Rental Yield: 18.1%
• Projected Net Monthly Income: $403 / £252
• Total Purchase Cost: $26,720 / £16,701 inc. fees & costs
Property Features:
• Built in 1988
• 760 sq.ft heated living space
• Carpeted throughout
• Good quality kitchen cabinets and surfaces
• Large combined living/dining room with lots of windows and natural light
• Community Swimming Pool / Tennis Courts
Investment Proposition:
• Situated in an area of high rental demand for long-term professional rental
• Scope for major capital growth / price recovery over the medium-term
This property is a classic example of a foreclosed property opportunity:
o Case-Schiller Housing Index shows property prices in Florida (the figures are for Tampa) increased in Jun 09 for the first time since Jul 2006
o Currently, house prices are at 60% of their Jul 06 peak (Case-Schiller) and by many measurements/punters are deemed to have bottomed out
• We have NEVER implied that house prices will revert to previous high levels of 2006
o However, we have always maintained that these properties have potential for major PROPERTY PRICE RECOVERY.
• This is an assumption, but if this particular property followed the average house price trends, then this property would be valued at 60% of its 2006 value, i.e. 60% x $184,000 = $110,000
• It is not unreasonable to make a judgment that as property market and prices stabilize, and people get back into buying properties, then these foreclosed properties should easily achieve this bottom level price.
• In this case, the Buyer is paying $27K including fees and is potentially sitting on an asset of $110K – four times its current cost.
• Over a period of years, one can expect prices to genuinely recover (again not to the heights of 2006),but if they recovered, say to 80% of their peak, then in this case, the price could reach $145K.
• Finally, in some cases the rental yield is not as high as say Western New York. This is a different type of investment. Our view is that if you can achieve 8-12% Net Return after all costs, including any repairs and new tenant find should a tenant move on (and ideally as on this one 10-15%),then this is a genuine Capital Gain opportunity.
There are a few assumptions in this summary, but reasonable ones; there is a huge demand for these properties.
We look forward to assisting you with your investments.
The Brennan Team
BPIOF199 - Cash Purchase - Large 1 Bedroom / 1 Bathroom Condominium
Detailed File Available On Request
Investment Details:
• Purchase Price: $20,000 / £12,500
• Last Sold in 2006 for: $184,000 / £115,000
• Net Rental Yield: 18.1%
• Projected Net Monthly Income: $403 / £252
• Total Purchase Cost: $26,720 / £16,701 inc. fees & costs
Property Features:
• Built in 1988
• 760 sq.ft heated living space
• Carpeted throughout
• Good quality kitchen cabinets and surfaces
• Large combined living/dining room with lots of windows and natural light
• Community Swimming Pool / Tennis Courts
Investment Proposition:
• Situated in an area of high rental demand for long-term professional rental
• Scope for major capital growth / price recovery over the medium-term
This property is a classic example of a foreclosed property opportunity:
o Case-Schiller Housing Index shows property prices in Florida (the figures are for Tampa) increased in Jun 09 for the first time since Jul 2006
o Currently, house prices are at 60% of their Jul 06 peak (Case-Schiller) and by many measurements/punters are deemed to have bottomed out
• We have NEVER implied that house prices will revert to previous high levels of 2006
o However, we have always maintained that these properties have potential for major PROPERTY PRICE RECOVERY.
• This is an assumption, but if this particular property followed the average house price trends, then this property would be valued at 60% of its 2006 value, i.e. 60% x $184,000 = $110,000
• It is not unreasonable to make a judgment that as property market and prices stabilize, and people get back into buying properties, then these foreclosed properties should easily achieve this bottom level price.
• In this case, the Buyer is paying $27K including fees and is potentially sitting on an asset of $110K – four times its current cost.
• Over a period of years, one can expect prices to genuinely recover (again not to the heights of 2006),but if they recovered, say to 80% of their peak, then in this case, the price could reach $145K.
• Finally, in some cases the rental yield is not as high as say Western New York. This is a different type of investment. Our view is that if you can achieve 8-12% Net Return after all costs, including any repairs and new tenant find should a tenant move on (and ideally as on this one 10-15%),then this is a genuine Capital Gain opportunity.
There are a few assumptions in this summary, but reasonable ones; there is a huge demand for these properties.
We look forward to assisting you with your investments.
The Brennan Team
