Triptych4Florida (FL) - News Update August 10 - Florida: The One To Watch

Triptych4Florida (FL) - News Update - August 2010

At Triptych4 we study the international news services in order to bring you vital intelligence concerning the South West Florida property market and those factors influencing its economy.

Our aim, for those of you who have already purchased, is continue to validate your decision by providing engaging information about the Fort Myers region and its continuing recovery. For those toying with making an investment in Florida, we aim to provide further rationale - aside from the clear investment case - to assist you in reaching your decision.

As we gain a deeper insight into this market it enables our international partner Sales Agent network and their clients to more fully appreciate the compelling investment prospects that are available in South West Florida.

Featured in this edition:

Fort Myers – A Community On the Up – Some good news from Fort Myers
The Price is Right? But it’s rising! – Median house prices are on the move
The Woes of the Turbulent Euro – Euro purchasers like buying in Dollars
Is That It? – Has the Property Crash ended?
The Storm before the Calm – Yet more foreclosures to come
As One Door Closes and Another Slams in Your Face! - Is A Double Dip likely?
The US Budget Crisis Starting to Abate! – Is the US budget still “under water”?
Out of the Rubble of the Burst Bubble
Florida is 'top US property market'

We hope you enjoy the read. If so, pass it on……

It’s a truism that whilst our investors are drawn to this location, with which they often have a passing familiarity, it’s the core commercially attractive deal that is available which is the main driver for their desire to invest. The yields are simply too attractive to ignore; however it not all about the money.

Our work in Florida deploys our maxim of “making a difference whilst making a return” in a wholly socially responsible manner. Investors should not be expected to accept less simply because their money is doing good but we are aware that clients take great comfort in the knowledge that their investment is doing its bit.

Our very able and highly experienced local property management colleagues are working with the local community to provide a fresh start for those who have suffered most from the downturn of the last couple of years but are now ready, keen and able to rent a home.

Why Buy in Fort Myers:

For those who like a good acronym, the usually quoted concept of “BMV“or “Below Market Value” for us is irrelevant. The market price is what is actually being achieved for the property on the open market. We tend to refer to the much more relevant measure of “BRC” or “Below Replacement Cost”.

Right now prices in Fort Myers are well Below Replacement Cost – by an estimated 60%. This means property values in Fort Myers need to rise by at least 60% before property developers are willing to consider buying land, seeking licenses and hiring a workforce. It’s just not worth their while undertaking such development, as currently it costs substantially less to buy an existing property than to build a new one!

The level of foreclosures has displaced many tenants of previous “sub-prime mortgage” landlords and has delivered a spike in the number of people who are ready to rent a property. This enables us to deliver properties to our investors as “ready tenanted”.

Our local management partners use a tenant screening process to ensure adequate checks are undertaken prior to entering into a tenancy. In addition, they operate the Fresh Start Program, which is unique to our management partners. This Program cross fires credit scoring information to the four leading US credit agencies, to reform tenants’ credit histories with the aim of making them acceptable to mortgage lenders such as the US Federal Housing Authority (FHA). In time the FHA will be able to make available mortgage loans to these tenants based on 95% LTV, should they wish to buy their own home. This provides a ready pool of potential buyers investors should they wish to exit once prices start to increase.

News Articles:

Fort Myers - On the Up

The local economy is on the upswing with the creation of new jobs due to several new projects in the area.

The local Fort Myers economy was given a boost by the recent announcement by Boston based “Red Sox” baseball team that they are to open in 2012 a new $75m Stadium at their Spring Training home in Fort Myers close to their current facility where they have entertained crowds of pre-season fans since 1993. The new Stadium will offer fans a more "quaint" version of the Red Sox Boston home at Fenway Park. The outfield will consist of an exact copy of the Fenway field and will contain a Green Monster – the wide and high green painted perimeter wall.

http://news.bostonherald.com/business/general/view/20100226red_sox_unveil_planned_75m_fla_spring-training_park/srvc=home&position=4

Also, in the last year, the new $285m Gulf Coast Medical Center in Fort Myers was completed, and is attracting new resident employees to the area. On 1st July 2010 the Gulf Coast Medical Centre opened its Pediatric Emergency Care – the area’s only Pediatric ER. At the core of this new service will be board certified pediatricians who specialize in emergency care. The nurses who will work with the pediatric patients have also received specialized training.

http://www.egulfcoastmedical.com/

The Price is Right? But it’s rising!

For the first time in many years Dick Hogan’s piece in the Fort Myers based www.news-press.com noted that for the first time in four years the news on median home prices was positive

http://www.news-press.com/article/20100423/RE/4230414/Lee-County-s-median-home-price-takes-step-back-up

The Woes of the Turbulent Euro

Bob Rathgeber reports that the economic issues affecting the European currency seem to be stimulating interest in South West Florida. He wonders whether “Foreigners face possible 'last opportunity' to grab American real estate on the cheap….”

http://www.news-press.com/article/20100511/BUSINESS/100510071/Euro-s-losses-could-be-Southwest-Florida-s-gain

Is That It?

It may be difficult to call but the signs are that the worst of Florida’s property crash may be over. Jeff Ostrowski of the Palm Beach Post – on the basis of quarterly report of the University of Florida's Bergstrom Center for Real Estate Studies – calls time!

http://www.palmbeachpost.com/money/real-estate/worst-of-florida-real-estate-crash-likely-over-639607.html

The Storm before the Calm

There may be some stabilisation in sight, but according to the Associated Press on 19th May the backlog of foreclosed properties just keeps on growing. According to the Mortgage Bankers Association more than 10% of mortgage borrowers missed at least one payment in the first quarter 2010.

http://www.npr.org/templates/story/story.php?storyId=126976149

As One Door Closes and Another Slams in Your Face!

Are Florida property prices in for a “double dip”?

http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=239422

The US Budget Crisis Starting to Abate!

Giving a sign that the worst of the budget crisis may be over, for the first time since 2007, the US States and local governments took in more money than they spent in the first three months of this year. Dennis Cauchon of USA Today reports:

http://www.usatoday.com/news/nation/2010-06-03-state-spending_N.htm

Out of the Rubble of the Burst Bubble

In a well judged and realistic piece, Christine Dugas of the mighty USA Today provides nuggets of insight that make essential reading for all would be property investors in Fort Myers.

http://www.usatoday.com/money/economy/housing/closetohome/2010-08-02-fort-myers-close-to-home_N.htm

Florida is 'top US property market'

Adam Samuel of the respected nubricks.com observes that Florida has been dubbed the "one to watch" by a property investment expert.

http://www.propertyshowrooms.com/usa/property/news/florida-top-us-property-market_284511.html

“Tiptych4Florida (FL) News Update” compiled by Mark FR Wilkins, CEO Triptych4

Mark can be contacted as follows:

Skype: markandytrg Spain: +34 600 343 917

By e-mail: mark@triptych4.com or web link: www.triptych4.com

© Compilation Triptych4 2010

We respect the IP rights of those publications whose articles are featured above. So for ease we aim to credit all sources either by the use of their web-link or as part of our introduction to the piece featured.