Fresh Invest

The Opportunity:

The current state of the American real estate market is seen by many as a unique opportunity to purchase property at up to 70% below their previous sale prices.

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 subprime 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 stabilise 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.

These opportunities are fairly common now, however as every investor knows, location is paramount to every successful property purchase.

This is why we are very proud to offer a selection of houses located in Fort Myers, Florida.

Why Fort Myers?

Fresh Invest is focused 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.

Kissimmee and Poinciana.

With the world renown attractions of Disney,  Universal Studios Sea World and so many other attractions, this area is a firm favourite for investors. You have a choice of many rental markets, the employees the holiday makers all help to make this a sort- after area. Single family homes are attractive because they will not suffer from defaulting Home Owner Association problems.

Why Houses?

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.

Our due diligence indicates that there remains an oversupply of condos held by the banks. We feel that the second home market remains a risky market to enter both with the extra tourist tax and the unreliability of holiday rental income. Further, many condos also suffer from substantial community fee arrears and thus these are not suitable for investment. By contrast, there is significant rental demand for 3 bedroom detached family homes in key areas of Fort Myers. Currently, in Lee County, one of our favoured locations, rental occupancy is close to 95% according to local Realtors.

The Fort Myers Rental Market:

If you’re looking for a rental property in Lee County, 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.

Financial Example:

3 bed 2 bath 1500 sqft

• Purchase Price - $80,000
• Gross Annual Income - $10,800
• Taxes, Insurance and Management - $3,000
• Net Annual Income - $7,800
• Net Yield = 9.75%