It has been almost two weeks since Britain voted to leave the European Union and the economic and political shockwaves are still reverberating strongly around the world. I must admit I was very surprised by the result.
With all of the British political parties in turmoil, a dramatically weaker currency, tens of billions wiped off the UK stock market and multi-nationals canceling or downsizing investment programs, the Leave campaign slogan of "Let´s take back control" looks grimly ironic.
As reams of articles are being published daily on this huge event, I´m going to restrict myself to commenting on how Brexit might affect the Florida and the wider US market. While they might seem far removed from the Brexit referendum, there is no doubt that it is going to have an impact. In my view, it will mostly be a positive impact, for several reasons.
1. Lower Mortgage Rates
The most obvious boost is that US mortgage rates have fallen to a three year low because the Federal Reserve will drag its feed on rate increases when there is so much uncertainty in the global markets. Lower mortgage rates increases peoples buying power, increases demand for homes and gives a boost to average house prices.
2. US real estate looks even more stable and attractive now
Uncertainty in Europe will increase demand in safe havens like the US, pushing prices higher. With a strong dollar and government bond yields close to zero (and negative in some places) investors will also naturally increase their exposure to US real estate as it can offer higher returns and much lower volatility than the stock market. US REITs (Real Estate Investment Trusts) are already seeing an immediate increase in interest from institutional buyers. To put it simply, nervous investors have always turned to real estate during times of volatility.
3. London´s loss will be America´s gain
There is no question that Brexit is going to be bad for the London real estate market, especially the upper end. As banks and other multinationals downsize operations, local demand will suffer and the overseas buyers who have been investing huge sums of money in prime London real estate will startmoving cash to alternative property markets like New York and Miami. This was happening already, but Brexit will accelerate the pace. The share prices of major UK REITs & UK house builders have fallen by 20-30% in the past two weeks and nobody is predicting that they will recover to pre Brexit levels.
4. Florida is stronger than ever
The Florida Realtors Association reported higher median prices (up 10.5%), more sales (up 4.5%) and dramatically fewer pre-foreclosure sales (down 37%) compared to this time last year.
Median sales prices for single families, condos and townhomes have all increased for 54 months in a row. If that isn´t a stable market, I don´t know what is!
Nova Scotia Drive: Back on the market!
When we advertised this beautiful home last week it was immediately reserved by one of our regular buyers. Unfortunately he has just canceled for personal reasons and so it is available to reserve today. Below you´ll find the full details...
Nova Scotia Drive is a three bed two bath property that has just been transformed by a renovation budget that exceeded $30,000. With a new roof, paint, air con, kitchen, floors and bathrooms; this is essentially a brand new home and it will make a superb rental property.
Jasmine Estates is one of our favorite neighborhoods in Tampa and we have bought at least 8 properties in the immediate area this year (see map opposite). They have always rented quickly.
In addition to three bedrooms and two bathrooms, this home also has an attached one car garage and a newly fenced backyard. The purchase price is $105,900 and estimated net rental returns are 8.4%.
You´ll find plenty more details below including property description, video, photo gallery, map links, financial breakdown and renovation details. I would recommend that you REPLY QUICKLY if you are interested in securing.
About the Property
As you can see from the “before & after” photos below, this home is in superb rental condition. We have put together an 80 second video slideshow which is worth reviewing.
The home itself is a 3 bed 2 bath built in 1980 with over 1,890 sq ft (1,310 of which is heated) with a one car garage and fenced backyard. These are the properties every Realtor wants to get their hands on as they are easy to sell and easy to rent. This is a completely off market property that is exclusive to Torcana clients.
Nova Scotia Renovations (more than $30,000 worth)
- New a/c unit
- New roof
- New flooring (vinyl planks throughout and new carpets in bedrooms)
- Newly painted both inside and outside
- New cabinets, sink and faucets
- New granite countertops and tile backsplash
- New light fixtures and crown molding
- New granite counter and cabinet in main bathroom
- New vanity and back splash in second bathroom
- New smoke alarms, blinds, fans and interior doors
- Landscaping and new fence in back yard
1. Video Slideshow: Click here
2. Photo Gallery
3. Market Analysis:
A quick analysis of the current properties listed for sale within 0.25 miles of this location shows only one house under $100,000. With a high quality renovation and estimated 8.4% net return, our house is excellent value at $105,900.
A quick analysis of resent sales of renovated homes in the area also shows several in the $80-83 per sq ft range, which is what this home is priced at.
4. Google Map Link: https://goo.gl/maps/3d12CRuKJ5H2
5. Reservation Process
We are seeking cash buyers for this property (you can always refinance afterwards) with a 20-30 day closing. Initial deposit is $5,000 (payable to local title company) and we are happy to provide a 7 day inspection period, which can be extended for a buyer who wishes to visit personally. Happy to discuss the process further if you´d like to call us on 727 302 1422.