Present Mortgage Bank Rates in Central Florida by eon11778


Present Mortgage Bank Rates in Central Florida document sample

More Info
									Florida Market Report

Florida Market Report
Prepared by Martin Brennan


Dollar Property Investment (UK) Ltd

August 2008

General overview of the USA

The National Association of Realtors Chief Economist, Lawrence YUN, made a statement
in early June 2008 which sums up the view on USA housing markets and subsequent
property prices.

‘Home sales and prices throughout most of the country are poised for improvement in the
second half of 2008, and the recovery will vary by market. Middle America Cities that
performed evenly over the past few years are likely to experience price gains in the 20 to 30
percent range over the next five years. Markets in Florida could see prices go up as much as
50 percent during that time period.

If you look at where home prices fell the most, it’s the markets where subprime loans were
prevalent. Certain Cities in Vegas, Arizona and Florida experienced a high percentage of
subprime lending and consequently these were the markets that suffered the most’

Mr Yun added, on a Strengthening US Market

‘Now that the subprime has dried up, and loans insured by the Federal Housing
Administration and those purchased by Fannie Mae and Freddy Mac are making a
comeback, the housing markets will strengthen and prices are likely to begin a steady
upturn in the coming months.’

Recession in the USA? Yes, and we are all aware of the global credit crisis and bank
difficulties, but bearing in mind that the housing markets only make up 12% of the total
economy, America is robust, bullish and WILL turn the corner. The definition of a recession-
two consecutive negative quarters of GDP. The GDP is tipped to increase by 1.7% for this
last quarter of 2008, and improve yet further beyond 2% into 2009.

Dollar property Investment LTD            Page 1
Florida Market Report


CONTENTS                                               2


EXPECTATIONS AND FUTURE TRENDS                          5
EXIT STRATEGIES                                         5
PROPERTY TYPES                                     10-11
CONDITION                                              11
PRICES                                                 11
WEATHER                                            11-12
 PROPERTY OWNERSHIP                                    12
LEGAL                                                  12
TAXATION                                           12-13
THE BUYING PROCESS                                 14-15
BANK ACCOUNTS                                      15-16
RENTING AND MANAGEMENT                                16


Dollar property Investment LTD       Page 2
Florida Market Report


This report focuses on the significant potential for property investment in Florida, USA.
Florida I hear you say! Nothing new there! It is true that this state has been the number one
holidaying destination for years, and many British have bought here over the past decades.
In fact, out of all foreign national buyers, The UK accounts for 21% of the residential
property purchases, the biggest percentage, with other European countries, Latin America,
Canada, Asia and South America making up the rest.

We are attracted for many reasons, the weather, the lifestyle, the dollar and of course the
endless number of leisure activities available for the whole family to enjoy on their vacation
break to the sunshine state. Recognising that foreign nationals, and especially the British,
invest heavily in Florida each year, the purchasing process and financial assistance available
is much greater and simpler than in most other states of the USA. In recent times however,
with the much publicised credit crunch and recession, property hunting in this state has
become difficult to gauge in an uncertain market, with finance institutions shutting up shop
to many foreign national loan programs that had been so widely available only as recently
as last year. Recession! A dirty word to many people, but the savvy investor knows that this
is bargain time.

This report will look more deeply into the State of Florida, and then pinpoint the current and
future HOTSPOT regions to buy into. I have spent the past months researching this huge
state, and have narrowed down my search to a specific City encompassing 50 miles of
counties and towns, places of interest that have rock bottom prices, and already showing
signs of an upward trend that will continue to rise through 2009. With a minimum of 30%
increased equity likely in the short term, and if the property cycle runs its natural course,
prices will continue to rise for the next 5 years or more. We shall call this area that stretches
across parts of the mid west of the state, the ‘Dollar property investment Florida goldmine’.

Having successfully navigated the Western New York housing market, assembling a team of
licensed professionals to cover every facet of a successful investment there, I am in the
process of mirroring my system into the Florida housing market. I will be able to source
newly built condominiums at $50-$100k less than they were listed for only months ago,
provide vacation homes at stunningly cheap prices due to owner impending foreclosures,
and ensure EVERY property sourced will be zoned for rental purposes. Returns on rental
income can yield as much as $20k a year with proactive owner marketing, offsetting
mortgage payments and expenses incurred on the property, or taking weight off the burden
of your UK portfolio losses whilst soaking up the sun and visiting Mickey Mouse and
friends. Rents per night are in the region of $150-$200, dependant on size, furnishings and

In a nutshell, these investment deals will be unique to myself, there are many UK companies
selling property in Florida, but very few who understand the economic drivers associated
Dollar property Investment LTD              Page 3
Florida Market Report

with discounted prices, future growth, and knowing when the time is right to buy. Florida is
a huge state, and all real estate within each county is locally affected, diverse, and ever
changing. I have been researching the Florida housing markets now since January 2008, and
at that time the conditions were not conducive to entry into property investment there.
Prices were continuing to fall as the economy suffered under the burden of subprime loans,
hiked prices in recent years, and the fallout associated with the recession that developed.
Still other UK companies were trying to sell their properties to unwary clients, utter
madness in my humble opinion, as it’s our clients that are of paramount importance, and
providing the best deals that will bring in repeat custom. The US economic outlook for the
last quarter and into 2009/10 shows that employment will rise, real disposable income will
rise, which in turn will give more consumer confidence. Banks that have been nationalised
now have the freedom and liquidity to deal with each other, which should encourage better
rates of mortgage and although lending criteria will remain strict, more properties will be
bought and sold.

These are all positive signs that our investors should take on board now, right this minute.

2005 was the year that last saw personal income in Florida at an all time high, which co-
incidentally was the time when house prices rocketed fuelling the boom there.

Can you see where all this is leading? Property Cycles and the property clock tell us this is
the time; we my knowledge and experience of the US markets gained over the past three
years, I have bided our time on your behalf, patiently. The waiting game is now over, so let’s
go bargain hunting in the sunshine state!

Top 10 Reasons To Invest in Florida NOW!
         Prices are set to rise, more so in some areas of Florida than others, we will show you

         Our targeted areas of Florida will be the leaders in population growth, employment,
          with strong gains in personal income and average annual wages.

         The areas industry growth is predominantly focused on the professional and
          business services sector; all these will see significant gains in the near future.

         The state GDP for 2007 was $756.4 billion, compared to $391.5 billion in 1997. Florida
          has the nation’s fourth largest GDP and the WORLD’s 19th largest economy, making
          it one of the safest places in the world to invest into.

         The dollar is still weak against the GB Pound, when the dollar strengthens, your
          investment value will increase yet further, as will your rental income.

Dollar property Investment LTD                 Page 4
Florida Market Report

         There exists an economically sophisticated infrastructure in Florida with 31 airports
          and 14 deepwater seaports, married with a healthy appreciation of real estate
          compared to most other states and countries.

         No individual state income taxes- and school taxes are set to be dropped in 2009.

         Around 600 people migrate into Florida every day; it still remains the number one
          retirement destination for the ‘baby boomer’ genre, which will continue.

         Rental returns on our properties, in our selected areas of choice can yield $20k a year.

         Enjoy discounts on property in Florida up to $70k below the list prices.

Expectations and Future Trends
No-one can be sure what the future holds. However we want to present to you our opinions
of what will happen in the coming years. We recommend that you do your own research,
but you might be interested to hear our thoughts:

     1) The dollar will strengthen against the pound – making your investment worth more
        to you in real terms.

     2) House prices will increase into 2009 and beyond.

     3) Rents can normally be increased when you choose to do so – meaning your yield will
        steadily increase too. All our chosen locations will be prime rental areas, attracting
        visitors from all over the world.

     4) Mortgage rates are dropping and will level out over the next 12/24 months,
        currently there is a 75% LTV program but we are always on the lookout for more!

     5) More investors will become aware of this opportunity – the phrase ‘the early bird
        catches the worm’ is so true!

Exit Strategies
There must always be an exit strategy to any investment plan, although my advice would be
to sit tight on your property and watch the dollar and house prices rise again during the
next property cycle, which will bring with it growth, capital appreciation and the knowledge
that you have bagged a bargain! The properties we will be carefully selecting will be at
ridiculously cheap prices, and should you need to sell in the future, you will at least get back
what you put into the investment, and most likely a lot more. Properties bought through our
team in Florida can be re-sold through them at reduced realtor costs. There shouldn’t be any
shortage of buyers to sell on to if that is the strategy you decide to incorporate.

Dollar property Investment LTD               Page 5
Florida Market Report

Where to Buy in Florida

Florida- Tampa Bay
Florida's Gulf Coast metropolis has less glamour - and lower prices.

It's not the Atlantic coast of Florida, with symbols of opulence like lavish Palm Beach estates
or multimillion-dollar spec homes. But Tampa, with its more blue-collar feel, offers the same
brand of South Florida living at a far more affordable price. How much more affordable?
Prices are consistently lower by 50%, estimates Deborah Farmer, president of the Greater
Tampa Association of Realtors.

To be sure, Tampa lived large during the boom years; prices rose 100% from 2001 to 2006.
That was fuelled in large part by speculators just looking to flip, and when they started
vanishing in 2006, thanks to the slowing market and a tightening of credit, so did those
massive annual increases. Real estate values have fallen 17.5% in a year, according to the
Case-Shiller index.

But more than other markets, Tampa could be nicely positioned for a rebound. It’s relatively
strong local economy, coupled with the fact that the bust hit here earlier than in some other
markets, means that the downside may have largely played itself out. The median price is
now $222,000, down from $275,000 last year, and top NAR economist Lawrence Yun has
singled Tampa out as well prepped for price recovery, estimating 30% or more appreciation
in the next five years.

A prime spot for high-end bargain hunters: Gulf-front luxury condos in nearby Clearwater
or St. Petersburg, which might have gone for a minimum of $1 million a few years ago, can
now be snapped up in the $600,000 range.

Tampa Bay is a large natural harbour and estuary along the Gulf of Mexico, on the Mid
Western coast of Florida. It is the largest port in Florida, and the 10th largest in the USA. The
seaborne commerce forms a large part of the economy.

There are 2.5 million residents and it encompass three counties, it is close to the tropical St
Petersburg and Clearwater, and is a 90 minute drive to Orlando. 92% of the population are
of white ethnic origins, and the median age is 40. The population is set to rise to in excess of
2.75 million by 2009.

Dollar property Investment LTD              Page 6
Florida Market Report

The main industries are the sea commerce, bioscience, and corporate headquarters for some
of the nation’s largest known names, financial services, and manufacturing/ distribution.
The area’s pro business environment includes a robust workforce, with low business and
living costs, top flight education and training opportunities, with a sound infrastructure in
place. Tampa is a financial services powerhouse, with over 45,000 jobs created by Citigroup,
JP Morgan Chase, Depository trust and clearing corporation and Met Life.

The port forms a huge economic engine for all of west central Florida, with large scale
manufacturing and distribution to Latin America and beyond. The port handles over 50
million tonnes of cargo per year, from a 5000 acre site home to over 250 businesses and
employing 2200 workers.

Tampa is ranked 3rd in the USA for low business costs, and its low tax environment is
purposefully designed for growth.

Tampa International airport is a national jewel, regularly ranked as the leading global

It is home to nearby Busch Gardens and the Adventure Island, has several large aquariums
and the Lowry Zoo was recently ranked number 1 in the states for kids. It is also home to the
Tampa Bay Buccaneers, the local football team, who won the super bowl a few years ago.

I have a realtor in Tampa, who can provide the complete package of professional services
similar to the set up in Western New York. The property types are likely to be new build
vacation homes, existing single family homes or condominiums that will all have good
rental potential and will be secured at WELL below the market values. Whilst the market
value is relative to the ACTUAL prices we may be getting these at, the likelihood of capital
growth and equity in the coming years is high. I also have a mortgage broker, conversant
with foreign national buyers, with a loan program of 75% LTV with a modest 7% interest

Polk County and the town of Davenport.

Polk County comes under the remit of Tampa Bay, and lies 52 miles east of Tampa.
In Polk County is a town named Davenport, and both these areas have been singled
out due to the excellent potential for investment.


Davenport is located in the north east of Polk County, and despite only having a
population of nearly 2000 residents, this area has been earmarked for major growth
over the coming months and years, due to its close proximity to Walt Disney World
(10 miles), and the other major attractions that can be found in this part of Florida.
Much of the town has now been zoned for short term rental usage, and large
Dollar property Investment LTD            Page 7
Florida Market Report

developments of high priced homes are being built there, and at present are NOT
being sold at their stated list prices, giving rise to a tremendous opportunity to our
investors. This area is becoming more popular with British holiday makers who
would rather buy/rent out a vacation home close to Orlando rather than staying in
traditional theme park hotels. You can see why this is one of the fastest growing
areas of Florida, and the local economy will be greatly influenced by the
development of Davenport.

Davenport is currently only 2 square miles in size, but is fast becoming the centre of
a booming residential area with the rapid expansion of the Disney complex, coupled
with thousands of vacant acres of land formerly used for citrus production, creating
dozens of new subdivisions to the area. The current market conditions make this an
excellent area to invest into, whether you just want a low cost vacation home for you
and the family/friends, or want the added rental income that this will provide. Add
to this the significantly reduced property prices, and you will see why I have named
this area ‘the Dollar Property Investment Florida goldmine!’


This county has over half a million residents, and has 554 small lakes and lies
between Tampa and Orlando/Kissimmee. There are three primary industries, citrus
production, cattle farming and phosphate mining. Polk provides 75% of the nation’s
phosphate, and 25% of the world supply, and is used for many bi products such as
fertilizer. The Citrus industry is worth over $878 million dollars, and the cattle beef
industry accounts for a large percentage of the nation’s intake.

Tourism is a strong economic force in Polk, as it is only one hour from Disney,
universal studios, Sea World and Busch gardens. Sports marketing is becoming big
business here, with over $84 million dollars being pumped into the local economy
through the spring training favourite location of the Detroit Tigers baseball team.

The economy has diversified over the past few years, and with its central Florida
location being the key, it has over 8.5 million people who live in a 100 mile radius, so
ideally situated as the largest and fastest growing region in the State. Polk has
therefore attracted numerous large companies who have housed their
manufacturing and distribution centres there, namely Coca Cola, Home Depot, JC
Penney’s Wall-mart, Ford and FedEx. Logistics management is the centerpiece for
Polk County’s growing economy and population.

Construction was another huge pillar of Polk’s economic strength with record
numbers of building permits issued in 2004, an increase of 68.7% on the previous
Dollar property Investment LTD          Page 8
Florida Market Report

year. Whilst the recession has faltered this number, it leaves the door ajar to
investors to snap up low cost properties that are set to grow in value again through
the next property cycle, and spark an upturn once more in new builds as the
population gathers pace.

Single family building permits have declined from April 2006 to April 2008, due to
the nations and global market conditions currently. House price falls here have been
prevalent, builders were holding out to sell at any profit, consequently leaving them
with an elevated housing stock and reduced demand, thus forcing prices downward
to the lowest point seen in this millennium.

Interestingly enough, the last time that the building permits hit an all time high was
in 2005, at the height of the last boom in the states, and in Florida in particular.

The population in this county is set to grow from over half a million to 635,000 by
2010, and to 791,000 by 2020, and ranks amongst the highest growth rates in Florida,
and the nation.

The labour force has increased from 200,000 in 1992 to 270,000 in 2007. The top
employers locally are the education departments, the medical institutions, Wall
Mart, the state of Florida and the county government offices. Income levels have
risen faster than inflation over the past decade, which tends to indicate an improving
standard of living in this County.

I have a team set up in this locality also, and a realtor quoted recently,

‘Most prices of homes are down $50-$70k from last year. I am getting a tremendous response
from UK clients to have replied to our campaign and they are ecstatic at the prices of our

The biggest UK property portals have ranked the USA now as the third most popular
country to invest in behind the old favourites, France and Spain. Searches for US property,
Florida being the most popular state in recent polls, have gone up 43% in the past year, and
it won’t be long before the US takes the number two spot. All this when prices have been
dropping there, but only now have they reached their lowest prices in our chosen areas,
which should spark a lot of interest.


Having researched the main sites such as the move channel, prime location and right move,
most of the Florida properties listed are averagely priced above $200k. We will look to go
sub $200k on all our properties, and from what I have seen thus far, I can envisage that we
can secure deals in the $100k-$150k remit.

Dollar property Investment LTD              Page 9
Florida Market Report

The commercial property impact continues to grow in our areas of interest, and tourism is
up by 58% in the last five years in Polk County.

Other areas? I have stumbled across a county to the Northeast of Florida that has the fastest
population and job growth in the state. There is new construction everywhere here, and
prices of properties are still under $150k, at the moment….More to follow….

Property Types.

Vacation homes: Either brand new or a few years old, many will have building warranties
with them, and are constructed with special reinforcement to prevent any hurricane
damage. Hurricanes are not so prevalent in this part of Florida, and the ones that do hit
occasionally have normally reduced in strength by the time they reach this far up the state.
We will endeavour to provide virtual property tours for properties we source, and will have
realtor reports, pictures, home inspections and appraisals as standard in our package. HOA
fees are normally required, this is around $300 per year, and is used to maintain the areas
surrounding your property, upkeep of the locality generally, and is a small price to pay for
the service provided.

Condos: Mostly brand new developments, in gated communities, with high specification
fixtures, fittings and furniture, making them instantly rentable. Prices of condominiums
have dropped by $60K or more, if you know where to look and who to source them through.
The infrastructure of these communities will ensure that every whim is catered for. There is
a cost for the property and grounds to be maintained throughout the year, which will vary
in each development. Rents can reach $20k per year, and 35 out of the 52 weeks is common,
which can be increased with the right marketing and advertising.

Property contract differentials

There are two types of property status that are all too common at the moment in Florida. Pre
foreclosure or (short sale) properties, and bank owned REO properties. Whilst I will be
trying to source properties under normal conditions of sale, attacking prices through my
realtors on properties that may be heading the foreclosure route by targeting anxious sellers,
it may be that we have to go for the two types of sale procedures explained below. Of
course, new builds will be unlikely to fall into this remit. It is also common for title
insurance companies to close on all sales rather than attorneys. Personally, I like the
integrity and professionalism that good attorneys possess, and so will our clients!

Pre foreclosure sales

These are properties that have not gone through the full foreclosure process. They are still
owned by the homeowner, but in most cases the homeowner has stopped making payments.
Dollar property Investment LTD            Page 10
Florida Market Report

The only hope for them is that someone buy’s their property before the lender forecloses and
that the lender will accept less than they are owed. The trick here is to make sure any
property we look at in this category has lender approval ALREADY. Otherwise, buyers can
wait up to 4-6 weeks for the lender to review the offer and approve it, and can still reject it.
The realtor is the key here to wise negotiating, and all offers on properties will have been
accepted by the lenders if we source these type.

Bank Owned ‘REO’ sales

REO stands for ‘real estate owned’. These are properties that have gone through foreclosure
and are now owned by the bank or mortgage company. The REO property has not found a
buyer through a foreclosure auction (which we will steer clear of). The bank now owns it.
The bank will see to the removal of any tax liens, evict occupants if required and will liaise
to ensure a title insurance policy is effective for the new buyer. Auctions can inherit all these
problems, and must be bought with cash, ‘sold as is’, which is why I said we won’t be going
for auctioned properties. REO properties are generally quicker and easier to secure.


Home Inspection (survey) criteria

Licensed Florida state home inspectors will be commissioned on the properties that
we select. Their role is to provide a detailed report on the property condition, and it
covers every facet from the roof right through to the basements. The electrics,
mechanics, plumbing and foundations are all incorporated. Dollar Property
Investment will provide a summary of the inspection report for quick glance
purposes, and also attach the full report with a covering note from our home
inspectors, giving a description of the rating system and process used. All second
hand properties will generally require some work, but we will carefully handpick
the very best to ensure any work required is minimal, if required at all. We always
note any urgent work required, and work that can be deferred, and give realistic
quotes based on experience. The quotes are deemed reliable, but are not guaranteed.
Termites are more popular in Florida than Western New York, so every inspection
will look specifically for the presence of these little critters. In general terms, the
properties in this state will be newer, and built more resolutely to handle the
occasional extreme weather conditions.

Seriously slashed, the time has come to own your own piece of paradise. Our remit for
prices will be $100k-$150k.

Dollar property Investment LTD             Page 11
Florida Market Report

 Weather in Florida

Florida enjoys all year round sunshine; temperatures are an average of 65 degrees centigrade
in January, and increase to 80+ degrees during the summer months. Most Floridians go to
work in shorts, whatever the month, and many enjoy pre work swims! Hurricanes occur
from time to time, but the early warning systems set in place have the latest technology
which reduces the possibility of serious damage. All properties are purposely strengthened
during construction, and insurance quotes are in fact reasonable. Hurricane ‘season’ begins
in June and ends normally in September.

Property Ownership

Just as in the UK property is owned freehold, and title (property) deeds will be emailed to
clients on closure, with the originals forwarded after being registered at the local
government offices. This can take up to 3 months.

Dollar Property Investment is not authorised to give advice on tax and we suggest that you
seek your own advice. However we understand that there is a double-tax treaty in place
between the UK and USA which means that you will only have to pay tax once. We have a
tax expert based in Florida to assist at tax return time. Income tax is waived in the USA by
the sub chapter form, which is sent to your local accountant. Tax payable is, as a general
rule, similar to any UK buy to let property. Taxation in Florida, especially in our areas of
interest, is low.

Florida ranks 2nd in the Tax Foundation's State Business Tax Climate Index, which
measures the impact on business of five major elements of the tax system: the percentage of
income taken by all taxes, the individual income tax rates, the corporate income taxes, the
sales tax rate, and the complexity of the tax system.

Florida's state constitution is the strongest relocation incentive. It prohibits personal income
taxes, limits estate taxes, provides a $25,000 homestead exemption (on primary residences),
and makes Florida a "right-to-work" state.

         The best enticement is our tax structure. Residents keep more of their pay. Florida
          households retain over 90% of their income after state & local taxes. For people
          moving from high tax states like New York, it's like getting a 5% raise.

         Florida ranks as the fifth lowest state in revenue derived from income taxes.

Dollar property Investment LTD              Page 12
Florida Market Report

         60% of state government revenues (77.5% of all taxes) come from sales tax
          collections, a large portion of which is paid by the 40 million tourists that visit the
          state each year.

         No personal income tax allowed by the State constitution.

         No sales taxes on food or medicine.

         Estate taxes limited to the amount allowed as a credit against the federal tax.

         The state has a $25,000 homestead exemption on property taxes for your primary
          residence, and there is an annual cap on property valuation increases.

         Corporate Income Tax: 5.5% on net Florida taxable income, after a $5,000 exemption.

         Foreign source dividends are not included in the corporate income tax base.

         Subchapter S corporations and limited partnerships do not pay state corporate
          income tax.

         No annual franchise tax levied on stock or other equity.

         No Unitary Tax.

         State gasoline tax of 12.1 cents per gallon is among the lowest in the nation.

         No property tax on inventory or goods-in-transit.

         Intangibles tax rate of $2 per $1,000.

         State sales tax of 6%, with local option to levy up to an additional 1%.

         No sales and use tax on goods made in the state for export outside the state.

         No sales tax on boiler fuels or the cogeneration of electricity.

Raising Finance
Having identified that you want a piece of this exciting opportunity you will of course need
to consider your options on how you purchase your property.

There should be no one-size-fits-all approach to buying your property and unlike some of
competitors we have taken time to analyse a number of different approaches which we
present in this document. The option you select will be determined by your own investment
strategy and of course a good credit history will be required, and liquid assets available to
cover the costs of closing and loan deposit (mortgages).

These are the options open to you:

Dollar property Investment LTD                Page 13
Florida Market Report

     1) Buy your property with a mortgage through one of our Brokers in Florida. 75% LTV
        is available, with interest rates around the 7-8% mark. All buyers will need to be pre
        qualified, which can be done within 24 hours of submitting the paperwork required.
        The mortgage process will only take around 30 days, but it is essential that the clients
        are proactive in supplying the correct documentation. All loans will be subject to a
        full loan document, a full list will be provided at the time of reservation. One broker
        offers a package that requires the client to ‘pledge’ the deposit amount, and this sits
        in an interest bearing account and when 75% of the mortgage has been paid off, the
        interest comes back to the client.

     2) Buy your property with cash. This may be with funds that you have available in the
        UK, or equity that you might have released through a remortgage. Quicker to close,
        no mortgage payments, quicker to tap the equity when the prices rise.

     3) You may consider raising a loan in the UK, secured or unsecured to pay for your
        property deposit. Typically it is possible to raise unsecured loans which will be
        sufficient for most property deposits Axis will be offering.

When you buy one of these properties you are also indirectly speculating on the foreign
currency market. At the time of writing this report (the dollar is just under $1.8 to £1... This
means that your investments may cost a little extra then they would have done a few
months ago, but your rental income will rise, as will the value of your investment.

If you believe that over time the dollar will weaken again then by investing at today’s rate
you will benefit from the reverse of this situation, in that your overall investment cost will
be lower at the time of purchase. That is, you will enjoy the profit from the changes in the
exchange rate as well as capital growth in the property itself!

Generally, when purchasing a property abroad, UK owners have historically preferred to
raise finance in the UK. This is mainly due to the complications and delays that can arise in
arranging a mortgage abroad. We will continue to search for the best loan programs
available in the UK and in Florida, but by and large the US mortgage brokers will be able to
provide a cheaper deal, without the commission associated with UK companies.

There has been considerable coverage of the recent ‘credit crunch’ in the US mortgage
market. This means that in our chosen areas of interest, there are more properties available
at even cheaper prices, as local owners are forced to sell before they are re possessed
(foreclosed). As previously stated, new build properties can also be secured at very low
prices as builders are forced to sell off their inventory at well below what they anticipated.

Appraisals are carried out on each property we select, and reports are forwarded to our
clients during the sale process. Appraisal reports will contain information on the current
market mortgage able value, and gives sales comparables, and local economic housing

Dollar property Investment LTD             Page 14
Florida Market Report

market drivers. This report can be used as a guide to owners who may wish to refinance. A
full appraisal will be required to refinance come that time, which costs around $400.

The Buying Process
The buying process is broadly the same as in the UK although a few differences exist which
a UK investor should be aware of before buying their first US investment property.

Before going into the differences we wanted to let you know the amount of work we do on
your behalf before we bring a unit to market. This is all work we do without earning a
penny, and in actual fact when we find a property we will be required to put money down
to reserve the property, We have each property hand picked, researched, reported on,
surveyed (home inspected) and appraised by licensed professional colleagues in Florida. We
do this without having a buyer lined up, so you know we are putting our money on the line
to bring you the best deals.

Property Selection Process
Prior to marketing any unit to our members we will do a significant amount of work as part
of our due diligence process. This means that, on average, we only offer around 1 in 30 units
that we look at. Whilst we encourage buyers to perform their own due diligence, you can be
safe in the knowledge that our research is performed with one aspect in mind- giving our
clients the best deals possible, and if our high standards are not reached on ANY deal or
property, we will not release it.

Once we have selected a suitable property the steps we take are:

     1) Arrange for our realtors to inspect the property personally and if it meets out
        stringent criteria, a home inspection is arranged. This is a detailed report outlining all
        aspects of the condition of the property, conducted by a professional licensed
        inspector... Any urgent work required will be stated in each property file released,
        and similarly, any work required in the future will be noted, with realistic estimates
        of costs involved.

     2)    An offer would by now have been submitted and we negotiate the price to ensure all
          properties are under market value. Contracts are drawn up by the realtors and
          submitted to the seller for signature, and to the attorney for approval. An appraisal is
          conducted on single family homes, which outlines the current mortgage able value of
          the property, and is conducted by our licensed appraiser state side. This appraisal
          figure can be used as a guide only for later financing options. The appraisal value
          often exceeds the purchase price, especially when the property has had the benefit of
          interior updates, particularly important when wishing to re finance. We will also
          provide a sales history on properties to give an indication of what they were bought
          for in previous years, which will be interesting reading in many cases! The property
          will then be packaged and released to our clients, in the form of a property file which

Dollar property Investment LTD               Page 15
Florida Market Report

          details the particular deal in its entirety, with a complete and transparent financial
          breakdown for your peace of mind, and hopefully virtual tours will be available via
          our website.

Bank Accounts
US dollar current account with CITIBANK- Account held in the UK, and very
flexible. for details on an application.

HSBC US dollar account. You need to open a UK current account and then request
the forms for a US Dollar account in Buffalo NY. Many bank staff are unaware of the
protocol required, so ask to speak to a supervisor or manager. UK international
banking centre can assist 0207 991 7278.

HALIFAX International US dollar web saver account based in the UK. The benefit of
this account is that it is interest bearing each month, which is an added attraction of
course. No cheque book or card is provided, but online banking allows you to move
money around, and receive rental income from the states, should you decide to rent
your property out.

Charges to open accounts may vary, and interest charged on minimum balances
may also apply. Speak to the relevant banks for more details.

Some management companies can send rent checks by mail direct to owners on a
quarterly basis. Each company has different payment terms but all are fluid in their

NB. Even if you do not intend to rent your property, it is prudent to open a US bank
account, to build up a credit history in the states, which can make refinancing all the
more easier. The quickest way to open an account is to take your passport/ forms of
identification with you when you visit your Florida property!

DO NOT open an offshore account as this is not conducive to rent receipt from the states.

Renting and Management

Dollar property Investment LTD               Page 16
Florida Market Report

There are, as you can imagine, plenty of property management companies in Florida, but
Dollar Property Investment don’t accept anything but the best, and my team assembled
there has either in house management services, or reputable companies on hand to provide
the client with regular communication, audited accounts, and will be your eyes and ears in
Florida when you are not there. 10% charges are the norm, and assistance with facilitating
the arrival of guests renting is always provided. Cleaning services are included, and
contractors are available for any work required. Security deposits are taken, and an
inventory of items within the property is detailed and checked on. It is the responsibility of
the owner to ensure that regular communication is ongoing to ensure the maximum rental

References- sources of information gathered

              National Association of Realtors- Florida

              NAR Chief economist

              Florida and Metro economic forecast 2008

              Director, institute for Economic Competitiveness- University of Central Florida

              Assistance from my team of Florida Realty professionals

              Independent Internet research to back up the information sourced

              Full area demographics available to back up statistics written in this report



Dollar property Investment LTD                   Page 17
Florida Market Report

Dollar property Investment LTD   Page 18
Florida Market Report

Dollar property Investment LTD   Page 19
Florida Market Report

Dollar property Investment LTD   Page 20

To top