For any home buyer who is paying cash for a property, the Seller of that property is going to require proof of assets / funds that cover the purchase price. This can be a bank statement, savings account, investment or retirement account that shows on bank letterhead the total amount of funds available. This statement usually will suffice in proving the assets needed to purchase a particular property.  The challenge for a U.K. buyer is that their funds show total amounts in Pounds or Sterling.  A knowledgeable agent can help the seller overcome these challenges with the conversion from pounds to dollars that show the true value. In a normal housing market this worked just fine but what we are currently seeing with all the Bank Foreclosures is that the seller (banks) will only accept an offer in U.S. funds.

So, how does a U.K. home Buyer submit an offer to purchase and show proof of funds without a U.K. bank account? The answer is very easy. Moneycorp is a foreign currency exchange company based in the U.K. that can convert U.K. Pounds to Dollars and show statements if this transaction in any currency required. The process is very easy once an account is opened with Moneycorp and the transaction can be completed within 24 hours. Moneycorp can hold the funds for a Buyer or direct the funds to a U.S. bank or escrow account.

Time is of the essence when dealing with properties in our current market. Often a foreclosure property will sell in a matter of days so it is necessary to provide the information the seller is requiring very quickly. Using Moneycorp to show proof of funds gives a buyer a fast access to show funds in U.S. dollars as well as a more effective way to transfer funds at very competitive rates.

Lately there has been some good news from several lender and banks in regards to financing for Foreign National loans in the Orlando area. In the past few years trying to find financing for these types of loan has been difficult and in some cases near impossible. This is beginning to change and I now have 2 very good lenders that are offering good loan products for Foreign Nationals.

With these new loans you can expect the requirements to be somewhat strict but workable. Minimum down payment requirements are at least 30% and a U.S. bank account with sufficient assets must be open for a minimum of 30 days. There are also credit requirements that are required by each lender as well.

Below is the contact information for both lenders so you can get more information about these new loans. These lenders are located in the Central Orlando area and may not be able to write loans outside of the Florida market so be sure to ask which States the loans are acceptable in.

Lenders:

Dan Schedivy
CFL Consultants LLC
407-227-3130
dan@cfl-consultants.com

James Holmes
Regions Bank
407-397-2276
james.holmes@regions.com

We often get asked if it is important to have a game room as part of a vacation home property. The answer to this is simple, yes. While it may not be a requirement to have a vacation home is certainly adds to the overall rental ability of a property that has a game room.

Consider that most vacationer’s who are renting will travel with children or young adults. There will be days during their Walt Disney vacation that they will want to rest and relax at the vacation home. Having a room designated for games will help keep the kids entertained as well as enhance their stay at your Orlando vacation property.

You should consider games for all ages. When purchasing toys for children under 6, make sure they are safe for that age group. Video games are great for young teens but keep the selection of games family friendly. Remember that the Adults are on vacation as well so having a pool table or dart board will enhance their experience as well.

Most owners will use the garage space as a place for the game room. Make this area as comfortable as possible by adding outdoor carpeting to the floor, painting the walls, use fun posters or sports memorabilia to decorate, add extra lighting. All this can be done very inexpensively and you will see the returns from better rentals and higher rental rates.

A game room may make the difference for a renter who is looking for the overall vacation experience.  By adding games to your vacation property you will stand out from all the other rental properties. If the vacationers are happy staying at your property, they will most likely  come back to your property in the future and recommend your home to family and friends.

February proved to be another uncomfortable month for Sterling as the US Dollar pushed the Pound below the key market level of $1.50. Both UK and US GDP figures for the 4th quarter of 2009 were revised up, 0.3% and 5.9% respectively – a clear indication of the rate of recovery in the US and the bumpy road ahead for the UK. 

And so the Dollar remains in a strong position with traders buying on strong US fundamentals and buying even more aggressively as a safe haven play. Traders, frightened by continued concerns over Greek national debt, the possibility of the Spanish government following suit, and renewed concerns over Dubai World once again asking to delay its debt repayments, are moving into long Dollar positions.   

As the deadline fast approaches for Prime Minister Gordon Brown to call a general Election in the UK, opinion polls have taken center stage in setting traders’ sentiment about the Pound. Brown’s labor party closed the gap on the conservatives to just six points, suggesting the possibility of a hung parliament. With neither party having a clear majority, this would render the Prime Minster unable to effectively tackle Britain’s very serious deficits. The time between now and the election will be dangerous for the Pound, with only more downward pressure expected.

The political finger has again been pointed in the direction of hedge funds, which are now being blamed for aggressively short selling the Euro and effectively betting on the currency going even lower. Both Greek and Spanish governments have raised concerns over what they believe are attempts to destabilize the Euro.  A weaker Euro may improve the region’s outlook in the next quarter, as exporters’ bottom line figures are sure to benefit. Expect further pressure on this ailing currency over the next few weeks.

The commodity currencies, most notable are the Canadian and Aussie Dollar, have continued to perform well. The reserve bank of Australia raised its interest rates to 4%, inflicting a 25-year high against the Pound. The Canadian Dollar, supported by strong Canadian fundamentals and higher oil prices, has enjoyed particularly strong levels against the Greenback, trading at the top of its current range. 

The Canadian unemployment rate dropped to 8.3% as 43,000 new jobs were created in the month of January – further evidence of a continuing stabilization of the Canadian economy. Parity anyone?

2010 is here so what does the Real Estate outlook for Central Florida look like for the coming year. We can expect pretty much the same as 2009. With all 5 year ARM loans coming due, we can expect a fresh round of foreclosures for the year.  The American Banking Association (ABA) is expecting 1.9 million foreclosures for 2010 slightly up from 2009.

Lawrence Yun, chief economist for the National Association of Realtors expects 2010 to be another favorable year for home buyer as market conditions and tax credits are boosting home sales throughout the country. First time home buyer $8000 tax credit was extended to April 30^th so we can expect the first quarter for the year to be very busy with buyers looking to take advantage of this tax credit.

The vacation home market which was hit the hardest with foreclosures is seeing many bargain hunters and investors looking to take advantage of this segment of the housing market. For Central Florida this is no exception. Vacation homes around the Walt Disney area were hit hard with foreclosures as many owners saw their property values plummet on high price properties that were purchased during the boom years. With values cut almost in half, vacation properties are seeing many international buyers come into the market who had passed on properties during the peak years of home sales.

Overall we can expect a steady stream of foreclosures for 2010 making the year another banner year for home buyers. Tax credits and favorable pricing will drive the sales throughout 2010. While inventory will be steady buyers can also expect competition from investors looking to pick up hot foreclosure properties.

A month ago we dwelled on the Pound’s reluctance to move above $1.67, the high achieved at the end of last October. Investors have been on a rollercoaster ride throughout July with the GBPUSD rate blundering between 1.63 and 1.66. The ride must have gathered momentum however, trading around 1.69 today.
 
The movement is primarily attributed to investors selling US Treasuries, therefore US Dollars, and buying equities and commodities. The positive data from the UK, however, cannot be ignored. Although still a negative value, the UK’s second quarter GDP figure shows the economy is gaining some strength. Consumer confidence is at the highest level since April 2008, and the Bank of England unanimously voted to hold interest rates at 0.5%. It still looks as though the eventual break will be to the upside, but there can be no guarantee. If you have an immediate transfer to make, buy now. If you have a couple of months, speak to your exert about utilizing a stop-loss and limit order to protect against a drop or maximize your gains from further upwards movements.   The Euro generally mirrors the trend of the Pound against the US Dollar; however the less than positive data from the Euro zone has dampened this effect with industrial orders under tremendous pressure. We should see a tight range this month for the Euro, trading between 1.45 and 1.46 and staying below the 1.50 level.  

 With Canada being a commodity-driven economy, the Canadian Dollar is benefiting from the current investor trend. Unemployment is rising and interest rates are very low but as long as the equity markets remain stable the CAD should remain strong against the weakening US Dollar. Trading levels between 1.05 and 1.12 are expected.  

As the Florida summer begins and the housing market continues to heat up, it should also be noted that the Sterling hit an 8 month high at the end of June at just over 1.6715 against the U.S. dollar. This is fantastic news for U.K. vacation home buyers looking to pick up foreclosure deals here in Florida. We only need to look back a few months to see the Sterling trading around 1.41 against the dollar.  

The positive data is showing that the U.K. housing market is starting to rebound and that the investors are pulling out of the safe haven of the U.S. dollar to look for higher yielding investments. The stronger pound allows U.K. Buyers to refinance their properties back home to purchase investments here in the U.S.  

The Euro is also seeing some strength against the Dollar but is still under pressure as the areas that encompass the Euro are still vulnerable and investors are weary as these markets may have not reached bottom yet. The strength of the pound will lead the way for both the Euro and the Dollar in the coming months. A strong pound may keep both these currencies low which will mean opportunity for U.K. buyers that are looking to purchase properties here in Florida.

The Florida Association of Realtors reports that the median price for Single Family homes in May 2009 was $144,400. This is an increase of 4.3% from April which was $138,500. While this increase does not show a trend, it is a positive indicator that home prices are starting to stabilize. We would need several months of stable prices to show a market shift in the housing sector.

Home sales have posted year over year improvements as sales totaled 13,921 which is a 16% improvement over May, 2008. This increase mark’s nine straight months of sales increases year over year. Bottom line is if a home buyer is still sitting on the fence, they may want to seriously consider jumping in the housing market while prices are at bottom.

In other news the British Pound has been showing a strong increase over the Dollar. This is helping U.K. Buyers who are looking to purchase homes here in Central Florida. Along with the stronger currency, U.K banks have some of the best interest rates in history ranging around 5% for those who can get refinanced. Low rates and strong pound will allow more U.K. buyers to purchase vacation homes here in Central Florida.

It was a one-way-street for Sterling in May. Continuing the trend of late April, from a low of $1.44, it motored ahead – sometimes steamed ahead – to finish the month at $1.60, the year’s highest close. Sterling’s gains amounted to 11% for the month and a staggering 18% from the lows we witnessed in December.  So, why the apparent change of heart? The Pound collapsed as the UK continued to decrease interest rates. Although the US was doing the same, the UK rates had further to fall and investors looked to the Dollar as a safe haven. This no longer rings true as the US currency is once again forced to rely on its own merits, rather than the failure or danger of others.
 
This brings us to the million-dollar-question: Buy dollars now? Or wait for them to become cheaper? Sterling’s recovery thus far has been, to a large extent, a function of its previous destruction. It was too expensive above $2.05 and too cheap at $1.35. The happy medium is somewhere in between… but where? Logic suggests it is somewhere above $1.70.  Sure, if you do have Dollars to buy, it is possible you may be able get them more cheaply. However, Sterling is not immune to a potential collapse in this market, so use caution.

The developer for Tierra del Sol has filed for Chapter 11 bankruptcy protection this week seeking to restructure its debt so they can resume construction. The developer currently owes creditors a total of $184 million. The goal of the chapter 11 protection is help the developer restart construction and renegotiate terms with its current creditors. Tierra del Sol is located off of highway 27 in Davenport just west of the Champions Gate Resort.

Construction for Tierra del Sol halted last summer as the project fell victim to the housing slump as well as cost overruns from the county on permit modifications and an expansion of the community water park. The builder is hopeful that once they can start building and selling units that this will allow them to repay creditors. The goal is to have the resort fully completed within 3 to 4 years.

The developer’s troubles are far from over as many British investors who put down large deposits for un-built units are seeking refunds or are filing lawsuits for their deposits to be returned. The Chapter 11 filing is not good for any of these buyers as unsecured creditors (buyers) tend to get little or nothing from a bankruptcy filing. Most of these deposits were given to the developer during the housing boom years when home prices were high. Now the challenge for the Builder as well as the Buyers is whether the contracted prices during those boom years reflect the current market conditions.  A $500,000 unit 3 years ago “may” only appraise at $350,000 in today’s market when construction resumes.

The real challenge is if the builder can secure loans to restart the project and if they do, can they sell vacation homes at the peak of a housing slump?