Areas of Activity
California, Florida, Nevada, Costa Rica
In the last few years the real estate market in the USA has suffered harsh price decreases. The main reasons for the price decreases are the credit crisis and the excessive amount of housing (supply) in the market prior to the crisis. The default in payments of loans to the banks by large sectors of the population aggravated the situation to the stage of a globalized crisis. As a result of the generalized defaults, the banking system decreased credits to property buyers practically to a stand still. The crisis has been compounded by huge supply of unsold properties, panic in the market place and slow official reaction.
The real estate market of America is not homogenous. Not all areas have suffered equally in price decreases. It is expected that some areas will recover from the crisis sooner than others. It is reasonable to say that many macro and micro data will influence the rate of recovery. The rate of recovery will depend on supply and demand data, employment opportunities, efficiency and effectiveness of the building licenses process, immigration trends and the strength of the local economy. Based on this data it is possible to identify geographical areas and specific sectors of the market with signs of recovery and opportunity.
At present our company offers interesting properties in the USA (California, Florida and Nevada) and at Costa Rica in Central America in the Caribbean area that we believe offer a great opportunity.
We would like to stress that offering of properties does not imply a recommendation to buy them. It must be clear that every investment, including buying real estate, is prone to risks. In each case, we urge our clients to make an independent research as to the profitability of the investment and we ask any potential investor to consult a lawyer and an accountant about the legal aspect of owning a property and all related issues of tax planning.
In our blog we offer our customers wide ranging information about the real estate market in the USA and Costa Rica. This information is provided so that our clients have a better understanding on the real estate market at the present time. In our blog we also offer properties that have passed our strict selection process.
Click here to join our blog!The reasons we offer these properties are as following:
- Immigration – Most of the 78 million people of the “baby boomers’” generation will be moving to the “sun belt" of the US and some will be moving to Costa Rica. Many will be moving to the sun belt states of Florida and Nevada. There is no doubt that this positive Immigration will cause an increase in demand for property and thus an increase in price. Official forecasts of the American bureau of population indicate an expected rise of about 100 per cent in the population of Nevada and about 80 percent increase in the population of Florida in the next decade. The population of California will rise, according to the forecast, by 40 per cent, or by 12.5 million people.
- Those states have a robust economy and an economic growth.
- The mortgage interest is at a historically low rate and is expected to rise soon.
- The prices of the properties have dropped to about 60 per cent of the peak prices of two years ago.
- There is a significant decrease in building licenses issued by the USA. The lower supply will eventually increase property prices.
