Will the new President bring change to America and the housing market?

by Georgina United States

Without knowing who the next President is yet it is hard to say what effects there will be, but with the US elections finally taking place on Tuesday 4th November, it is a potentially pivotal and exciting time for the USA.

Our property experts are on hand to offer you insight into possible effects on the property market post-election. If you are looking for comment on the US real estate market both nationally as well as regionally (North Carolina, Mississippi and Florida) then please do get in touch.
Real estate experts to call upon:

$1.6 Billion Port Expansion Plan to Increase Mississippi’s Demand for Housing…

by Georgina United States

 

The Mississippi State Port Authority has announce the go-ahead of a $1.6 billion plan to expand the local Port of Gulfport to become one of the largest container ports in the US. This plan is expected to elevate the port a further 15 feet to a height of 25 feet above sea level and also encompass the construction of a new port to the south of the current site, reached by an raised bridge, meaning that a large portion of the area can be converted into a promenade, with restaurants and shopping facilities.
 
Having an undeniable effect on the local community, before the final decision was made the proposed port expansion was opened up for public scrutiny, with the Mississippi Development Authority and the port authorities holding various public meetings, backed up by a website which asked for public input on the plans. As Port Executive Director Don Allee explains, eventually the plans were finalized, “I think that adopting this particular master plan reflects that we did pay a considerable amount of attention to the community".
 
Following the destruction of the current port by Hurricane Katrina in 2005 and with the Mississippi Development Authority announcing that the expansion will create around 6,000 jobs initially, it is easy to see why Gulfport Mayor Brent Warr has claimed that this is “a new beginning… it´s about the biggest thing that´s happened in this city in last 100 years." Not only this but Haley Barbour, Governor of Mississippi has announced that this would be only the beginning for the new port, with Gulfport Mississippi eventually able to “employ thousands and thousands of people”.
 
This exciting future expansion of the port is set to also have a knock-on effect on the area’s housing market, with rental properties already in relatively short supply. Gulf Coast Housing Director Gerald Blessey has previously announced that the region needs 25,000 new homes if they are to reach the levels of housing stock pre Hurricane Katrina and therefore this fact combined with the port expansion will mean that large numbers of local people will be in need of housing.
 
This high demand for housing is being addressed by projects like that of Bayside Park, where foreign investors are encouraged to invest in strong, energy-efficient homes for local workers and in turn benefit from the almost guaranteed rental returns. Danny Silver, Principal of Property Direct America the company behind the project explains,
 
“More than ever now the Gulf Coast area is in need of new housing and with the proposed port expansion now confirmed this is the very best time to invest in property projects like Bayside Park. Healthy rental returns are to be expected and with 90% LTV mortgages available, this is an opportunity not to be missed.”
 
For more information on investing in Bayside Park, with prices from as little as £88,000/ $159,900, please contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.

The “Magic of Mississippi” as the Gulf turns to Golf

by Georgina United States
According to Gozonegateway.com, “with more customers leaving Louisiana for Mississippi’s casino strip, this length of coast is expected to topple Atlantic City as the second largest gaming market in the US”, so if you were betting on a growth industry for the Mississippi it is bound to be casinos and gaming. Even before the hurricanes of 2005 that hit the area with force, Mississippi’s power in the gaming industry was on the rise and it is now determined to win the title Gozonegateway.com talks of. Mississippi is however spreading its bets with a more unexpected jackpot, golf, and the gamble is paying off. Often overshadowed by the bright lights of the casinos – Mississippi is now also emerging as a golfing hotspot.
Mississippi’s temperatures are one great draw for golfers, with a semi-tropical climate that boasts warm, sunny weather for most of the year, good visibility and cool breezes that add to the challenge of a round in this southern region. Not only this but the draw of the casinos, along with local entertainment, white sanded beaches and an area history that includes the Mississippi Blues Trail, mean that Mississippi offers a rounded tourist experience for those visiting to play golf – and this is what state governor Haley Barbour, on visitMississippi.org, calls the “magic of Mississippi”.
Of the 140 or more on offer, Mississippi’s golf courses themselves benefit from the region’s fertile soil, which makes for stunning established fairways, and many of the local courses are designed by top golf celebrities. One such example is the Grand Bear, Saucier, a course designed by golfing legend Jack Nicklaus and just a 30 minute drive from Biloxi’s casinos. Voted the ‘Best Public Course in Mississippi’ by Golfweek Magazine and one of Golf Digest’s “Top 40 Casino Courses” 2007, Grand Bear is a great draw for golfers who appreciate its rolling fairways and the surroundings of the DeSoto National Forest that edges the course.
A golf course that exemplifies Mississippi’s regeneration following the hurricanes is The Bridges in Bay St Louis, designed by Arnold Palmer. A course that boasts 21 bridges and 17 lakes to its name, The Bridges found itself in 2005 also home to a stranded dolphin. Since it was rescued and released back into the wild, The Bridges has turned itself around and in 2007 was also named one of Golf Digest’s “Top 40 Casino Courses”.
A newer golf course that is becoming popular with tourists is Fallen Oak, Biloxi – one of the winners of the GOLF Magazine’s 2007 “Top Ten New Courses You Can Play”. In its replanting of around 1,000 established trees to fit with the exacting design, Fallen Oak (designed by Tom Fazio) highlights the quality of courses in the area and proves that the attention to detail in Mississippi golf courses is second to none.
With such high quality courses on offer, it is easy to see why the Mississippi tourism industry has so much potential. Recent figures from the Mississippi Development Authority have shown a 4.1% increase in estimated tourism employment on golf courses in the region from 2006 to 2007. This is being helped by local courses hosting top golf tournaments, such as the Adams Golf Pro Tour at the Windance Country Club in Gulfport and the Viking Classic at the Annadale Golf Club in Madison, as well as tournaments that tourists can take part in, such as Golf Week’s Biloxi Golf & Poker Tournament, an event that combines the area’s two favourite pastimes.
This increasing focus on golf for the Mississippi region is one that is bringing tourism and in turn increased employment to the local area. The continuing post-hurricane regeneration is especially good for the Biloxi area, hard hit in 2005 but re-emerging into a popular place for golf tourists and in turn investors. Danny Silver, principal of Property Direct America agrees,
“This is an excellent time to invest in the Mississippi region as the regeneration is in full swing and there is currently a great demand for housing. Biloxi, specifically, is emerging as an investment hotspot, with more and more people employed by the growing golf tourism market looking for rental properties.”
Those looking to cash in on the growing success of the area can invest in Bayside Park, Hancock County, where 3 bedroom steel framed energy efficient homes can be purchased from as little as £88,000 with a 90% LTV mortgage available. Falling within the ‘Gulf Opportunity Zone’ (or ‘Go-Zone’) foreign investment is being actively encouraged as part of the regeneration and for more information contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.

That’s SRAP! Go Zone cash back scheme coming to an end in US

by Georgina United States

 

The SRAP (Small Rental Assistance Program) set up by the US government to encourage foreign investment in property in the Mississippi region following the devastation of hurricanes Katrina and Rita in 2005 will soon be coming to an end – meaning the last chance for investors to secure the very best investment.
 
Post-hurricanes, the US government recognised that they needed the help of investors from overseas to rebuild this successful region, with a great immediate demand for housing for those displaced and living in FEMA trailers. The setting up of SRAP meant that foreign investors could be incentivised not only with a 5 year forgivable loan which entitles them to interest free repayments with no penalties and within a staggered schedule, but also a $73,000 cash back when they commit to the scheme.
 
The US government had allocated a set amount of money to this cash back scheme and it is this that will soon be coming to an end. This is therefore the best time to invest in the Go (Gulf Opportunity) Zone as there have been no announcements by the US government of the cash back scheme being reignited after this date. The scheme does have certain limitations that must be met, however, for example investors need to meet credit checks and criminal record checks as well as rents within the scheme being set within certain caps, but this is an excellent opportunity that not only helps local communities but also a firm investment choice for the overseas buyer.
 
Bayside Park is one project that qualifies under SRAP and is therefore soon coming to the end of its government cash back scheme. It is here that sturdy and energy efficient homes are being built within the Go Zone in Biloxi and excellent rental returns are predicted. Reservations under the SRAP end on 22nd October 2008 and therefore to qualify for consideration to get $73,000 cash back when investing it is wise to do soon. Property Direct America Principal Danny Silver agrees,
 
“SRAP has been a highly successful scheme for investors in the Go Zone as it has added to the excellent incentives already on offer in a region that is in desperate need of permanent housing. I would suggest that anyone looking to invest in the project should do so before SRAP ends as, although we hope the government will reintroduce the scheme in 2009, there has so far not been official word on this.”
 
Although the cash back scheme will be ending shortly, 90% loan to value mortgages are still available as well as 50% Tax Depreciation from the Federal IRS (Internal Revenue Service), making this an excellent investment project. Prices in Bayside Park start at £88,000/ $159,900 and for more information on properties available as well as SRAP, please contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.

The Only Way is Up: Increasing passenger numbers encouraging for Mississippi Delta

by Georgina United States

Three years on from one of the most devastating natural disasters in United States history and, according to the National Hurricane Center, the costliest hurricane to ever hit the US, the region severely hit by Hurricane Katrina is recovering and once again returning to prosperity.

The latest data from Gulfport Biloxi Airport located in the Mississippi Delta which was affected by the hurricane of 2005, show that numbers passing through the airport are increasing with 83,524 passengers using Gulfport Biloxi Airport in June 2008, up 2.6% on the 2007 figure of 81,428 according to flygpt.com.
Well-situated to serve a diverse customer base of business, tourist and military personnel, Gulfport Biloxi Airport has even greater plans for the future with a major €51 million expansion project set to complete later this year. This expansion will increase the airport’s square footage by 80% and allow a further two airlines to use the airport, in turn increasing passenger handling capabilities.
Not only this but the regeneration and further expansion of the area’s famous casinos, now that a new ruling has allowed them to be built on land, means that the number of people relocating to the region for the newly generated jobs is likely to increase, subsequently growing Gulfport Biloxi Airport passenger figures further as well as the need for accommodation.
And it is not only the airport that is set for expansion. The local port in Gulfport has also been highlighted for growth, with the Mississippi State Port Authority proposing development that would expand the current port to five times its size. This growth, also taking in new road and rail developments and retail projects, could take up to ten years to complete but in the words of Mayor Brent Warr, is an “unbelievable opportunity”.
This is all good news for the region as a whole, with increased visitors aiding the recovering economy. Danny Silver, Principal of Property Direct America agrees, “Those investing in real estate in the Mississippi Delta region are set to see healthy financial gains in forthcoming months and years as the region continues to renew and more and more people visit and relocate to the area.”

One example of such a real estate investment project is in Biloxi itself: Bayside Park is a new development attracting overseas investors who see the potential for capital gains. 90% loan to value mortgages are available as well as excellent financial and tax incentives being offered with government support. This means that foreign investors can invest in sturdy and energy efficient homes from as little as £88,000/ $159,900. For more information please contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.

Phoenix from the Flames: Biloxi on track for rise in house prices

by Georgina United States

Housingpredictor.com, a site that provides independent real estate market forecasts in the US, has put Biloxi, Mississippi in poll position when it comes to the Hottest Buyers Markets 2008.

The city was ranked top out of 250 markets across the 50 US states, with its growth in house prices predicted at 4.9% for the current year. According to the site, this ranks Biloxi highest of ‘regional economies that are healthy and have strong potential for being exceptionally prosperous through the end of the year’ and is therefore excellent news for property investors.
Following the severe hurricanes that hit the region in 2005, Biloxi needed a complete regeneration programme to be put in place, as Biloxi spokesman Vincent Creel highlighted “We lost 6,000 homes and businesses. That’s a fourth of our stock” and this has meant that in turn foreign investment has been encouraged. Government initiatives and tax incentives have allowed foreigners to see the projects designed to recover the area as solid investments, with excellent benefits both financially and morally, and these recent figures have only confirmed this.
Not only is the demand for housing still incredibly high due to the displacement caused by Katrina and Rita – with Haley Barbour, governor for Mississippi pointing out that the region needs at least 100,000 affordable homes immediately and 300,000 within the next three to five years – but the planned regeneration of the region to become, once again, the second largest centre for casinos in the US means that more and more people will need homes to rent in the future.  
Within this context, it is easy to see how a growth of 4.9% has been predicted for 2008 house prices in Mississippi and one such regeneration project is seeing exactly this. Danny Silver, Principal of Property Direct America says that Bayside Park in Biloxi is a firm choice for those looking to cash in on the region’s growing real estate success:
“We have already seen a growth in the values of our homes this year and within the context of the regeneration of the area it is easy to see why Bayside Park is a good investment for overseas buyers. Not only this but government initiatives as part of the Gulf Opportunity Zone mean that investors have access to LTV mortgages of up to 90% as well as tax breaks that make this an even better investment chance”.
For more information on investing in Bayside Park, please contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.

Dispelling the Top 10 Myths About the US Housing Market

by Georgina United States

Thanks to mass media generalisations about the state of the property market in America we are left thinking that the entire US real estate market is in meltdown and that it represents a toxic investment opportunity to overseas investors at the current time. However, as the following facts and information will show, the truth about the American property market could not be further from this misconceived generalisation.

In a bid to present as accurate and balanced a perspective of the property market in the United States as possible, we called on the expertise of both Robert Shemin, the multi millionaire American real estate investment guru, and Danny Silver, Managing Director of Property Direct America, US property experts to help us dispel the top 10 myths about the US housing market.
Myth One:
The entire United States is experiencing a property slump. Not true, says Robert Shemin, there are pockets of the American housing market experiencing growth: “look formarkets that are growing – growing with jobs, that have growing economies and that are growing with population.  Take a look at Utah, Alabama, Texas – all states that are growing because they have emerging economies. This equals property value growth, it equals a huge need for rentals, it equals higher rents! Then you have states like Mississippi that has all of the above and more. After Hurricane Katrina, less than 24% of Mississippi’s housing stock was habitable – this represents opportunity.”

Myth Two:
Sub prime has affected the entire market. According to Robert: “the sub prime market has dried up and gone away due to the amount of sub prime loans that have defaulted.” Looking to the longer term this will result in more mature lending practices in a market and it will result in greater numbers of potential tenants because those considered sub prime will not be in a position to buy, only to rent housing stock.

Myth Three:
Vulnerable people are being forced to sell their homes because they can’t afford their mortgage repayments. Our real estate guru Robert Shemin sums up the situation: “in years gone by getting a mortgage was credit driven, then somebody had the bright idea, ‘let’s make some big money by offering mortgages to people who were not credit worthy enough to get a mortgage the traditional way,’ thus the sub prime boom was born.  They put so many people who couldn´t afford house payments into homes that they never should have in the first place, assuming that real estate would keep going up.  If real estate had continued to rise at the rate it was going, everything would have been fine – except the market experienced a slow down which created a snowball effect which caused the market to collapse. Because the values tripled in some areas, the taxes naturally rose to those same levels, making it even harder on homeowners who could barely afford where they lived in the first place to continue to afford the homes they lived in.” Now these people represent waiting tenant demand for would-be property investors.

Myth Four:
Mortgage financing is no longer available.  Danny Silver sets the record straight: “mortgage financing is certainly harder to come by than it was at the peak of the lending boom, however not only are those who are in a strong position to purchase welcomed by mortgage lenders, in states like Mississippi where the public and private sector are working side by side to rebuild sufficient property stock and get it inhabited by the waiting tenant demand, we have cases where guaranteed mortgages are available to the right buyers. Our Bayside Park project in Hancock County, Mississippi is one such development that’s considered so strong an opportunity that we have up to 90% LTV mortgages available.”

Myth Five:
The government is doing nothing to help the situation. Again, according to Danny Silver this is just not the case. He cites the situation in the Gulf Opportunity Zone (GO Zone) where the government has done and is continuing to do all it can to rebuild the communities affected by Hurricane Katrina. “In the Bayside community over 70% of all housing was wiped out due to Hurricane Katrina in 2005.  Yet the jobs are still in the area and the citizens of Mississippi, families that have been the community for generations, are still in the area, it’s just the lack of housing that’s hurting folks which is why the government provides governmental and taxation incentives to encourage individual and corporate investment into the area.” Robert Shemin concurs: “after Hurricane Katrina our government had no choice but to get involved, it was a natural disaster. The state of Mississippi along with The United States government got involved and created huge benefits for small investors to come in and help regenerate the communities devastated by Hurricane Katrina, giving them previously unheard of tax incentives as well as financial incentives to get involved with helping people who could not help themselves. As a result a unique real estate investment opportunity now exists in the state.”

Myth Six:
The US is in recession and will be for some time.  According to Robert Shemin we actually need to get things in perspective here: “less than 50% of all Americans own the homes they live in – most are rental tenants. Yes foreclosure rates have risen, yet the levels they have reached accounts for less than 2% of all properties in the United States. This is nota recession. As stated, there are markets where there is strong opportunity – an investor simply has to target those markets! It’s not rocket science.”

Myth Seven:
Florida, for example, has vast oversupply of property. True, parts of Florida’s market have suffered from oversupply and the greed of constructors, but front line and high end homes are still selling for top dollar – in fact, Florida is a perfect example of what Robert Shemin has been illustrating. Parts of the market are flat, parts are thriving still. An investor just has to look at where demand exists and why it is likely to still exist, and it is in these areas that there are opportunities to profit. “Florida is becoming a great buyer’s market and folks are starting to realize it.” So says Robert Shemin!

Myth Eight:
There is nothing in America for overseas property investors currently. As Danny Silver points out: “as just one example of the massive property investment opportunity that exists in pockets of America for overseas buyers, the greater Harrison and Hancock county areas of Mississippi are booming and will continue to boom because of the strong need for good quality rental housing for hard working Americans. To say there is nothing in America for overseas investors overlooks this fact, it overlooks the financial and taxation incentives in place to buy in the GO Zone, and it overlooks the fact that there are areas of the United States where, as Robert mentioned, booming economies and jobs markets are emerging.”

Myth Nine:
With the global credit crunch, now is not the time to be buying property abroad. In recent days the pound has fallen against the dollar – whilst it is still in a strong buying position Stateside, it still highlights the fact that America is far from down and out! Buyers who are aware of this fact will also be aware that they can move quickly at this point, buy in America when the American economy is starting the long, slow process of recovery, benefit from depressed property prices, a weaker dollar, continued and continuous demand for real estate and a potentially very long period of positive property price adjustment. For many, now is actually the perfect time to buy and in the words of Robert Shemin: “I always say get in way below market and don’t try and guess the market. No matter what it’s doing you can make money if you make good deals – it’s the deals that make you the money! And at the moment, with all due respect, the media is talking down the market and you have a lot of motivated sellers out there. When sellers are keen to sell it’s a great time to buy!”

Myth Ten:
Taxes in the US are high and complicated. Taxes vary from state to state and a buyer has to factor these in to any buying decision, or, as Danny Silver points out: “you could just save yourself the headache of taxation and buy in the GO Zone and benefit from tax breaks and governmental financial incentives to invest!”

Property Direct America has a development available for sale to overseas investors that qualifies for all the Gulf Opportunity Zone taxation and fiscal incentives and benefits, what’s more, investors have access to up to 90% LTV mortgages. The development in question is of energy efficient, eco friendly family homes designed specifically to house the massive waiting tenant demand that exists in the state of Mississippi following the destruction of Hurricane Katrina. The properties are steel framed homes consisting of 4 bedrooms and 2 bathrooms, individual entry into the market is as low as £87,000 / $169,900 and to learn more about these opportunities in the GO ZONE contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.

US is most popular destination for Brits to buy abroad outside Europe

by Georgina United States

 

With the publication of the latest Association of International Property Professionals (AIPP) statistics, it seems that the US is still an attractive destination for property investment. Figures just released show that the US has been ranked the most popular destination outside Europe and third overall for Brits to buy property overseas in 2007, with 9.7% of British buyers purchasing in the United States.
 
These findings have also been supported from across the pond with the National Association of Realtors (NAR) finding that the US is still a popular choice of destination for those buying abroad with 26% of the 4,000 US agents surveyed in the period of May 2007 to May 2008 claiming to have dealt with international clients, half of whom purchased a property.
 
Interestingly, the AIPP figure has also seen an increase of 2.2% on the 2006 figure of 8.5%, which given the widely publicized US sub-prime mortgage crisis will come as a surprise to some. This healthy growth of interest from Britons in the US market has in part been aided by the strengthening of the Euro with many buyers taking the decision to buy outside of the Euro-zone but also by additional government incentives as in the Mississippi area affected by Hurricane Katrina in 2005.
 
“It is this type of real estate investment that is not only regenerating a community but also proving popular with property investors who see that there is more to the US market than the luxury condominiums and vacation villas of Florida” comments Danny Silver, Principal of Property Direct America.
 
Bayside Park, within the GO ZONE (Gulf Opportunity Zone) in the Mississippi Delta, is one such example of a project which has received investment from British buyers in 2008. Property prices start from as little as £79,200 / $159,900 for these homes; sturdy and energy efficient and ideal for the families displaced by the hurricanes in 2005. With a 90% loan to value mortgage available and excellent GO Zone financial and tax incentives being offered with government support, it is clear that the US market still holds opportunity for canny investors.
 
For more information please contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.

Getting in on the Auction

by Kate United States

Selling homes via auction has proved popular in the past with British homeowners especially those looking for a quick sale however in today’s sluggish market sale values are down by 44% year on year according to the Essential Information Group. No longer is a vendor assured a sale at auction because buyers are becoming further and fewer between, and those who are coming to auctions to buy property can afford to be much more choosy.  What this effectively means is that vendors really have to step up to the mark if they want their home to sell, and to sell at a good price.

 
To prepare your home for auction you need to set the reserve price in consultation with the auctioneer, prepare a contract with the terms and conditions for the sale, and then have your home in a state of readiness and open it up for viewings.  The more flexible and open you are with viewings, the more people will come and see your property and the greater the potential interest you will drum up ready for auction day.  However, when you open your home for viewings you want to make sure it wows would-be vendors, which is why it is becoming increasingly popular for vendors to give their home a mini-makeover ahead of the auction day.
 
In Australia Auction Squad are on hand to assist would-be auction vendors to realise their home’s full potential, and now thanks to Real Estate TV, British buyers can watch the Auction Squad in action from Monday the 21st July at 10.30pm and learn how to use a small budget to make a big change to a property about to go to auction. 
 
The Auction Squad, led by presenter Johanna Griggs, visit a different home each week and transform it from lacklustre lot to reserve-busting success.  British vendors hoping to sell their home – at auction or even traditionally – will learn a lot from this show and what’s more, Auction Squad is inspiration and entertaining television.
 
See the Auction Squad turn ugly concrete courtyards into urban oases, watch them finish half done renovation jobs, learn how to revamp your kitchen for less and then join in the drama and tension as auction day finally arrives.  Watch the Auction Squad in action on Real Estate TV from Monday the 21st of July on Sky Channels 273 & 274, on demand on Virgin TV and at www.realestatetv.tv.
 

Rental Demand in America Reaches Record Intensity

by Charlotte Ashton United States

 

The health of the property market in America is worsening on a month-by-month basis for homeowners and rental tenants; yet for pure property investment, today is possibly the best time to buy in to the US housing crisis and profit from soaring rental demand and rapidly advancing rental yields.  In the first quarter of 2008 US citizens’ overall net worth fell by 1.7 trillion dollars because house and stock values again fell sharply.  Now 1.1 million homes in America are in foreclosure and the number of homes in foreclosure in February 2008 was up a staggering 60% on the previous February’s numbers.  US real estate analyst Michael Larson from Weiss Research has been quoted as saying that there will be little change in this “toxic” situation for the coming few years, and his sentiments are supported by Jay Brinkman, MBA´s vice president for research and economics who advises that America is now entering the sixth straight quarter in which a record percentage of mortgages have entered foreclosure.
 go zone,
This dire situation, described as a “toxic stew” by Larson from Weiss Research, is having a directly converse impact on the rental market in America.  Never before in America’s history has the real estate rental market appeared so strong.  Vacancy levels are falling across the whole of America at record rates, and in parallel to this massive upside pressure that is being exerted on supply, the rate at which rental rates are rising is dramatic with some states and some cities in America recording double-digit median rental rate increases on a quarterly basis.  The average predicted increase in rental rates for 2008 across the whole market according to the National Association of Realtors is at least 5.3%.
 
Three specific factors are causing record rental demand increases across the whole of America – the rate at which homes are being foreclosed upon is forcing increasing numbers of former homeowners into rental accommodation as they can no longer keep up with their mortgage costs.  First time buyers or current rental tenants wishing to purchase are finding it dramatically and significantly harder to gain access to mortgages, and there are those who are biding their time before they buy in who are demanding rental accommodation in the meantime.
 
In certain parts of the country there are additional factors creating a situation where demand for rental accommodation is increasing unabated and where rental rates are rising dramatically.  In the Gulf Opportunity Zone for example, (the area of southern America impacted by Hurricane’s Katrina and Rita back in 2005), so much effort, outlay and pure investment has gone into rebuilding towns and regenerating communities that not only are former citizens returning home and requiring rental accommodation, but so much new employment exists that cities such as Biloxi and Gulf Port are witnessing strong levels of inward professional migration which also exerts pressure on the supply of rental accommodation. 
 
In Biloxi for example, Danny Silver, principal of Property Direct America comments: “you have an unprecedented situation.  The government of the United States has allowed developers to purchase prime land for housing development at well below market rates to encourage them to pass on these substantial savings to purchasers.  You then have purchasers being encouraged to buy in and invest and house displaced citizens with government backed taxation and financial benefits which are available to all those who invest in property.  Investors then benefit from returning rental demand, and because there are 22 casinos opening in the area and providing employment opportunities alongside the likes of Chevron, NASA, The University of Southern Mississippi and Naval Construction Battalion which are all substantial employment centres, investors also have large numbers of professionals relocating to the region to take up prime employment contracts who are also seeking rental accommodation – making it possibly the best time to invest in real estate in this part of America ever!” 
 
One development that ticks all the boxes with buyers and investors in Biloxi is Bayside Park – it qualifies for all the government financial incentives, the below market value properties are for sale from $159,900 with mortgages available, and the attractive development is located in close proximity to great employment opportunities so rental incomes are estimated from $1300 per month for a 3 bedroom property.  To learn more about these opportunities in the GO ZONE contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.