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.

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.

Celebrating the 4th of July and the American Values of Independence, Liberty and Freedom

by Georgina United States

 

The 4th of July in America is known as Independence Day; this is a federal holiday when Americans from all walks of life come together in national celebration to commemorate the adoption of the Declaration of Independence in 1776 when the nation declared autonomy from the Kingdom of Great Britain. Today the 4th of July holiday is also as much about celebrating America’s history as it is about embracing the nation’s core values of liberty, freedom and independence.
Despite the obstacles that the American nation and people may face annually, the 4th of July is a significant date on every citizen’s calendar when thanks is given and celebrations are enjoyed; and even following the devastation of parts of the nation in 2005 when Hurricanes Katrina and Rita made landfall and wiped out communities on the Gulf Coast of the United States, July the 4th has remained a significant date for festivities and commemoration even in the affected communities.
Particularly when Hurricane Katrina made landfall and became one of the deadliest hurricanes in the history of the United States, not only were the lives of so many Americans lost in cities and communities from Biloxi to New Orleans, but people’s independence was lost as their homes were destroyed, their livelihoods were taken away and they were forced to rely on the state and even strangers for everything from their shelter to their food.
It was the plight of those who lost everything in the Hurricane that led to the American government drawing up the Gulf Opportunity Zone Act, which is legislation specifically formulated to regenerate the devastated communities and give back independence and freedom of choice in life to those directly affected by the storms and the aftermath of the floods and high winds.
According to Danny Silver, Principal of Property Direct America: “the Act, which has become known as the GO Zone Act, is an enabling piece of legislation to kick start reinvestment into affected communities and to ensure developers and investors are given every fiscal and practical encouragement to rebuild homes, businesses, communities and lives. 
“The Act has indeed brought independence to the lives of so many of those affected already – for example, in and around the city of Biloxi the Act has brought massive investment into the casino industry. 22 casinos are under construction and this has resulted in significant job creation; Chevron, ANI Pharmaceuticals, NASA, The University of Southern Mississippi and the Naval Construction Battalion centre have also brought reinvestment and jobs back to the area. Now corporate investment from companies such as BAE Systems and Rolls-Royce Naval Marine inc. has been received too and is responsible for giving independence back to the lives of so many so that this Independence Day, the people in the GO Zone will have a great deal to celebrate.”
As part of the reconstruction initiatives for the devastated communities, new residential property development is ongoing apace to house those returning to the Gulf Coast and returning to their former lives. Developments such as Bayside Park in Biloxi, which is a development of energy efficient homes have been earmarked by the government for special investor incentives so that buyers will purchase the properties to let to the returning tenant demand. Within the GO Zone Act investors are given specific and very attractive taxation and pure fiscal benefits so that they will buy into developments such as Bayside Park and ensure that there is adequate, quality housing available to those who want to return to their former communities and re-establish their own independence.
The properties are available for sale from just £75,000 with a 90% LTV mortgage available, and investors get tax back and financial advantages immediately, they benefit from having waiting and targeted tenant demand and therefore strong potential rental yields, and what’s more, they can do their bit towards the efforts that the likes of Brad Pitt are pioneering in the region to give back independence to the lives of those affected and to ensure communities are regenerated and rebuilt. To learn more about these inimitable opportunities in the GO ZONE contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.

Essential GO Zone Financial Facts and Figures

by Georgina United States

 

Why Investing in American Real Estate in the GO Zone Makes Fiscal Sense
 
According to leading real estate investors in America, now that the United States is entering the lowest point in its property market cycle and people are getting more and more serious about selling off their real estate stock no matter how low they have to go, there are more opportunities than ever for those who can buy in and who want to profit over the long-term. 
 
Furthermore, in a recent interview for Real Estate TV, multi-millionaire US real estate investment guru Robert Shemin pointed out that British and European buyers are in a particularly strong position to buy assets in the US for well below market value because of both the advantageous currency exchange position that they are in, and because vendors and developers in America are so keen to sell off stock.
 incentives,
Therefore, if you are contemplating an entry into the US property market, the time has clearly never been better.  In the majority of states you can buy in low thanks to the weakness of the dollar, and if you shop wisely you will find real estate for sale at below market value that will rent well over the long-term and deliver you solid returns.
 
However, nowhere is quite as attractive for today’s real estate investor as America’s GO Zone.  The GO Zone is the Gulf Opportunity Zone that covers the Hurricane Katrina affected states such as Mississippi, Alabama and Louisiana, and where there are now exceptionally attractive government incentives for investors to purchase housing stock for rental to the awaiting displaced tenant demand.
 
According to Danny Silver, MD of Property Direct America and a sagacious commentator on the US housing market: “the US government passed legislation back in 2005 to make investing in the GO Zone as financially attractive as possible to rejuvenate affected communities, regenerate positive economic fundamentals and house those whose homes had been destroyed. 
 
“Thanks to the overwhelming success of the legislation, jobs are being created, house prices are rising, demand for accommodation is increasing, affordability is improving and the economic conditions in the affected states are improving in spite of the state of the overall American economy.
 
“And in addition to the government’s attractive fiscal and taxation incentives to buy in and effectively house American citizens in the GO Zone, local developers are also competing against each other to make their developments more attractive to more investors meaning that investors who buy in now can walk away with some really profitable property.”
 
One of the most attractive and therefore successful developments as far as investors are concerned is Bayside Park in Biloxi.
 
As an investor buying in to this GO Zone incentive qualifying project you will be able to bag yourself a highly attractive deal and begin profiting from your property investment immediately.  Here’s how: –
 
·         You are buying property on land already subsidised by the US government therefore you are immediately buying a bargain at below market value because the developer is passing on their savings to buyers
·         Property prices start from just £68,000 / $135,000
·         To secure a property you need only pay $5,500 which is refundable if you change your mind, or which is used towards your closing costs…any additional closing costs are guaranteed to be met by the constructor saving you a potential maximum of $6,750 depending on the type of property you prefer
·         If you move quickly you will be one of a limited number of international investors guaranteed a 90% mortgage by the developer’s private lender
·         The mortgage is guaranteed as it is based on the property and not the investor, however there are only so many properties at Bayside Park that the lender will mortgage with these most favourable terms, so you need to register your interest immediately
·         If you apply for the 90% mortgage option you need only find a 10% deposit!
·         Your deposit is held in trust by the developer’s lawyer until you have signed the title deeds, therefore every element of your investment is secured
·         By purchasing a property at Bayside Park and renting it to the awaiting tenant demand for at least three consecutive years, not only will you enjoy a strong rental income but the US government will give you a cheque for $36,500 per property you purchase.  I.e., they will refund you 20% of the property’s purchase price as a golden ‘thank you’ for helping in the GO Zone
·         Your mortgage interest, your property taxes, management fees and all expenses you incur directly relating to your property – from travel expenses to decorating costs – are totally tax deductible from all your rental income and profit
·         You have a 50% depreciation bonus which can be carried forward for up to 15 years to further offset any taxation liability ensuring that you profit to the max on your Bayside Park property purchase
·         Your property can be completed and bringing you a rental return on your investment in as little as 90 – 120 days
 
For more information about the fantastic financial incentives available, the 90% mortgage deals and the attractive properties for sale at Bayside Park, please contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com
 

Extended window of opportunity for investors in the Go Zone

by Georgina United States

 

Following the devastation of hundreds of communities along the Gulf Coast of America back in 2005 when Hurricanes Katrina and Rita made landfall, the American people and the US government came to the financial aid and practical support of those affected.
 
Charitable donations from national and international sources poured into states such as Mississippi, Alabama and Louisiana, with the likes of President Bush and former President Clinton uniting to highlight the plight of displaced and grieving citizens in towns such as New Orleans and Biloxi – where collectively, the number of lives lost, businesses destroyed and homes ruined ran to hundreds of thousands.
 
To further support affected communities fiscally speaking, the US government provided emergency financial aid of over 6 billion dollars, and a further 51.8 billion dollars of aid has since been given specifically towards the rejuvenation of the entire Gulf Coast region.  Louisiana is still in receipt of 3 billion dollars worth of aid that has yet to be allocated for example, and in addition to this direct financial support from the state, the US government passed extensive legislation to make ongoing private investment into the affected regions highly tax advantageous and attractive.  They did so in an effort to create a sustainable environment for considerable long-term investment. 
 
The legislation passed to specifically rejuvenate the hurricane affected communities was called ‘The Gulf Opportunity (GO) Zone Act of 2005’ and it was passed by Congress on the 16th of December 2005.
The GO Zone Act has proved so successful that in the face of economic uncertainty in the rest of America, employment, housing demand, affordability and even real estate prices in the hurricane affected states have surged ahead of all expectation.  For example, Mississippi recorded a real estate price appreciation rate of 1.8% in 2007 when the rest of America was really feeling the property price pinch, and in March 2008 when US employers cut 80,000 jobs, state Labour Secretary Tim Barfield advised that Louisiana had 100,000 jobs available and intimated that professional migration would be required to fill the vacancies.
 
Therefore, the GO Zone legislation has already resulted in the rebuilding of thousands of homes, the regeneration of hundreds of communities, the creation of substantial employment and the restoration of hope for hundreds of thousands of Americans; and because the legislation has been so important for bringing national and international investment in to states such as Mississippi and Louisiana, the U.S. Senate has just approved an amendment to a bill which will allow for an extension of the GO Zone Act of 2005. 
 
The act passed by the Senate and further approved by the House of Representatives is considered highly likely. Brand new qualifying projects to construct houses and restore life and hope in damaged communities in the GO Zone will allow individuals to invest until 31 December 2008 – with full benefits – and completion and “tenant” in” by 31 December 2010, thus giving investors, developers and business persons the remainder of 2008 to sign up to the GO Zone incentives, personally financially benefit and do more than their fair share to rebuild lives and dreams.
 
Speaking in direct response to the Senate’s decision to allow the GO Zone extension amendment to be added to the House Resolution 3221 bill, Danny Silver, who’s the managing director of Property Direct America and a leading US real estate authority stated that: “the proposition of an extension to the GO Zone Act is exciting and has far reaching and positive financial consequences for investors. 
“Those who have only recently become aware of the fact that they can buy property in America in the GO Zone at below market prices and benefit from a waiting tenant demand, thus enjoying real estate ownership benefits as well as a solid rental income, will now have longer to find a qualifying project that appeals to them. 
 
“They can take their time to find a housing project that, on top of the aforementioned benefits, will allow them to deduct 50% of the cost of the property´s construction from their tax liability in the first year, enjoy certain "cash back" incentives and the ability to purchase 2 properties effectively for the price of 1 and a half whilst paying lower than normal property taxes.”
 
One of the most attractive projects currently available and likely to directly benefit from any extension to the GO Zone Act is Bayside Park near Biloxi where members of the local Builders’ Association recently worked together to spring clean the entire neighbourhood ready for former and brand new tenants to move in to their GO Zone qualifying homes.
 
Bayside Park is a fabulous development of homes available for sale to international investors from just GBP 68,000 / EUR 85,000.  The properties have 90% mortgage option available on them and follow Brad Pitt’s now world famous ethical and ecological example of GO Zone construction by being built from a frame that consists of 75% recycled steel and by being constructed in such a way as to ensure as small a carbon footprint is created as possible from the construction and ongoing inhabitance of the home.
 
To learn more about Property Direct America, Bayside Park and GO Zone opportunities you can contact Property Direct America via their UK offices on 0207 043 0792 or visit their website www.propertydirectamerica.com.
 

Rebuilding Lives, Regenerating Communities, Reducing Environmental Impact:

by Georgina United States

Rebuilding in the GO Zone Following Brad Pitt’s Ethical Example

 
Following the devastating hurricanes in America in 2005, the entire Gulf Coast of the United States was forced to count not only the cost in financial terms of the high winds and high tidal swells caused by hurricanes Katrina and Rita, but more significantly, America as a whole was left counting the very real cost in human and humanitarian terms.
 
Lives were lost, businesses were wrecked, homes were destroyed, entire communities in Alabama, Florida, Louisiana and Mississippi were wiped out, and the lives of hundreds of thousands of American citizens were devastated overnight.
 
The resultant situation led Americans from all walks of life to get behind massive public and private sector efforts to restore, regenerate and physically rebuild communities along the Gulf Coast in a region now dubbed the GO Zone, or Gulf Opportunity Zone. 
 
The efforts that have ensued in towns and cities such as New Orleans and Biloxi for example, have been dramatic, impressive and truly uplifting.  What’s more, the regeneration and restoration efforts are reaching the awareness of individuals around the world who have been invited and encouraged to get involved by the Government of the United States which offers significant financial and taxation incentives to all those willing to invest in housing related projects within the GO Zone.
 
One of the highest profile names to get involved with the efforts to reconstruct homes in the GO Zone is Hollywood actor, Brad Pitt.
 
From day one Brad Pitt saw a very real need to get practically involved with rebuilding in the GO Zone because of the size of the effort required; he also saw that someone needed to bring awareness to the communities, as well as those responsible for regenerating them, that new homes need to be constructed not only cost effectively and swiftly, but ecologically and environmentally consciously as well. 
 
Brad Pitt’s humanitarian and environmental efforts through his ‘Make it Right’ charitable foundation have certainly helped to maintain international concentrated awareness on the GO Zone, and they have gone a long way towards ensuring that the restoration, regeneration and reconstruction of devastated communities happens in as ‘green’ and sustainable a manner as possible.
 
One of the initial questions asked by critics of individuals such as Brad Pitt who immediately began plans to physically reconstruct housing in the hurricane affected zones was: ‘is it wise to rebuild housing in areas of the country likely to again be affected by high winds and high tides?’  In response, critics are not only invited to meet displaced residents of these communities who yearn desperately to be able to return home and rebuild their lives, they are asked to review the construction methods and materials being used by those regenerating the GO Zone.
 
The main focus in the GO Zone among the most conscientious developers is on developing homes for residents that will withstand adverse weather conditions, survive devastating hurricanes and safely house residents.  Great awareness and intelligence has gone in to the planning of new communities and as a result, the best constructors in the region are using the likes of Cold Form Steel to build the houses with for example.  Cold Form Steel delivers superior structural integrity as it has a wind rating of up to 210 miles per hour, meaning that the homes that are being built using this material can withstand the fiercest forces of nature.
 
In certain areas such as New Orleans where there is a higher than average risk of flooding as well as high winds, Brad Pitt has personally commissioned architectural firms to come up with solutions to this issue as well, such as designing houses that will literally float on moorings like a boat if flood waters compromise levees around the city for example. 
 
Another area of the GO Zone where great effort has gone into the ecologically intelligent design of hurricane robust homes is Biloxi. 
 
In one particular development near Biloxi called Bayside Park, the architects and constructors set themselves the challenge of creating affordable, quality housing with as small a carbon footprint impact as possible.  These houses also had to use the very latest, state of the art construction methods and materials to reduce the overall impact of the final property on the environment.
 
In a recent interview with Danny Silver, the managing director of Property Direct America which is the company behind the marketing and development of the properties at Bayside Park, Mr. Silver was keen to discuss the green aspects of the development.
 
“Our properties at Bayside Park are constructed from a frame that consists of 75% recycled steel, or Cold Form Steel.  This is a superior construction material that is not only the most recycled material on the planet, but one that withstands high wind speeds and the threat of water penetration – making it perfect for construction within the GO Zone of course. 
 
“In addition to this, the steel we use can withstand termites for example, and it helps to create an enhanced thermal and sound barrier protection for the property.  This is of clear benefit to the resident’s of the property. 
 
“To ensure our properties create as small a carbon footprint and environmental impact as possible, we have also included ‘green’ features in further elements of the design and construction of the properties at Bayside Park.  For example, we use low impact NASA technology air purification, we use water purification systems that cut not only a resident’s costs but also their consumption of pure water, and we also include the highest energy efficient rated laundry system in our homes which eliminates the need for hot water within cycles for example. 
 
“Ultimately we want to provide investors with an ecologically and financially viable product, and we want to provide their tenants with a superior, safe, practical and environmentally sound home.”
 
Investor’s keen to find out more about the substantial financial and highly attractive taxation benefits associated with buying property in the GO Zone for rental to residents of communities such as Biloxi, and who also wish to follow Brad Pitt’s example and invest in ethically aware, environmentally conscious and ecologically sound homes, are invited to contact Property Direct America for more information.
 
For more information please contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com
 

Strong Defence Presence Increases Investor Interest in GO Zone

by Georgina United States

When Hurricane Katrina hit the Gulf Coast of America back in August 2005 and wrought untold damage to the lives of thousands of citizens in Harrison, Jackson and Hancock counties, fortunately there had been sufficient warning for military bases and defence installations in the area to evacuate all but essential personnel.

 
This certainly prevented further significant loss of life, but it did not completely help the thousands of families evacuated who returned a short while later to discover that their homes had been lost and their communities devastated.
 
The effects of Hurricane Katrina are still being felt to this day all along the Gulf Coast; and in Biloxi in Harrison County where a number of strategic defence and aerospace installations are situated, the need for housing for the high numbers of local citizens and military personnel is having a very real effect on the state of the local housing market. 
NASA’s Stennis Space Center and Keesler Air Force Base employ 19,500 and 11,200 people respectively, with nearly 7,600 military positions also open which brings at least this many families to the immediate region – and high proportions of these people are still waiting for housing in Biloxi.  With the news that Keesler Air Force Base is one of the shortlisted finalists to become America’s headquarters in the fight against cyber-terrorism, this could create 10,000 new jobs in Biloxi and bring even more people to the area creating even further upside pressure on the property market.
Depending on which way you look at it, the intense demand for housing in Biloxi is either an investor’s dream come true, or a rental tenant’s bad dream…
 
On the one hand you have the likes of CNN promoting the fact that Biloxi is now one of a limited number of locations in America where the housing boom continues; their findings are backed up by the Office of Federal Housing Enterprise Oversight which has shown that house prices in and around Biloxi continue to climb fuelled by such intense demand.  But on the other hand you have to understand about the plight of those left homeless and still living in Federal Government assisted housing and mobile homes.
 
In terms of just the housing loss caused by Hurricane Katrina, the loss was almost incomprehensible; in a state where nearly 30% of all residents are rental tenants, 72,116 rental units were damaged or destroyed as well as 65,000 owner occupied homes.  To this day, whilst business has recovered more strongly than ever in Biloxi and an estimated 90% of the pre-Katrina population has returned home to the area, there is a housing shortage to the tune of at least 55,000 properties that will need to be built in the next few years to meet this demand. 
 
The government of America immediately realised that it would need to put incentives and attractive benefits in place to draw in the high levels of constructor commitment required all along the Gulf Coast following Hurricane Katrina.  In addition, it realised that it had an obligation to ensure that citizens who rent property such as military families and those who work on defence installations in areas such as Harrison County were also looked after.  As a result, the government created the GO Zone Act – or Gulf Opportunity Zone Act to give tax breaks and financial incentives to encourage property construction and also to encourage property investors to buy up housing to rent to the waiting tenant demand.
 
In the Biloxi area, GO Zone qualifying developments such as Bayside Park are proving particularly popular with property investors.  Speaking about the development, Danny Silver, Managing Director of Property Direct America explained: “the development sees the construction of single unit family homes which are constructed in an environmentally conscientious yet affordable way. 
 
“The homes are for sale at well below current market prices because they are constructed on government subsidised land, and because of the tax breaks and fiscal benefits offered to all investors and the attractive mortgages available, these properties are being snapped up. 
 
“They are just the type of family home in intense demand among the stable base of tenants that springs from the number of military and defence installations in the area, meaning that an investor can not only buy an attractive property with strong potential to enjoy capital appreciation, but within days of the off plan homes being completed investors can make a real difference, house families and be enjoying stable rental income.”
 
If you would like to learn more about the benefits of the GO Zone Act and investing in properties in Biloxi as well as the fantastic mortgage deals available on Bayside Park properties, please contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com