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Dispelling the Top 10 Myths About the US Housing Market

Posted on Tuesday August 26, 2008

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 for markets 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 not a 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.

Investor Report: New Housing Bill and Tax Benefits

Posted on Tuesday August 26, 2008

Published: August 1, 2008 by Kenneth R. Harney/Realty Times

Foreclosure relief for home owners may be getting all the press on the new housing bill signed into law by the President this Wednesday. But there's plenty of tax-related goodies sprinkled through the bill's nearly 700 pages for sharp-eyed real estate investors.

Start with the low-income housing tax credit program -- the federal government's biggest source of support for affordable rental complexes -- driven mainly by tax shelter offerings.

The bill basically increases the size of the program, at least temporarily, by raising the current state-by-state volume limitations on tax credits. Put another way, the bill expands the number of potential deals supported by credits that developers and investors can do through the year 2009.

It also streamlines many of the technical regulations that govern the housing tax credit program, and simplifies the rules on the use of state tax-exempt multifamily bonds to finance tax credit projects. On top of that, it eliminates current IRS restrictions that prohibit the use of low-income housing and rehabilitation tax credits to offset the alternative minimum tax.

Elsewhere in the bill, tax rules affecting real estate investment trusts (or REITs) are significantly streamlined. Although the details of the changes are mainly for green eye-shade accountants and lawyers, the bottom line is that the REIT industry welcomes the changes and believes they will be good for business.

That's important because stockholder-owned REITs represent one of the most efficient ways for small investors -- and big institutions -- to put money into commercial and residential real estate, as well as into mortgages.

The housing bill also sweetens the pot for Gulf Opportunity Zone (or GO Zone) developments -- a tax resource for real estate and other investors in the hurricane-damaged areas of Alabama, Mississippi and Louisiana. As we've mentioned a number of times here on Realty Times, when the government will pay you to invest in an area where property values can only go up -- you ought to take a hard look at it.

The latest changes waive the start-construction deadlines for certain properties eligible for bonus depreciation in the GO Zone, and allow property investors and developers to amend federal tax returns to take into account their receipt of hurricane-related recovery grants.

Colonia's Weekly Real Estate Update

Katrina 3 Years On

Posted on Tuesday August 26, 2008

The 29th of August 2008 is an incredibly significant date on the calendar of all those living along the Gulf Coast of America, it marks the 3rd anniversary of the day Hurricane Katrina came ashore and devastated the lives of tens of thousands of Americans. Remembered today as one of the costliest and deadliest extreme storms to hit America, it is important never to forget the impact that the hurricane had on communities and lives in states as far apart as Alabama, Florida, Mississippi and Louisiana. The storm caused damage costing an estimated $81.2 billion, it was responsible for the loss of over 1,800 lives, and to this day thousands of displaced citizens are still living in temporary trailer accommodation because they lost their homes and all of their possessions as a result of the hurricane.

The immediate aftermath of the storm saw incredible, dramatic and instantaneous disaster relief efforts as local people with homes still standing took in their neighbours, NGOs from the US and far further afield arrived to help with the relief effort and America’s own Federal Emergency Management Agency (FEMA) provided immediate practical assistance. In less than a week Congress had authorised $62.3 billion in aid for victims, and Presidents Bush, Bush Senior and Clinton joined forces to enlist financial support from private American citizens as they rallied for economic donations.

Ongoing, the efforts to raise money, assist and aid the Hurricane Katrina affected communities has been relentless and impressive. Assisting individuals and businesses affected by the storm and encouraging those who are willing to continue participating in the rebuilding and restoration of the region became a priority for the government as time went on. This led to the government enacting the Gulf Opportunity Zone Act (or GO Zone Act) in December 2005. This Act gave everything from tax credits to tax-exempt financing and 50% depreciation for new developments within the so called GO Zone, and it continues to provide tax incentives and financial opportunities to those who commit to investing in and assisting with the ongoing restoration of affected communities in the likes of Mississippi and Louisiana.

Leslie Younger, Director of Global Community Development, is someone whose company has been actively helping with regeneration initiatives in the region, commenting on the transformation that the GO Zone Act has helped to inspire, Leslie comments: “the change on the coast has been remarkable. Residents are extremely excited to get back home after being displaced for so long. Most of our tenants have been living in 400sq ft FEMA trailers for the past 2+ years with sometimes up to 6 family members. They are now in spacious energy efficient homes, finally getting back to some sort of normalcy.”

Global Community Development is working in association with the Bayside Park Builders Association. Together they have taken on an area of Mississippi so badly affected by Katrina that before they could even begin reconstructing housing, projects were put in place to clean up that which the storm had left behind. Now, almost three years on, Bayside Park has become something of a flagship development for showing the rest of the world what can be achieved with hard work, determination, perseverance and international commitment. Bayside Park has become a community once again, inhabited by those who lost their homes because of Katrina. The residential development is largely made up of homes bought by international investors who benefit from fantastic mortgage facilities and the excellent financial and tax incentives of the GO Zone Act as well as high demand and strong rental yields. They buy the homes off plan, effectively financing their construction, and they then rent them out to the waiting tenant demand and ensure that once displaced families are now living in the likes of the Sierra A houses on Bayside Park. These are energy efficient, eco friendly, steel frame, robust 4 bed, 2 bath houses that are cost effective to run and spacious enough for a large family.

Danny Silver, Managing Director of Property Direct America has assisted many buyers from as far and wide as UK; Italy; Iceland; Korea and also Australia & New Zealand invest in Bayside Park, which is without doubt a profitable as well as a much-needed project. Property prices start from as little as £87,000/$159,900 with a 90% loan to value mortgage and excellent GO Zone financial and tax incentives available.

“Why I Invested in the GO Zone and Now Tell Others About Bayside Park"

Posted on Friday July 18, 2008

When Hurricane Katrina hit the Gulf Coast in the summer of 2005, the wider world watched in shock from the comfort of their own homes as lives were lost, communities were devastated and hundreds of thousands of people were deeply affected by the catastrophic effects of the storm. Not only were Americans inspired to take immediate and positive action to help their fellow countrymen rebuild their lives, but people across the world were affected by the plight of those whose lives were quite literally devastated overnight.

Money poured into the Gulf Coast region in the form of charitable donations, international NGOs such as the French Red Cross, Mercy Corps and Oxfam arrived to assist, and to this day, thanks to the ongoing efforts of local communities and those assisting with the regeneration of what has now been dubbed the GO Zone, people from across the world are still keen to help out. Take Clare Staniforth-Armstrong from Great Britain for example, she has invested into the GO Zone by buying 4 properties (2 duplexes) off plan at a development near Biloxi called Bayside Park. She has effectively financed the build of these homes that are now being rented out to local citizens who were displaced when the hurricane hit.

“I learned about the GO Zone and ways in which people like me could help from Danny Silver of Property Direct America. I subsequently did my own research into the GO Zone Act via US government websites and recognized that not only was this a chance for me to invest in an incredible opportunity, it was a very real way in which I could help. Now, not only would I consider investing with Property Direct America again because they have been so helpful, but I tell all my friends about the opportunity and encourage them to get involved too” explains Clare.

Danny Silver, Managing Director of Property Direct America explains: “Clare was typical of many investors who we have helped to understand the opportunities in the GO Zone. We have assisted investors from as far and wide as Iceland and New Zealand, Korea and Italy, and the one thing that all of these people have in common is that they were really affected by what they saw back in 2005. Many of these people had personally committed charitable funds at the time, but a few years on they wanted to do something ethical yet more proactive with their money. I feel that it was specifically for these types of people that the GO Zone Act came about – people who want to be proactive in assisting. The Act encourages inward investment which immediately and directly assists the local community whilst effectively providing the investor with an excellent, tax efficient, potentially high returning investment asset in return.”

The development that Clare Staniforth-Armstrong bought into and which Danny Silver’s company is currently promoting is Bayside Park, a development of eco friendly and energy efficient homes that are backed by the governmental and taxation incentives of the GO Zone to encourage investment into the region affected by Hurricane Katrina. Individual entry starts from as low as £87,000/$169,900 with a 90% LTV mortgage available. Investors buying in directly assist the community by providing housing, and they immediately begin profiting from their investment in the form of rental income, tax incentives and the potential for capital growth in what is one area of America with very encouraging fundamentals supporting the ongoing development of a positive property economy.

Having placed just £40,000 down on her properties, Clare Staniforth-Armstrong has already seen a return on her investment: “I’ve already seen a return of just under 11% on each duplex. Both duplexes also went up in price before being built too so that’s instant capital growth even before the tax benefits and the rental income, which is a great early bonus!” In speaking about the specific development she chose, she commented that: “having done my own research to back up what Danny Silver told me, I felt relaxed and safe in his hands and received good advice to buy in the busy workers areas near Biloxi and the casinos where the best returns are expected over the short to medium term. I see this as a 5 to 7 year investment, and I am very pleased with the assistance I have been able to give to the local community and with the returns I am enjoying as a result.”

For more information about Bayside Park please contact Property Direct America on 00 44 207 043 0792 or visit www.propertydirectamerica.com.

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

Posted on Monday June 30, 2008

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.

Rental Demand in America Reaches Record Intensity

Posted on Monday June 30, 2008

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.

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.

Strong Defence Presence Increases Investor Interest in GO Zone

Posted on Monday May 19, 2008

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.”

Avoid Common Investment Mistakes and Maximize Your Profits in Today’s Market by Danny Silver

Posted on Wednesday April 30, 2008

In recent months, the stock and property markets have taken some mighty big tumbles. As yan investor, your investment value probably isn't as big as it was a few months ago. What makes it even worse is thinking that I might lose even more.

Fear is one of the biggest enemies to successful investing. Greed is another enemy. When the market is dropping fast, both of these emotions will work against you and cause you to make terrible decisions with your money.

Fear will tell you that you're about to lose everything. And greed will tell you to take action to preserve what you have left. And the most likely action you'll take is to sell when the market is coming down. Bad decision!

Intelligent and experienced thinkers and investors tell us repeatedly not to worry, not to fear, and not to be greedy – it is just the “cycle” at work. Trouble is, we know what is right. It's just tough to do.

How many times have you been told to buy low and sell high? Well, the only way to do that is to overcome fear and greed. When the market is dropping, and your emotions are pushing you to sell, you have to resist. In fact, you have to look for opportunities to do just the opposite. These market drops are fantastic opportunities to buy in when prices are low. It's now a buyer’s market. Sellers want out and they're willing to sell at a deep discount.

This is true in every market, including real estate. I'm a big fan of real estate. I think it's a fantastic long-term investment. But real estate right now doesn't seem like a good investment because of the sub-prime mortgage mess. On the contrary, now is a great time to buy. Buyers can get a great deal if they're willing to look around and overcome the fear they feel.

In order to do this, you have to be willing to do just the opposite when the markets are up. Emotions will tell you it's time to buy more when you've just made a lot of money. But at that point, your risk goes up and you need to sell some of your investment to protect yourself.

For instance, when the Dow hit 14,000 last year, it was time to sell at least some of your position. And those of you who bought gold as an investment (not as an insurance policy), should consider selling some of your ounces. I'm not saying the investment won't go higher, but you've got to raise money when your investments go up. And the only way to do that is to sell a portion. That way you'll have some cash to buy other investments that are selling for much better prices.

Emotion can ruin a relationship. But if you manage emotions properly, your relationships and your investments will be in much better shape. Here are four quick tips to help you make wise decisions with your investments:

1) When you feel like everything is lost and all you want to do is sell – that's when you need to begin buying.

2) When you feel like everything is going your way, you don't think you can lose (notice the pride in this thought), and you're ready to buy – it's time to begin selling.

3) Take small steps. Don't sell everything at one time. And don't buy everything at one time. Small steps will help you avoid big mistakes.

4) Don't look for the exact top or the exact bottom. It's almost impossible to sell at the very top. Selling in small increments will help equalize your sell price at a good average. And don't look for the bottom to begin buying. It's just as tough to find as the top. Buying in small increments will give you a good average price to build your portfolio on. Trying to time the exact top and the exact bottom is a subtle form of greed – one of the emotions that will work against you.

Following these simple steps will help you maximize your profits regardless of the market's direction.

GO Zone Time Period Get’s the Go Ahead

Posted on Wednesday April 30, 2008

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 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 92,000. 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.

Essential GO Zone Financial Facts and Figures

Posted on Wednesday April 30, 2008

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.

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 $6.74.0 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 around $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

Biloxi Works!

Posted on Wednesday April 30, 2008

A massive program of improvement projects Pre- and post-Katrina work in the pipeline.

City has nearly $154 million in requests pending in post-Katrina rebuilding effort.

Twenty months after Katrina, Biloxi had $153.7 million in funding requests pending with FEMA and MEMA, based on assessments of dozens of storm-damaged city-owned facilities and equipment.

The funds from FEMA, along with supplemental matching grants from MEMA, would help return city assets to their pre-Katrina condition. The pending requests include $81 million debris-related expenses; more than $25 million in damages to more than four dozen city facilities such as fire stations, community centers, museums and historic properties; nearly $14 million in repairs to the city’s water and sewer infrastructure; and more than $19 million in damages to the city’s marinas, harbors and public piers.

City staff and a team of architects, engineers and contractors have worked closely with FEMA in preparing the necessary documents – known as “project worksheets” or PWs – for nearly 300 projects. The FEMA funding would either be decreased or increased, to cover any insurance settlements or insurance shortfalls.

“The city must fill out the PWs to include such information as the name of the project, an assessment of the damage, and how much it will cost to return that particular asset to its pre-storm condition,” Holloway said. “FEMA then reviews each of the PWs and decides whether it’s approved and if approved, sets aside the money, which is funneled through MEMA.”

Under the process, once FEMA approves a project and obligates funding, the city “will have teams of engineers begin preparing the scope of work and the construction specifications so we can get these projects out to bid. Then the projects are awarded and construction begins.”

Director of Administration David Staehling said that all of the city’s damage assessments have been completed, and decisions from FEMA and MEMA on the requests are pending.

Here’s a breakdown on the $153.7 million:

Buildings . . . . . . . . . . . . $25,326,174.05
Contents . . . . . . . . . . . . . $1,965,779.10
Debris-related . . . . . . . . $81,412,526.97
Equipment . . . . . . . . . . . . . $522,738.19
Emergency/Temp. . . . . . . $1,850,811.52
Fields & Parks . . . . . . . . $1,041,878.35
Labor . . . . . . . . . . . . . . . . $2,524,685.21
Piers & Bridges . . . . . . . $19,270,222.35
Roads . . . . . . . . . . . . . . . $2,231,759.05
Sidewalks . . . . . . . . . . . . . . $249,709.80
Vehicles . . . . . . . . . . . . . . $2,079,911.61
Water Sewer . . . . . . . . . $14,160,052.67
Other . . . . . . . . . . . . . . . $1,096,888.80

US Lawmakers Blast Boeing Defense Contract Snub

Posted on Tuesday March 18, 2008

WASHINGTON, March 1, 2008 (AFP) - US lawmakers have reacted angrily after the US military awarded a 35-billion-dollar aircraft deal to Europe's Northrop Grumman/EADS group, in a major blow to US manufacturers Boeing.

"It's stunning to me that we would outsource the production of these airplanes to Europe instead of building them in America," said Republican Senator Sam Brownback about the Pentagon's decision.

"I'll be calling upon the Secretary of Defense for a full debriefing and expect there will be a protest of the award by Boeing."

The US Defense Department announced Friday that it was awarding the deal for a fleet of in-flight refuelling craft to the Northrop Grumman/EADS team, in a huge coup for Boeing's main rival Airbus.

The surprise choice of EADS marks the European group's entry into the lucrative US defense market, where so far it had had only a marginal
presence.

Boeing voiced strong disappointment after the contract slipped through its hands and said it would ask for an explanation. "Once we have reviewed the details behind the award, we will make a decision concerning our possible options," said Boeing spokesman William
Barksdale, hinting at a possible protest.

While European political and industry leaders have hailed the decision, many Republicans have been left seething. "We should have an American tanker built by an American company with American workers," said Republican Representative Todd Tiahrt. "I cannot believe we would create French jobs in place of Kansas jobs."

Boeing, the second leading US defense contractor after Lockheed Martin, had been considered the heavy favorite for the contract and according to its website is the largest employer in Kansas.

The contract for the newly named tanker, the KC-45, is one of the largest Pentagon contracts in recent years and the first order on a tanker market valued at more than 100 billion dollars in more than 30 years.

Los Angeles-based Northrop Grumman and the European Aeronautic Defense and Space Company(EADS), parent of Airbus, will provide up to 179 tankers for the US Air Force.

"The tanker is the number-one procurement priority for us right now. It is the first step in our critical commitment to recapitalize our aging fleet to move,
supply, and position assets anywhere," said General Duncan McNab, US Air
Force chief of staff, in a statement.

The stunning victory for EADS comes as group CEO Louis Gallois seeks to build up its presence in the defense sector, judged to be less cyclical than civil aeronautics.

Gallois told AFP the contract was a "great subject of pride" for the company and would "encourage it to pursue its strategy in the United States."

A spokesman for French President Nicolas Sarkozy said he had called Gallois "to pay homage to this historic success". "He is delighted that after recent difficulties, EADS has come back brilliantly with record orders, particularly in one of the most difficult and demanding defense markets in the world," said David Martinon in a statement.

German Chancellor Angela Merkel, in a statement, called the deal "an immense success for Airbus and for the European aerospace industry."

Airbus will assemble the tankers in Mobile, Alabama, and has vowed to transfer assembly of its commercial 330 aircraft there, creating jobs.

Republican Alabama Senator Richard Shelby welcomed the decision. "Not only is this the right decision for our military, but it is great news for Alabama," he said.The contract was expected to bring up to 1,800 jobs to the Mobile area and 5,000 to the state, he added.

Boeing and the EADS-Northrop team had been competing for more than a year for the prize, which offers a cushion for decades in case of a downturn in the highly cyclical market for commercial aircraft. EADS's winning offer is a modified version of the Airbus 330. The
commercial plane will be militarized by Northrop Grumman and its American partners to prevent the transfer of sensitive technology to a foreign entity.

Boeing had proposed a version of its long-haul cargo plane, the 767-200. In May 2003, a similar tanker contract was awarded to Boeing, but it was annulled under allegations of procurement fraud, for which Boeing paid a
record 615-million-dollar settlement to the government.

United States Property Market – Sale Now On!

Posted on Thursday January 31, 2008

For the property investor seeking favourable market conditions in a historically robust marketplace where there is opportunity for short, medium and long-term gains, the United States currently epitomises these conditions and quite possibly represents the ultimate in immediate investment opportunities.

According to present attitudes and expert opinion in the real estate and investment industry, the property market in America is potentially at the most attractive point in its cycle and now could very well be the right time to buy-in.

The main facts supporting this attitude are: -

• The property market across much of America is stagnating and in certain states it is in or approaching recession, which means prices are falling making a buy-in more cost and profit effective
• Even in spite of dollar gains made recently, the pound and euro remain stronger buying currencies in the US
• Record numbers of foreclosures have created a situation where an abundance of relatively cheap property is available for sale in the United States
• Demand for housing in the US is not abating with rental demand in states such as Louisiana, Alabama and Mississippi - which were severely affected by Hurricane Katrina - massively outstripping currently limited supply

You can add to all of these already well-known and greatly discussed truths some additional factors that also point to the reality that the United States is currently an incredibly attractive market for property investors looking for a familiar market built on extremely strong fundamentals.

For example, leading US economist Dr. Fred Foldvary commented in a recent lecture series and subsequent articles that, according to the widely accepted 18-year economic cycle that exists in the US, 2008 is the point at which the housing market in America will reach rock bottom. His findings are based on extensive research dating back to the early 1800’s and relate directly to everything from the pattern of the US economy to the pattern of the housing market, from land prices to capital goods pricing.

For the nervous investor this may sound like 2008 is the worst time to buy-in, but again according to expert opinion, quite the contrary is true.

For a start, leading research spanning almost fifty years highlights the fact that historically speaking, investors who have committed to market entry during presidential election years have made substantial gains – and 2008 is a presidential election year. Additionally, leading US investment strategist and author Michael J. Mauboussin points out that those who were ‘brave’ enough to buy stocks and shares in property development companies in the US in the 1990’s - during and immediately following the last real estate crash - were in a position to enjoy exceptional returns over the short, medium and long term.

Now add to this current consensus of opinion some wise words from legendary investor Warren Buffett who stated that one should be ‘fearful when others are greedy and greedy when others are fearful,’ and it’s clear that constant discussions of economic turmoil in the US represent an excellent time to strike out and buy-in, especially if you are buying-in with a currency other than the US dollar.

However, before investors rush out and begin buying property anywhere in America it is incredibly important to note that the housing market and overall real estate economy in the US has to be broken down into fifty separate pieces. Each state in America has its own underlying factors affecting it, each state can and should be viewed separately; furthermore, specific due diligence relating to the fundamentals driving and affecting the market have to be carried out on a state by state basis.

As mentioned earlier, some of the states in America where there is currently an attractive set of market conditions for investors to buy into are within the Mississippi Gulf Coast area. This is an area of the nation that was devastated by Hurricane Katrina in 2005 and where there is also a high-density population demanding new rental accommodation.

In December 2005, the US Government enacted the “Gulf Opportunity Zone Act”, (known as the “GoZone”), to cover the surrounding areas effective by the hurricanes. Covering several counties, this act includes subsidised land for developers. Individual nvestors get guaranteed low prices; subsidised guaranteed rental income and high tax benefits that removes the burden of both income and capital gains taxation – even for non-US citizens.

Governmental and taxation incentives have been created to encourage corporate investment resulting in the likes of leading companies such as BAE Systems, Applied Technologies, General Dynamics, Lockheed Martin and Rolls-Royce Naval Marine Inc. bringing high employment to the region in a bid to attract new people to the area and to improve the lives of those affected by the hurricane. Also the Government is busy on huge expansions of the Military Installations of Keesler Air Force Base, Stennis Space Center, and the Atlantic Fleet Seabee Base.

In addition, 22 Vegas-style Casinos are being built in a new resort area along with hotel/resorts etc. (11 Casino’s are already open and a recent report shows visitors are already exceeding Atlantic City!). Casino employees are being “bussed in” from over 100 miles away simply because they have no-where to live nearby.

Speaking about the opportunities in the Go Zone, Danny Silver, who’s the Managing Partner of Property Direct America and an expert on the region, recently commented that: “clearly in a location with a housing shortage, an ever-increasing demand for accommodation, increased employment opportunities, slowly growing local affluence and where house prices are particularly affordable, and where developers are starting to construct new real estate, there is a perfectly ripe market for immediate property investor entry. Entry into the market is as low £20.000 for a 3 bedroom/2bathroom house.

To learn more about the GO ZONE you can contact the company via their UK offices on 0207 043 0792 or visit their website www.propertydirectamerica.com.

It's All Go in the GO Zone

Posted on Thursday January 31, 2008

Inimitable US Investment Opportunity for a Limited Time Only...

The GO Zone is an acronym for Gulf Opportunity Zone; this is an area of America along the Mississippi Gulf Coast where Hurricanes Katrina and Rita hit land in 2005 destroying over 64,000 homes, and where today regeneration has presented an inimitable and unique property investment opportunity.

In an address to the nation following the hurricanes, President Bush stated: “When I spoke to the nation from Jackson Square, in New Orleans, I said our job and our goal for the Gulf Coast was not just to survive, but to thrive, and not just to cope, but to overcome. And I meant it. And we're now implementing a comprehensive plan to help the people of the region recover and rebuild...Helping people find housing is going to be one of the really important challenges that we all face together in order to help these areas rebuild.”

In an effort to kick start this property rebuilding and economic rejuvenation period, The Gulf Opportunity (GO) Zone Act of 2005 was passed by Congress on the 16th of December 2005. Through attractive financial incentives for investors within the Act, the rebuilding of homes and the local economies devastated by the hurricanes is well underway, and now for a limited time only there exists substantial taxation incentives and property based opportunities available for international investors particularly in and around the Hancock County of southern Mississippi.

The opportunity is not linked to the sub-prime market in America, in fact almost conversely it relates to the fact that an overwhelming number of residents within the GO Zone are tenants who require housing rather than property owners - and the intensive construction work that is ongoing throughout the Zone is aimed at these people but requires property investors to commit to purchase homes in order for the steel frame houses constructed to be made available to the massive tenant demand.

One of the highest profile investors to date is Brad Pitt, who bought a home in the GO Zone to demonstrate his solidarity with the hurricane devastated communities and to promote the idea to investors of effectively 'adopting' a property - both for profit and for the massive tenant demand to rent out.

The most attractive taxation incentives available to investors who buy into the GO Zone will only be available to those who purchase before the end of 2008 however - which is why this current opportunity is really only available for a limited time.

Whilst the incentives are only accessible if you buy before the end of this year, there are short, medium and long term reasons to invest into communities such as Bayside Park in Hancock County – and whilst the incentives will make a buy-in right now that much sweeter, the fact that the area and the nearby city of Biloxi in particular is receiving massive inward investment to boost its already strengthening economy will mean any investor wise enough to commit before the end of 2008 will be in line for some substantial potential gains in terms of rental yields, demand and long-term property-based profitability.

Prior to the hurricanes, Biloxi was an incredibly important centre in the US for casino based revenue. It is this particular area of the leisure industry that is once again receiving substantial inward investment, with 22 casinos and casino resort hotels already operational or under development. These are bringing employment to the local area, financially boosting the economy, they are resulting in rising levels of tourism and increased inward flow of citizens seeking employment and subsequently rental and resale accommodation.

In addition to the casinos, the government is substantially expanding a number of military installations in the area, and thanks to the government investment incentives BAE Systems, Applied Technologies, General Dynamics, ITT Industries Inc., Lockheed Martin and Rolls-Royce Naval Marine Inc. are just a few of the names having already committed to business expansion in the region.

According to Danny Silver who's the MD of Property Direct America: “this overwhelming level of public and private business expansion is fantastic for the long term economic development of the city of Biloxi and the surrounding areas– but ironically it has put a further strain on the local property market with need for homes to rent and buy ever-soaring. As a direct result of all of these factors, any investor seeking an immediate property based opportunity is looking very hard and very seriously at the GO Zone - with strong focus specifically on this Hancock County centered opportunity.”

In terms of the incentives investors are being given by the US government, they include 50% of the cost of the building an investor purchases being deducted from their tax liability in the first year, "cash back" incentives, the ability to purchase 2 units effectively for the price of 1.5, being able to buy-in at below market value and paying lower than standard property taxes.

One of the leading property development projects in the Biloxi area that meets all governmental guidelines for construction of homes to meet the local demand is Bayside Park. Property investors have been drawn to Bayside Park as purchase of these homes makes buyers eligible for all GO Zone incentives. Additionally the properties are affordable, starting from just GBP 68,000 / EUR 92,000, and they are made from quick to construct steel frame meaning that within six months from signing a contract an investor can take possession of their property, let it out and begin turning a profit.

Bayside Park also offers investors the chance to get up to a 70% mortgage guaranteed, and because the homes are being constructed with many eco features and come with 10 year build guarantees, they are properties that will stand the test of time and which add more value to the community.

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

Biloxi A, Bayside Park

Posted on Thursday January 31, 2008

Biloxi A, Bayside Park, Hancock County, Mississippi, USA

Attractive market conditions create prime investment opportunities in the Mississippi Gulf Coast area of the USA. Bayside Park is found in the “Gulf Opportunity Zone” (known as the “Go-Zone”), adjacent to Bay St Louis and Waveland in Hancock County and is being developed as a direct result of Hurricane Katrina in 2005.

Biloxi A are steel framed homes consisting of 3 bedrooms and 2 bathrooms. Biloxi A also features various eco friendly and energy efficient systems including NASA technology air purification, various water purification systems that cut the costs, consumption and the carbon foot print of delivering pure water, and a state of the art laundry system eliminating the need for hot water within cycles. Alongside all these features steel is the most recycled material on the planet and never loses its strength, creating a higher wind resistance rating than wood or concrete. Bayside Park use 75% recycled steel.

Highways and interstates link Bayside Park to major cities and towns such as Gulf Port, Biloxi, Bay St Louis, Pearlington, Shoreline and New Orleans and employment opportunities are increasing daily due to 22 casinos being built in the area, creating thousands of jobs. Other key companies based in the area are Chevron, ANI Pharmaceuticals, NASA, The University of Southern Mississippi and Naval Construction Battalion centre, to name a few.

Governmental and taxation incentives have also been created to encourage corporate investment from companies such as BAE Systems and Rolls-Royce Naval Marine inc. Individual entry into the market is as low as £68,000 with a 70% LTV mortgage available.

To learn more about these opportunities in the GO ZONE contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.


Biloxi A, Bayside Park, Hancock County, Mississippi, USA

Steel framed 3 bedroom, 2 bathroom houses available for pure investment purposes. Prices start from £68,000 with 70% LTV mortgages available. To learn more about these opportunities in the GO ZONE contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.

"Go Zone" Report

Posted on Thursday January 31, 2008

On August 29, 2005, the states of Mississippi, Louisiana, and Alabama suffered widespread damage as a result of Hurricane Katrina, a natural disaster of unprecedented proportion.
The "Clarion Ledger", the state's newspaper, reported that 70,000 homes were completely destroyed and 65,000 homes had "significant damage" just in the lower six counties that make up the state's Coast region. These loses are staggering, especially when you consider the maximum number of homes ever built in this region in one year is 2,800.

On December 21, 2005 President Bush signed into law the Gulf Opportunity Act of 2005. This law commonly referred to as the "Go Zone" provides unprecedented economic and tax benefits to those areas hit hardest in Mississippi, Louisiana, and Alabama. The legislation provides HUGE incentives to investors building or buying new construction in these areas.

Quick Example- One investor (medical doctor) building a $750,000 medical office, was previously paying $20,000 per quarter in federal taxes. As a result of this new construction project, he will not have any taxes due for the next two years. That's a savings of 160k in real money.

Your situation will differ. As a qualifying investor you will not have any tax liability for several years!! This legislation is extensive and lengthy. I invite you to review the entire law to become familiar with all the provisions. Some of the benefits of the Go Zone are Tax-Exempt Financing, Increased Expensing for Demolition and Clean Up Costs, Increased Expensing for Environmental Remediation Costs, Increased Rehabilitation Tax Credit, Work Opportunity Tax Credit, Additional Low Income Housing Tax Credits, and Tax Exempt Bond Financing.

The entire technical explanation of the legislation can be found at:
http://www.house.gov/jct/x-88-05.pdf
The purpose of this report is to focus on one area of the legislation, Bonus Depreciation and in primarily one market, Mississippi.
As professional real estate investors working in MS we have reviewed the legislation, attended various seminars and educational events and we have reduced the hundreds of pages of the Go Zone to what we feel is a plan of action that will allow real estate investors who qualify to take advantage of the tremendous opportunity to help rebuild a State and help build an unbelievable financial future for themselves.

Before we start let me ask you some basic questions.
How much did you pay in income taxes in 2007? Chances are you cannot give that answer off the top of your head. (If you can keep reading, you are the people we are looking for).

Why can't you?

Since the taxman takes your money owed out of your check (if you are typical wager earner), before you even see it, chances are you don't how what you are paying. You've heard it said; you can't miss what you never had. I am not sure I agree with this by the way, but that's a discussion for another time.

If you are a highly paid professional (and who doesn't want to be), then you are probably much more aware of what your tax bill is since you are actually writing the check out yourself.

Another question.

Do you understand the POWER of DEPRECIATION?
Think about it for a minute. You buy real estate for investment purposes; let's say a property or multiple properties costing $250,000.

(Right now in our market APPRECIATION is approaching 15% and many experts predict that figure to rise "substantially" with the amount of money (new construction) pouring into the market as a result of the GO ZONE. (Stay with me we are talking about DEPRECIATION).

The Federal Government allows you as owner to DEDUCT or DEPRECIATE a portion of your cost of the property each year. A federal taxpayer is allowed to recover, through annual depreciation deductions, the costs of certain property used in a trade or business or for the production of income. In the $250k example using residential property, the IRS determines that that property has a useful life of 27.5 years and that each year you (as the property owner) can depreciate the cost of the property 250k by approximately 1/27th.

So, $250,000 worth of residential property divided by 27 years equals $9,259.26 in deductions on your investment. Why is this so beautiful? Well the property you own is providing you a monthly income (positive cash flow).

The property you own is APPRECIATING in value. Assuming a 15% rate of appreciation, your investment actually would go up in value $37,500 in one year while the IRS allows you to assume the investment has depreciated in value by $9,259 and allows you to avoid paying $3,703 in taxes.

Isn't America a Great Country for the investor?
You own an appreciating asset (real estate) that the IRS allows you to treat as a depreciating asset. You keep the income (positive cash flow) from your investment and you get the advantages of your asset appreciating and the tax advantages of being able to depreciate your asset.

You get the best of both worlds and this isn't even the good news. The information above is not new news. Depreciation and the tax advantages have been around forever. Why do you think most millionaires made their money in real estate, grew their money in real estate or hold their money in real estate?
Shaquille O'Neal is one of the largest investors in single family houses in the country, Oprah Winfrey, Donald Trump; the list goes on and on. "Everyone is doing it."
But not everyone is doing it in Mississippi and not everyone knows about the Go Zone and not everyone will take advantage of the amazing opportunities here in the aftermath of Hurricane Katrina.

You Can! Just keep reading.

Now this is where if you have not been paying close attention, you need to close the door and up your intensity level. If you have ADD or ADHD and you have been fast forwarding through this report, slow down and make sure you get this.

The provision of the Go Zone we are writing to tell you about in this "special report" is the BONUS DEPRECIATION PROVISION OF THE LEGISLATION – AND APPLIES TO NON-US CITZENS AS WELL!!! H.R. 4440, The Gulf Opportunity Zone Act of 2005 provides 50% bonus depreciation to help investors rebuild in the Zone. The Act allows investors to claim an additional first-year depreciation deduction equal to 50% of the cost of new property investments made in the ZONE.

Now by quoting directly from the legislation, you know what everyone in America can find on any internet site.

What they won't how (and you will) is how to I turn this legal speak into opportunity, money, income, moolah, cash, dough.
In other words, how do you tune into your favorite radio station WIIFW, What's In It For Me. Well I am glad you asked, because that's why we are here. Remember our earlier discussion about depreciation? Remember how I said that's nothing new? Well what is new and is only available in certain parts of MS, AL, and LA is the Bonus part.

Let's use our $250,000 example. Remember?
You purchase investment real estate for $250k (but in the approved Go Zone Area). Now the same investment in the Zone allows you to depreciate/deduct 50% of your cost the first year.

So in the same example:
Purchase Price $250,000
First Year Depreciation (Tax Deduction) now is $125,000 (not $9200 like the earlier example)
What do you own now in taxes? All together class. Zero, nada, nothing, zilch.!
AND YOU CAN CARRY THE LOSS FORWARD FOR 15 – YES THAT’S RIGHT - FIFTEEN YEARS!!!!!!!!!!!!!!!!!

Do you see the impact? If you don't please give this document to someone who can.
But wait there's more.
In addition to the $50k that you get to keep, you also own an asset that is appreciating and is generating you, monthly income.
But wait there's more.
God Bless America. In the aftermath of devastation, opportunity rises.
Now remember, this opportunity only applies to new construction. Remember the purpose is to help rebuild the State.

The investment has to be in the Zone. In Mississippi the Zone consists of 49 approved counties and the property has to be purchased by December 31st. 2008 and built and rented by December 31st. 2010. In addition the property be acquired and placed in use for the first time on or after August 28, 2005.

Wait. Stop. Come Back.

Now, as exciting as this is, before you go out and start buying property, you need help and this is where we come in. We provide the qualified properties in the qualified counties. We provide help in getting financing if needed. We provide help with evaluation. Most of the time it does not make good business sense to simply purchase for the tax benefits (although the Go Zone makes it close). We walk you through the cash flow evaluation. What is your monthly cash flow going to be? What is the best price range property to purchase for maximum cash flow?
Who will manage these properties, collect the rents, and deal with tenants and maintenance issues?

We provide answers to all your questions and solutions to your problems. Leland Speed- the President of the Mississippi Development Authority, the state agency charged with regulating this legislation, and also President of two of the most successful Real Estate Investment Trusts (REIT'S) in the country has said, “we have not seen such a massive rebuilding effort since the Civil War and we will not see another such opportunity in our lifetime”

As you can see the opportunity is here and here for only a limited time. We can help start the process, now and now is the time to start. As values continue to rise (and they will) the property that you could buy now for $200k could be $230k in a matter of months. This market is just that hot. Contact us to schedule a personal appointment.
THE TEAM!

Upcoming Seminars

• Birmingham - Thursday September 25, 2008
• Newcastle - Wednesday September 24, 2008
• Edinburgh - Tuesday September 23, 2008
• Leeds - Wednesday September 17, 2008
• East Midlands Airport - Thursday September 11, 2008
• London - Wednesday September 10, 2008

Recently Published

• August 26, 2008 Dispelling the Top 10 Myths About the US Housing Market
• August 26, 2008 Investor Report: New Housing Bill and Tax Benefits
• August 26, 2008 Katrina 3 Years On
• July 18, 2008 “Why I Invested in the GO Zone and Now Tell Others About Bayside Park"
• June 30, 2008 Celebrating the 4th of July and the American Values of Independence, Liberty and Freedom
• June 30, 2008 Rental Demand in America Reaches Record Intensity
• May 19, 2008 Strong Defence Presence Increases Investor Interest in GO Zone
• April 30, 2008 Avoid Common Investment Mistakes and Maximize Your Profits in Today’s Market by Danny Silver
• April 30, 2008 GO Zone Time Period Get’s the Go Ahead
• April 30, 2008 Essential GO Zone Financial Facts and Figures
• April 30, 2008 Biloxi Works!
• March 18, 2008 US Lawmakers Blast Boeing Defense Contract Snub
• January 31, 2008 United States Property Market – Sale Now On!
• January 31, 2008 It's All Go in the GO Zone
• January 31, 2008 Biloxi A, Bayside Park
• January 31, 2008 "Go Zone" Report

Partner Sites

Office Locations

PROPERTY DIRECT AMERICA
78 York Street
London, W1H 1DP
tel: +44 (0)207 043 0792
fax: +44 (0)207 043 0793

INTL. HEADQUARTERS
72 rue du Faubourg St. Honore
75008 PARIS
tel: +33 (0)1 40 07 86 25
fax: +33 (0)1 73 76 88 50

U.S.A. HEADQUARTERS
13498 Walsingham Rd.
Largo, FL. 33774
toll free: 1-800-335-0256
fax: 727-593-3152

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