Buy To Let and Investment Opportunities in Port St Lucie,
Florida
This is a fantastic opportunity to invest in one of the hottest
markets throughout the treasure coast and the United States.
A good monthly income producing investment, with our fully
managed long term rental package, or take advantage of the
phenomenal growth in the area and realise more than 100% ROI
on completion of the property.
Situation:
• 30 minutes North of Palm Beach, 90 minutes south east of
Orlando, on Florida’s Atlantic Coast • Just a few minutes
drive to the Interstate-95 and Florida Turnpike, with fast
road links to the North, central and southern parts of the
state. • Big name stores, and malls provide excellent shopping
facilities for the local population • Numerous golf courses,
and other sporting facilities, make the area a magnate for
sports stars and professionals, including the New York Mets,
who winter in the area. • Large employers, such as QVC, FEDEX,
LIBERTY, MARRIOT and many others are based locally, and provide
and endless supply of tenants to the rental market
Tahiti Model
3 Bed, 2 Bath, 1618 sq ft under air, 2170 sq ft total floor
plan (other models available)
Port St Lucie is still affordable, compared to it’s
near neighbours Palm Beach and Ft Lauderdale, and is attractive
to the serious investor. The area has enjoyed an extended
period of exceptional economic growth, with every indication
that this will continue well into the future. There is a shortage
of good rental property for incoming residents, and demand
continues to outstrip supply, resulting in a sellers market.
Rental rates run at between $1100 and $1400 per month on average,
and standard tenancies are for a minimum of 12 months. State
regulations and professional management provides comprehensive
protection for the landlord.
The Tahiti, with it’s 3 bed / 2 bath floor plan, is
the most popular design, and achieves highest possible occupancy
levels. Economical to run in it’s standard configuration,
proves attractive to the local rental market. Below represents
typical layout;
The examples below use an interest only mortgage rate of
5% for illustration only. Figures are accurate as of 17 November
2004, but are subject to change. These illustrations should
not be thought to constitute any offer of mortgage or guarantee
of income. Our mortgage broker will happily supply an accurate
Good Faith Estimate for any potential purchase you may decide
upon. You should always consult with your financial adviser
prior to any investment. PURCHASE PRICE $214,000.00*
* Prices are subject to change at any time, and are dependant
on availability and price of suitable building land. The builder
purchases lots to order. Illustration 1: The buyer invests
25%, with a 75% LTV mortgage, and plans to rent the property
long term;
APPROXIMATE CLOSING COSTS
(inc. Legal Fees, Taxes etc)
|
$ 53,500.00 |
TOTAL CASH INVESTMENT
This results in:- |
$ 7,811.21 |
MORTGAGE AMOUNT |
$ 61,311.21 |
APPROX MONTHLY |
$160,500.00 |
MORTGAGE PAYMENT |
$ 668.75 |
In this scenario, achieving a rental rate of $1250 per month
would provide thefollowing:-
MONTHLY RENTAL INCOME:
TAHITI 1 3 BED 2 BATH
|
$ 1250.00* |
OUTGOINGS: |
$ 668.75 |
MORTGAGE APPROX.
PROPERTY TAXES &
INSURANCES |
$ 250.00 |
MANAGEMENT FEES |
$ 100.00 |
TOTAL OUTGOINGS |
$ 1,045.50 |
NET INCOME |
$ 231.25 |
This provides an annual income of approx. 4.6% on initial capital
investment, excluding income tax liability. The investor will
also benefit from the capital growth, running at above 31% in
2004, at the time the property is
* Rental value fluctuates between $1100-1400 per month depending
on availability of
General Information:
A Full management service for the Absentee Owner is provided
by the local Property Management company, and includes:
• Locating prospective tenants; running comprehensive credit
and criminal record checks to determine suitability.
• Secure tenancy agreements (minimum of 12 months)
• Determine, based on client history, the amount of advance
rental required as security deposit. Generally 1 months rent
plus 1 month in advance is required. Hold secure all monies
paid.
• Collect all rents payable, deal with and resolve any disputes
or arrears if necessary.
• Perform regular internal and external inspections of the property
to ensure all terms of the lease are adhered to.
• Carry out repairs as necessary.
• Prepare opening and closing inventory. The tenant is required
to leave the home in the same condition as when they took possession.
• Send owner a statement of account monthly.
Management Fees
Generally 50% of the 1st month’s rent is paid to the management
company to cover expenses of finding the tenant, then $100 per
month.
With this developer, certain features are included in a new
build home, as standard;
Paramount Quality Homes Corp.
STANDARD FEATURES
DESIGN & CONSTRUCTION
Exterior Features
- Homeowners Ten year Structural
Warranty
- Concrete Block Construction
- Roof Trusses engineered for
strength and hurricane straps for straps for wind
protection.
- Fully textured masonry exterior
finish
- Steel reinforced concrete foundation
- Full utility connections
- Mildew resistant fiberglass
roof shingles in a variety of colors
- 8,000 Sq Ft Bahia Sod and Landscapping
- Full concrete driveway (per
plan)
- Spacious covered screen-enclosed
patio (per plan)
- Sliding glass doors to patio
brings natural sunlight in
- Choice of white or bronze aluminum
windows
- Accent Stucco Trimband
- Bonded termite treatment
- Deluxe paneled steel garage
door (per plan)
- Grade around home perimeter
for proper water drainage
- Concrete walkway from driveway
to front door entry
- Garage coach lights
- Aluminum Gutters and Downspouts
- Hurricane Shutter Package (per
code-excludes Orlando)
|
Exterior Features
- Vaulted textured ceilings (per plan) for spacious
look
- Ceramic tile in kitchen,foyer,
utility room and bathrooms (per plan)
- Wall to wall carpeting
- Upgraded no wax vinyl floors
(Tahiti model)
- Pool down stairway for attic
storage
- Colonial trim
- Raised Panel Colonist interior
doorsof colors
- Closetmaid Ventilated shelving
- Marble window sills
- Finished walls and ceiling in
garage
- Decorative plant shelves (per
plan)
|
Electrical
- Two outside waterproof electrical outlets
- 200 amp electrical service
- Copper wiring throughout
- Twp TV cable outlets and two
phone outlets
- Front door bells chimes installed
- Pre-wire for garage door opener
- Four ceiling fan outlets with switch
- Four ceiling fan outlets with switch
- Smoke detectors for maximum
protection
- 220 volt dryer outlet
|
Kitchen
- Custom mica countertops with upper/lower mica cabinets
for incredible storage space (Tahiti,Amanda &
Antigua Models)
- Upgraded Wood Cabinets (Antigua Plus, Islamorada
and Carribbcan Choice Models)
- Oversized pantry for added storage
- Dishwasher with two wash cycles
- Venthood with two speed exhaust fan and light
- Double compartment stainless or upgraded cast Iron
Kohler kitchen sink
- Deluxe 30 range with self cleaning oven
- Deluxe one touch Moen faucet and sprayer
- Convenient 1/3-hp disposal in kitchen sink
|
Bathrooms
- Ceramic decorative tile with accent borders in shower
and master tub area
- Cultured marble custom countertops and sinks
- Spacious linen clostes
- Vanity mirrors with separate medicine cabinets
- Safety protected electrical outlets
- Ceramic holders and towel bars
- Master bath garden tub for ultimate relaxation
- Elongated water closets
|
Plumbing
- Seamless copper water lines under slab
- Recessed ice maker line with cutoff under sink
- Two outside hose bibs for gardening enjoyment
|
Total Energy Saving Package
- Central air conditioning and high efficiency heat
pump
- R-19 ceiling insulation
- R-4 insulation
- Insulated steel entrance door with adjustable threshold
- Water conserving toilets, faucets and shower heads
- Exterior vented dryer exhaust
- Energy Miser 40 gallon hot water heater
- Aluminum Soffits and Roof Ridge Vents helps cool
attic
- Insulated attic ductwork
- A/C vents in all walk-in closets and laundry room
|
Build times are averaging more than 12 months from signing
of contract, forcing up resale values, and presenting a real
opportunity to make immediate profit on
Illustration 2:
The buyer invests 25%, with a 75% LTV mortgage, and sells
the property on
DEPOSIT (25%)
|
$ 53,500.00 |
APPROXIMATE CLOSING COSTS
( inc. Legal Fees, Taxes etc) |
$ 7,811.21 |
TOTAL CASH INVESTMENT
REQUIRED |
$ 61,311.21 |
Assuming the build takes 12 months from signing contracts, and
the purchase price was agreed at $
EST. RE-APPRAISED VAULE OF HOM
(at 31% growth rate) |
$280,340.00 |
GROSS PROFIT ON RESALE |
$ 66,340.00 |
This provides an immediate return of over 108% on initial investment,
before
Taxes
All mortgage interest payments, management and running costs
can be deducted before tax. The capital cost of the home can
also be written off against tax over a period of 27.5 years.
Using the same figures from Illustration 1:-
Depreciation of capital cost over 27.5 years, gives:-
APPROX. MONTHLY ALLOWANCE
(to offset income tax) |
$ 600.00 |
With a NET income of $231.25 per month, no personal income
tax would be payable.
Capital gains tax is 15% (lower than the UK) but a good accountant
will minimize this liability when the property is sold.
The UK and the US have a ‘Tax Treaty’ which ensures that if
a return is filed in the US on rental income generated in
the country, no further tax will be due when transferring
the money back to the UK.
The annual cost of accounting and filing a tax return in the
US is approx. $300.00
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