Youngson Properties - Property of the month

The Slade - Tampa Florida

The main reason why we are so keen on the Tampa Property market, is due to the strong growth figures. Tampa was in the top 10 in most major publications in job growth in 2006 and is growing by over 100,000 residents per year (currently at 3.7 million). In a recent article by Forbes, which is widely known as one of the most respected financial publications in the US, predicts 10.6% annual growth from First Quarter 2008 onwards. With this figure holding firm, investors would yield over a 200% return on investment upon completion in late 2009.

One of the big advantages about this project is that it is in the Channelside District. This area is one of the most premium locations in all of Tampa and is right in the middle of a huge regeneration that began 2-3 years ago. Similar to Londons Docklands. Being 2 blocks from the sea port, this area has all been warehouses for over the last 100 years and is now being redeveloped. Directly across from The Slade there is a proposed 5 star hotel going up, name not released but Marriot and Hyatt have been mentioned. The development that is directly on the sea port, 2 blocks away has units starting 1 million USD and up while an inferior development that is essentially right across the street, start from $450,000.

The development group at The Slade acquired the land so reasonably approximately 5 years ago that they are able to sell the units at the price per square foot of $400 and under, depending on the floor plan. Any new build project that will go up in Channelside, going forward will have to sell for $475 or higher due to land costs alone. The plot of land that this project sits on will not be replicable as there are no more available. All of the parcels that remain available are much smaller which will force developers to build higher with significantly higher densities.

In regards to the investment side of things, the developer/lenders are allowing investors to put down only 10% until completion 18-24 months from now, which says a lot. In most cases in the United States, Lenders require 20-25% deposits to be in place from any investor by the time construction starts. With this 2 year construction period at The Slade, investors are able to see a tremendous amount of leverage on their initial capital investment(only 10%).

To sum up the American Markets as a whole, price corrections have been in place seemingly across the board. The markets that saw the largest declines were those that suffered unsustainable growth back in 2005-2006. The fact that only 650 units will be completed in the entire Downtown Tampa Bay over the next 2 years shows proof that the there will be no saturation of inventory and in turn will allow Tampa to see consistent capital growth during this period. On the currency side, the UK Pound has increased in value by over 20% in the last 3 years against the US Dollar. With the Tampa Property market at the trough of its cycle and the UK Pound at a peak of its cycle against the US Dollar – there has never been a better time for foreign investment into this city.

In a recent interview with Donald Trump, he quoted that the US Property market is at a very dynamic point and stated bluntly that investors are seeing some incredibly lucrative opportunities to make a lot of money right now . With the consistent growth and regeneration of Downtown Tampa - there is no better place to invest. Upon completion, this Channelside area will be one of the most desirable addresses in all of South Florida.

Dont take my word for it - heres what some others are saying :

''run right past the Ostriches who have stuck their hads in the sand because people told them this is a bad time to invest'' - Donald Trump

''Tampa it the #1 most resilient Real Estate Market in the United States'' - Forbes

'Yes the waters ar rocky, but if you are interested in buying rental properties with an eye towards becoming a but of a mogul yourself, now is as good a time as any' - Robert Kiyosaki, author of best selling book Rich Dad, Poor Dad

'Now is a great time to buy Real Estate' - Warren Buet - Billionaire Investor

> Click here to VIEW PDF of SLADE DEVELOPMENT (3MB file - file may take longer to load on slow connections

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