Repossessed Property Investment Hotting Up in America

The market for repossessed properties in America is really hotting up at the moment, and little wonder. According to RealtyTrac -- the leading tracker of the American repossession situation -- 2009 was a record year for repossessions with 2.8million homes being repossessed, but experts are warning that 2010 could be even worse.

These fears were heightened when a new monthly record was set in March, when RealtyTrac says some 378,000 homes were repossessed, higher than in any month since they began tracking repossessions in 2005.

While investors from the US and around the world are capitalising on repossessed and distressed properties in all corners of the states to make strong yields, certain areas stack up better than others and as such as seeing demand intensifying at a faster rate, and even slight increases in price.

One such area is Fort Myers in Florida. As we know Florida has been one of the worst affected regions in terms of repossessions, but within that Fort Myers has taken a real battering, and was one of the fastest areas into the repossession crisis in terms of repossession volumes.

However, the fundamentals for economic growth are strong in Fort Myers with many businesses noting recovery and the labour market seeing increased stability in recent months. The biggest pull to Fort Myers property for those buying up repossessed and distressed properties though is the price and the value for money.

Perhaps more than anywhere else, in Fort Myers there are plentiful opportunities to buy new and nearly new properties that have been repossessed or face repossession and are therefore at rock-bottom prices. These present the opportunity to rent out the properties almost immediately after they have been purchased, and yields are around 8%-10% net.

One such repossessed property investment package in Fort Myers is currently being offered by Azure Overseas, with a typical deal being a 3 bedroom property in a good area for £50k, which will rent out for £552 per month, with £367 being left after expenses such as management and maintenance (net).

Demand for repossessed property in Fort Myers and America as a whole is predicted to remain strong in at least the short-medium term, because investors feel confident buying property in an established economy market for such low prices. Another factor is the strong dollar which increases rental yields for British investors.