Here's the Good News!

• Builders continue to sell inventory homes at drastically reduced prices.
• Most resale home owners are flexible with their sales price.
• The cost for a builder to build a new home today versus 2005 is about 20% less do to material cost and land cost declines.
• There are many buyer incentives being offered by sellers.
• Homes are more affordable with lower sales price and lower financing costs
• If you are an international buyer the weakness in the dollar makes buying a home in the USA more affordable
• If you are an international investor this is a prime time to purchase and capitalize on future property appreciation, and currency exchange as the dollar regains strength.
• If you are a domestic investor the prices have come down enough where it makes sense to long term let the property and take advantage of the after tax cash flow.

Attached you will find information on Closeout homes in beautiful neighborhoods from one of the better builders in America.  They are all priced below builder cost are the perfect choice for a long term let or principal residence.  Follow this link to obtain additional information http://www.erainternational.net/ .

England and Ireland Property market: Both markets are showing signs of slowing.  The Irish market has been slowing for the last 6 to 8 months and is quickly coming to a standstill.  Prices are starting to decline and not much is selling.

England is now demonstrating a slowdown and prices have flattened and are beginning to go lower.  Because prices have increased sharply over the last few years rents on newly purchased homes are not covering carrying costs.

I mention this because this is where Florida was 2 years ago and in Europe the property market trend appears to be about 2 years behind the USA property market.

I believe the UK and Irish consumer is about as "overspent" as the US consumer and the property market trend in these countries will follow the USA.

Good news is that the USA is 2 years into this trend and NOW IS A GREAT TIME TO BUY IN FLORIDA!!  There is good value in new construction and resale properties.  The exchange rate is very favorable for Europeans when purchasing.

Home Inventory for Sale: at 24,298 is a decline of 2,000 from last month.  Should we get excited that the home inventory is dropping? Not yet. We only sold 1,000 homes last month. Let's get excited next month if the trend holds.  I don't believe it will unless sellers are giving up. It was the holiday season and many people don't re-list their home when it expires during this period of time.

New Resale Homes Listings: 3,415 which is consistent with November. Both November and December numbers are 30% lower than the running rate for the last year.  Again let's not get too excited until we see January numbers. At present we have 2 years of resale home inventory on the market.  For home prices to stabilize we need to be at a level of available homes of less than one year.

Expired Listings: at 3,157 for December was the highest of the year.  In fact it was 50% higher than the average of any other month during the year.  By the fact that these sellers did not re-list their homes for sale either means they have given up or were too busy for the holidays.  Either way any home not listed for sale in which the seller wants to sell is coming back in the future to be listed and must be absorbed.

What needs to happen for the housing market to start the recovery process?

• Interest rates need to fall precipitously to improve home affordability
• Oil prices must come down to provide consumer relief with gasoline, utilities, and food prices which will improve disposable income.
• A strategy must be implemented that addresses broad base of home owners that are having problems meeting their mortgage obligations which in turn slows down the foreclosures and provides relief for the banks with their high rate of defaults so they can continue to lend. This can't be done at the expense of all other tax payers however.
• The US consumer needs to take responsibility for their spending habits.  If they can't afford something...don't buy it!

My advice still remains the same.

If you are a seller:

• Don't expect top dollar for your property
• Expect your property to take a long time to sell
• Your property must be priced right to the market
• Your property must be in good shape and present well for sale
• If you don't need to sell, don't. 

If you are a buyer:

• What are you waiting for???  The time is now.
• Expect seller concessions
• Don't expect to "flip"  buy and hold if you are an investor
• If you are a vacation home buyer or primary resident prices won't get much lower
• If you are a foreign national take advantage of the weak US dollar
• If you are a foreign national consider the terms of financing at home in your country and paying cash here as you will improve your negotiating posture.

If you have a home to sell and want to buy:

• Consider that the $$$ you lose on the sale of your home you will make up on the purchase of your new home as both homes are in the same market. It is a good time to do this!

Regards,

Bob

Robert Anarumo
ERA Select International
2434 Sand Mine Road
Davenport, Fl.  33897

863 420 4377 Direct
863 424 7997 Fax
863 557 4543 Cell

Ask Around

Ask friends and family who own properties in Florida who they use for property management, and to share any negative and positive experiences they've had. Do a search on the internet for Property managers in the area that your home is located and read their client testimonials. Check the Better Business Bureau (www.bbb.com) to see if any of the companies you are considering have unresolved issues.

FCIG Insurance Agency is an affiliate member of the CFRVMA, a network or property managers in the Osceola and Polk county areas. Take a look at their website for a directory of services and other affiliate members that can serve you.

Know what to expect

Here is a list of what services a typical Property Manager will provide. Always be on the look out for companies that are prepared to go above and beyond the call of duty:

•  Book Rentals
•  Collect Rents
•  Field Calls from Tenants
•  Repairs
•  Issuing Rent notices
•  Evictions
•  Inspecting the property periodically
•  Accounting ( Quarterly and Annual statements)

Most Property Managers charge around 5-10% of gross rents for their services, but be aware of additional charges such as set-up fees, advertising and trips to the property.

Know what to ask

What are you looking for in a property manager? What are your goals and expectations? Owners living overseas will want to know that their Property Manager is accessible when needed and sensitive to the fact that you are thousands of miles away.

•  How long have you been in business?
•  What experience do you have in this kind of property? ( Short/Long Term Rental, seasonal)
•  Do you have insurance? What does your insurance cover?
•  How do screen and select tenants?
•  What is your monthly charge? Any additional charges?
•  How often will the property be inspected when vacant?
•  Will you advertise my property?
•  What kinds of maintenance are you responsible for?
•  As an overseas owner, what steps will you take to make me feel comfortable with you as my Property manager?
•  Do you have References?
•  Will you entering insurance claims on my behalf?

Things to look out for

Security

No one wants a company that is going to leave your front door unlocked and unchecked. Your homes are one of the biggest investments you have, and such should be treated the same as if you lived there yourself. Double check your policy to see if it covers for claims related to theft and vandalism- occurrences often related to negligent security practices. Your Insurance Company usually gives credits for homes in gated or secured communities.

Companies that give guaranteed rentals

Management companies should not guarantee a certain amount of rentals per month. How do they know who is going to rent the property in the next 6-12 months? Crystal ball maybe? If your management company says that they guarantee a certain amount of rentals, be sure to ask about their screening process for tenants. You wouldn't want just anyone staying in your property.

Follow-up

Take control of your finances. While you probably do pay various people to handle your affairs abroad, like having an escrow account for mortgage payments and a property manager for maintenance etc the bottom line is, your investment in your investment. Sometimes it is best to do some things yourself. Take note of the renewal date of your insurance policy and call your agent close to that time to make sure that they have the most current information regarding your finances, and mailing address. Florida Chartered Insurance Group Inc. has a toll-free number out UK clients may use: 08-082348277. Call your Property Manager every so often to make sure that things are running smoothly and pay your own utilities and taxes directly. This is the only way to make sure that the bills are paid. Most companies offer services online and through the telephone to get up-to-date information about your account. While it does take a while longer and can be frustrating at times, nothing can buy piece of mind knowing you tenants have lights and running water!

Camille Gentles
FCIG Insurance Agency

On January 7, 2008 Disney’s Hollywood Studios opened their doors for the first time after shedding its MGM license. What will magic of Hollywood bring to Orlando, you ask?

Toy Story Mania arrives on set this summer. Have your 3-D glasses ready as you board your spinning craft to travel through carnival inspired virtual worlds. The ride seats up to eight passengers and records each individual’s score accumulated by firing toy cannons at virtual targets!

Expect the best in discount tickets to all of Orlando’s major attractions with Kissimmee Guest Services.  Visit us at www.kgstickets.com or call 1.877.273.5636 for all your ticketing needs!

I Love You, You're Perfect, Now Change
Winter Park Playhouse, 711-B Orange Avenue
January 25 thru February 16
Back by popular demand! Dubbed, "Seinfeld set to music," this celebration of the mating game takes on the truths and myths behind that contemporary conundrum known as "the relationship." 
407-645-0145 or http://www.winterparkplayhouse.org/

19th Annual Zora Neale Hurston Festival of the Arts and Humanities
Eatonville, FL
Thursday, Jan. 24 - Sunday, Feb. 3
http://www.zorafestival.com/

Cinema in the Park - Princess Bride
Centennial Park, Sanford
Friday, February 1
7:30 PM 
FREE
Bring a blanket or chairs, perhaps a picnic and enjoy a movie and free popcorn
407.330.5607

Buddy's Blues-B-Q
Downtown Orlando, Orlando City Hall
Saturday, Feb 2nd
2pm-9pm
Free Admission (food & beverages available for purchase)
Join Orlando Mayor Buddy Dyer at the second annual Blues-B-Q, a celebration of blues music and barbecue.
Tamara.Ahrens@cityoforlando.net

Valentine's Cooking Class
Truffles and Trifles
Saturday, Feb 9th
7pm
$140 per couple
Fabulous meal to celebrate a night of LOVE. Bring wine and the incredible meal.
http://www.trufflesandtrifles.com/

Ola Fest Valentine's Day
Lake Eola Park Amphitheater
Thursday, Feb. 14th
6:30-9:30pm
FREE
A musical event with performances by "Otros Aires", a band from Argentina which will be making their North American debut at Lake Eola Park. Their music is a fusion of tango, jazz, house music, hip hop, spunk and electronic music.
For more info call 407-273-4079 or email leapstormpictures@earthlink.net

SeaWorld's Bud & BBQ
Saturday, Feb. 16th
9:00am - 8:00pm
General Park Admission, Additional charges for food
Enjoy country concerts performed by country music's hottest stars and taste the best BBQ in the south.
http://www.seaworldorlando.com/

29th Annual Elvis Presley Festival
Radisson WorldGate Resort
Feb. 23-24
10am to 3:00pm
407-281-9818 and 407-908-9137

The New Year brings an incredible array of new attractions, live entertainment, and special events to Walt Disney World Resort. This upcoming year Disney invites you to come and experience the continuation of its "Year of a Million Dreams" celebration throughout 2008. As part of the 2008 Year of a Million Dreams celebration, Disney will randomly award over one million MORE one-of-a-kind dreams through the Disney's Dreams Giveaway.

After such an incredibly successful year Disney promises that the 2008 "Year of a Million Dreams" will boast "Dreams once thought impossible made true!" For example, the 2008 Disney Dreams Giveaway will include such "over-the-top experiences" as a New Year's Eve night stay inside Cinderella Castle Suite at Disney's Magic Kingdom, a star-studded trip to the "High School Musical 3" film premiere, a flight in a a hot air balloon high above a Disney World theme park and a private day at Disney's tropical island paradise, Castaway Cay.

During the 2008 Year of a Million Dreams, Disney will also award hundreds of thousands of other dreams in various shapes and sizes such as Dream FASTPASS badges, special viewing for Disney parades, Disney shopping sprees, gourmet Disney dining packages, special Dream Mouse Ears, Dream pin sets and additional hours (known as Dream Times) for chosen guests to enjoy a Disney theme park.

Let 2008 be the year that all your Disney Dreams come true.  With such amazing experiences to come, be sure to make plan ahead and purchase your tickets from Kissimmee Guest Services.  You can purchase them online at http://www.kgstickets.com/ or call 1-877-273-5636. 

When selecting a mitigation and restoration vendor keep in mind they are the part of your strategic plan that ensures your vacation rental returns to market quickly after a property casualty.  Make certain that they are covered with a separate Mold Pollution Liability policy.  A high quality firm will carry $5 million coverage in addition to general liability.

The restoration vendor should provide comprehensive project documentation.  All documentation should be prepared as if for litigation.  Being prepared ahead of needing to be is a key attribute of strategic thinking.  All restoration firm employees participating in remediation and structural drying activities should be trained and supervised by either a certified microbial remediation manager (CMR). This will insure accountability, and integrity thought the restoration project.

Water or fire damage will stop your rental property dead in its tracks.  The resulting damage can be a hindrance to maintaining positive cash flow.  By having the three key components discussed earlier in place before you need them; you will navigate a casualty much more quickly and easily.  Having relationships in place ahead of time allows for prompt response and solutions to be effected. 

DRIRITE ®

1.888.4DRIRITE

Created in 1997, The Central Florida Vacation Rental Managers Association is the state's leading unofficial governing body of Property Managers and associate members based in Polk/Osceola County. Most vacation homeowners live many miles away and have to trust property managing companies to look out for their investments in turns of home upkeep, rentals and claims; however, for the most part the vacation home industry is virtually unregulated. A rental manager who joins the CFVRMA is saying to their clients that they want to be educated about changes in the industry, and The CFVRMA is the answer to making sure top tier rental managers are highly visible and accessible to home owners.

This was FCIG's second appearance at the Tradeshow & Conference. It is always a pleasure to meet with those working to make the Vacation Home Industry flourish and let them know that our agency is committed to finding them the best insurance coverage for their homes and giving them the most up-to date information on their policy.

For more information on the CFVRMA , log on to www.cfpma.clubexpress.com, or contact them at info@cfpma.org. FCIG Insurance Agency also ran a peice on the CFVRMA, formerly the CFPMA, back in its March 2007 issue, read more about them here.

ICE!
Gaylord Palms
November 19 - January 3
$16.00/adult if you purchase online
Indoor world hand-carved from nearly TWO-million pounds of ice. Also features ice skating.
www.gaylordpalms.com/ice
407-586-4-ICE for more information

Holidays Around the World
Epcot
November 23 - December 30
Regular Epcot admission
Discover the traditions and stories of the Epcot World Showcase nations plus, see and hear famed celebrities narrate the Candlelight Processional with a 50-piece orchestra and mass choir.
http://www.disney.com/

Kissimmee Holiday Extravaganza
Kissimmee's holiday event features live entertainment, some 20 tons of snow, fireworks and more, in and around Lakefront Park.
For more information call (407) 932-4050.

Mickey's Very Merry Christmas Parade and Party

Throughout most of December, Mickey hosts a special parade and party with fireworks, snow flakes, cookies, hot chocolate and more.
Fun starts at closing in the Magic Kingdom.
Call (407) 824-4321 for more information

Fall Concert Series at Kennedy Space Center
Saturday, Nov. 10 - Saturday, Dec. 1, 2007
Every Saturday
Location: Kennedy Space Center
Hours: Starts at 4:00pm
Admission: General Admission
At the Event: Music Orlando, 321-449-4400

The Osceola Center for the Arts Big Band and Community Chorus Concert
Sunday, Dec. 23, 2007
Kissimmee, 407-846-6257

Alive After Five Cheers to the Holidaze!
5:00-9:00PM - Thursday, December 13, 2007
 (FREE to attend, $5.00 to partake in food and beverage sampling)

Whether you are buying or selling a property in Florida, Moneycorp can save you money on your international currency transfers. 

While high street banks are often the first port of call for foreign currency transactions, specialist currency dealers will normally offer superior rates of exchange, in addition to a more comprehensive range of services that will help protect you from adverse currency movements.

There are several options open to you, such as fixing an exchange rate now for funds that you wish to transfer in the future. This means that you can take advantage of the exchange rate if it moves in your favour and you will be protected from an adverse currency movement. You can also request that your exchange broker watches the market for you in order to try and achieve a specific rate.

The use of these flexible market tools, means that you can really make your money go further.

Currency Market Update:

A widening trade deficit, potentially lower interest rates, a weakening currency: Does that sound familiar? Sterling now finds itself in the same boat as the Dollar and it is only the suicidal tendencies of the Dollar that have kept the Pound afloat this month. The kicking that was hardest to bear came from its own central bank governor. Mervyn King presented the Bank's quarterly Inflation Report with such a long face and such a downbeat commentary that investors fled the room in panic. Dr King's gloom has subsequently been underlined by a succession of reports on the residential property market that show falling prices and falling activity. But never mind. Things are even worse in the States. Unless the Euro has a big problem with the $1.50 hurdle it will probably still be able to drag Sterling higher against the Dollar. Does Sterling deserve it? No, but there you go.

Moneycorp Special Offer

All those clients who register with Moneycorp this month will receive a free privilege card. The Moneycorp Privilege Card entitles you to commission free currency at any of the TTT Moneycorp currency exchange bureaux. The Moneycorp Privilege Card also entitles the holder to commission free currency and a 1% improvement on advertised rates at 17 TTT Moneycorp branches (also situated in the Gatwick and Stansted airports).

To take advantage of this special offer or to find out more about Moneycorp's services call the Florida office on +1 321 559 1050 or email Jacqueline.Crimmins@moneycorp.com

Can you believe it? The holidays are here!  And from December 7 through January 1, the celebrations are resort-wide across Universal Studios, Universal's Islands of Adventure, and Universal CityWalk!

Just like the Grinch, your heart will grow three sizes this Christmas season with the return of Grinchmas at Universal's Islands of Adventure in celebration of the 50^th year anniversary of Dr. Seuss's beloved children's story "How the Grinch Stole Christmas".  Sing along to the brand new musical on stage in the heart of Seuss Landing. Have a chance to meet the star of the show and all the Whos from Whoville.

But the celebration only begins there... Catch the excitement of America's favorite parade at Universal Studios!  The streets of Universal New York will be flooded with authentic floats and balloons of the famous Macy's day parade.  Prepare to be dazzled by talented street performers and the sounds of marching bands from around the country.

Bid a fond farewell to 2007 and rock your way into 2008 with live performances from Foreigner and the B-52's center stage at Universal's CityWalk.  In addition, enjoy all-you-can-eat gourmet food and live entertainment in all the clubs.  When the count down begins, put on your party hat and sound your noise maker! As the clock strikes twelve, you'll raise a glass for a champagne toast as fireworks light up the sky to reign in the New Year! Guest must be 21 years old to attend the event.

To purchase discount Universal Studios tickets call Kissimmee Guest Services at 1-877-273-5636 or visit www.kgstickets.com.