Houston Condo Investment

Houston Condo Investment
The ultimate arm-chair investment in
America’s number one city.
An Investment Opportunity From
Downtown Houston from one of its many parks.
Houston’s booming oil industry.
”We’re a more diverse economy, we do more things here, we
manufacture, we engineer and design, we construct, we extract”.
Dan Bellow, President of Jones Lange Lasalle
Port of Houston.
Houston
Houston is the fourth largest city in the U.S. and the largest in
the state of Texas.
The Houston metropolitan area (HMA) has a population of almost 5.9 million residents, according
to the Census Bureau, which is growing rapidly. Between 2000 and 2010, the population of the HMA
increased by 26.1%. According to census data, it is the most ethnically and racially diverse city in the
United States with 400,000 foreign born residents moving to the city between 2000 and 2010.
A cosmopolitan destination, Houston offers a vibrant living and holiday experience for both residents
and visitors alike. Houston’s airport system served 50.3 million passengers, including 8.8 million
international travellers during 2012.
Houston offers a host of dining experiences with more than 11,000 restaurants ranging from awardwinning, world-class dining, ethnic cuisines, exquisite seafood, unforgettable delis and great barbecue.
The New York Times has named it as “one of the most exciting places to eat”.
It is home to a Theatre District second only to New York and is a city complete with world-class,
unique museums and cultural landmarks. Houston has more than 500 cultural, visual and performing
2
The Coral won the award for Best Development
arts organisations and a museum in
district
comprising
19 museums
in a 1.5 mile
radius.
Brazil
by the
International
Property
Awards
in 2009
2010.
Surprising to many, Houston also hasfor
moretwo
parks consecutive
than any other topyears
10 metropolitan
area.and
According
to Business Insider, its parks and green space totals 50,632 acres, putting it in third place behind San
Diego and Dallas in acreage per capita.
In second place behind New York, Houston is home to more Fortune 500 headquarters than
anywhere else in America. 24 Fortune 500 companies have chosen the city for their headquarters.
Many are in the oil and gas industry. Houston is considered by many as the Energy Capital of the
world with more than 5,000 energy related companies.
The Port of Houston is the tenth largest port in the world, the number one port in the United
States for international waterborne tonnage handled and second for total cargo tonnage handled.
The Lyndon B. Johnson Space Centre, also in Houston, is a significant research centre, employer and
trainer of astronauts as well as Mission Control for manned spaceflight expeditions.
3
Downtown Houston at night.
“Any statistic you look at – gross domestic product, employment,
population, housing, etc. – Houston leads the nation in economic growth”.
Patrick Janowski,Vice President of Research, Greater Houston Partnership
America’s Next Great Global City
Houston’s Booming Middle Class Jobs
Houston has been highlighted as one of the fastest growing economies over the next few years.
Forbes recently called Houston “America’s next great global city” due to its population and economic
growth that is primarily based on a booming energy sector and rapidly increasing international trade.
Forbes has ranked Houston second for creating the most number of middle-class jobs. During 2013,
Houston saw an additional 60,810 more mid-skilled jobs, increasing employment in this bracket by
7.4% to 878,038.
In recent years, Houston has concentrated on diversifying its economy, which has dramatically
contributed to its current economic performance. Key growth drivers include its energy industry with
a concentration of energy related jobs five times the national rate and an average annual salary of
$100,000, its burgeoning trade with Latin America and a relatively low cost and business-friendly climate.
Overall, the Houston metro area has led the nation in overall job growth recovering more than
The Coral won the award for Best Development
201.9% of all jobs lost during the recession – the highest percentage of any other major metro area.
The Houston Metropolitan Statistical
Area (MSA)
lost International
153,100 jobs in theProperty
recession and
gained
in Brazil
by the
Awards
309,100 jobs during its recovery.
Houston has overtaken New York City as America’s leading exporter and was recently named as
the largest exporting metro in America by the U.S. International Trade Administration. The city’s
expansive production of goods for export led to total exports in 2012 of $110 billion.
Further employment expansion is predicted to grow by an impressive 18% over the next decade as
the city continues to diversify its economy and create more employment opportunities. As a result
of such economic growth and job creation, the city is attracting workers from across the country.
“Young professionals are moving here from all over the country”, confirms Bob Harvey, President
and CEO of the Greater Houston Partnership, who adds that it is not only the sheer number of jobs
being created in Houston, but also the quality of jobs.
Houston is also home to the world’s largest medical centre. The Texas Medical Centre is the largest
employer in Houston and has the largest concentration of medical professionals and experts anywhere
in the world. According to Cushman & Wakefield, it will soon be the eighth largest business district
in the United States, following Philadelphia and Seattle.
The city has been named as one of the top metropolitan economic growth areas both by the
Brookings Institution in Global Study and the IHS Global Insight. The latter report ranks Houston in
eighth place for percentage change among the 100 largest metropolitan statistical areas.
4
for two consecutive years in 2009 and 2010.
Another reason for many choosing to move to Houston is its comparable affordability. A paycheck
goes much further in Houston than compared to any other major metropolitan area in the United
States.When you adjust for cost of living, Houston has the highest pay in the country with an average
of $75,256 per annum. This beats places like San Jose, which is renowned for its high wages, but that
also has extremely high costs of living, says Business Insider.
5
Communal swimming pool.
Living area.
Aerial view of the Houston Condo community.
The Resort and Real Estate
This residential neighbourhood is in an excellent location
and offers a number of guarantees for your peace of mind.
The Community
This residential community is a low rise development of only two storey buildings with a condominium
on each level. It is an inhabited community that is around 95% occupied within a neighbourhood of
other residential developments.
The properties are arranged in several, small cul-de-sacs with ample parking. The community also
has a central children’s play area and resort style swimming pool.
Excellent position close to many amenities, the community is in a very short commuting distance to key
employment hubs. Within a maximum seven minute drive there are three schools, two children’s parks,
four shopping centres, two gymnasiums, a cinema and various restaurants. Key employment centres include
downtown Houston which is a 20 minute commute away and the Texas Medical Centre 25 minutes away.
6
The Coral won the award for Best Development
in Brazil by the International Property Awards
The Real Estate
Properties offered in this community
freehold, singleyears
level condominiums
of a2010.
variety of
for two are
consecutive
in 2009 and
distributions. The smallest unit is 717 square feet with one bedroom and one bathroom. The largest
unit is 1,373 square feet with three bedrooms and two bathrooms. There are one bedroom, two
bedroom and three bedroom units to choose from.
All properties have a fully equipped kitchen with refrigerator, oven, dishwasher, air-conditioning
and heating. The condominiums have been prepared for rental, fully renovated where necessary.
A pre-qualified tenant is either in place or being sourced by the property management company.
Guarantees
All properties come with a two year appliance warranty for air-conditioning units and white goods.
Property insurance and liability insurance is included. The HOA (community fee) includes insurance
that covers general liability on common areas.
7
Condo exterior.
The Investment Opportunity
BRIC Group is proud to offer investors a fantastic turnkey
investment opportunity in America’s hottest property market.
The BRIC Group is offering investors the opportunity to purchase significantly undervalued
foreclosure properties in Houston that are instantly cash returning every month from day one.
We have used our extensive experience to negotiate the best possible purchase prices of these units,
which is being passed onto investors. Prices are below the average market value providing investors
with significant capital appreciation from the moment of purchase. In addition, investors are able to
enjoy an immediate rental income that is guaranteed for two years.
Investment Level
Property prices start from US$ 71,800 and rise to US$ 77,000.
Capital Growth
Given Houston’s economic performance, size and employment growth there are fantastic opportunities
for future capital growth.
Guaranteed Rental Income
For the first 24 months, regardless if a tenant is in place or not, a guaranteed rental income will be paid
to the investor by the developer.
Rental Returns
Gross rental income is between US$ 840 and US$ 880 per month, representing a rental return on
investment of around 8% per annum.
Exit Options
Keep and hold to benefit from maximum capital appreciation and rental income.
8
Community children’s play area.
Bedroom.9
Investment Scenario
This investment scenario offers an example of the potential
rental returns that can be earned when purchasing
a property in this residential community.
Investment Cost
Property price
Communal gardens.
US$ 71,800
Total Investment Cost US$ 71,800
Annual Rental Income
Condo exterior.
Gross rental income
US$ 10,080
Property management fees US$ 1,209.60
HOAUS$ 2,604
Property tax
Net annual rental income
US$ 524
US$ 5,742.40
Annual Rental Return 8%
10
Communal gardens and BBQ area.
This scenario is based upon the three bedroom, two bathroom condominium.
All prices quoted are in US dollars. Rental income is based on the monthly
income offered under the two year rental guarantee. Additional admin fees will
be applicable. Closing costs are approx. 2%. Figures contained here are believed
to be accurate and representative for this scenario. However, the figures are
average estimates and used only to give an example.
11
Downtown
Medical Center
Galleria
Strategic Location: The Exit Market
Houston’s property market is one of the biggest, strongest
real estate markets in the country, according to the Houston
Association of Realtors (HAR).
Property prices and sales volumes are dramatically
rising. The price of a single-family home saw
historic jumps during the summer of 2013, with
the median price increasing by 13%. Overall,
average prices increased 14% year-on-year to June
2013. Home sales rose by 13.5% in the year to
November 2013, and show no sign of letting up,
says HAR’s Chairman, Danny Frank.
Historically, property in Houston has always
remained relatively affordable, primarily due to
the abundance of land available to developers
who were able to cope with meeting the previous
steady demand. However, with new developments
taking on average 18 months to receive planning
permission, supply is significantly out of pace with
demand, creating a severe shortage of available
properties. This is expected to continue for the
The rental market is equally buoyant with rental foreseeable future as Houston continues on its
rates rising and a low level of rental stock exceptional growth trajectory.
available. According to HAR, rentals of singlefamily homes saw the largest growth rising Demand for properties in this residential
by 9.4% in the year to October 2013, whilst community will specifically come from Houston’s
townhouse and condominium rental growth rapidly growing workforce. They will be
stood at 3.2%. The average rent for a single- particularly attractive to medical professionals
family home increased by 5.4% to $1,647 with and researchers at the Texas Medical Centre,
townhouse and condominium average rents which is located only a 25 minute drive away.
rising by 5.2% to $1,463.
Downtown workers will also be interested in
these properties being only a 20 minute commute.
Property in Houston is also being vied for by
investors both at home and overseas. In 2012, Houston will continue to attract workers to its
Houston was among the top five global cities in metropolitan area for many reasons, sustaining
an annual survey by the Association of Foreign strong demand for property:
Investors in Real Estate. International real estate
•M
ore employment opportunities than
investors are flocking to Houston looking for
anywhere
else in the U.S.
properties that offer lower costs and higher
returns, according to Business Insider.
• Offers more skilled, professional positions
Demand for Properties in Houston
The fundamental strength of Houston’s property
market is one of supply and demand. Due to
massive population growth the city is not able to
keep up with the rapidly increasing demand for
both rental and sale properties.
12
Aerial view of community with
key Houston centres on the horizon.
Aerial view of
Downtown Houston.
Texas Medical Centre.
• Highest pay in the country
• Lowest cost of living
• America’s largest producer of export goods
• The largest medical centre in the world
• It is an economic powerhouse to be America’s
next global city
13
The BRIC Group
Going one step further to deliver you more value.
The BRIC Group is a privately-owned group of companies offering transparent,
asset-backed investments in the world’s best performing markets. We aim to build
value in everything that we do, creating complete investment products that are
simple, offer sustainable returns and enable investors to reach their own wealth
aspirations.
The BRIC Group is unique in that it owns almost every investment product it
offers to investors. We invest our own money first and add value by upgrading and
creating a complete investment package before presenting them to investors. We
rarely market assets that are not owned by the BRIC Group, and when we do they
have been subjected to the same rigorous investigation as if we were buying them
ourselves.
Our investments include a diverse mix of real estate investment options from offplan purchases in luxury resort developments to complete arm-chair investments
ready to start earning you an income from day one.The group is developing its own
master-planned beachfront resort in Brazil, The Coral, which was awarded the Best
Development in Brazil for two years running.
Central Sales Office: (+34) 952-810-711
Freephone UK: 0203-399-9439
Freephone USA: (+1) 321-247-6897
BRIC Spain
BRIC USA
BRIC Hungary
BRIC Brazil
BRIC Dubai (CONSULTING OFFICE)
Centro de Negocios
Puerto Banús
Oficina 39, 29660
Nueva Andalucia
Marbella, Spain
109 N Brush Street,
Suite 160
Tampa, FL 33602
1024 Budapest,
Mammut II - 3rd floor
Lövoház utca 2-6.
Av. Dom Luis, 1200 SLR,
1304 / 1305 Torre 1
Business Ed. Patio Dom Luis
Meireles, Fortaleza Ceara,
Brazil
Suite 2210
Bayswater Tower
Business Bay
Dubai
(+36) 1 345-8211
(+55) 85 3013 1111
(+971) 44 275-072
(+34) 952-810-711 (+1) 813 315-3885
www.bric-investment.com
[email protected]
DISCLAIMER: The information provided is solely for informational purposes and does not constitute an offer by BRIC Group, to sell, rent or lease real
estate. BRIC Group. disclaims any warranties or representations concerning the information contained herein. BRIC Group does not guarantee the accuracy
of the information contained herein and instructs you to independently verify the accuracy of the information provided. All intellectual property rights are
retained by their owners.
14