Houston Condo Investment
The ultimate arm-chair investment in America’s number one city. An Investment Opportunity From
”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
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
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Downtown Houston from one of its many parks.
Houston’s booming oil industry.
Port of Houston.
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.
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“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 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. 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. 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. 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.
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Downtown Houston at night.
Houston’s Booming Middle Class Jobs 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. 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.
for two consecutive years in 2009 and 2010.
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. 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.
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Communal swimming pool.
Living area.
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.
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Aerial view of the Houston Condo community.
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.
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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.
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Condo exterior.
Community children’s play area.
Bedroom.9
Communal gardens. Condo exterior.
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Communal gardens and BBQ area.
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
US$ 71,800
Total Investment Cost US$ 71,800
Annual Rental Income Gross rental income
US$ 10,080
Property management fees US$ 1,209.60 HOA US$ 2,604 Property tax Net annual rental income
US$ 524 US$ 5,742.40
Annual Rental Return 8%
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.
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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.
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• 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
Downtown
Medical Center
Galleria
Aerial view of community with key Houston centres on the horizon. Aerial view of Downtown Houston.
Texas Medical Centre.
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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
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(+36) 1 345-8211
(+55) 85 3013 1111
(+971) 44 275-072
(+34) 952-810-711 (+1) 813 315-3885
www.bric-investment.com
Freephone USA: (+1) 321-247-6897
info@bric-investment.com
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.
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