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Texas Area Guide

Why invest in Texas buy to let property?

Texas was America’s second fastest growing economy last year growing by 5.2%. According to Bloomberg, five Texas cities, with San Antonio at number 1 closely followed by Austin, Dallas, Houston, Fort Worth – are among the top 20 fastest growing metro areas in the US.

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Prices from just $150,000

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7-10% rent yields

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Fast growing economy

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Top 20 investment area

Local Economy

Texas is a hotbed for tech, education and healthcare jobs and has one of the US’s lowest unemployment rates. The real estate market is booming, and demand for A-grade, high- quality rental homes is high with tenants paying a minimum of $1000 a month rent.

It takes two things to draw people to a state in big numbers: jobs and housing affordability. Texas has both in spades: affordable housing, plenty of cheap land and easy regulations that enable developers to build quickly.

The Economy

The Lone Star state is offering massive tax breaks to Fortune 500 companies and many big- name companies are relocating to the Texas. Toyota is moving to north Dallas bringing 5,000 jobs. Other big corporations moving or who have recently moved to Texas include Apple, Google, Facebook, Exxon Mobil, Philips, AT&T to name but a few.

To give you an example of the scale of the growth, since 2010, Austin’s population has risen by 100,000, with 25,000 moving last year alone. More people have moved to Austin over that time span than to San Francisco and Philadelphia combined.

The Real Estate Market

Bloomberg rates San Antonio as the fastest growing metropolitan area in the US. It is a huge market and we have some outstanding Grade-A homes available for good quality tenants. Austin has exploded economically, and is leading the state’s tech revolution. Celebrities and many Californians have been attracted to the city by the cheaper real estate and high quality of living. Dallas and Houston are growing too and there is a huge amount of construction in and around these cities.

There is enormous demand for high quality homes and capital growth is averaging 10% per year with Houston at an incredible 12%.

Benefits of Investing in Texas

All the properties we have are very high quality, beautifully refurbished three to four bedroom, two bathroom homes. Demand is high, and because of the high quality of the housing stock we only attract good quality tenants.

Average rental periods are three years so no need to worry about turnover for almost three years. The homes are fully renovated, including all the mechanicals: air conditioning, water, electrics. This keeps cost low for owners and keeps tenants happy. Every home comes with a 90-day move-in warranty and a 9-month warranty for anything major that was not caught at the front end of the property renovation. We do this to ensure that there are no issue.

Cost of property – Our average prices are between $150,000 to $275,000.

Net Yields – The average NET yield for our clients, across all our Texas markets is around 7%, with capital growth averaging at 10%.

Average rents – $1500.00 per month and when tenants renew, the rent automatically goes up by 5%. When new tenants come in you can often increase the rent by 10%.

Capital Growth – Averaging 10% per year with Houston at an incredible 12% last year.

Management – We work with a highly regulated team of licenced real estate brokers and experts.

Tenants – Very high quality tenants who are all professionals, doctors, teachers, relocated executives.

Demand And Void periods – Rental demand is extremely high, with maximum three-week voids to cover refurbishment to get the property ready for the next tenant. The property is usually rented out before the previous client has left so void periods are extremely low.

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