Where’s best to invest in 2013?
Looking ahead to 2013, there are two investment markets which Crystal Investment and Real Estate would recommend to investors. These are the distressed markets in several US states, particularly Detroit, but also Florida, Cleveland and Atlanta, and also the emerging markets in Brazil and the east side of Thailand (Pattaya).
Due to the existing well developed and immense infrastructure in the US, which will help in the recovery of these areas, the distressed markets in these US states offer safer and more tangible investments as people are buying existing properties, all with existing tenants and all completely refurbished. Here, it is question of ‘when’ and not ‘if’ these markets will increase in value.
We would particularly advise Detroit as an area to invest, offering great returns and a socially responsible investment. Properties can be purchased from around $35,000-$45,000, which is up to 60% below market value. There is also a mass demand for these highly desired rental properties, with 9,000 working people currently on a government approved waiting list. Our investments are currently achieving rental yields of up to 25% NET and have a year’s guaranteed rental income. As a perfect win, win, these investments are backed by the US government, who pay up to 70%-90% of the rent. They enable tenants to get quality, maintained and affordable housing and landlords a quality tenant who wants to live and take care of their property.
Great investments are also available in other US states. In Florida, properties are available from $56,995 which is 60% lower than the original asking price. Here the sunshine state has an established tourist market and is considered a less cautious investment, however the returns may well not yield as much those in Detroit.
There are already clear signs of recovery in the US property market. The latest Zillow Home Value Index in October stated that US home values continue to rise, by 1.1% from September to an average of $155,400, which is the largest monthly increase since August 2005.
Further data from the National Association of Realtors revealed that the national median existing home price was 11.1% above a year ago, now making it $178,000. This increase is the eighth consecutive monthly year on year increase, which has not occurred since October 2005 to May 2006.
Unsurprisingly, according to the latest report from Rightmove Overseas, the number of British house seekers searching for a property in the US is on the rise. In October, US properties generated the most traffic of any country to rightmove.co.uk/overseas with low priced investment opportunities, such as pre-tenanted apartments/homes in Florida/Detroit attracting a new generation of UK investors.
In the emerging markets, Brazil continues to offer excellent investment prospects. This is due to a number of factors including the continued economic growth, the expected positive impact of the World Cup in 2014 and the Olympics in 2016. Other significant factors include the dropping level of corruption and the government planning system. This involves four planning stages, which provides a robust and safe market within which to invest. Property prices are still significantly cheaper than Western Europe and we believe Brazil will continue to offer great opportunities for investors for the next few years.
Finally, the east side of Thailand represents a growth market within an emerging territory. Unlike the west side, which includes well known and fully established tourist resorts such as Phuket and Kao Samui, the east side is currently under developed and offers low property values which will only increase. It is already much easier to travel to Pattaya and tourists are recognising this part of Thailand as a cheaper, less touristy place to travel. The government is also removing the red tape to enable foreign nationals to own property and invest in the area for the first time.
Crystal Investment and Real Estate Property Investment Portfolio
Distressed/Below Market Value
Detroit
Three to five bedroom detached homes available between $35,000 and $45,000 inclusive of all closing costs. Situated in main catchment areas, near to schools, shopping centers, freeways, hospitals etc. all units are clear of all debt and have undergone extensive refurbishment work. All properties are fully tenanted with government vetted section 8 tenants and all come with Title insurance guaranteeing clean, debt free title to the investor. We do not offer properties in the high crime down town areas of central Detroit. Purely the well maintained leafy suburbs.
Coco Plum Villas, Florida
Two bedroom villas available from $89,000 offering a 59% discounted price compared to average prices in 2006.
The development is Orange County, Orlando, Florida and is convenient to Orlando International Airport and Executive Airport as well as shopping, schools, dining and medical facilities. The complex is located within a welcoming residential neighbourhood close to six major theme parks including: Seaworld, Universal, Animal Kingdom and Downtown Disney all within 20 miles. Each of the properties has been completely remodeled with beautiful wood or tiled flooring throughout, featuring super insulated, dual pane windows and extra attic insulation for ultra low utility bills.
Park Lake at Parsons, Brandon, Florida
One and two bedroom apartments available from $56,995 offering a 60% discounted value compared to average prices in 2007.
Surrounded by lakes and mature trees, Park Lake at Parsons is a perfect location. It is close by to all the amenities that Brandon has to offer, with Brandon Regional Hospital across the street, Brandon Town Centre close by and Highway 60 and the Crosstown just a short drive away. Offering 10 acres of water-front living and landscaping, the development includes a beautifully remodeled clubhouse with a state of the art fitness centre, billiards room and resort-style pool with a barbeque and grill area.
Rio Hills, Rio de Janiero, Brazil
Available from $50,877 for flat, uphill and downhill developed land plots in a variety of beautiful locations in Rio de Janeiro, Brazil. Both lakeside and mountainside land plots are available at below market prices and vary in size from around 4500 sq ft to 11,400 sq ft.
Rio Hills is around 64km from Rio de Janeiro International Airport and possesses stunning natural beaches. This particular opportunity gives buyers the opportunity to choose from various villa designs to build on their plot after their purchase, or they can simply ‘bank’ the land and take advantage of some of the highest capital growth increases throughout the country. Once these have been built they can be used as a vacation home, permanent home or investment opportunity. This opportunity is ideal for people that want to keep their options open, but don’t want to miss the boat.
The land plots available are located within the grounds of the Rio Hills Lake & Country Resort, a 5 star fire-themed hotel, in a unique location. Residents of Rio Hills have secured access to their own private pier, leisure bay, shops, cafes, bars and restaurants.
Laguna Beach Resort 3, South Pattaya, Thailand
Studio and one bedroom apartments available from £16,400 for a fully furnished property situated in a luxury resort due for completion in September 2015. This is the 10th project from the acclaimed developer.
This is a 7-building resort with a total land size of 25,600 sqm, 15,000 sqm of this being a recreational area full of numerous leisure activities including a go-kart track, relaxing pavilions and a putting green. Along with this the resort offers an enormous 7,500 sqm lagoon pool, jacuzzi zones, botanical gardens, waterfalls and water slides.
For further sales information about investment opportunities currently available through Crystal Investment and Real Estate, visit investmentandrealestate.com.
