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Charlotte real estate market reaches buy-to-let investment sweet spot, as Property Frontiers launches Circle Oaks Village
November 3, 2015Article by Charlotte Ashton
Charlotte, North Carolina has increasingly been in the spotlight of late, with investors around the world eyeing up its buy-to-let property market. So what is it about this bustling city that has got property investors so excited?
The US has a vast real estate market and within that market there are numerous cities that are attracting attention from investors right now. The thriving financial hub of Charlotte in North Carolina is one of the most interesting.
Charlotte is the second largest banking centre in the US, being home to Bank of America’s HQ and Wells Fargo’s east coast operations, and has a dynamic business scene, including eight Fortune 500 companies within its metropolitan area. It is also a key hub airport for the United States.
The city’s thriving economy is complemented by a lively cultural offering, including nearly 20 museums and arts centres. Charlotte also has a strong commitment to the performing arts, with groups in the city covering everything from children’s theatre to opera. A host of excellent retail outlets and restaurants complete the picture, which combines to make Charlotte one of the most attractive places to live in the Carolinas.
Ray Withers, CEO of specialist property investment company Property Frontiers, which is offering investors the opportunity to purchase buy-to-let homes at Circle Oaks Village in Charlotte, comments,
“We’re seeing really strong demand for private rented accommodation in several areas of Charlotte right now. Property Frontiers has been analysing the market there for some time and is delighted to be able to launch Circle Oaks Village at just the right time. Demand from tenants is strong and while the market’s inventory is shrinking, purchase prices remain affordable. The reducing inventory means that prices are likely to rise over the coming months and years, so right now it looks like the city has reached that sweet spot that every buy-to-let investor is looking for in terms of potential for healthy yields and capital growth.”
Investors are encouraged to act fast to take advantage of the current state of the market. Homes sales were up 6.1% in September 2015 compared with a year earlier (according to the Charlotte Regional Realtor Association), while the available inventory reduced by 21.7% over the same period. Average sale prices have already risen by 5.8% over the last year, based on data from the Carolina Multiple Listing Service, and such a sharp reduction in inventory means that prices may well rise further and faster in the near future.
One of the most sought-after residential locations in the Charlotte Metropolitan area is the satellite city of Gastonia. The city’s population grew by 8.2% in the decade to 2010, according to the US Census Bureau. Gastonia’s motto is, “Great Place. Great People. Great Promise.” The great promise element certainly applies to the local property market right now.
At Circle Oaks Village, investors can purchase a refurbished and fully tenanted apartment from $77,727.00, with a management company contribution of 40% paid on closing. This provides the management company with the right to lease the property for the next five years and means that the investment price is from just $46,636.
The collection of two and three bedroom homes offer a high standard of living, with 29 buildings spread across 13 acres. The development offers minimum guaranteed returns of up to 18.08% NET on capital invested for the first five years, with returns from day one thanks to all apartments being occupied. It’s the perfect product at the perfect time for those looking to be part of the US property market.