Down payment of 160,000! Would you rather be a neighbor with Musk?

In the post-pandemic era, there is a new type of investment in the United States that deserves the attention of domestic investors. This asset class is called Build to Rent. Abbreviated as B2R. Also known as a long-term rental villa.

To explain clearly what is a long-term rental villa, we must first know that the main force of the housing rental market in the United States is millennials aged 24-39. They also gradually entered the stage of marriage and children.

Before marriage, single young couples generally choose to rent commercial apartments, which are usually in a building, which is a common property and managed by a company.

The advantage is that the rent is low, and there are special personnel to take care of the maintenance, which is in line with the free and comfortable living conditions of young people. But the disadvantage is that the space is small, not suitable for families, and most of the apartments are only available in the city center, so the living environment is worse than the suburbs, and the activity space is limited. This was particularly evident during the outbreak.

Therefore, the isolation and closure caused by the epidemic has given more millennials the desire to flee the city and pursue a larger and freer space.

But you know millennials are also in a worse financial position. Many are saddled with huge student loans and limited funds to buy a home. Moreover, villa residences generally need to be maintained by the owner of the house, and the younger generation will think that it is a big trouble.

In this social context, the demand for long-term rental villas in the United States has expanded rapidly during the epidemic.

Long-term rental villas combine the advantages of unified management of apartments with the freedom of space of single-family villas. Perfectly addresses the living needs of millennials and optimizes their living experience. A very large number of large companies began to build this community of villas dedicated to renting.

For investors, the return on investment in such assets is more stable.

From the data point of view, the renewal rate of the general two-year lease is as high as 80%, which is much higher than that of the apartment.

And the newly developed villa community, the house is in good condition and the maintenance cost is low. Many developers provide corresponding property management services, which saves the energy of leasing, maintenance and management for domestic investors.

Last time, we introduced our partner's long-term rental villa project in Lake Conroe, Houston, Texas, and you can click to review "The down payment is only 150,000!" Lakeside villa, be an American landlord! 》。

Austin has developed rapidly in recent years, with a large inflow of population. Many real estate developers have laid out the long-term rental villa market.

Austin is the capital of the largest Texas in the United States, and with the addition of Max's Tesla, Austin is a veritable tech capital of the United States. And was voted by Fox as america's best future city!

With the success of tesla's conference on April 7, it is expected that after the GIGA Factory is put into production in 2023, it will provide 10,000+ jobs for the local area, and Max also revealed that after dealing with the remaining problems in California, Tesla's headquarters will also be relocated to Austin. This is undoubtedly another big positive news for Austin!

Austin's population flows to the first place in the United States, dominated by high-income people in Kochi. The chart below shows the movement of people in major U.S. cities over the decade 2010-2019. Like the traditional first-tier cities, Chicago, New York, Los Angeles, St. Jones, etc., the domestic population is moving out in large numbers. The main place of relocation is the southern region led by Austin. Including Texas, Florida, and more. Regions that have more advantages in terms of taxation, quality of life and employment.

And the median household income for Austin residents in 2019 was $80,954, higher than the statewide median of $16,920.

The total increase in the decade between 2010 and 2020 was as high as 30.9%, with an average annual growth rate of 3.9%. According to the population growth projections of professional institutions, by 2050, the total population of Austin Region will increase from 1.71 million to 4.54 million, an increase of nearly 1.65 times.

As can be seen from the chart below, the economic belt of the Austin area extends towards the north and southeast. Tesla's GIGA Factory is located in the yellow irregular area of the figure on the right.

Giant businesses in the southeast stretch south from downtown, including Amazon, Samsung, Oracle, Dell and Tesla, among others.

Wan Bridge's large community project is located on the extension of the Austin Metropolitan Southeast Economic Belt, and is located in Bastrop, another large city belonging to MSA. The location advantage is No. 21 high-speed, Texas railway network, convenient transportation. The project is just a 30-minute drive from downtown Austin.

The region's population has risen by 31.7% in the past decade. The target white group for renting out accounts for 87.5%. The influx of people has led to a continued boom in the local real estate trading and leasing market.

Schematic map of the project location

As more and more technology companies enter Austin, the Southeast Economic Belt continues to expand, and there are many newly started industrial sites within a thirty-minute drive of the WB Future City project. When enterprises officially move in, the number and price of surrounding residences will definitely rise.

Bastrop's local home price market is charted below: 2022 zillow shows that the median local home price is $407,000, an increase of 29% year-on-year. The market inventory is only 0.8 months, while the average market inventory in the United States is more than 1.5 months, indicating that the current market supply and demand relationship is extremely unbalanced. The demand gap is large.

The shortage of housing has also been transmitted to the rental market, where rents for three-bedroom units have risen by 16% year-on-year.

Specifically, WB's future city large-scale community project is close to the luxury residential area, and the house price of the luxury residential area is also placed below, let's take a look.

Information on the number of listings for sale in the residential area found on Zillow shows that the price of the house is between $265-280 per square meter.

Share mature living facilities with luxury residential areas. Within 5-10 minutes of driving, you can meet the all-round needs of food, clothing, housing and transportation.

Introduction to the specific planning of the project

Wan Bridge Austin Future City Large Community Plan is shown in the figure below, and the construction types include single-family villas, townhouses, multi-family residential and commercial properties. A total of 1000+ sets. It is currently pre-sold as the third phase of the townhouse development.

Down payment of 40% + $10,000 down payment. Two years to deliver the house. 5% annualized fixed income during the construction period, if the house is handed over to WB for rental management after handing over, you can enjoy a fixed annualized net income of 5%.

WB provides domestic investors with full-process investment value-added services from overseas bank account opening to rental housing management. Meet the needs of domestic investors for overseas property allocation.

There are two unit types to choose from

Charter for three years and be an American landlord!

With a down payment of just $160,000, you can own a set of U.S. villa assets that are entirely yours. After the purchase, the house can be handed over to WB, providing professional property management services, and directly collecting rent to offset the loan. Five-year investment forecast annual return IRR of up to 15.8%!

WB adheres to long-term value investment, focuses on exploring investment opportunities in the Long-term Rental Market in Texas, and provides high-value investment targets for the majority of Chinese friends at home and abroad.

END

The North American Nuggets team is a team of professionals who study U.S. real estate investments. It has tens of thousands of loyal fans on platforms at home and abroad. He has helped tens of thousands of Chinese friends at home and abroad to accumulate wealth and even achieve financial freedom by investing in American real estate.