Axis Offers Investors Seven of Top Ten USA Property Markets!

For more than five years Axis has offered clients US investment property. We started with one city (Buffalo) and then expanded our activities to more locations as we gained insights into which cities offered the most potential for investors.

Earlier this year (2011) Fortune magazine ran a major article about investment in US property which, for the first time, was extremely positive about the prospects for US property investment. As part of this article they prepared a chart (reproduced below) which showed the 10 best cities for buyers.

Axis operates in SEVEN of the top 10 Fortune USA cities!

This is no coincidence. We reached the same conclusions, but by using even more detailed analysis to consider future performance. What's important for you, as investors, is that the Fortune analysis supports our own findings and endorses our knowledge and experience of the US market.

If you are already set on the States and know where you want to invest, or just what you want to achieve from your USA investment (growth, profit, or income), then call us right away on +44(0)1273 447 300 or email sales@axiscontact.com for a no obligation chat about how we can assist you in starting or growing your USA property portfolio.

How the Fortune favourites can work for you

Here are the markets in which Axis offers US property, together with their ranking according to Fortune magazine.

Fortune Nr 1 - Atlanta, Georgia (Maximum Growth):

Atlanta, Georgia ranks number one in the Fortune listings and is our newest USA investment location. We chose Atlanta because of its robust rental market and the ability to invest in new, sometimes never lived in, property for under 50% of build cost. Many Atlantans lost their homes in the recession, however the city is now in economic recovery which further boosts the rental market and indicates a significant rise in growth over the coming years.

Target yield: 11% - 15% net pa.
Target return: 100%+ in 3-5 years.
Typical property price: $50,000 - $75,000.

Fortune Nr 2 – Orlando, Florida (Maximum Growth):

Orlando is one of our major Florida locations for residential condo apartments and single family homes. Orlando has its own micro economy due to its $62 billion tourism industry and $13.4 billion technology industry. Florida was the first into the foreclosure ‘recession’ and is the first to lead the way out. Coupled with strong migration and a culture of renting, Orlando is an excellent location to purchase bargain property, with fair rental income and excellent capital growth.

Target yield: 6% - 11% net pa.
Target return: 100%+ in 3-5 years.
Typical property price: $45,000 - $90,000.

Our Florida single family homes are also in the Orlando area, in desirable neighbourhoods around the burgeoning Medical City development around Lake Nona. This development of life sciences establishments is expected to have an impact of $8 billion by 2020 and is already creating thousands of new jobs. Discounts of circa 60% from peak pricing and the increasingly-robust rental market in this blue chip area make Orlando-Lake Nona another excellent Florida investment location.

Foreign national finance: available at 70% (incredibly rare to achieve finance in the USA!)
Target return: 100%+ in 3-5 years.
Typical property price: $140,000 - $250,000
Cash requirement with finance: $42,000 - $75,000

Fortune Nr 5 – Tampa, Florida (Maximum Growth):

Tampa is the third most populous city in Florida, with an economy founded on a diverse and strong base of industries, including tourism, finance, healthcare and technology. The area plays home to a settled, residential population of young to middle-aged professionals. Voted the eighth cleanest city in the USA by Yahoo! Real Estate, Tampa’s waterside location attracts an ongoing migrating population, which strengthens the already-strong rental market yet further.

Target yield: 6% - 11% net pa.
Target return: 100%+ in 3-5 years.
Typical property price: $45,000 - $90,000.

Fortune Nr 6 - Las Vegas – coming soon!

Watch this space (and your inbox!) for our launch in Las Vegas! We have been developing a very strong investment proposition for the past few months and it is nearing release.

Fortune Nr 7 - Jacksonville, Florida (Maximum Growth):

Jacksonville is the capital of and most populous city in Florida. Our Jacksonville proposition is similar to that in Orlando and Tampa. The main distinction being that Jacksonville is more of a commerce-driven business city, with slightly higher property prices and yields. Jacksonville is also a port, further increasing its economy through related trade. Again, this area has an incredibly-strong rental market.

Target yield: 8% - 12% net pa.
Target return: 100%+ in 3-5 years.
Typical property price: $60,000 - $100,000.

Fortune Nr 9 – Buffalo, New York State (Maximum Income):

Buffalo offers amongst the highest returns of anywhere is the USA, coupled with exceptionally-low purchase prices and the most consistent, safe rental market in the USA. Realty Trac voted Buffalo the number two rental market in the USA and named it in the top 10 US cities for buying and investing. The Buffalo property market has remained very stable overall, with prices actually growing by 25% since 2006! Investors in Buffalo receive the best of both worlds – extremely high rental income AND long-term growth (typically 3% - 4% pa).

Target yield: 15% - 20% net pa.
Typical property price: $30,000 - $50,000.

Fortune Nr 10 – Memphis, Tennessee (Maximum Profit):

Memphis is our unique USA location for our most popular investment strategy ever – the bulk wholesale portfolio. For the first time ever, Axis clients have access to incredibly-low priced packages of foreclosure properties, purchased from the banks. Previously, participation in this market was limited to purchases of 100+ properties, but now Axis clients are able to purchase portfolios of just four properties plus. The combination of incredibly-cheap property prices and a stable rental market with a number of exit ‘quick flip’ options, gives Memphis the number one ranking for Maximum Profit investments.

Guaranteed yield: 20% net pa.
Target return: 140% profit in 2-3 years.
Typical property price: from £16,000 each (when purchased as part of a portfolio)

Axis analysis works harder for you

Fortune considered only one criterion in coming to their decision - the ratio of rent as a percentage of after-tax mortgage payment. To us this is a bit simplistic and crude, but nevertheless it is remarkably accurate in putting the right cities in the top 10.

Our own analysis and consideration goes wider than this. Cities are made up of many different types of property in multiple locations and therefore we dig down to a finer level of detail to discover the best balance of property type, price and location. Most importantly for us and our clients, is our ability to offer a 'turnkey' service including good property management. Our clients have a right to expect excellent support after purchase, as well as during the purchase process.

Bespoke strategies to suit all portfolios

Axis also digs into the appropriate strategy for each location - some give superbly high rental yields, but may not be the greatest for future capital growth. Other locations offer good (but not exceptional) rental yields and are chosen for their ability to deliver strong capital returns in the medium term.

On top of all this, we choose our USA partners based on their experience, professionalism and ability to consistently deliver exceptional value. One major criterion is their ability to supply fully-refurbished foreclosure and distressed property, at way below even today's low market value.

Next steps for success

So if you weren't sure which US markets to invest in, have a little confidence that both Axis and Fortune magazine have reached the same conclusions.

Talk to us today about what you want to achieve from your investments, and we'll help you match your goals with the most suitable locations in the USA.

Call our portfolio managers, David Ball, Russell Bonner, or Zoe Bryant, on +44(0)1273 447 300, or email us at sales@axiscontact.com

Live with abundance,