New Home for Sale in Chicago by TRIO Apartments

Info about property

2 Bed

£190,000

Key Features

• - Rental yields of 11% pa being achieved
• - Many units are cash flow positive
• - Exclusive 10% discount for our investors
• - Management fees paid for 2 years
• - Only 10% deposit required

The USA is on sale and we have secured a great deal. With a low deposit and a rental yield of 11% plus this cash flow positive investment is not to be missed. Buy now to benefit from the strengthening dollar. Settlement is due October 2009.

Full Description

Over the past few months we have been looking closely at what is going on in the USA and looking for a project that is going to give our clients both positive cash flow as well as capital growth over the short, medium and long term. Property values are at an all time low and sellers are motivated enough to enhance their products by offering additional incentives to sell. The first opportunity we have is in the beautiful city of Chicago. We are pleased to announce that this new project is the ideal investment to capitalise on the growth that is now forecast for the US property market.

Trio - Key Features

• Rental yields up to 11% pa are achievable
• Settlement is not until October 2009
• Only 10% deposit required
• Exclusive 10% discount for our investors
• Many units cash flow positive
• All management fees are paid for 2 years
• Great location with excellent views

Trio is located in one of Chicago's hottest emerging neighbourhoods-the trendy Fulton River District, embracing ten square blocks bounded by downtown Chicago, the Chicago River and the city's wholesale markets. The neighbourhood boasts inspired cuisine, art galleries and boutique shopping. Designed in contemporary steel and glass, Trio consists of two mid-rise and one high-rise tower containing stylish condominium homes each with an indoor parking space. The development features lush landscaped courtyards, a 10,000 square foot verdant roof garden and state-of-the-art fitness centre. Trio Park is also adjacent to the property.

The Trio mid-rises were completed in October 2008 and have 109 units of which 28 remain available. Trio Tower, scheduled for Spring 2009 delivery, has 100 units of which 77 are available. Trio also contains 10,000 square feet of integrated retail space for five tenants, four of which are currently pre-leased, including Starbucks, Chase Bank, Hair Cuttery and a dry cleaner, with 28 dedicated retail parking spaces.

Building and Residential Features

• Modern European design and materials
• Individual gas, forced air furnace and central air conditioning
• Hardwood floors in living/dining room, kitchen, foyer and hallway
• Integral health club
• Designer carpeting in bedrooms
• Trio Park adjacent to the property
• Gourmet European-style kitchens
• 10 foot ceilings in mid-rise (9 foot ceilings in high-rise)
• Granite counters and stainless steel appliances
• Pre-wired for high-speed Internet access, cable TV and telephones
• Bathrooms with slate floors and glass mosaic tiling
• 24-hour concierge in high-rise
• Private terraces
• Indoor parking space

Why you should consider an investment in Chicago

Adjacent to Lake Michigan, the Chicago metropolitan area (commonly referred to as Chicagoland) has a population of over 9.7 million people in three U.S. states, Illinois, Wisconsin and Indiana. One of the largest cities in North America, Chicago is among the world's twenty-five largest urban areas by population and rated an alpha world city by the World Cities Study Group. It is the third-most populous city in the United States after New York and Los Angeles, with a population of nearly 3 million people.

Chicago has the third largest gross metropolitan product in the nation - approximately $440 billion according to 2007 estimates. The city has also been rated as having the most balanced economy in the United States, due to its high level of diversification. Chicago was named the fourth most important business centre in the world in the MasterCard Worldwide Centres of Commerce Index. Additionally, the Chicago metropolitan area recorded the greatest number of new or expanded corporate facilities in the United States for six of the past seven years. In 2008, Chicago was placed 16th on the UBS list of the world's richest cities.

When you consider the above it is no surprise that Chicago has not had a major price decrease during the US housing slump. It is a unique city that consistently offers between 6%-10% property growth year on year. Chicago is one of the safest communities in which to invest. There is no possible potential of population decline and that is the prime driver of appreciation and supply and demand. Chicago is similar to NY City and really has not been affected that badly. It has density in population and continues to attract new residents.

The Figures

Unit Prices range $295,990 - $414,000 (These figures include the 10% discount that we have negotiated exclusively for our investors).

Please find below a cash flow forecast: -

$295,000 purchase price, deposit would be $73,750 i.e. 25%
$221,250 mortgage @ 7% = $1290 a month
Taxes and Insurance 1% = $245 a month
Total monthly payment $1535
Total rent received a month $1900

Cash flow $365 per month - $4380 a year

This opportunity has been designed to leverage the market by not closing until the end of 2009 and, based on historical growth figures (Chicago increases on average 6%-10% a year), investors could see somewhere between 100%-150% return on initial cash invested. Also all management fees are covered for 2 years after closing. These units rent for $1900 - $2000 a month and they are competitively priced with a 10% discount. They will be cash flow positive with a 25% deposit. Today's market interest rate is 7% and we are willing to bet rates will be even lower by the time these units are closing.

Payment Terms

$5000 to reserve a unit
5% in 30 days
Balance of 5% in 60 days (flexible based on buyer's situation)
Nothing further until completion October 2009

In summary

Closing next year therefore, based on Chicago's historic growth rates and assuming one year of appreciation at 6%, capital appreciation is possibly $17,700, over three years the investment's capital appreciation is $53,100 bringing this unit to $348,100 and cash flow positive to the tune of $365 a month.

Furthermore, from .themovechannel we expect interest rates to come down now that the election is over. The developer is paying all management costs for 2 years from closing, relieving our investors of this expense until late 2011. At this time an investor can either refinance and pull cash out or liquidate. Whichever way we look at this investment, it is a rare gem in the Chicago market. It is really difficult to break into this market even in a housing slump.