Real Estate Investor Magazine South Africa November 2016 | Page 64

UNITED STATES – DALLAS TEXAS

Why Dallas, Texas

is a an important market for offshore investors
Rapid population growth driving property construction
BY DREW HOOK

W

ith such uncertainty underpinning the
world’s equity and currency markets, and
w ith fixed income yields near zero, where
does the investor look to build an investment portfolio
with safe, dependable returns and capital appreciation?
The US is one of the few economies showing steady
GDP and employment growth coupled with a stable
currency.
Over the
next decade the U.S. adult population will
rise by 24,6 million (10%). Housing demand, of any
kind, will steadily grow. In light of the previous, the
U.S. rental market will continue to grow in demand
as for-sale housing production falls short of need yearover- year for the foreseeable future.
What many overseas investors fail to realize is that
home ownership is chiefly outside the city-core in the
suburbs. Why? There are two major reasons. First,
Americans want more living space and land, which
can only be found outside the city. In 2013 alone,
5.8 million people moved out of larger, high-density
cities to the less dense suburbs for a better lifestyle.
Second, in the Top 40 U.S. metro areas a whopping
84% of all jobs are outside the city center core
located in the suburbs. There are major Fortune 500
companies with offices in the suburbs. Although most
of the companies are under 500 employees the fact is
businesses with fewer than 50 workers have created a
staggering 40% of all jobs in the past 12 months.

Why Dallas?

Many South Africans are synonymous with Dallas for
reasons other than real estate. In the late 70’s and 80’s
Dallas was a weekly American prime-time television
soap opera, which revolved around the Ewings, a
wealthy Texas family in the oil and cattle-ranching
industries. Dallas was one of the most successful
and longest-running shows in American prime-time
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NOVEMBER 2016 SA Real Estate Investor

television history, and was also hugely successful
across the world including South Africa.

Dallas one of the top US markets

Forbes listed Dallas as one of the top 10 cities to
invest in single family homes in 2016 and also one
the top emerging markets. Dallas–Fort Worth’s
(DFW) employment opportunities are driving rapid
population growth and driving high demand for
housing. DFW has a diversified economy, which
feature a balanced cross-section of industries as well
as a benign corporate and personal tax regime, which
is highly attractive to businesses. These factors are
vital for a stable long-term investment.
In the past decade the Dallas Fort Worth MSA
has become the nation’s 4th largest metropolitan area
while construction for single-family homes has and is
currently still below its peak in 2005. With DFW’s
high demand for housing stemming from its robust
population growth, now is a great time to invest in
new single-family homes as real estate prices are
projected to continue to appreciate.
Build to rent is transforming how people invest.
Greystone’s Build-to-Rent program is transforming
the way people invest in real estate by focusing
exclusively on the advantages that newly constructed
rentals offer to the real estate investor.
Greystone has designed a unique end-to-end platform
that allows both international and domestic investors
the ability to capitalize on opportunities by having
one comprehensive solution for investing in new
construction single-family property. This includes
property sourcing, property management, financing,
and LLC formation to bank account formation.

For more info Click on investments on
www.reimag.co.za

www.reimag.co.za