Englewood is a beautiful beachfront town situated on the Gulf of Mexico. With an average year-round temperature of 25ºC and stunning coastal panoramas, the area has long attracted thousands of tourists each year and is home to almost 15,000 residents, according to the 2010 census, which is growing rapidly.
The area is situated on the border of Sarasota Country and Charlotte County, the latter boasts 219 miles of exquisite coastline and nearly 13 miles of Gulf coast beaches. The nearest international airport is Sarasota International Airport. Over 600 technology companies are located in the area and it is home to a huge healthcare industry. Adding to its popularity, the area has one of the lowest crime rates in the state of Florida.
Englewood’s Property Shortage
The area is experiencing a massive shortage of properties.
Each year more and more tourists discover the area and choose to return year after year. This has led to an undersupply of quality short-term rental accommodation, pushing up rental rates and returns.
Demand also significantly outstrips supply in the long-term rental market. The thousands of families who lost their homes to foreclosure are now looking to the long-term rental market for their homes. In addition, many are migrating to the area for a better quality of life.
In Charlotte County as a whole, the population in 2010 was 159,990. According to estimates based on current growth levels, the population will increase to 185,456 by 2020, almost 25,500 more residents in a 10 year period. This equates to approximately 212 new residents moving to the area every month.
In order to keep up with such demand, it is estimated that approximately 85 new homes are needed each month. The property management company we work with receives requests on a daily basis for long-term rentals, but they are unable to meet demand due to the severe lack of available property. These requests are from families who have lived in the area for many years, who have their children in local schools and parents in full-time employment.
This investment opportunity has been designed to specifically cater to the extreme undersupply of property in the Englewood area. It offers investors the option to purchase prime location, coastal Floridian land plots at a significant discount to current market values.
Land plots all have freehold title and are sold through reputable Title and Escrow Companies. Plots average 7,560 sq ft, which allows for a 2,000 sq ft home, and are in a variety of locations and elevations in the sought after area of Rotonda Lakes. Full infrastructure is in place with electric, sewer and water utility installation already paid for.
To maximise this investment opportunity, we recommend building a single-family home on your plot, properties which are in high demand, to either sell off-plan, sell on completion or keep to rent.
Investment Level: Land plot prices are $26,500
A finance option is available with a US$15,500 down payment plus US$1,000 per month for the first 12 months.
Immediate Profit: Up to 56% discount – original retail prices for these land plots were $60,000-US$65,000.
Investors can choose to hold onto their land plot to sell at a later date or choose an off-plan upgrade to build on the plot to sell on completion, keep for personal use or let.
In order to maximise the investment potential of this opportunity, earning long-term capital appreciation and capitalising on rental income, building a three bedroom, single-family home to cater to the high local demand is the most lucrative options.
BRIC Group has put together a highly economical package that enables you to buy a plot and have a house built on it, which will be released onto the market within 25 weeks. This package includes all planning permission applications and approvals, site preparations and build costs.
BRIC Group offers two single family home models both comprising three bedrooms, two bathrooms and a double garage. Prices for three-bedroom properties have increased 15.3% in the year to March 2016 whilst the median rental price for a three-bedroom property in April 2016, US$2,500 per month.
Strategic Location: The Exit Market
Owning a home in Florida is a dream for many both in the United States and internationally, investors and families alike. The Englewood area in particular is highly sought after for both holiday homes and resident families. However, the growing demand from both new residents moving to the area and the increasing numbers of tourists has created a dramatic glut of quality homes and rental accommodation.
The local property market has huge demand with significant undersupply of quality property. Prices are therefore rising rapidly. Across the board, the median sales price has increased by 18.5% in the year to April 2016 and by almost 60% over the last 5 years. Rental prices have shown equally strong growth across all property types with monthly prices up by 21% in the same year period.
Demand shows no sign of abating. With the option of owning a brand new home ready for rental or resale within 6 months, this is a fantastic opportunity for investors to earn significant capital appreciation on investment.