Twin Lakes Georgia Reports Sales Increase in August—Despite Higher Interest Rates

Twin Lakes Georgia, a single-family home development near Atlanta, Georgia, remains one of the most successful EB-5 projects on the market. Part of what makes this project a great option for EB-5 investors is its strong sales. Twin Lakes is one of the top-selling new home communities in Georgia. It strategically targets seniors and retirees, offering them high-quality homes and a lifestyle built around their needs and preferences.

Twin Lakes is being built by The Kolter Group. Kolter has a track record of developing single-family homes—they’ve built more than 20,000 houses. Their Cresswind brand focuses on building active adult communities like Twin Lakes. Kolter’s market knowledge and ability to perform in a difficult economy has driven this project’s financial success.

Twin Lakes has kept up a strong, consistent sales volume throughout 2022 and 2023. Sales have remained high despite significant interest rate hikes during this period.

Twin Lakes had an average of 11 monthly home sales in 2022. The project has kept up the same monthly average in 2023. The latest sales data for August 2023 report a 111% increase from last month’s sales. A total of 19 homes were sold in August 2023, well above the monthly average for 2022 and 2023.

The data show that Twin Lakes continues to sell homes even though borrowing costs are rising.

Strong sales result in more than just profits. Houses are built as they are sold—which means job creation. Financial success and job creation are the two key factors that make Twin Lakes one of the safest EB-5 projects available. EB-5 investors can have confidence they will be repaid and that enough jobs will be created for them to qualify for Green Cards.

In this article, we explore the reasons behind Twin Lakes’ exceptional success in a high-interest-rate environment.

August 2023 Sales Data for Twin Lakes

  • 19 new home sales in August
  • 14 new home closings in August
  • 550 homes sold in total
  • 409 homes closed in total

Twin Lakes Keeps Selling Despite Interest Rates

The graph below shows the rising federal funds rate starting in January 2022 through August 2023. In addition to tracking the federal funds rate, the graph shows average sales over the same period, and above average sales in August 2023.

In 2023, U.S. interest rates have reached their highest level in 22 years under the Federal Reserve’s contractionary policy. While 2023 began with an interest rate of 4.25% to 4.50%, the Federal Reserve has carried out interest rate hikes throughout the year. In July 2023, the interest rate reached 5.25% to 5.50%.

When federal funds rates rise, mortgage rates typically go up as well. For many people, higher interest rates make buying a home more difficult.

Higher interest rates make home loans more expensive. A higher mortgage rate means higher monthly payments and more money paid over the life of the loan.

But higher rates don’t just make it more costly to borrow. When interest rates go up, buying power goes down because the same house valued at the same dollar amount will have a higher monthly payment.

These factors can make it more challenging for people to afford new homes. Sometimes, higher interest rates will deter them from buying altogether.

As of August 31, 2023, the average rate on a 30-year fixed mortgage was 7.18%. This is one of the highest 30-year mortgage rates in 22 years.

Despite the steady rise in interest rates, however, Twin Lakes saw an increase in sales in August 2023—far above the average.

Factors Behind Twin Lakes’ Consistent Sales

A Wealthy Target Market

Twin Lakes is an age-restricted community for adults aged 55 and over. Senior citizens are one of the wealthiest demographics in the United States, with significant buying power. The median net worth of Americans in their late 60s or early 70s is $266,400, as reported by the Federal Reserve Board. Because this target market is financially strong, they are in a good position to buy new property regardless of interest rate hikes.

According to a report by the National Association of Realtors, seniors aged 55 and older recently made up over 21% of all home buyers. This age group tends to have significant financial assets saved over the course of their careers. They tend to have retirement income and equity in their current homes.

Senior citizens often enter the homebuying market with specific objectives. According to a 2020 report by the Joint Center for Housing Studies at Harvard University , 77% of seniors are homeowners. Many are looking to downsize. This often means they sell a higher-value home to buy a less expensive one. Twin Lakes’ affordable homes are ideal for this buyer profile.

With savings and equity at their disposal, many seniors make substantial down payments. As a result, they reduce the need for mortgage insurance and securing better mortgage rates. And, in many cases, seniors pay for new homes in cash, without the need for a mortgage.

About 50% of buyers in Twin Lakes pay in cash instead of taking out mortgages.

Because Twin Lakes has strategically targeted seniors, it will continue to benefit from their buying power, despite the higher cost of borrowing.

An Ideal Location and Amenities

Seniors who are looking for new housing often want to be close to a major urban center. Living close to a large city gives them access to healthcare, transportation, shopping, and other key services and amenities.

Twin Lakes is only one hour away from Hartsfield–Jackson Atlanta International Airport. This airport is a central transportation hub and home to Delta airlines. The Atlanta metro area is also known for its world-class healthcare.

In addition to having access to Atlanta and other local businesses, Twin Lakes offers an appealing list of on-site amenities. These include a state-of-the-art clubhouse, events spaces, and a variety of athletic and recreational facilities. Many of these amenities are already completed and open to residents.

Kolter: A World-Class Developer

The Kolter Group is one of the leading single-family home developers in the United States.

Kolter has a strong reputation and excellent underlying financials. The company has been able to secure loans from five of the 10 largest banks in the United States. It has over $1.5 billion of loan commitments from major lenders.

The company has an impeccable track record of repaying billions of dollars in debt. In its 25+ year history, Kolter has never failed to repay a loan or complete a project.

Kolter has invested in over 180 projects worth over $24 billion and is led by an experienced team with over 200 years of collective experience in real estate.

Kolter has also received numerous accolades and awards. Among these, it has been named one of the top 25 largest private single-family home builders in the U.S.

The company’s projects, particularly its Cresswind brand for active adults over 55, have been recognized nationally. Twin Lakes is a Cresswind-branded community.

Additionally, Kolter has a commitment to 100% transparency. It provides all key legal and financial documents to prospective EB-5 investors.

Kolter and EB5AN have worked together on 10+ prior EB-5 projects. All prior Kolter–EB5AN projects have either been completed as planned or are on track. All EB-5 funding in these projects has either been repaid or is in good standing.

Learn More About Twin Lakes

With a solid target market and consistent demand, Twin Lakes is steadily making progress toward completion. Each month, the project makes significant revenues from home sales, enabling it to continuously build.

As an EB-5 investor, choosing an EB-5 project that’s already financially successful maximizes your chances of both getting a Green Card and a return of your funds.

To learn more about how Twin Lakes can offer a safe path to U.S. immigration, schedule a free consultation with EB5AN.