A USA Buying Guide with Global Investments Incorporated: An Investment Opportunity that’s still growing in 2020
The experienced team at Global Investments Incorporated explain why the American dream is alive and kicking for those in a position to enter the buy-to-let market.
It’s now common practice for serious investors to buy real estate abroad. While the domestic marketplace is perhaps easier to understand and grasp for an entrepreneur interested in property, the opportunity of expanding into more profitable markets is one that should not be overlooked.
Over the last five years, the US property market has presented just such an opportunity for most keen-eyed investors. On the back of significant economic growth and concerted investment from local government, a number of states in the USA have seen a surge in demand within the buy-to-let space.
And according to the National Association of Realtors, it is thought that foreign buyers spent nearly $70bn on residential real estate in just the last 12 months. To put that into context that represents over 6% of the total residential property market in the USA during the same period.
For those looking to get into the US residential market, seeking expert help to understand the property landscape and identify the best opportunities means working with specialists in their field. For almost a decade, Global Investments Incorporated have assisted entrepreneurs from all over the world to tap into the lucrative US market, choosing hotspots such as Cleveland, Baltimore, Detroit and St Louis, where the recovery from the 2008 crash has been significant. In these revitalised and rejuvenated economies, investors can find a thriving buy-to-let market with yields upwards of 20% and reliable long-term tenants in stable jobs.
Much of this can be put down to a renewed emphasis on bringing in quality employers and building solid infrastructure in these cities. Improved amenities and a thriving culture serves to attract new entrants from across the USA, many of whom will choose to take on long-term rentals to give them comfortable, affordable housing whilst retaining flexibility.
Global Investments Incorporated’s tips on getting started in the US market
Like any dynamic property market, the US real estate landscape is constantly changing and increasingly complex. To cut through the noise and find the very best investment opportunities, businesses like Global Investments Incorporated work with a network of experienced local management companies backed by comprehensive legal support.
With an experienced and professional team on hand, it is much easier to understand yield, likelihood of long-term appreciation in value, management issues and the risk profile of each investment opportunity. The team of trained property advisors at Global Investments encourage a rigorous due diligence process, designed to gather relevant information and help investors make informed decisions.
In this way, Global Investments Incorporated have not only succeeded in growing an extensive inventory across a number of US states, but the business has also developed important relationships with US Asset Management companies, international banks, venture capital organisations and, of course, a network of brokers across the USA.
One of the key benefits of the USA’s buy-to-let market currently is that it represents a great option for investors looking to build a sizeable portfolio of properties that produce income based on a low initial capital outlay and with significant potential for capital growth.
Another feature of US hotspots such as Cleveland and St Louis is that buy-to-let opportunities come in a range of shapes and sizes – be it single homes or even small apartment blocks. Unlike markets like the UK, second homes do not feature the same Stamp Duty or Land Tax implications, which makes the process a more cost effective one.
Choosing a city to invest in with Global Investments Incorporated
In such a vast and diverse country as the USA you might be inclined to ask where your search for buy-to-let opportunities should start. Selecting a state and city is an important decision, of course, and one that investment experts like Global Investments Incorporated specialise in.
Time is always taken to assess the features and forecasts for growing markets to gain a better understanding of capital appreciation, occupancy levels, planned government investment and city planning. Similarly, analysing inventory levels, tax regulations, comparable markets and exit options should all be considered ahead of any investment.
Sound like a lot of hard work? That’s why having a team to support you is always preferable to going it alone.
What about the details?
Working with a company like Global Investments Incorporated means that you won’t be alone when it comes to the legals and the management of any acquisition. From performing searches to checking licences and credit scores, any good investment specialist will help you along every step of the way.
It is crucial to remember that if you intend to purchase a rental property in the USA, forming an LLC – or Limited Liability Company – is usually preferable in terms of managing legal and financial functions more easily. This step also helps to ease the tax burden of paying both business and personal taxes on a buy-to-let property. This requires investors to open a US bank account to receive and collect rental income.
Section 8 and what it means to investors
The Section 8 program is an interesting feature of the US market. By helping low-income, elderly or disabled tenants to afford decent and safe housing outside of the public housing system, it represents an important safeguard to the more vulnerable members of society.
Under Section 8, tenants receive a Housing Choice Voucher that can be used to help pay for any privately owned apartment, townhouse or similar. Becoming a Section 8 landlord can be a valuable opportunity for investors and requires that an application form be submitted to government. While qualifications for renters may vary by area, featuring on the Section 8 program can help to ensure that investors acquire long-term tenants able to pay their rent reliably with the help of a housing authority subsidy.
Wondering if US property investment could be for you? Visit the Global Investments Incorporated website for more information.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes