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A Billion for Buffalo NY

For years investors have been asking the age old question “where’s the next big thing”.  This has never been more true when it comes to real estate investment in the US. Fuelled by the global financial crisis, USA property has been in demand for a number of years due to the low purchase prices, high rental yields and potential for capital growth.  Cities that were once the engine room of America, such as Detroit, Chicago and Toledo have been the backbone of the seemingly unstoppable buy to let boom for overseas investors. Companies like Global Investments Incorporated have always had their finger on the pulse.  They were there at the very start of the Detroit property boom and as a result have built a business that is respected and valued by clients and the competition alike.  Exclusive properties, fantastic customer service and attention to detail is what defines a market leader from the rest but is that enough in today’s market? We asked Global’s Group Sales Director, Jonathan May for his view.  “You’re absolutely right that all those things matter and collectively they are the foundation of our business, but once ahead of the game you need to stay ahead” remarked Jonathan.   “This means we are constantly looking at new markets, not necessarily to replace the ones that we already dominate but to give our clients, both new and existing, more choice, value and ultimately income” Intrigued by the mention of new markets we were keen for Jonathan to elaborate as to why and where.  “Without doubt 2016 has been a record breaking year for Global.  We have sold more homes in Detroit than any other company.  We have held our first private exhibitions in London and Dubai, and we have laid plans to ensure further growth in the New Year and beyond” he explained.  “We are set to have representation in more regions next year and we are pleased to announce the first of which will be Buffalo, NY”. “We have signed an exclusive agreement with one of Buffalo’s biggest building contractors,  who will also manage the fully rehabbed and tenanted properties post sale.” announced Jonathan.  “With prices from $25,000 and returns up to 25% we definitely see Buffalo as the next big growth area.” Buffalo is the second largest city in New York State only beaten by the Big Apple itself!  Like Detroit and Toledo it was once a heavy industry city.  Steel works and automobile manufacturing once employed the majority  of the city’s population.  As in the other “rust belt” cities these industries gradually declined until they were virtually non-existent.  Detroit and Toledo weathered the storm until the great factories of Ford, GM and Chrysler powered back in to life.  Buffalo however, did not sit around and wait, we asked Jonathan for his take on how Buffalo is taking a different route to recovery. “Rather than wait for industry to return, Buffalo no longer relies on a single industry or sector.  It has taken a diversified approach and now is the home to industrial, light manufacturing, technology and service-oriented private sector companies that will ensure it has economic growth and stability well into the 21st century”  said Jonathan. He is right.  Buffalo is now a centre for medical and life sciences and has some of the industries’ biggest names located in the city, MT&T a large regional bank has its headquarters here, as have Rich Products, one of the world’s largest family-owned food manufacturers, Canadian brewer Labatt has its US headquarters in Buffalo, to name a few.  Buffalo’s economy has seen significant improvement and growth since 2010, largely down to money from New York state governor, Andrew Cuomo.  The former Secretary of Housing and Urban Development, has pledged what has become known as the “Buffalo Billion” it has brought new construction, increased economic development, and hundreds of new jobs to the area.  This year the Buffalo area economy was valued at $54.9 Billion. Along with one of the biggest property investors in the US Dan Gilbert, Global Investments Incorporated have seen a window of opportunity in the once forgotten city. Buffalo investment properties offer one of the most steadiest property markets in the USA offering investors incredible low priced buy to let property with high returns. For further information or to see the latest Buffalo Investment properties that Global Investments has to offer please contact Jonathan directly at jonathan@globalinvestmentsincorporated.com

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JACKSONVILLE WILL LEAD THE WAY IN 2017

Florida has always been very popular with international property investors. When we think of Florida property investment we think of Orlando, Miami, Fort Lauderdale, Key West and Daytona. Surprisingly the largest city in Florida does not spring to mind, not only is it the largest city in Florida but it is also the largest city in continental United States with over 840 square miles, it is larger than New York. This city also has miles of golden beaches, the largest military base in the US, a booming economy, hundreds of bars and restaurants, championship golf courses, award winning stadiums, three huge shopping malls, one of the largest international airports in the US, some of the best colleges in the US, a large park system, multiple museums and theatres and the list goes on. So what is this city called ? it is called Jacksonville and it is now predicted to be the hottest city for investment in 2017. The reason for this is simple, many of the other cities in Florida are now seen as over priced, high prices and high rents make for low yields, whereas low prices and high rents make for high yields and this is what Jacksonville has to offer. In Jacksonville a typical home will rent for 20.31% more than the average home nationally. The median home price is 23.75 less than the national median home price. This low price and high rent combination represents a cash-flow opportunity that you will not find in more than a handful of markets across the US. With an extremely favourable rent/median home price ratio, it is possible for buy and hold investors to achieve superior rates on return. So let’s take an example, an average single family home in Orlando will cost you around $100,000 and it will rent for between $750-$1,000 a month whereas and average house in Jacksonville will cost you around $60,000 and the rent will still be between $750-$1,000. Therefore this means your capital outlay is lower but your rental income is at the same level, therefore your yield is much higher. Realtytrac one of the largest US property websites have summed it up very well “ Jacksonville is an excellent place for making money in the rental business” Hit hard by the recession, Jacksonville real estate has since made huge strides forward and has caught the attention of just about everyone in the nation. Investcorp recently invested in Jacksonville, citing the city as one of the nation’s “highest growing markets in the US” To be a strategic property investor you need to know what is the next investment hotspot, Jacksonville is the next hotspot and now is the time to invest before prices start moving in line with the rest of Florida. Global Investments Incorporated have been selling in Jacksonville for over 12 months now and all of the properties we sell are refurbished and very well located, we also have a large supply of Section 8 properties where the rent is paid by the US Government. If you would like to see the latest stock that Global has to offer in Jacksonville, please email. mike@globalinvestmentsincorporated.com

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TRUMP – GREAT NEWS FOR DETROIT

Most of the world is split on the surprise election of Donald Trump but the city of Detroit is only celebrating as the President Elect has promised to rebuild the Motor city brick by brick to get it back to the thriving city that it once was. The future president Donald Trump told a suburban Detroit crowd Monday November the 1st that he wants to renegotiate NAFTA and bring manufacturing jobs back to Michigan. Lamenting plans for Ford Motor Co. to move all US small car production back into the Motor city.  “Look at the city of Detroit. It used to be the manufacturing hub of the world,” Trump said. “We are going to rebuild Detroit one brick at a time and and we are going to rebuild Michigan and make it great again.” Global Investments incorporated has been selling homes in Detroit to the overseas market for 5 years now and CEO Mike Moodie sees the election of Trump to be only positive for the city moving forward. Mike was quoted in saying “ Sales and prices in Detroit have been rising for the past 12 months but we can only see the election of Mr Trump to be great news for the city and our current and present investors,  as he is pledging to bring the motor industry back to Detroit and has pledged to bring federal funding to the city in the form of schooling, housing, roads and the general infrastructure. Detroit was built on the motor industry and this can only bring jobs and make the economy stronger. “ said Mike . “ Three years ago the average price we were selling a home in Detroit was $15,000 and we are now selling homes at $35,000. With this great news we can only see prices increasing which makes it a great time to get involved now before prices start rising and returns start falling. “ The Movechannel one of the leading international property sites have stated that Trump’s victory does not dent the US property market’s attraction in the long-term. Since the election result, the dollar has weakened against other currencies, giving international buyers more spending power in America’s real estate. Indeed, the greenback’s recent strength was cited by the National Association of Realtors as a factor that caused international investment volumes to dip slightly year-on-year in March 2016.In the US, 54 per cent of property professionals in a survey by portal Juwai.com said they thought a Trump presidency would increase Chinese investment in American property. Global Investments Incorporated has been leading the way in Detroit property sales, most of their investors come from overseas, Mike and his team have just recently returned from a trip to Dubai where they were holding their first private exhibition and Detroit was there best selling product by far. Mike added. “ We had a great trip to Dubai and we sold a lot of homes, mainly in Detroit. Most of our investors are looking for good valued homes with decent returns, 15-20%. I honestly think that in the next few years we could be priced out of the market in Detroit. In the last seven years Detroit has transformed itself it to a vibrant city again and I can only see things getting better. Finding good stock in Detroit is getting harder and harder for me and I am on to my suppliers every day pushing them on there price, but the bottom line is Sellers know they can achieve higher prices now. “ So it sounds like Mike and his team at Global have there finger on the pulse in Detroit and it seems there is only good news on the horizon for the city and the companies investors. If you would like to see the latest stock that Global has to offer in Detroit, please email. mike@globalinvestmentsincorporated.com

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