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The 2020 USA HOUSING REBOUND

If you have been reading our news articles over the last few months you would have seen that inventory levels are becoming an issue for the US housing market. The solid economy and strong employment numbers are starting to fuel US housing sales, mortgage rates dropped below 4% this past year in the U.S, and this opened the door for many people to refinance current loans. One comment which may seem a bit excessive was made by realtor.com, they predict residential property inventory to “evaporate” in 2020., they state ”it will make it more challenging for buyers to find a home despite attractive interest rates,” the Santa Clara, Cal.-based company states. The driving force behind this evaporation is “Millennials” their buying behaviour has become more aggressive as they want to invest now as the market is rising. Apparently, younger buyers are eschewing inner-city living and have their sights set on 1,800 square-foot homes in the suburbs, with good neighborhoods and decent schools. It is predicted that Millennials will take more mortgages than any other group in 2020. According to other US property sites we are on the brink of “bidding wars” thanks to low mortgage rates and thin residential housing inventories, sellers can expect bidding wars in 2020, Redfin reports. “Low mortgage rates will continue to strengthen home buying demand, but due to a lack of new homes for sale and homeowners staying put longer, there will be fewer homes on the market in 2020 than in the past five years,” the company predicts. “More demand and less supply mean bidding wars will rebound in the first quarter.” While this all seems very positive for the active investor today we must watch the market closely in 2021 onwards as low montage rates are what fuelled the last crash in 2008. CNN stated at the being of the year that Inventories in the U.S. housing market are at multi-year lows. They state that the U.S. housing market is riding high right now but we need to keep an eye on what could be around the corner. The National Association of Home Builders/ Wells Fargo Housing Market Index rose to 76 in December— the highest reading in two decades. Taken at face value, the data suggest that the US housing market is on track for continued strength. The same argument is being voiced by Forbes, they state 2020 will be a challenging year for the housing market. On the one side, there’s a strong US economy that has driven the unemployment rate to record low levels, boosting disposable income, which makes a bullish case. Then, there are low mortgage rates and housing shortages, which add to the bullish sentiment.The Case Shiller Home Price Index in the US reached an all-time high of 218.27 Index Points in September of 2019, making it difficult for first-time home-buyers to afford a home. But maybe we should be listening to Fannie Mae (The Federal National Mortgage Association) as they are the ones on the front line when it comes to mortgages. They state that “Housing will recession-proof the U.S. economy in 2020” The U.S. housing market will be an “engine of growth” for the economy in 2020, dispelling the risk of recession, according to Fannie Mae Chief Economist Doug Duncan. “Housing appears poised to take a leading role in real GDP growth over the forecast horizon for the first time in years,” Duncan said. “We now expect single-family housing starts and sales of new homes to increase substantially.” “We now expect single-family housing starts and sales of new homes to increase substantially, aided by a large uptick in new construction as builders work to replenish inventories,” Duncan said. “Despite the expected increase in the pace of construction, the supply of homes for sale remains tight and strong demand for housing is continuing to drive home prices higher.” No matter which opinion you take or which voice you listen to it is clear that 2020 is going to be a very active year for the US housing market, some say the biggest in 10 years. We have seen this first hand with our inventory levels, properties are being sold quicker now than in 2018 and 2019 as prices seem to be creeping up especially in the likes of St Louis and Cleveland. If you would like to see our latest US inventory please email invest@globalinvestmenstincorporated.com

IT IS THAT TIME AGAIN AS TEMPERATURES DROP IN PARTS OF THE USA.

SPEAK TO YOUR LOCAL MANAGEMENT COMPANY AND ENSURE YOUR PROPERTY IS SAFE DURING THE WINTER MONTH. As the weather is starting to turn cool in Northeast Ohio, we at Global Investments Incorporated are advising all our clients to think about winterising you’re vacant property. To help you out, we’ve put together a guide full of ways to winterise and prevent damage during the cold months. INSPECT INSULATION Most likely your house is already insulated, but have you looked closely at where and how much there is? Many times attics have minimal insulation as builders work only on meeting the minimum requirements. Since heat rises, improving the insulation in the attic can make your heating more efficient. Another area to consider is the basement. While most basement ceilings aren’t insulated, when the temperatures drop plenty of cold air can come in through the floor and ceilings. So make sure you take the time to consider your insulation! FIX DRAFTS We’ve all been next to a drafty window before, and felt just how much cold air can come through a poorly sealed opening. Keep the cold out and the heat in by checking your windows and doors. You can add weather stripping and caulk to areas that could use improvement. Door draft stoppers are another easy and inexpensive way to keep the cold out. Whether you buy a stopper at the store or use a rolled up towel, it’s easy to feel the difference when drafts are plugged up. PREVENT FROZEN PIPES There are a lot of ways that winter weather can make life difficult for property owners. But a frozen pipe bursting can cause an especially big headache. Preventing pipes from freezing is relatively simple though. First make sure outside faucets are shut off and covered. While you’re outside, you can also caulk any cracks or holes near the pipes. You can cheaply and quickly add insulation sleeves to exposed pipes or pipes in cooler areas. And if the cold temperatures get extreme, turn on an indoor faucet to a lukewarm drip. If the building is vacant, or has unused areas, it’s wise to drain the system completely and add an antifreeze. CLEAN YOUR GUTTERS The crisp autumn is the perfect time to clean out your property’s gutters. Dirt, leaves, acorns and other debris clogging your gutters isn’t just a problem when it rains. In the winter months, when roofs are covered in snow, the inner layer can melt and it needs somewhere to drain – and preferably not into your roof! Another wintertime gutter problem can be ice dams forming. Ice dams cause the same problem as debris, filling your gutter and leaving the water nowhere to go. The Insurance Institute for Home & Business Safety is a good source for more info on ice dams and how to prevent them. Owning property is never risk free, and keeping up with maintenance comes with the territory. Hopefully this guide has been helpful and answered some of your winterizing questions. Feel free to contact us or your management company to find out more and also make sure that your house is getting the required service.

2020 Guide to St. Louis Real Estate

Nestled on the banks of the Mighty Mississippi River sits the vibrant gateway to the West, St. Louis. Known for beer, barbecue, and the Blues, this town boasts the kind of appeal that makes it an ideal real estate investment market. With a growing population working in the tech and creative sectors, and anchored by established brands like Anheuser-Busch, Boeing, and Emerson Electric, St. Louis seamlessly blends the new economy with powerhouse Fortune 500 entities. All of those companies translate into a highly skilled and educated workforce with money to spend. We’ve put together your guide to the St. Louis real estate market, including both the current investment scene and future potential over the next year. You may just find that St. Louis is exactly the growth opportunity you’ve been looking for. Global Investments have noticed many similarities in St. Louis that has made the Cleveland market in the last few years extremely strong for Real Estate investment. An influx of creative and tech workers fleeing the more expensive coastal cities will translate into steady growth for the Saint Louis metro area over the next several years. This increase, along with new corporate campuses in the city centre, is expected to result in a significant rental market and increasing property appreciation. With high home prices keeping investors out of markets all over the US, the St. Louis housing market remains one of the more affordable cities in the country. Like Cleveland Ohio, here you can get a single family or multi family home for well under the national average, translating into solid ROI Obviously price is important however one of the main reasons Global Investments are recommending St Louis as the next “ Cleveland” is the strong rental market. Again we have noticed many similarities in these two cities that result in a good rental stability. There is a changing nature of Millennials when it comes to renting rather than owning which is increasing the rental demand in the city, we covered this in a previous Cleveland blog last year : Rental market in Cleveland and Baltimore gets even stronger Cleveland has the University Circle but St Louis also has a reputation as one of the country’s best markets for recent college graduates. St. Louis promises to be a winner with young, educated professionals with high income potential. The growth of the tech and biotech industries here, alongside the already-established corporate infrastructure, offers an appealing place for these Millennial and Gen-Z graduates to put down roots. As development continues to expand throughout the city’s central corridor, many of these young professionals will delay home buying in order to decide which part of the city they want to settle in. Along with their natural tendency to delay marriage, home purchases, and other major life changes, this means a growing group of potential tenants and the rental market in general. The large university population here is another large market predominantly made up of renters. With almost 20 colleges and universities located in and around the city, there is a perpetual need for quality rental housing. Future projects and investment in the City There are also many projects in the pipeline for the city of St Louis that will certainly increase its popularity and increase the house prices which is great for investors looking for capital appreciation. Here is just a few to mention : St. Louis Aquarium The much-anticipated aquarium, slated to open inside Union Station next month, will be home to more than 13,000 aquatic animals, including 60 sharks and rays. The $187 million project also includes the new 200-foot St. Louis Wheel, a carousel, an 18-hole mini-golf course, a mirror maze, a ropes course, a train park, and several restaurants. The project created 500 construction jobs and is expected to bring more than 100 permanent positions. NGA West The $1.7 billion project is the largest federal investment project in St. Louis history. Managed by the National Geospatial-Intelligence Agency, the U.S. Army Corps of Engineers, and the U.S. Air Force, the 97-acre campus in North St. Louis is being called a game-changer for the intelligence community. Slated to be operational in 2025, it will feature a 712,000-square-foot office building with a garage, visitor centre, and inspection facility. Square The company, founded by St. Louis natives Jack Dorsey and Jim McKelvey, will relocate its St. Louis offices from Cortex to the former 235,000-square-foot St. Louis Post-Dispatch headquarters downtown. The move will allow the tech company to expand its workforce from 500 people to as many as 1,400. City Foundry Set to open next summer across from IKEA in Midtown, the $220 million project is transforming the former Century Electric Company site into an entertainment destination, including a food hall featuring 20 kitchens, a bar, and 500 seats. Fresh Thyme grocery plans to open its seventh local store on site, and Alamo Drafthouse Cinema will offer a unique theatre experience. Major League Soccer Stadium Located just west of Union Station, the proposed modern stadium will house St. Louis’ forthcoming MLS team. The partially covered sports facility will seat 22,500–25,500 visitors, with entrances on all four sides and an angular canopy—constructed of translucent material that’ll allow light to pass through—to protect fans from the elements. Armory District The historic Armory building was once home to the 138th Infantry of the Missouri National Guard, years before hosting tennis championships and legendary concerts. Soon, the space will find new life, thanks to a $47.1 million overhaul yielding 250,000 square feet of creative office space, a restaurant, and a greenway path connection. Ballpark Village Phase 2 The slogan for the downtown development’s $260 million second phase: “We’re bringing the village to Ballpark Village.” The project includes the Live! by Loews hotel, a Class A office building, retail, restaurant, and entertainment space, and a 29-story high-rise luxury residential tower, One Cardinal Way, scheduled for completion in 2020. The project is expected to create 1,500 construction jobs and 1,000 permanent jobs. So if you are interested in learning

GLOBAL INVESTMENTS LAUNCH NEW RESIDENTIAL AND STUDENT UK INVESTMENTS DUE TO HUGE DEMAND FROM THE OVERSEAS MARKET

Global Investments Incorporated have been the market leader for the last 8 years in the USA buy to let market and this month they will be launching their own UK Buy to Let products starting with some excellent student accommodation in Sheffield. With prices starting from around £80,000 and net returns as high as 10% the Manchester based firm is excited about their first venture into the UK market. There are many reasons why Overseas Investors are looking at the UK now with many student and residential properties being offered for as little as 50k sterling with steady and assured net returns from large Developers. Also with the pound expected to take a hit over the coming months due to the UKs final exit from the European Union this would mean that the overseas buyer will get more “ Bang for their Buck “ as they say, making this a great time to capitalise on a growing market with some great investment opportunities available. There are many reasons why Overseas Investors are looking at the UK as a potential market to invest in. Whether planning for retirement or opening a second income, investing into property in parts of the UK offers fantastic returns with huge potential for growth at the same time. The last 10 years has seen many people’s life savings stagnate, with record low interest rates being offered by banks. With house prices substantially lower in certain parts of the UK like Sheffield and parts of the North of England this market is accessible for many people who view property as a way to increase their wealth and give an excellent residual income. The company are speaking to some of the leading suppliers of these types of residential and student buy to let houses which will make this market accessible for many of their Investors that have already invested in the US and are now looking at acquiring a tangible asset here in the UK. See some details on the 2 areas that the Manchester based firm will be launching in the coming months. Sheffield – With house prices in Sheffield still at the lower end of the scale compared to most UK cities, this could prove a great location for the first time investor. Property prices have grown by 19.5% since 2014 and an incredible 223% over then last 20 years with huge growth still expected in 2020 and onwards. However its the rental yields that form the biggest attraction. Currently sitting on 7.3% as an average. With a £480 Million Revamp of the cities shopping district vastly improving its amenities, Sheffield’s attraction is only set to continue to grow with tenants, investors, students and visitors alike. Cardiff – The Welsh Capital is certainly one to watch in the coming year. It is one of the fastest growing cities in the UK, recent regeneration and improvements to infrastructure, namely the new South Wales Metro, have improved connectivity and boosted sector and jobs growth in the city. Average rental yields in many parts of the city are between 6-8% and with its population tipped to grow the fastest of most UK cities over the next 20 years, demand looks set to continue to sore. Cardiff should be on any investors hot list for 2020. We asked CEO Mike Moodie why after eight years in the US have they decided to enter the UK and why start with the North of England. Mike added. “ Well this was a very easy decision. Firstly our sales and marketing operation is based here in the UK so we are here on the ground. Yes the US is still an incredibly strong market for us but we have many of our overseas investors telling us that they want to invest in the UK and can we assist them as they want to do business with the company that they already know and trust. Also the fact that the exchange rates will give our buyers outside of the UK more value at this time means it’s a great time for us to start. We have signed up exclusive agreements with some of the top suppliers of residential and student let companies so we will have some of the best products in the market today to offer our investors. Just like we do in the USA. We will also offer the same service as we do in the US meaning that we will have full on the ground management and after sales meaning these investments will be as hands off as possible for our clients. “ “ We are excited about this new venture and believe this will offer our existing investors and new investors a very safe and secure way of entering the UK market at very reasonable prices. “ – Mike Moodie – CEO Global Investments Incorporated. If you would like more information about these UK buy to let opportunities please email Mike or any of the team at Global at invest@globalinvestmentsincorporated.com