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Section 8, A Buyers Guide

History of Section 8 Public housing dates back to the Great Depression era when the U.S. government started building multiple unit facilities to house poor and needy families. By the 1960s, the federal government had amended the original public housing plan to allow low-income families to live outside of the public housing system in privately owned rental properties. Under the Section 23 program, the government negotiated the rent between the landlord and the tenant. In the 1970s, the government dropped the Section 23 program and adopted the Section 8 Housing Choice Voucher program, giving both landlords and tenants more freedom. What Is Section 8? The Section 8 program helps low-income, elderly, and disabled tenants afford decent and safe housing outside of the public housing system. With traditional housing assistance, many of these renters had to live in public housing facilities often located in rougher neighbourhoods, with very few other housing options. Using the Section 8 Housing Choice Voucher Program, tenants receive a housing voucher they can use for any privately owned apartment, townhouse, or house that has qualified for the Section 8 program. To start working with the Section 8 program, landlords and tenants must receive approval from the local housing authority. Requirements to become a Section 8 housing landlord and qualifications for renters vary by area. Approved applicants are put on a waiting list, unless housing is immediately available. Public housing agencies can give some preference to families that are homeless, living in substandard housing, involuntarily displaced, or paying more than half of their income on rent. Landlords, tenants, and the public housing agency then enter into a contract that outlines the roles and responsibilities for each of the parties involved. How Section 8 Works Each year, every state receives a block grant from the federal government to cover housing assistance costs. The states use a portion of this funding to cover the cost of the Section 8 program and to pay for a portion of the tenant’s rent and utility costs. Usually, the housing authority will pay around 70% of the tenant’s costs but in many cases can pay 100% of the tenant’s costs. As an example, consider a Section 8 tenant who has a monthly rent of $700 and averages $150 a month in utility expenses. Based on the 70% calculation, the housing authority would pay $630 of the tenant’s living expenses each month, divided between the landlord and the utility company. The tenant will then pay the remaining 30%. Investors misconception regarding Section 8 tenants The Section 8 program can benefit both landlords and tenants. Many investors have the misconception that Section 8 tenants are of lower quality than private renters and that they mistreat the properties. The reality is there are many benefits to an investor having a Section 8 tenant and this simply is not the case. Firstly with a Housing Choice Voucher, tenants can rent houses and apartments in safe areas they would not have been able to afford without assistance, and use their remaining income to pay for other necessities. Section 8 tenants like any private tenant are looking for an affordable property in a good location. Secondly, regardless of your property agent doing all the necessary due diligence on a private tenant there can still be the possibility that they become a bad tenant. If a private tenant is evicted from the property they will just move on to the next one. If a Section 8 tenant becomes a bad tenant they can and almost certainly will lose their Section 8 voucher. If you are removed from the Section 8 program, the federal government will not help pay your rent and you will be responsible for paying the full amount of the rent and you will still be evicted from the property. Most common reasons for losing your Section 8 voucher are: … Not paying rent on time. Not keeping utilities like gas, electric, or water on in the unit or you have been convicted of certain violent crimes, certain types of fraud, drug trafficking. Global Investments advice & Honest assessment The simple fact is a Section 8 tenant has a lot more to lose than a private tenant if they abuse the property or generally become a bad tenant. The majority of our investors have very little problems with Section 8 tenants, however it is fair to point one very important factor, cost, your property will need to be maintained to a “ Section 8 standard “ One of the main reasons Global Investments are the number 1 overseas agent for investment properties in the USA, and the reason why we are still in business after 7 years and over 4000 sales is our strict company model. Each and every property our clients reserve are all subject to a full independent inspection. Our inspection will highlight any major issues or repairs we feel needed to be up to rental ready standard regardless if there is a tenant already in place or not. However a rent ready standard and a Section 8 approved standard are two separate things. If you wish for the property to be up to Section 8 standards then buyers may wish or decide to spend a small amount more on the property to comply with the City’s regulations and this is good advice. In the long run with any buy to let property the peace of mind that you should minimise any repairs bills means a more stable ROI and a more stress free hand off investment. Purchasing renovated or updated properties may cost a few thousand dollars more but worth every penny in the long run. Do not be tempted by cheap alternative properties online that do not have warranty deeds and may need a huge amount of repair work. As the old saying goes and is very true, you get what you pay for. If you would like receive a selection of our Section 8 listings in the US please email: invest@globalinvestmentsincorporated.com

Rental property investment could be the safer option in today’s struggling stock market

With COVID-19 causing unrest and uncertainty across the globe, investors could benefit from a bricks and mortar solution to their concerns. Coronavirus is dominating every headline and every conversation, and seems set to do so for the foreseeable future. This has left people around the globe concerned and confused, following official measures such as regular hand-washing working from home and self-isolation. Everything from the healthcare industry to the corporate world has been hugely impacted by the spread of COVID-19, so it’s no surprise that investors are feeling more than a little cautious at the minute when it comes to putting their money down. This can be seen most clearly in the stock market. The FTSE100, NASDAQ and Dow Jones have all seen catastrophic drops recent weeks, crashing harder than we have seen this century. So, for those looking to find a safe home for their money and an astute investment, many investors are looking for something more concrete: buy-to-let property. Could this be the solution for your investment concerns? We’re going to take a closer look at the situation surrounding the coronavirus, the stock market and rental property investment. COVID-19: the impact on the stock market The word ‘disaster’ has been thrown around a lot recently when describing the state of global stock markets. More than once, stock market commentators have compared the current situation to the devastating US stock market crash of 1987. Just a few days ago — on 12th March — the Dow Jones industrial average declined 2,353 points in what was called a “historic selloff” by The New York Post, one which hadn’t occurred since Black Monday in 1987. Black Monday was the name given to 19th October 1987, when the stock market dropped by 22%. The Dow index closed that day at 1,738.74, down 508 points for the session. To put that in perspective: on 16th March 2020, the Dow fell a record-breaking 2,997 points. Investors are turning to rental property As the coronavirus continues to dominate, Global Investments Incorporated have received a significant number of enquiries for US buy to let properties. These enquiries are coming from all over the world, from areas like Dubai, Singapore, the UK and France. This growth in interest can be seen as investors look to put their money in something demonstrating greater stability right now. “ In these trying times, we’re all looking for something to anchor us. This is true of our investments too, which is why increasing numbers of people are opting for bricks and mortar investments instead, particularly single and multi-family homes under good management. “ Mike Moodie . CEO Global Investments Incorporated. Why choose buy to let? Property investment offers two distinct forms of revenue — a monthly rental income from those letting the property and of course, the lump sum received when a property sells in the future with potential capital appreciation. Buy-to-let investment is seen as a longer-term process, which, considering today’s climate, is a good thing. The coming weeks and months may be uncertain for us all, but one thing is for sure : people will still need property both during and following the coronavirus outbreak. Property investment means putting money into something tangible — something that can be seen, touched and experienced by both yourself and others. In times of uncertainty, there is comfort in knowing that your money is yielding a strong return and growing in value as the months and years pass. Looking to take advantage of buy to let opportunities? Speak to a member of our team today and we’ll help guide you through the process. Email Mike or any of his team at Global at invest@globalinvestmentsincorporated.com

HOW CAN I GET THE BEST FX RATES FOR MY PROPERTY PURCHASE

With the current volatility in the stock and FX markets and in times of uncertainty it’s vital to ensure you are speaking with a specialist, not only to obtain the best guidance, but also the reassurance to know you are making the right choices when changing your currency. Just like the stock markets, the currency markets have become increasingly volatile. The US Dollar, Japanese Yen and Swiss Franc have all benefited as investors look for safe-havens to park their money whilst riding out the crisis. This week the GBP/USD exchange rate fell to a low not seen since 1985. GBP/EUR continues to remain suppressed, whilst EUR/USD to its weakest point since 2017. The situation is ever-changing, and continued volatility is to be expected. For those sending money to the USA to buy property, make investments or to friends and family, the current exchange rates can be challenging, which is why we want to introduce you to our trusted partner The good news is that when you’re rents are brought back from the US you will see a gain as well. For the last 40 years, Moneycorp have been helping customers make the most out of their currency payments. Together with better exchange rates than most banks, offering you immediate savings, their expert traders are available to talk through current market conditions, giving you the confidence to transfer your money at the right time. You can find out more about their service from any of the team at Global Investments, or to discuss an upcoming transfer or simply just have a chat about currency expectations, please email michelle@globalinvestmentsincorporated.com and we can send you a direct introduction where you can speak to a specialist and set up your own account.

Overseas Investors Plunge into the US Housing Market as a Coronavirus safe Haven

In the past few weeks Global Investments Incorporated has seen huge traffic on their website and a large increase in enquires for US buy to let properties. The majority of enquiries are coming from areas like Dubai, Singapore and the UK. Many investors from France as well. So mainly overseas and not domestic US Buyers. The Manchester based firm believe that the increase in traffic and enquiries is down to the overseas buyers looking to invest Capital into what is perceived to be a more stable market that is not having much effect from then virus. Investors from all of the Globe are looking for the calm in the Coronavirus storm, and it seems that US residential real estate could be the answer. Specifically single and multi family homes that are under good management. Global Investments Incorporated have been selling single and multi family homes in areas like Detroit, Cleveland, St Louis and Up state NY for the past 8 years. They also offer management and accountancy services so its a real hands off investment for the buyer. In the past few weeks the company has seen a massive increase in enquiries. CEO Mike Moodie said that that he feels this is a direct result of the coronavirus. “ I think it may be people looking to invest capital into what maybe perceived as more stable areas that don’t have as much as an affect like the stock market currently.“ Mike added “ I think people are looking at bricks and mortar as a hard and more safe asset to buy right now. Real estate in general is not directly related to the stock market. Also in general the US housing market has always tended to do quite well in times of market volatility. “ “ And it’s not just buyers from the likes of Asia etc. We have seen an increase in traffic and enquiries from areas like the UK, France and also some parts of the US and South America.” Global Investments are currently selling houses mainly in Cleveland Ohio, Detroit and St Louis. For further information please email Mike or any of the team at Global at invest@globalinvestmentsincorportaed.com

Why invest in Student Buy to Let Property

Global Investments has been leading the way in the buy to let market in the USA for the last 8 years with more than 5000 sales completed. Now Global Investments are offering unique investment opportunities to our global investor database in the UK student buy to let market. We thought it best to explain in this blog the main reasons and the benefits we feel that makes the increasing market of Student accommodation here the UK an attractive proposition for the savvy investor. Today it is difficult to find investment assets that pay a decent income. There’s no value in putting your cash in the bank thats for sure. The dividend yield on the FTSE 100 is a measly 3.66%. One of the reasons for Global Investments success is that we reach out to the extremely wealthy investors but also the first time property investors who do not wish to gamble and spend huge amounts of capital but are equally looking for a good yield with relative safety. Our USA investment market continues to be popular due to the minimal financial input to purchase a property in certain states. Being a UK company many of our investors have tended to shy away from UK property in the past mainly due to the cost of UK property with low yields available. Most would require finance that would also ultimately eat away at the yield potential. Fortunately there is now a great alternative for these investors. Large developers in the UK are building dedicated luxury student accommodation projects. The result is a secure UK property investment with guaranteed rental income with attractive yields but more importantly at a low entry level of capital investment. The following are the top 5 reasons why we feel investing in student UK but to let property makes sense : 1. Student numbers are soaring The UK is arguably the number 1 Country that many overseas students look at for the best in further education. Our Universities are second to none and students from all over the world, especially China and the Far East are increasing year after year. The UK is consistently increasing in popularity to international students, with thousands of ambitious students choosing to pursue their qualification in one of the many top-notch UK universities. With its world-recognised universities, culturally diverse environment, and highly-skilled academic staff, the UK is truly the epitome of academic success. There are more young people entering further education than ever. According to 2018/2019 statistics from the Higher Education Statistics Agency, there are currently 485,645 international students pursuing their degree in the UK. The number has experienced an increase from the previous year statistics which encompassed a total of 458,520. The trend indicates that numbers will continue to rise and all of whom need accommodation. 2. Universities can’t keep up with the demand for accommodation Traditionally, students would stay in halls of residence at the university in which they studied. But with the soaring demand, there simply aren’t enough rooms available on campus. Many universities now only allow first-year students to stay in their halls of residence. Even so, many first-year students won’t get a room. Second-year students and beyond partner up with their friends and rent private accommodation. 3. Student accommodation is recession-proof People don’t stop going to university during a recession. In fact, the opposite is probably true. When fewer jobs are available, school leavers are more likely to consider a course of study. So, student accommodation is recession-proof, providing a greater certainty of income for the buy-to-let investor. 4. Purpose-built student accommodation is attractive Purpose-built student accommodation provides all the benefits of living in halls of residence. For example, there are common rooms, Wi-Fi, and study areas. The best are only a few minutes’ walk from the university, and close to local nightlife, shops, and work opportunities. If you invest in purpose-built student accommodation, you eliminate many of the disadvantages of HMO v BTL investment while retaining the benefits of higher yield and shorter void periods. With a good track record to back up the yields going forward, purpose built student accommodation that is already up and running gives investors certainty they’re craving. 5. Your property investment is managed Custom-built student accommodation usually includes property management. It may be provided by the university itself, or by the building administrators. You benefit from ‘boots-on-the ground’ investment management that is active and proactive. So to sum up, For a beginner property investor, the dynamics of student accommodation provide a greater certainty of income. The yield may be a little less than a more risky purchase but the current projects that Global Investments have acquired offer great yields of up to 10% with full management in the best locations, a truly worry free hands off investment. For more details contact us now…..