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10 Suburbs in Cleveland to find great investment properties

Cleveland is ranked as one of the best places to buy a rental property this year for investors seeking a balanced blend of cash flow and appreciation. Home values have increased nearly 23% year over year as of December 2021, according to Zillow, and many of the best neighbourhoods in Cleveland have more residents who rent rather than own. Although Cleveland used to be known as a manufacturing town, the economy has evolved into a well-balanced blend of high-tech, service, and blue- and white-collar employment. Home prices in Cleveland have increased by nearly 23% over the past year, which may be one reason more people rent than own in many neighbourhoods. In popular neighbourhoods, such as Downtown Cleveland, over 90% of homes are occupied by renters. Although housing prices have increased, popular neighbourhoods like North Collinwood and South Broadway still have median home sale prices of less than $100,000. A recent study by the Cleveland Foundation revealed that Cleveland has a fast growing population, including recent graduates. According to Zumper (as of February 2022), 55% of the housing units in Cleveland are renter-occupied, with rents for 3-bedroom homes up 12% year over year. Cleveland is home to over 2 million residents living in 40 neighbourhoods, so it can be difficult to know where to look first. To ease your search, Global Investments have listed 10 of the most popular suburbs of Cleveland that investors should seriously consider when properties become available. Specific data on each neighbourhood comes from Realtor.com, Niche.com, and Redfin as of December 2021 : Old Brooklyn Located south of Downtown Cleveland, Old Brooklyn is a highly ranked good neighbourhood for investors. The neighbourhood a very desirable area in Cleveland where new construction single family homes fetch over $400,000 Old Brooklyn’s most notable landmark, the Cleveland Metroparks Zoo is a 145-acre park and is one of the 16 nature preserve reservations of the Cleveland Metroparks system. Population : 32,813 Median sale price : $133,500 Change in sales price (year over year) : up 11.3% Renter-occupied households : 44% Median household income : $41,233 ZIP codes : 44109, 44144, 44134 North Collinwood North Collinwood is a unique Cleveland neighbourhood situated on the shores of Lake Erie. Residents enjoy miles of parks along the lake bluffs, which are adjacent to streets lined with beautiful old homes and charming cottages. North Collinwood’s commercial district has become a burgeoning artists’ colony, with the transformation of Waterloo Road and the growing Waterloo Arts and Entertainment District, a highly demanded area for investors : Population : 16,602 Median sale price : $128,000 Change in sales price (year over year) : up 6.0% Renter-occupied households : 59% Median household income : $31,646 ZIP code : 44110 South Collinwood The South Collinwood neighbourhood is a historical area on the East Side of Cleveland, Ohio. Originally a village in Euclid Township along the lakefront, prices have increased considerably due to the popularity and proximity of North Collinwood : Population : 10,076 Median sale price : $60,000 Change in sales price (year over year) : up 21.4% Renter-occupied households : 62% Median household income : $26,569 ZIP codes : 44110, 44119 Glenville Glenville is a popular neighbourhood on the East Side of Cleveland. To the north, it borders the streetcar suburb of Bratenahl and the Cleveland Memorial Shoreway. Glenville is very popular for renters due to the proximity of The University Circle. With its neighbouring town “ Hough “ Glenville has some of the nicest large detached single family homes available in Cleveland. Population : 14,456 Median sale price : $67,500 Change in sales price (year over year) : up 9.9% Renter-occupied households : 57% Median household income : $31,391 ZIP code : 44108 South Broadway / Slavic Village Located south of the city along I-77, the South Broadway neighbourhoods home prices are relatively affordable, and more residents rent than own. This area has been a hotspot for new build projects. Many houses were abandoned back in 2007 and since then been removed one by one. Capital appreciation in this area has been significant and investors willing to look long term will not be disappointed. Population : 16,415 Median sale price : $71,000 Change in sales price (year over year) : up 34.0% Renter-occupied households : 55% Median household income : $26,986 ZIP codes : 44105, 44109, 44125, 44127 Edgewater Edgewater is located along the lakefront, adjacent to the Detroit-Shoreway neighbourhood and just west of Downtown. Home to Edgewater park which features 9000 feet of shoreline, dog and swim beaches, boat ramps, fishing pier, picnic areas and grills. The neighbourhood is highly rated and has a very high percentage of renters: Population : 8,873 Median home value : $214,400 Change in sales price (year over year) : up 5.4% Renter-occupied households : 73% Median household income : $42,703 ZIP code : 44102 Detroit-Shoreway Located between Edgewater and Ohio City, the Detroit-Shoreway neighbourhood is ranked as one of best neighbourhood in Cleveland and It also has a high percentage of renter-occupied households. The Gordon Square Arts District is the hub of growth in this west Cleveland neighbourhood. life is centred around its anchor building—the Gordon Square Arcade, the cultural and artistic centre of western Cleveland. Population : 16,303 Median sale price : $246,000 Change in sales price (year over year) : up 20.6% Renter-occupied households : 64% Median household income : $32,167 ZIP codes : 44102, 44109, 44113 West Boulevard The West Boulevard neighbourhood is located just south of the I-90/Northwest Freeway, adjacent to the popular Jefferson neighbourhood. Bordering on popular neighbourhoods such as Edgewater, Detroit Shoreway, Clark-Fulton & Brooklyn. The area has a dense urban feel, and is another neighbourhood where more people rent than own. Population : 17,070 Median sale price : $108,000 Change in sales price (year over year) : up 22.0% Renter-occupied households : 54% Median household income : $35,441 ZIP codes : 44102, 44111 Mount Pleasant Mount Pleasant is a neighbourhood on the East Side of Cleveland, Ohio. It borders the neighbourhoods of Buckeye–Shaker

The time to Invest is NOW – take advantage while its a buyers market

Over recent years we have wrote several articles on the US housing market and how the market was viewed as a Sellers market. This impacted the availability of inventory and we seen price increases across several States in the US, especially on the West Coast. Now we see something is changing with the market and it looks like we could be entering into a Buyers market, we have seen serval indicators of this in the last few months. Over recent years we have seen mortgage rates hitting decade’s highs as the Federal Reserve has been hiking up its policy rates. The National Association of Realtors have said it is no surprise that the slow down of the market would be inevitable. Rick Palacios Jr., Director of Research at John Burns Real Estate Consulting quoted “If we’re right, nationally we’ve already entered the early stages of a buyer’s market. Should supply levels cross above five months we’ll be watching for flat, possibly declining resale prices in some markets, especially where affordability is already very stretched.So the beginnings of the buyer’s market arrived gingerly at around April or May this year based on national numbers. Goldman Sachs have quoted that the US bank expect prices to decelerate for the remainder of this year and then level off sometime next year, not because demand is falling but because mortgage rates are so high, demand is still very high. This situation causes a bit of dilemma for US house Buyers as they may predict that prices will fall in the coming months but then again will mortgage rates go up again ? And how sure are we that prices will fall if demand is so high and inventory is still restricted ? The higher mortgage rates have no doubt put added pressure and frustration on Buyers. On top of increased mortgage rates and uncertainty about the prices, US Buyers are also facing competition from Overseas, buyers from other countries purchased $59 billion worth of US homes in the last 12 months and 44% of them paid in cash and did not need a mortgage. But if the market is cooling down the plus side for Buyers is that overall it gives them some leverage when it comes to negotiating, multiple bids on the same property is not as common as it was 12 months ago. According to a Redfin report published this week, which showed nearly 49.9% of home offers written by Redfin agents faced competition on a seasonally adjusted basis in June. That’s the first time the bidding war rate has been below 50% in almost two years. The only time we really see prices going above the list price is when there are bidding war. Daryl Fairweather, Redfin’s chief economist stated “And we’re back to a place where bidding wars are unusual, not the norm.” But this does not mean we are going to see a crash, Fitch Ratings Rating Agency have stated “some regional home price corrections” in overheated areas. “Despite the prospects of a home price correction, Fitch deems a housing market crash akin to the Great Financial Crisis highly unlikely,” the company said. “The main reasons are because housing inventory is still constrained, and existing homeowners who have benefited from low mortgage rates are unlikely to sell their properties.” Matthew Pointon, senior property economist at Capital Economics, stated in June that he now projects home prices to fall about 5 percent by mid-2023. So if there is a 5% fall in prices does this mean its a Buyers market, not necessarily but it does mean Buyers are in a stronger position now than they were 12 months ago, there is the possibility of some price negotiating but buyers will need to act when sellers agree to these price reductions as no one knows when this situation can change again. The other factor is the rental market, if sales slow down that means the rental pool starts to dry up, therefore we could see increased rents in several cities. The prospect of increased rents is attractive to Overseas investors and therefore they start pushing the demand again and also the overall return on investment etc. The overall consensus you could take is that house prices have pushed the boundaries of affordability but a boom should not end with a bust. This is a great time to enter US housing market with more properties available than 12 months ago and more realistic pricing. As you can seed from our pricing Global Investments Inc have already started negotiating and getting sellers down on their prices. Get in touch now if you would like us to send you our current discounted inventory… Email Invest@globalinvestmentsincorporated.com

Si pago la tarifa de honorarios y el depósito, ¿estoy 100% comprometido a realizar la compra?

Una gran pregunta que ha surgido recientemente por parte de muchos de nuestros inversores es: “Cuando pago mi depósito a la Compañía de títulos y la tarifa de honorarios a Global Investments, ¿estoy 100% comprometido a cerrar la propiedad específica que he reservado?”. Le pedimos a Mike Moodie, Director ejecutivo de Global Investments INC, que ampliara esta pregunta y aclare exactamente cómo funciona el sistema. ” Absolutamente no. A pesar de que el cliente se haya comprometido a comprar y abonado su depósito en garantía y la tarifa a Global Investments Inc., estos dos pagos son solo para sacar la propiedad del mercado. Luego, pasamos al contrato y a la fase de inspección. El Inversionista debe ser consciente de que cualquier contrato siempre está sujeto a nuestro propio proceso de debida diligencia e inspección”. “Una vez se firma la reserva y el contrato, hay 10 días para realizar una inspección independiente completa. En este momento, se verifican los principales elementos de la propiedad: techo, cimentación, electricidad, plomería y también revisamos cualquier movimiento estructural. Si por alguna razón no el cliente no está satisfecho con el reporte de inspección, simplemente podemos cancelar la venta y los fondos pagados son totalmente transferibles a una propiedad alternativa de su elección. Esta situación es poco habitual dado que nuestros proveedores nos brindan excelentes propiedades. Es decir que normalmente, como sucede con cualquier casa alquilada, la inspección puede revelar elementos menores de mantenimiento. Una vez que estemos satisfechos con el estado de la casa y sus elementos principales, le pediremos al vendedor que se ocupe de reparar cualquier elemento que surja de la inspección antes del cierre. Entonces, la respuesta fácil a esta pregunta es que si el inversionista ha decidido comprometerse a reservar una propiedad específica, no está comprometido a cerrar esa propiedad hasta que la revisemos y estemos satisfechos con la inspección de la propiedad. Sí están comprometidos a comprar una propiedad en los EE. UU. si por cualquier motivo decidimos cancelar la primera reserva. En este punto, el equipo de Global Investments Inc comenzará a trabajar con el equipo de Adquisiciones y encontrará una propiedad de reemplazo que sea más adecuada para el inversionista”. Entonces, si un cliente está 100 % comprometido y ha tomado la decisión de invertir en los EE. UU., mi consejo es que elija una propiedad y comience el proceso sabiendo que Global Investments Inc hará todas las verificaciones necesarias antes del cierre. Sin embargo, si hay alguna duda o no están 100% comprometidos a invertir en los EE. UU., mi consejo sería esperar hasta que hayan respondido todas sus inquietudes y cuando lleguen al punto en que estén 100% comprometidos, entonces podemos comenzar el proceso”. Mike Moodie CEO de Global Investments Inc.

The BIG Question ???

“ If I pay my fee and Deposit am I 100% committed to the purchase “ A Big question that has come up recently from many of our investors is “ When I pay my deposit to the Title Company and my fee to Global Investments am I 100% committed to close on the specific property I have reserved ? “ We asked Mike Moodie the CEO of Global Investments INC to expand on this question and clarify exactly how this works etc.? “ Absolutely not…. Even though the client client has committed to purchasing and has paid their Ernest Money Deposit and fee to Global Investments Inc. These two payments are only to take the property off the market and then we go to contract and then the inspection phase. The Investor must be aware that any contract is always subject to our own due diligence and inspection process. “ “ Once we sign the reservation and contract we have 10 days to carry out a full independent inspection. This is where we would check the main fundamental items in the property. Roof, foundation, electric, plumbing and also we check for any structural movement. If for whatever reason we don’t like something in the inspection we can simply cancel the sale and any funds paid are fully transferable to an alternative property of their choice. ( This its very rare as our suppliers give us excellent properties. ) Saying that normally like with any tenanted house the inspection can bring up minor maintenance items. Once we are happy that the house is in good standing and all the main items are fine we would ask the seller to take care of any maintenance items that are brought up by the inspection before we close. “ So the easy answer to this question is that if the investor has decided to commit to reserving a specific property they are not committed to close on that that property until we review and are happy with the property inspection etc. Yes they are committed to buy a property in the US if for whatever reason we decide to cancel the first reservation. At this point the team at Global Investments Inc will start working with the Acquisitions team and find a replacement property that is more suitable for the investor “ So if a client is 100% committed and has made the decision that they want to invest in the US then my advice is to choose a property and start the process with the knowledge that Global Investments Inc will do all the necessary checks before we close. However if there are any doubts or they are not 100% committed to investing in the US then my advice would be wait until they have all their questions answered and at the point they are 100% committed then we can start the process. “ Mike Moodie CEO at Global Investments Inc.