Latest News

Welcome to Rochester City the next investment hotspot

Global Investments Incorporated are pleased to announce the new launch of Rochester City New York. Ten years ago we started our company selling properties in Upstate New York and we then diversified into other States in the US. We lead the way in cities like Cleveland, Detroit, St.Louis and Baltimore and have now come back to Rochester as it has been ear marked to be the the next best investment city in the US. We have been working hard to get our clients the best priced properties available today, Rochester has seen large capital appreciation in the last 10 years due to huge investment taking place in the City, by partnering with the largest Agents in Rochester including Remax we have managed to secure the best performing properties available. So why is Rochester City on the radar for the next best investment hotspot ? At the moment the City of Rochester is looking for input on how to invest $202M in federal funds it received into the City, this does not include the millions that have already been invested. The $202 million is part of the $65 billion distributed to cities nationwide as part of the stimulus bill. The money will be used over a two-year span, the city already received $101 million in the middle of May. Rochester over the last few years has seen $115 Million in new capital investments from several great stable companies such as, General Motors, General Electric, Natcore Technology, and Alpina Foods just to name a few. The economy in Rochester is the 4th largest in the state, driven by a diverse mix of industries including science and technology, research and development, and advanced manufacturing. According MIT Economics Rochester is the top metro in the US for future growth and strategic investment in tech innovation. With a work force that produces more patents and the 2nd most renewable energy patents in the world. Rochester is in the top 5 in patents per capita (Forbes). Rochester, NY is recognized as one of the 25 most innovative cities in America based on patent registration and advanced degrees. Rochester is the third most populated city in New York State, after New York City and Buffalo. The colleges and universities attracts students from all over New York State including New York City, In U.S. News and World Report’s 2021 evaluation of nearly 18,000 public high schools, 10 schools in the Greater Rochester, N.Y. region are among the top 10 percent. News & World Report also stated that Rochester is the 13th Best Place to Live in the U.S. for Quality of Life. Short commutes and high-quality education were key factors. Rochester has a great quality of life and a low cost of living, making the area attractive to families and millennials . The population of Rochester is just over 205,000 with more than one million residents living in the Rochester metropolitan area. The City offers its residents a very quick commute time, you can be anywhere in the City within 20 minutes. You also have Rochester International Airport, you can be in NYC, Chicago, Pittsburgh, Cleveland within two hours or less, the commute time is 25% shorter than the rest of the nation. To summarise the key points of why you should be looking at Rochester Very stable housing market showing good capital appreciation. Strong cap rates with established management companies. High quality of life with low living costs. Huge investments in the city from the US Government and private sector. Large influx of millennials relocating. One of the best education systems in the US Easy commute time and accessible to many large US Cities Many stable anchor companies, industries, medical and universities Excellent medical facilities and Universities Healthy business economy Great schools, world-class attractions, year-round festivals and cultural events, and a low cost of living. The Greater Rochester, NY region is the real deal. If you would like more information on our great properties in Rochester please email [email protected]

Downtown Milwaukee is booming

According to the Milwaukee Business Journal Milwaukee is in the middle of a construction boom. Major investments in districts, hotels, The Hop streetcar, office and residential buildings, and highways reflect the innovative vision adding to Milwaukee’s ever-changing cityscape There are so many new developments taking place in Milwaukee it would be impossible to cover all of them in one article but here is a snippet of some of the main ones that are changing the City landscape. New business and financial developments: The Wisconsin Center is preparing for expansion, bringing Milwaukee’s convention center to an anticipated 480,841 sq. ft. total convention center space. BMO Harris Bank’s construction of a $137 million 25-story office building near City Hall is nearing completion. Grand Avenue Mall is being transformed into The Avenue with office and retail space including the 3rd St. Market Hall and Hub640. Hotels: JR Hospitality Group is creating a new hotel complex under the Holiday Inn Express brands. The Milwaukee Athletic Club, former Wisconsin Avenue School, and Humphrey Scottish Rite properties are being renovated and turned into new hotels. The Hop: Milwaukee’s streetcar, The Hop, is extending to Wisconsin Avenue, creation of a plaza on the corner of Vel Phillips and Wisconsin Avenues, expansion into the adjacent Bronzeville and Walker’s Point neighborhoods, and routes to the lakefront and Fiserv Forum. Gateway Project: A multi-million dollar project upgrading roads and park areas to improve connections between the lakefront and downtown Milwaukee. Amphitheater: Summerfest completed construction of the new 22,000-seat American Family Insurance Amphitheater opening during the 2020 festival season. Revitalized Districts: Built on the 30 acres surrounding the new Fiserv Forum arena, the Deer District is Milwaukee’s downtown sports and entertainment hub. In the new Brewery District, businesses such as Best Place at the Historic Pabst Brewery, The Captain Pabst Pilot House, The Brewhouse Inn & Suites, and NO STUDIOS have repurposed the historic Pabst Brewing buildings. All of this development has coincided with a huge increase in property sales, a record 10,450 homes sold in the Milwaukee area during the first half of the year, housing sales were up 15.3% for the first six months as compared to last year. GMAR President Mike Ruzicka stated that the systemic problem with the market is the lack of new construction of single-family houses and condominiums. The number of homes listed for sale in the region is up. But the inventory of available listings is at about 3 months. A balanced market has about six months of inventory. If the City does not create additional supply in the form of more single-family homes thousands of would-be homeowners will be forced into rental units. Throughout the last two decades, the city has begun to make strides in revitalizing its neighborhoods around Downtown that used to house Milwaukee’s economic engines. Areas like the Third Ward and Menomonee Valley have converted former warehouses and factory buildings into office and residential mixed-use buildings, while incorporating new entertainment venues like the 381-room Potawatomi Hotel & Casino. The surge in activity has created a domino effect on Downtown and has made it an ever popular place to live, work and play. It’s an exciting time in the city and this new growth promises even better things to come over the next five years, It doesn’t matter how you measure it Downtown Milwaukee is booming. If you would like more information on our Milwaukee properties please email [email protected]

Real Estate vs Stocks

It’s important to understand that real estate vs stocks is not comparing apples to apples. Real estate is a tangible asset that you can visit and touch. No matter what happens with the property market, your real estate will never go away. A stock is a share of ownership in a publicly traded company. Most companies have millions of shares, so most investors own an insignificant share of the company. If the market tanks and the company fails, the stocks will no longer have any value which is one of the biggest risks in stock market investing. The stock market does offer some advantages, though. Stocks are a more liquid investment because they are easily sold. Unless you’re trying to unload an enormous amount of stocks at once, you can typically liquidate your stocks within a day or two and have the cash back in a current account. Investors can also get into the stock market with little money compared to real estate. Some apps even allow people to start investing in stocks with as little as $5. With the lower cost of entry, stock portfolios are easy to diversify across many different companies and index funds. To decide which type of investment is best for you, we’ll look at how each one provides you with a return, then look closer at the benefits of each type of investment. Sources of a return on investment are: Cash flow Capital gains Equity CASH FLOW One of the most attractive things about real estate investing is the cash flow. Whether investing in residential rental properties, multifamily properties or commercial real estate, the idea is to earn a profit each month from the rental income. The cash flow from real estate provides consistency in income, regardless of whether the real estate market is up or down. The cash flow from real estate is used to calculate the capitalization rate, cash-on-cash return, and the internal rate of return. Some stock investments pay dividends to investors. These dividends are usually paid quarterly and are a pro rata share of the company’s profits. ( Not all stocks provide a dividend ) The dividends are normally a fixed percentage of the current stock price, not the amount you’ve invested into it. If the market is down, your dividends will be low. If the market is up, your dividends will be higher. Mutual Funds are often heavily invested in dividend-paying stocks. Some mutual funds allow investors to have their dividend payments reinvested into the fund to increase their returns even further. CAPITAL GAINS Capital gain is the profit earned from selling an asset for more than you paid. Most of the profit earned from stocks is from capital gains. You purchase a stock that you believe will increase in value over time. That’s where the term “buy low, sell high” comes from. Capital gains can also be a significant source of income for real estate investors. If you buy a property when the market is down and sell it when it’s up, you can get a significant return. More commonly, though, people earn capital gains in real estate by increasing the value of their property. By improving the property and increasing rents, you can force the appreciation of the real estate and earn capital gains. A clear benefit that investors see in real estate over stocks is having control over how well it performs. With stocks, you’re relying on the market to improve so your stock value goes up. With real estate, you can increase a property’s value no matter how the market is performing. EQUITY Building equity is a benefit that’s more specific to real estate. When you collect rent each month from tenants the rent collected is paying off the original investment amount and building equity in the property which normally would be also appreciating over time. Over time you can build a significant amount of equity that the tenants paid for. Equity build is an often-overlooked benefit. Investors don’t usually consider the amount of profit they will earn when they cash out on the equity built while they owned the property but this is a huge aspect of owning property over stocks. EFFORT IN REAL ESTATE VS STOCKS Depending on your investment strategy, the amount of effort that goes into investing in real estate vs stocks can vary greatly. Somebody managing their own rental property will have to put a lot more time and effort into their investment than somebody who simply invests in an index fund that follows the S&P 500. This is why at Global Investments we work with excellent local management companies that take away then stress and time it can take in managing your own properties. THE RIGHT INVESTMENT FOR YOU Real estate investing has a ton of benefits, but the time, energy, and money that goes into getting started can be overwhelming. Finding the right property, negotiating terms, getting insurance then managing the property is a lot of work. This is one of the main reasons people may choose a company like ourselves to take the hard work away from investing in Real Estate. At Global Investments we hold your hand from finding the right property, getting a survey and inspection, negotiating with the seller, the hand over to your management company and also keeping in touch even after the property has closed. We have turn Key opportunities in Cleveland Ohio, Detroit, St Louis and Michigan & and also have a great portfolio of stick here in the UK. Both residential and Student Lets. Prices from $45,000 with Net Cash on Cash Returns of up top 20% Net. For more information on our latest inventory in the US or the UK please email [email protected]

Global Investments talk about the UK Property Market

This month we are looking at what’s happening in the UK Property market. Savills are predicting in a recent report more growth to come in 2021 and a soft landing in 2022 with UK mainstream house price growth forecast +9% in 2021. The average UK house price has continued to rise strongly in 2021, increasing by +5.6% in the first six months of the year according to the Nationwide index. The signs are the market looks set to maintain growth for the second half of the year meaning Savills expect annual house price growth across the UK as a whole to end 2021 at 9%, and with transactions to exceed 1.6m for the first time since the credit crunch Savills also expect transaction levels to diminish gradually over the remainder of this year as government support for both the housing market and the wider economy is withdrawn. However, the pace at which sales continue to be agreed suggests that national transaction levels will still end the year at circa 1.62m. That is roughly 35% higher than the average for the five years prior to the pandemic, despite an acknowledged shortfall of available supply to meet demand. A soft landing seems likely. The pace of economic recovery means unemployment levels have been contained and are forecast to progressively return to pre-pandemic levels and Interest rate rises are still expected to be gradual and modest, meaning a progressive squeeze on affordability. Together, Savills believe, this means there does not appear to be a trigger for a major house price correction. Ultimately, the pattern of growth over the period 2022–2025 depends on the extent to which the market normalises and what this means for price growth next year. While at this point, we are forecasting price growth of 3.5% next year, we could still see some of the growth generated by the extraordinary market conditions of 2020 and 2021 unwind at times during 2022. Regionally we continue to expect the markets of the Midlands and the North of England to show the strongest price growth as has occurred historically at this point in the housing market cycle, due to greater capacity for growth before hitting affordability ceilings. However, in the short term, we do expect some of the buyer focus to shift back towards urban markets, including London, as social distancing restrictions and international travel restrictions ease. This will see the ratios of regional to UK average values slowly converge over the next five years, as the lower value regions see stronger growth, ‘catching up’ with the rest of the country. This is what we’d consider typical late cycle behaviour. At the end of the day house prices and yields, have traditionally increase over time in England, with a stable economy and government. The World looks to invest here, and this will likely continue. Global Investments offer several ‘off plan’ and ready property investments in the Midlands and the North of England including apartments in Liverpool, Manchester, and Birmingham, some with guaranteed returns. Also on offer are Freehold Houses in the Northeast, refurbished and offered to market with tenants in situ. If you are interested in investing in UK Property and would like to know more, please contact us. Source: Savills Research using Land Registry and Nationwide

Single or Multi Family Homes ? What property investment is best for me?

The Preston City Centre Social and Business infrastructure is forecast to grow by £1bn over the next decade

Global Investments have recently started to offer the latest property investment offering in Preston, ‘The Exchange’ an exciting new development situated in the City Centre. Developed by The Heaton Group who have been developing for 45 years through 5 generations of The Heaton Family, The Exchange property investment comprising 200 stylish apartments offers a new standard of premium modern living to the local rental market. The development is Fully funded by HS Credit which is a subsidiary of a large international funding group called Hap Seng (market cap £4.5bn) Last year rents in Preston rose by 4% almost double the national average. Preston is flying, just check out some of these figures! Surely now is the time to be part of this continuing success story? The ‘Tempest programme’ of developing a future Combat Air system brings together UK Ministry of defence, BAE systems, Rolls Royce and MBDA UK is expected to generate at least £7.9bn GVA. The programme will support on average 5,000 highly skilled jobs per year directly employed on the programme and in the first tier of the supply chain. Providing productivity 31% higher than the Northwest manufacturing average. High Speed Two (HS2) is coming, the Government’s planned new high-speed railway, which will connect the North of England and Scotland with the Midlands and London. High Speed Two Limited (HS2 Ltd) is the company responsible for developing and promoting the new rail network. In July 2017, the Government confirmed the route for the next phase of HS2, known as Phase 2b, including a ‘western leg’ section running north from Crewe to Manchester and connecting to the West Coast Main Line near Wigan. HS2 Ltd has been developing designs to include changes to existing stations, including Preston, that will need to be made so that services can run along the West Coast Main Line to and from Scotland. Phase 1 target completion is 2026 (1 year of testing included) and Phase 2 target completion ranges from 2027 to 2033 (including 1 year of testing). At Preston the extension of the station will be complete in 2028 and open in 2029. It is expected four HS2 trains an hour will serve Preston station when Phase 2b is completed. Changes at the station will be made to accommodate the trains which will be up to 400 metres long. Two platforms will be extended and a new platform on the western side of the station will be built. The benefits of high-speed rail will be felt in Preston before this work starts, as new services will be introduced when trains start running on Phases One and 2a of HS2 between London, Birmingham, and Crewe. When these first phases open, services will run south from Preston on the existing railway to Crewe before joining the new high-speed railway to London and Birmingham. The Preston City Centre development ‘The Exchange’ due to complete in 2023 will offer to its residents an onsite Gym, Concierge, residents lounge and roof garden. With prices starting for apartments from around £131,000 for a one bedroom, £216,000 for a two bedroom and £234,000 for a three bedroom ‘The Exchange’ is very competitively priced with rental returns of 6% net. If you would like to consider adding ‘The Exchange’ Preston City centre to your property portfolio, contact us at Global investments to explore the options available. For further details on The Exchange and other UK property Investments please contact Ian Pask at [email protected]

Is the USA housing market overheating ?

A few months back we did an Article on the predictions of the US housing market for 2021, we stated that inventory levels are running at an all time low and prices were beginning to rise. Fast forward six weeks and now we see a housing market staring to really heat up, some have stated the market is on fire at the moment. In nearly every US city right now, homes hitting the market are sold within hours not days, we have started to see bidding wars and the Buyer with the most cash wins. After large gains over the past five years, the nationwide nominal house price index is now 40% above its 2012 low-point and 4% above the peak reached in 2006. The circumstances contributing to today’s booming housing market are very different from what precipitated the last boom and bust cycle, there are few places where real debt per capita has increased over the past few years So why is this happening now ? surely this boom can not all be accountable to a resurgence after a global pandemic ? It is a combination of unique factors that are coming into play at the same time. First of all you have the issue of new built property, these have not kept pace with the growth of population since the 1920’s, it is in constant catch up mode. Then you have a change in Buying patterns, professionals and individuals who can work from home are buying homes to work at home and are therefore changing housing preferences. Another recent trend over the last 12 months is the shifting geography of housing demand to lower-density markets and historically low interest rates. Many people moved from city dwellings to suburbia as we all learned to adapt to the online business world. You also have the Millennials, tens of millions of Millennials have simultaneously entered the market looking for their first property, this has happened right across the US and is one one main factors leading to bidding wars, they are creating a nationwide generational housing supply shortage. On the Buyers side you are also seeing low mortgage rates which means the market is healthy for buying. Paul Lueken the chief executive of Draper and Kramer Mortgage Corp stated “As the Covid-19 vaccine is distributed, the economy will begin to open up and recover. Economic activity will most likely return to pre-pandemic levels by late 2021 or early 2022. The Federal Reserve will continue to support a low interest rate environment for much of 2021, and mortgage rates can be expected to remain low for most of the year. Home sales will therefore stay strong due to the low interest rates and the recovering economy” You also have a change in buying behaviour been fuelled by technology, you can apply for mortgage online, purchase you property online, order your inspection online and close your property online, buying a property is becoming more virtual and easily accessible. So what does all of this mean for investors ? Is this a temporary bubble that could burst or are we facing long term shortages and increasing prices ? To answer the unknown is obviously very difficult but we can look what other property experts are saying. Cision Newswire ran an article recently named “Redfin Reports Home Prices Surge 17% Amid Historic Housing Shortage” in the article it made reference to how Redfin worked on a metric system to show how the market in increasing so quickly, they compared metrics to 2020. Metrics to compare to 2020: *Asking prices reached an all-time high of $353,750. *Homes that sold during the period were on the market for a median of 23 days, the shortest time on market since 2012. This was 15 days fewer than the same period in 2020. *43% of homes sold for more than their list price, an all-time high. This was 17 percentage points higher than the same period a year earlier. *The average sale-to-list price ratio—which measures how close homes are selling to their asking prices—increased 2.1 percentage points year over year to an all-time high of 100.7%, meaning the average home sold for 0.7% more than its asking price. *59% of homes that went under contract had an accepted offer within the first two weeks on the market. This is a new all-time high (Redfin’s data for this measure goes back to 2012). *46% of homes that went under contract had an accepted offer within one week of hitting the market, an all-time high. They also stated “Demand for Second Homes Is More Than Double Pre-Pandemic Levels” “The combination of the wealthy becoming wealthier, remote work turning into the new normal and low mortgage rates is creating an ideal environment for affluent Americans to buy vacation homes,” said Redfin Chief Economist Daryl Fairweather. “As long as the economy continues to grow, I don’t foresee demand for second homes slowing down anytime soon. All of which means that even if America’s housing market keeps breaking its own records in the short term, says Redfin’s Marr, it’s also fueled this time around by factors far different than the bubble that preceded the mortgage backed securities crash of 2008. So therefore if it will not be another crash what will cause a slow down in the future, what will it be ? prices can not keep going up for forever. There is no certainty to this answer but looking at other over heating housing markets we have seen that mortgage rates will tend to increase which will slow down home appreciation, this normally brings prices back in line with current salaries. Overall we are in a better position than before the Crash of 2008 which is great news if you are thinking of buying a property now, you just need to battle through getting the right property at the right price and not enter a bidding

USA INSURANCE – F&Q’s

If you purchase an investment property in the US you will need to have buildings cover just in case your home is damaged and needs repair. If you’re a landlord it is your responsibility ( although it’s not compulsory ) to have at least public liability insurance.Of course there are many insurance policies available to cover any eventuality worldwide. For a buy to let property the two most important aspects of cover which are imperative are buildings insurance and Liability insurance.Whichever state you purchase in, Global Investments will help you obtain the correct policy that has you covered, with different programs to suit all investors. You can protect your investment from as little as $1 per day or less! For maximum convenience you can chose to pay monthly or pay for a whole year up front.The coverage we recommend is what’s called ‘Special Form’ or ‘All Risks’, which means if it’s not specifically excluded, it’s covered. This ;policy covers Fire, Theft, Vandalism, sometimes called malicious mischief (VMM). You can Insure for the amount you want without the penalty of co-insurance, on most plans.Most common FAQ’sI’m looking for the best price as possible, what’s the lowest amount I can insure for?The minimum amount is $45 per square foot, but that’s not the recommended amount, you must decide that yourself.I’ve paid $50,000 for my property, I’ve got a real bargain, can I insure it for more?Yes you can, but there are a few thing to bear in mind. It doesn’t matter what you insure for, the insurance company won’t pay you more than it’s worth/what you paid for it. Insurance is there to “make you whole again” not to make you a profit. If you’ve bought a property for $50,000 that needs a $50,000 rehab and you insure it for $100,000, if it burned down before you did the rehab, you’d probably only the $50,000 you paid for it.What is ACV?ACV is Actual Cash Value and is different from the Replacement Cost. It’s basically what the property is worth after taking into account wear and tear and ignoring market conditions. A bit like a car goes down in value as it gets older. This is typically used in lower markets in the US where property has reduced is value due to economic circumstances. In some cities you can buy a house for $50,000 but that same house would cost $150,000 to build. You’d insure it for the ACV of $50,000 because in the event of a total loss, you’d simply clear the site and buy a replacement home for $50,000 not spend $150,000 rebuilding a new one. The Programs that can be offered include options to insure for either ACV or RC.What is RC?RC is Replacement cost, it is the amount it would cost to replace the property in the event of a total or partial loss. The cost of insuring for RC is typically much higher than insuring for ACV. If you look at the above examples insuring for RC of $150,000 would cost 3 times as much as insuring for $50,000 ACVI don’t have to worry about maintenance, that’s why I’ve got insurance, right?Wrong! This insurance is not a maintenance program and the property must be properly maintained as part of the policy conditions. If you don’t maintain your property, the insurance company is likely to deny your claim.My property manager want’s to board-up my vacant property. That’s expensive and I want to save the money. Insurance will cover me for a break in, right?No. Your property manager is acting in your interests. Not only are they trying to protect your investment, but the policy conditions state that you must secure your vacant property appropriately. Which may require boarding it up. Failing to do this may result in a reduced or denied claim. This can also apply to freezing pipes bursting in the winter. A good property management company will “ winterise “ the property. Should you claim for burst pipes in a property that has not been winterised then the insurance company is likely to deny your claim.I’ve got 2 properties, can I have a discount for bulk?No. it doesn’t matter whether you’ve 1 or 100 properties. Insurance brokers treat everyone the same. The price you pay is what the underwriters quote for each case.I want a different deductible, can you find me a different policy?Unfortunately not. Insurance agents simply run several master insurance programs that allow our clients to add their properties to, you can chose the most appropriate one for your needs, but cannot source a different one or amend the ones they offer for you.I want to pay once a year, can I do that?Yes you can. There’s no difference in cost at all. If the payment option is monthly the insurance company simply multiplies the cost by 12. Your payment sit’s in their client escrow account and they draw it down each month. If you no longer need the cover the insurance company simply refunds the unused portion. If you wish to learn more or you have any specific technical questions relating to insuring your overseas investment property Please feel free to contact us on : invest@globalinvestmentsincorporated

The Cleveland Real Estate Market 2021

Cleveland Ohio has been the best selling product for Global Investments for the past 3 years and is still going strong with a huge demand by both overseas and domestic investors. More than 50% of the households in Cleveland are occupied by renters, making the market perfect for rental property investors. Many recent reports have Cleveland as no.5 on the list of top housing markets to watch in 2021. The real estate market in Cleveland is competitive, with some homes going under contract the same day they are listed. One reason homes are selling quickly in Cleveland is that prices here are still very affordable, with the median listing price for a home in Cleveland only $100,000. Global Investments work with some of the top turn key suppliers and have available renovated and tenanted houses from as little as $55,000. The diversified economy helps keep the rental market strong in Cleveland. For a city that once relied on the manufacturing industry for growth, Cleveland has done a remarkable job of transforming its economy into a well-balanced blend of service, high tech, blue and white collar employment. Located along the southern shore of Lake Erie, Cleveland is just across from the Canadian border. The metro area is home to the Rock and Roll Hall of Fame, one of the worlds finest orchestra and major professional baseball, football, and basketball teams. Here’s just a few reasons why Cleveland could be one of the best places to invest in rental property in 2021. POPULATION GROWTH In its in-depth study, “The Fifth Migration: A Study of Cleveland Millennials”, the Cleveland Foundation reports Cleveland ranks among the top 10 U.S. cities for population growth of college-educated millennials. That’s great news for rental property investors, because as CNBC recently noted, rental demand across the country is soaring as more millennials say it’s cheaper to rent than to own. Key Population Stats: Cleveland has a city population of nearly 400,000 and a metropolitan population of more than 2 million, ranking Greater Cleveland as the 33rd-largest metro area in the U.S. Population of Cleveland has declined 0.09% year-over-year. Net migration in Cleveland has remained steady, decreasing by only 870 residents since 2018. The median age of people in Greater Cleveland is 41, with about 37% of the population between the ages of 20 and 49. In the City of Cleveland, the median resident age becomes more youthful, dropping down to about 36 years. JOB MARKET The unemployment rate in Cleveland is down to just 5.8% (as of Nov. 2020), according to the U.S. Bureau of Labor Statistics (BLS). As the economy in Cleveland continues to recover, job sectors showing the fastest signs of recovery include construction, manufacturing, and financial activities. While job growth in Cleveland has historically lagged behind some of the city’s peers, a recent report in Crain’s Cleveland Business notes that economic growth in Cleveland surpassed Tulsa, Albuquerque, and Memphis. The renewed focus on space exploration is good news for the fuel cell industry and the NASA Glenn Research Center in Cleveland. Companies with corporate headquarters in Cleveland include Applied Industrial Technologies, Cliffs Natural Resources, and Sherwin-Williams Company. The Federal Reserve Bank of Cleveland, one of only 12 Reserve Banks in the U.S., is in downtown Cleveland. Key Employment Stats: GDP of Cleveland is more than $118 billion, an increase of more than 12% over the past 10 years. Employment growth in Cleveland is 1.43% year-over-year, while median household incomes have increased by 7.08% over the same period.e metro area. The healthcare sector is one of the major employers in Cleveland, including the Cleveland Clinic, University Hospitals of Cleveland, MetroHealth, and Medical Mutual of Ohio. Biotechnology, fuel cell research, and technology are three of the growing employment sectors in Cleveland. In fact, Forbes recently speculated that Cleveland might become the country’s next technology hub. Despite the shift to professional service and high tech business, construction and manufacturing in Cleveland still account for a significant amount of employment growth. Nearly 3,000 new manufacturing jobs were created over the last couple of years, while the construction industry added more than 1,700 new jobs during the same period. Since 2009, per capita income in Cleveland has steadily grown and is now at $34,200 while median household income is $57,228. Nearly 32% of the adults in Cleveland hold an undergraduate degree or higher, about 10% higher than the rate in Ohio. Cleveland is served by five Interstate Highways and several freight railroads. The Port of Cleveland is a major bulk freight terminal on Lake Erie. More than 5.8 million domestic and international passengers traveled through the Cleveland Hopkins International Airport (CLE) through the first half of 2019, while shipping facilities at CLE have handled more than 51,000 tons of cargo over the same time period. Playhouse Square in Cleveland is the 2nd-largest performing arts center in the country, right behind New York’s Lincoln Center, and the Cleveland Museum of Arts is home to more than 40,000 works. Real estate investors who are pro sports fans will find Cleveland offers a winning combination: Major League Baseball’s Cleveland Indians, the NFL’s Cleveland Browns, and the NBA’s Cleveland Cavaliers. REAL ESTATE MARKET Cleveland is ranked as one of the top housing markets to watch in 2021 by Forbes. The affordability of single-family homes in Cleveland is especially appealing to remote real estate investors and to people working from home. Successful real estate investors know how to make money in any market cycle, which is one reason people are investing in Cleveland rental property. Cleveland is one of the most recession-resistant markets in the U.S., according to Crain’s Cleveland Business. When measured by the investment variables of home price volatility, home sales flips, average loan-to-value, and home price-to-income ratio, Cleveland ranks as one of the top four markets with the lowest risk of a real estate dip. Key Market Stats: Zillow Home Value Index (ZHVI) for Cleveland is $79,166 through November 2020. Home values in Cleveland have increased by 18.8% year-over-year and are forecast to grow by another 13.1% in the next 12 months. Over the past five years home values in Cleveland have increased by nearly 76%.

What do the experts say about property prices and rental values in the UK?

Owning a buy-to-let property is not just about yields; understanding the potential for capital growth is also a key part of any property investment strategy. So, what do the experts say about property prices and rental values in the UK? Where are they heading over the coming years and which regions are going to be the stars of the show? The most recent projections were released in March 2021, with Savills commenting: “2021 will be a complex year, with competing forces having different impacts on the housing market over the course of the year. But government support, the easing of social distancing restrictions, and low interest rates underpin our forecast for 4.0% price growth.” That 4.0% growth sets the tone for the years to come, with Savills projecting it will increase to 5.0% in 2022. Overall, in the five years to 2025, the company forecasts mainstream capital value growth of 21.1% for the UK. The North West tops the table, again at a regional level, that growth will vary significantly over the years ahead. The third most populous region in the UK and home to cities including Manchester and Liverpool the North West is forecast to see growth of 28.8% between now and 2025. The North Easts projects are also at a good level estimated at 20.5% over the same five-year period. Speaking of yields Savills has also included mainstream rental values in its latest five-year forecast. While UK rents are forecast to rise by just 0.8% in 2021, the pace picks up significantly in 2022, when a rise of 4.5% is anticipated. So, what has happened so far in 2021? We are already a quarter of the way through 2021. That means that figures are available to show how the UK property market has been performing so far this year. Nationwide’s latest figures show annual house price growth of 5.7% in the year to March 2021. Again, we see the North West leading the pack, with price growth of 8.2% over the same period. Regional variations in house price growth show the value of doing your homework and identifying the best UK region to focus on as part of your investment strategy. All indicators are undoubtedly pointing to the North of England right now. Looking at the longer-term picture, Savills projects that rents across the UK will increase by an average of 17.0% in the five years to 2025. Here at Global Investments (www.globalinvestmentsincorporated.com) we have seen many investors have been opting for buy-to-let properties in the North East and West of England for some time as the area has established credentials in terms of its property market performance and wider economic backdrop. A centre for industry and dynamic growth, the North of England has plenty to offer investors looking for good value, strong capital growth and solid yields. If you would like to discuss the different property investment options available, get in touch. Source: Savills UK | Residential Market Forecasts House Price Index Headlines | Nationwide