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After 20 years working in the overseas buy to let market and also investing myself both domestically and overseas some of the most important lessons I have learned in this time is the importance of great property management and also understanding the risks involved in these types of investments and how to avoid the pitfalls. Before I talk about property management I would like to talk about one of the most frequently asked questions we get asked by our investors which is “ What are the risks involved in buying a rental property in the US and what are the downsides ? “ The reason I want to talk about this is because the risks involved can be minimised with great property management. In my opinion it doesn’t really matter where you buy a house. It can be in the best location, in the best condition, but if the property is badly managed then this can still turn into a bad investment. The property manager is almost as important as the property itself as these are the people who look after the house and the tenants and make sure the property has a positive cash flow and is also kept in a great condition. As a company we endeavour to choose the best property managers in each city we work in but of course we invite our investors to do their own research , as owners they can use whichever property manager they choose. Now for the big one. What are the main downsides or risks if that is what you want to call them that can potentially eat into my nice ROI and how can I avoid them or at least minimiser these risks… Well, this is very simple and can be generalised not just to USA buy to let property but to any buy to let anywhere in the world in my opinion. The 2 main risk factors in any property that is purchased with the intention to rent it out are number one vacancy and number two on going maintenance or upkeep of your property. Now it’s very difficult to put a number on these two factors as each house would be different which is why these figures are not shown on our marketing materials etc. However as a good gauge and I would always explain to any investor that you should deduct a good 4-5% of the advertised ROI to account for any maintenance or potential vacancy. Vacancy and how to minimise the risk This is pretty simple. Every tenant will eventually move out so you will never really find a property that would give you a 100% occupancy so you always need to account for some form of vacancy when calculating your ROI. To minimise this risk firstly choose a great PM. A good property manager will look after your current tenants and keep them happy and ensure they don’t leave or don’t want to leave. Tenants don’t like dealing with a bad PM that doesn’t respond or look after any requests etc. So like I said earlier choosing the right PM is essential. Secondly the location of the property and buying a house that is in a really good neighbourhood is key to keeping your vacancy down. The better the location the easier it is for the PM to place new tenants and quickly. So always do your homework on the area and make sure the street and block is nice and has good curb appeal. As they say Location, location, location…. Maintenance and Up Keep of my property Again this has to be pretty self explanatory. The bottom line is the better the condition the property is in the less upkeep you will have. So if you buy a house that is fully renovated then you would expect to have little or no maintenance really for the first year or so. The condition of the property would normally be reflected in the price and the ROI etc.. So I think that investors that are buying a cheap houses with a high ROI have to understand that this is an investment and that like any property that is purchased you will need to maintain the house and make certain improvements over time. This is a great thing also as when you spend money on your property you are adding value and increasing the value of your investment also. Also when increasing the quality of the house you can in turn increase your potential ROI also. For Example. If you buy a house for $30,000 that is rented at $600 a month but your tenants leave and you spend $10,000 on upgrades and rehabbing the house then you can demand a higher rent like $750-$800 which also increases the ROI and in turn adds value to the home. So obviously if you want to minimise the risk of maintenance then you need to look for good quality houses that are either renovated or updated and rental ready but also understand that these are investments and will need improving over time no matter what condition the property is when you buy it. As a company we have always tried to give a cross spectrum of investments to our buyers and also try to meet every budget so we sell properties in all categories. Fully renovated, updated, rental ready and also renovation projects where clients can buy a house knowing that the property needs work. I think that if our investors consider all of the above factors then there are some amazing opportunities out there not just in the US market but all over the world and the above risks apply to really any buy to let investment. Location, Condition and excellent property management are key. Clever and smart investment is taking into consideration all of the above factors, doing our own homework and going into these types of investments with our eyes wide open and understanding the risks involved and the measures to take to

THE STORY CONTINUES WITH THE MOTOR CITY GOING FROM STRENGTH TO STRENGTH.

We have been selling in Detroit for over 10 years now and we have been there during the highs and lows, when we launched in Detroit the city was in troubled times but this gave investors the chance to enter a housing market at prices that never been seen before in a US city. Over the last decide the changes in Detroit have been unprecedented, the new Detroit is unrecognisable, a proper thriving modern 21st Century City.After the crash you could buy a three bedroom brick house for just over $10,000, the same property today would sell for $50,000 or more. Even-though prices have risen at an exceptionally high rate Detroit still offers investors a chance to buy a three bedroom house at a low price compared to other major US cities.There has been too many developments in the last 10 years to cover in one article but we have seen a new Downtown rebuilt with high street brands, a new rail system throughout the City, a new Stadium, a new Casino, a new High Tech Park, new Skyscrapers and modern apartment buildings, the arrival of Five Star Hotel chains, leading Tech Giants have taken hold like Twitter and Google, a new Marina, the revamp of historic buildings, billions spent on local communities, a new Park System, a new bridge etc the list goes on and and on.But the story does not stop here, Detroit has more new plans in the place to make this City the real star of the North East USA.Plans are being discussed for a New International Trade Crossing, the governments of Canada and Michigan plan to build a second international bridge connecting Detroit and Windsor within the next seven years to enhance their $70 billion-a-year trade relationship.Link Detroit is already underway, this is a greenway extension that will lengthen Detroit’s popular Dequindre Cut greenway, linking it to the Midtown Loop greenway and a trail in neighboring Hamtramck; plus fix deteriorating bridges and improve street appearances in Eastern Market. The project construction has already started, thanks in part to a $10 million federal grant.MI Rail expansion, the downtown streetcar line will eventually connect Detroit to northern suburbs like Ferndale, Royal Oak and Pontiac along Woodward Ave. Construction is expected to start soon.Rivertown, a huge open area along the river has huge plans in place, 500 residential units and retail space. The first phase will add 300,000 square feet of new construction to Detroit’s East Riverfront.Capitol Park, after the park itself was completely redone in 2009, a full-scale revitalization of several of the neighborhood’s major historic buildings is on the way. The Capitol Park, Farwell, Griswold, United Way and David Stott buildings are all poised to become new apartments and offices, many with first-floor retail.Cadillac Square the historic plaza as envisioned by Rock Ventures, includes transforming the area into a Market Square with food kiosks, an outdoor bar and a permanent market hall. The square would be lined with cafes and outdoor dining spaces, and Detroit’s historic Four Civic Virtues sculptures would be restored to all their original glory.These are just a few of the plans that are currently in place, Detroit is making the best effort to create a vision for the future and they have the tools to make it a reality.One major advocate of change is Detroit Future City, a think tank, a group of policy-obsessed advocates and innovation engineers who are taking a bold plan for Detroit’s future and walking it, step by step, from paper into action.One of its main goals is to create, facilitate and follow up on an extensively researched and vetted 50-year vision for economic development and land within Detroit’s borders. It is a vision of a city that is environmentally responsible, economically diverse and inclusive as well as equitable in terms of jobs, housing and transportation options. Detroit has always been a special city for us and we are happy to see so much positivity and developments taking place in this great city.There is no doubt that 10 years ago Detroit was a great city to invest in but right now its an even better one.If you would like more information on our great properties in Detroit please email [email protected]

TOP 10 TIPS FOR INVESTING IN PROPERTY NOW WE ARE IN 2021

Are you planning to invest in property now we are in 2021? Whether you are a seasoned landlord operating a string of residences or a first-time investor just discovering the potential of the buy-to-let sector, certain core principles apply. Global Investments top 10 property investment tips for 2021 1. Do your research. Location, location, location! Make sure you do your research, focusing on the best locations. These include areas close to a city’s business district and universities, so you can attract the right types of tenants. Central locations are often the most sensible in terms of demand, but this needs to be considered on a case-by-case basis. In city properties tend to be apartments. If you would prefer Freehold, consider areas within an easy commute of the city. Out of city locations can often offer property for investment at a lower entry price than in town. 2. Compare like for like. Consider your options for the local market. Always look for properties where you are paying a reasonable price per sq. ft compared to similar buildings in the local area, as well as those where tenant demand is outstripping supply. 3. Think long term. Successful buy-to-let investment is about investing for the long term, not just the immediate future. That means looking at which locations are going to still be popular five or ten years from now. City centres with major regeneration projects could have potential. 4. Review the developer’s track record. If you are buying off plan or new, make sure you are investing with a credible developer that has a solid track record of delivering quality properties. 5. Consider payment terms carefully. Most credible developers will only ask for 30% maximum deposit and then the balance at completion. This means they have their bank funding in place and that the banks have scrutinised them. If you are being asked for more than 30% before completion, approach the investment with caution. 6. Choose the right agent. If you are investing from overseas or simply a busy professional who’s planning for retirement, chances are you are short on time. This means you need an agent that provides a full management service. Choose the right partner who can negotiate the best deal with the developer, recommend reputable solicitors and financial advisors and offer you an ongoing, long-term support structure and after care service. 7. Do not shy away from off plan. You can often find reputable developers, choose the best apartments, and get the best deals by buying off plan. This allows you to benefit from maximum capital growth and rental yield returns. Some developers offer a rental guarantee period for the initial few years. 8. Understand your yields. Ensure you understand fully how to calculate yields, accounting for any mortgage payments you will need to make. Combining record low borrowing rates with high-yielding locations means you can maximise your return on cash invested, with your rental income covering your loan. If you are buying in cash because the property is at the lower end of purchase prices, ensure you are getting high yields of 8 – 10%. 9. Buy in your own name or with a Ltd company. Consider, research, and take advise on how you should buy, 10. Buy with your head. There is no room for sentiment when it comes to property investment. Trust in focused research and sound due diligence so that you can buy with your head every time. For more information contact any of the team at Global Investments at [email protected]

Property Investment – How to survive the crises.

Property investment, like everything else now, continues to be heavily influenced by Covid-19 and Brexit. But what does the market hold in the year ahead, what will be the main investment trends, and could regional towns and cities be about to have their moment in the sun? Global Investments show how Covid and Brexit have affected the company. Global Investments Incorporated has been selling investment property in the USA for over ten years and in the UK for two. We offer off-plan and new-build, buy-to-let and small freehold house investments that have undergone a stringent due diligence process. At the forefront of our business approach is transparency and customer service. We have carefully selected several buy-to-let and freehold investment opportunities. These are often below market value and some also offer a rental assurance option for the first few years, giving investors peace of mind. We focus on the North East and West of England with a selective few investment in other parts of the UK, including green belt regions around London. The areas we consider are either tipped for positive capital growth over the next 5-10 years, or offer a high return on investment, or both. How has the company been affected by Covid-19 and Brexit? Like most businesses, there is no doubt Covid has had an impact on us. However, as a company, we offer flexibility and understanding to our employees and have a strong system and infrastructure in place, allowing our employees to work from home or even abroad. This keeps our staff motivated and happy to work for us and therefore they are putting in the extra effort to keep our business sustainable and help us grow internationally. How can investors work their way round the current restrictions that the pandemic has created, and still invest in a safe and profitable way? Adaptation is key to survival during the current climate and health crisis. We have found that savvy investors are capitalising on the current crisis and looking for good deals and bargains. This means blending flexibility by our developers with embracing technology such as Zoom, video virtual property tours and producing the right content. Adding value and free education has been key to our continued success and growth. Why are regional towns and cities in the UK ripe for investment? And which ones would you recommend? Regional towns and cities in the UK are an inviting marketplace for investors in both the short and longer-term. The UK’s property market is underpinned by a decades-long, continuing shortfall of housing supply. Combine this with significant regeneration projects in cities like Manchester and Liverpool and the capital growth prospects are superb, in addition to the yields. Kingsway Square in Liverpool is a great example of affordable buy to let investments starting at £99,000 with a guaranteed return on investment of 7%, a free furniture packs and legal services for buyers. Our Freehold terrace house investments in the North Easy of England start around £49,000 and offer a great monthly income of around 8 – 10% for our investors. If you would like to know more about us and our property investment offerings have a look at https://globalinvestsinc.com/uk-residential-property-investments/ and get in touch.

Globals UK Investment Property Radar “ Bishop Auckland “

After the unnecessary negativity that dominated our lives recently which many people now have completely forgotten, dare mention the word “ Brexit “ The UK property market entered 2020 with a degree of optimism. Obviously, what followed wasn’t part of the plan. And yet, despite the strains of lockdown, the property market continues to defy gravity. As the mini-boom continues across the country, investors are already looking ahead to the best places to invest in UK property in 2021. Every region in the country recorded a rise in house prices in September according to the most recent RICS survey – hitting an 18-year high. At the same time, demand continues to rise with seemingly no end in sight, driven by changing priorities for homeowners and the stamp duty holiday introduced by the government. This means that heading into 2021, there are a number of UK Buy-to-Let hotspots now vying for the spotlight. Global Investments have been monitoring the market and as usual thinking ahead of the curve. One town seems to have the ingredients to be just the place to purchase a relatively low outlay / high return buy to let home with great Capital appreciation potential. We call it the holy trinity for property investment. So why should you look at Bishop Auckland ? Last year, Bishop Auckland was selected by the government to be part of the Stronger Towns Programme, allowing Durham County Council to apply for a bid of £46.8m. Regeneration plans for a County Durham town could create 3,000 jobs, while boosting visitor numbers by 1.5 million and the economy by £240 million every year. As part of the bid, the Stronger Towns Board has set out a vision for Bishop Auckland to become a world-class heritage visitor destination of UK national importance. If successful, the funding will be allocated to regeneration projects in the town, building on its unique heritage and assets to make the town an exciting place to visit, live, learn, work, and invest for generations to come. Through the Stronger Towns Fund it is estimated an additional 1.5m visitors will be attracted each year to Bishop Auckland which will substantially boost the county’s visitor economy by encouraging longer stays and higher levels of spend, driving 3,000 jobs and £240m per annum of economic value. It builds on priorities established through the Bishop Auckland Masterplan and the bid for money from the Future High Streets Fund, which has awarded the town £19.9m to support the town’s high street and help to recover from the effects of the coronavirus pandemic. Through this regeneration the town will achieve sustainable economic growth, becoming a stronger economic contributor to the North East region and bringing benefits to areas across the county. It will see the town become a 21st century bustling market town and service centre for the whole of South West Durham, and a gateway to the Durham Dales, using the town’s existing heritage to give it a future as a vibrant place to visit. As part of the Stronger Town vision, the project will deliver improvements to heritage walking and cycling routes, developments to the Weardale Railway, the creation of a new heritage transport museum as well as new supporting road infrastructure to sustain the town’s development as a world-class heritage destination. Further projects in the Stronger Towns bid include new workspaces with associated enterprise support, a skills and training hub, town centre diversification and the establishment of Bishop Auckland as a 5G-enabled town, rolling out ultrafast broadband to reach 3,000 premises. These projects all make up Bishop Auckland’s Town Investment Plan, which aims to solve infrastructure capacity, diversify and strengthen the town centre, creating an all-weather retail and leisure offer. The Stronger Towns bid will be reinforced by the £200m charitable investment from the Auckland Project, which has already restored and created a number of valuable attractions and recreational activities, boosting local businesses and the impression of the town. To date, these projects include Auckland Castle, which saw £27m of investment, a £1.5m refurbishment of the Town Hall, £1.1m invested in the Mining Art Gallery, and the staging of successful outdoor show Kynren, which has attracted over 250,000 spectators since starting in 2016. The town was also awarded Heritage Action Zone (HAZ) status in 2018 and has over 50 projects and buildings within the programme. The bid supports the council’s Towns and Villages Strategy, which aims to act as a catalyst to further regeneration and investment all over County Durham. It has already helped bring about £750m of investment across the county at sites like Horden Rail Station and Festival Walk Shopping Centre in Spennymoor. Through the strategy the council also seeks to align its budgets and activities to ensure they deliver the best outcomes for communities. Through its Towns and Villages Investment Plan the council aims to support projects which complement and ensure best outcomes for residents from the £750m. The plan, which is set to be approved at Cabinet this month, sets out £25m in investment: £20m for the county’s most disadvantaged communities and a further £5m to be allocated by the council’s Area Action Partnerships to priority projects identified by residents Global Investments has teamed up with suppliers in Bishop Auckland to provide the very best exclusive buy to let property investment opportunities in 2021. With limited supplies available unfortunately the best deals will be the first and stock will sell quick. If you are interested or wish for a call and more information on the latest properties Global Investments can offer then please email us today at : invest@globalinvestmentsincorporated.

The 2021 US Housing Market Forecast – Up or down ?

The last 12 months has been a very difficult year for every industry, the US was hit hard and fear grew last March that real estate could collapse as everybody went under lockdown. But if you look at the last 12 months you will see that real estate has actually played a significant part in the economic recovery, 2020 turned out to be a record year with over 2.6 million homes sold during the pandemic. At the end of 2020 buyers were facing unprecedented competition and increasingly out-of-reach home prices.Real Estate Agents have had a full year to adopt to the new ways and with inventory at record low levels it looks like 2021 is going to be an even better year.Forbes magazine have just ran an article stating “A new long-term housing boom is upon us. And COVID-19 is the main reason why” They state in the article that both the housing and economic cycles have shifted to longer cycles, 10 year cycles, this is due to factors such as technology and monetary policy.Over the next 10 years different factors will push this cycle in an upward trend. Such as economic recovery from a global pandemic, forecasts of continued growth in the GDP, sustained low interest rates and most importantly low housing inventory levels due depleting supply since the last recession.Danielle Hale chief economist stated “We expect sales to grow 7 percent and prices to rise another 5.7 percent on top of 2020’s already high levels. While we expect mortgage rates to tick up gradually, sales and price growth will be propelled by still strong demand, a recovering economy, and still low mortgage rates.Robert Dietz, senior vice president and chief economist of the National Association of Home Builders stated “ With home builder confidence near record highs, we expect continued gains for single-family construction.One 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 worldElana Knoller better.com stated “Homeowners and the housing industry at-large will utilize technology even more next year to engage buyers and execute deals. 2020 changed the game in everything from touring properties to looking for and locking rates, and participating in secure eClosings”Professionals and individuals who can work from home are buying homes to work at home and are therefore changing housing preferences,” we want a study and a large garden” Combined with record-low mortgage rates and forbearance programs, odds are the housing market will remain strong in 2021.Another big argument for this increased demand for suburban properties are the “Millennials” according to David Howard from the National Rental Home Council, it is theMillennials, who are transitioning squarely into prime household formation years.The fact is now there is light at the end of the tunnel from Covid 19 it is imperative Governments world-wide push the economy through incentives and breaks. 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”Realtor.com‘s summarised all of these key points for the 2021 forecast:* Spring and summer home-buying seasons in 2021 will be strong.* The existing home sales will increase by 7 percent in the year 2021.* The rise of millennials will push the housing demand up. * The home prices will appreciate by 5.7%.* Single-family housing starts are now predicted to increase by 9 percent. * Low mortgage rates will keep purchasing power healthy * Buyers seeking affordability and space will drive interest in the suburbs.* The pandemic has merely accelerated this previous trend by giving homebuyers additional reasons to move farther from downtown.* Fast sales will remain the norm in many parts of the country which will be a challenge felt particularly for first-time buyersWhile everything seems positive on the sales front other websites are stating that lingering economic uncertainty may temper some of the predictions. They state that sources of economic uncertainty, including lapsed fiscal relief, the long-term fate of policies supporting the rental and mortgage market, and virus-specific factors must be taken into consideration.Overall we are still coming through a storm and whatever opinion you take on this forecast it looks like things will be getting back to normal soon and all industries will be pushing to make the economy even stronger than before the arrival of Covid 19. If you would like more information on investing in the US market please email [email protected]

The resurgence of Detroit and why you should invest in 2021

The rental real estate market in Detroit is crazy right now, which is just the thing real estate investors want to hear. Demand for single-family rentals is skyrocketing, and the median price of a single-family home in Detroit is well below $100K, offering an amazing opportunity for rental property with solid yields and cash flow. The Motor City is famous for its innovation and work ethic, yet the decline of the domestic auto industry and the devastating effects of 2008 had some questioning whether Detroit could make a comeback. The verdict? Detroit real estate investing has attracted many new investors, especially those who know where to look. With high-end retailers like Whole Foods moving in, and high tech stalwarts like Microsoft, Google, and Pinterest opening offices, Detroit’s future is looking bright. That’s good news for the housing industry and good news for investors. So what are the upsides and challenges of investing in the Detroit real estate market in 2021 ? Population Growth Although the population of Detroit has been slightly declining, the city is seeing an influx of millennials. As the Detroit Chamber reports, over the last decade metro Detroit saw the second highest growth among peer cities for populations between the ages of 24 and 35. Key Population Stats: Detroit is home to about 670,000 people in the city and more than 4.3 million residents in the metropolitan area. Detroit is the most populous city in Michigan, the largest city on the U.S.-Canadian border, and the second largest metropolitan area in the Midwest after Chicago. Median age in Detroit is 39.9 years with 38% of the population between the ages of 20 and 49. Per capita income in Detroit is $35,315 while median household income is $63,474. Job Market The 11-county Detroit region is home to more than 300 municipalities and 300,000 businesses, including 11 Fortune 500 companies and numerous educational institutions. As the Detroit Chamber reports, metropolitan Detroit is home to robust technology infrastructure and a workforce recognised around the world for its skills, expertise, and productivity. Key Employment Stats: GDP of the Detroit-Warren-Dearborn, MI MSA is over $237 billion, according to the Federal Reserve Bank of St. Louis, and has grown by more than 28% over the last 10 years. Employment growth in Detroit is 1.77% year-over-year with the metro area home to over 2 million employees. Median household incomes in Detroit grew by 3.6% year-over-year while median property values increased by more than 5% over the past 12 months. Unemployment rate in Detroit is down to 8.9% (as of Nov. 2020) with the construction, information technology, and financial activities sectors showing the fastest signs of new growth. Key industry clusters in Detroit include automotive and mobility, defence, health care, information technology, and transportation, distribution, and logistics. Largest employers in the Detroit region are Ford Motor Co, General Motors, Ally Financial, University of Michigan, Beaumont Health, and Quicken Loans. Major colleges and universities in Detroit include University of Michigan, Wayne State University, and Lawrence Technological. 91% of the residents of Detroit are high school graduates or higher, while over 32% hold a bachelor’s degree or advanced degree. Real Estate Market Northern Michigan’s housing market is “on fire”, according to The Detroit News. The real estate market is helping to fuel the red hot market, with the median list price of a single-family home in Detroit well below $100,000. Opportunistic real estate investors may find Detroit the perfect market to acquire very affordable rental housing for all cash, then refinance at a later date. As The Wall Street Journal reports, lack of credit is making it hard for local residents to buy a home. That may be one reason why almost half of the households in Detroit rent rather than own. Key Market Stats: Zillow Home Value Index (ZHVI) for Detroit is $43,113 through November 2020. Home values in Detroit increased by 12.0% last year and are projected to grow by another 12.2% during the next 12 months !! Over the last five years home values in Detroit increased by over 92% ! Median listing price of a single-family home in Detroit is $65,000 based on the most recent report from Realtor.com (Nov. 2020). Median list price per square foot for a home in Detroit is $58. Median selling price of a single-family home in Detroit is $60,000 Sale-to-list price ratio is 95.05%, meaning that homes in Detroit are selling for 4.95% below the asking price on average. Strong Renters’ Market According to ClickOnDetroit.com, single-family rentals are skyrocketing, as tenants leave apartments to rent a home they can call their own. Key Market Stats: Median rent in Detroit is $983 per month for a 3-bedroom home, based on the most recent research from Zumper (Jan. 2021). Rents in Detroit have increased by 16% year-over-year. Over the past three years average rents in Detroit have grown by nearly 23%. Renter-occupied households in Detroit account for 44% of the total occupied housing units in the metropolitan area. Millennials and Generation Z make up 38% of the population in Detroit. Quality of Life Many real estate investors are surprised to learn that Detroit has been experiencing a renaissance over the last few years. New housing and businesses in the city’s Midtown, Downtown, and New District areas are attracting residents and visitors. Millennials are attracted to Detroit by the low cost of living, affordable rentals, and vibrant neighbourhoods. Key Quality of Life Stats: Cost of living in Detroit is 18% less than Chicago, according to NerdWallet’s cost of living calculator. Forbes ranks Detroit as one of the best places for business and careers in the U.S., with the city home to a variety of companies in emerging technologies such as nanotechnology and hydrogen fuel cell development. Detroit is one of the best places to live and a great place to retire, based on the most recent research by U.S. News & World Report. The 73-story, 7-skyscraper GM Renaissance Center in Detroit is one of the most photographed landmarks on the

Student accommodation and investment opportunities in the UK

At Global Investments we offer several purpose-built student accommodation blocks for investment offering high returns of between 7.5% and 9% net, with prices from only £75,000. In a year of tumultuous uncertainty, where the headwinds of Covid-19 bore several new realities and decimated others, some industries have risen like the Phoenix. Purpose-built student accommodation (PBSA) is one such sector which has seen outsized recognition from global investors throughout the pandemic. With investment volumes fairing better than other established real estate asset classes and the pandemic expected to be a catalyst for further growth, new entrants alongside existing market players’ appetite to increase investment shows no signs of slowing. Despite a recent dip in PBSA planning applications, several underlying fundamentals have not only taken the PBSA sector from strength to strength and will continue to do so, but in turn they have reflected the stability of the sector against all odds. When it comes to PBSA, international student mobility has proved to be the mother of opportunity. Even in spite of the pandemic, UCAS data showed that applications in October 2020 from non-EU international students increased by 20% compared with last year. The UK now also offers one of the longest post-study work visa systems in the world, where international students can remain in the country for two years after graduating. With international students often possessing greater accommodation budgets than domestic students, this important demand base has presented itself as a key interest factor for investors when identifying areas where demand outstrips supply. On top of this, while the student experience has taken a hard hit with students having to quickly adapt to being taught and socialising almost entirely online, demand has continued to soar. A recent Unite Students and Opinium survey showed that in the face of this year’s challenges, students on the whole preferred living in student accommodation as opposed to living at home and 93% would continue to do so (if allowed) from January. Coupled with this, 81% of students surveyed valued going to university despite the circumstances that impacted their experience. Both are key indicators of a wider demographic trend of positive sentiment towards continuing university education against the backdrop of the pandemic – one that has drawn greater attention from investors. The role of PBSA operators in offering a positive response to the pandemic cannot be understated. With Covid-19 shifting the priorities of students, combined with a high quality of service and flexibility, PBSA models are fast emerging to offer clear advantages over houses in multiple occupation (HMO) style accommodation. This is particularly pertinent when looking at the volume of time most students have spent in their accommodation this last year because of nationwide restrictions where satisfaction with accommodation became even more pressing. By quickly adjusting to meet student needs throughout an intensely difficult period, they have proved themselves heavyweights in the differences between other housing choices available for students. A continuation of this trend is likely with more evidence showing a growing proportion of students will look to PBSA to continue to meet their housing requirements as a result of greater choice and increased expectations. While we find ourselves in a third lockdown, the outlook for 2021 is still set to be positive. There is a healthy pipeline of new student schemes on the supply-side, all of which have a renewed focus to make mental health services and a good quality of communal services essential features of all PBSA. This has been intensified off the back of students emphasising the importance of wellness and support offered by PBSA providers. The pandemic has also called on PBSA operators to refocus their product and service proposition to appeal to domestic students. The domestic student market has proven to be remarkably resilient and undeterred by Covid-19 when pursuing their education, which has and will continue to lead to high occupancy levels if proactively targeted. Considering this, PBSA operators will take a far more active role in addressing affordability to place themselves at the centre of this demand. There is set to be 400,000 more domestic students in higher education by 2030 and PBSA operators acknowledge this is a key direction the sector must gravitate towards to ensure they don’t miss out on the opportunity. A movement to further improve user experience and modernise current infrastructure will be paramount to this effort. This is part of an article by Lydia Jones is the chief executive and founder of student accommodation platform Housemates that was originally published in Property Investor today in January 2021. For our latest UK student availability please check out our website here: https://globalinvestsinc.com/uk-student-property-investments/

IS THE SUN SETTING ON THE CLEVELAND PROPERTY MARKET

As a company we have been selling investment properties in Cleveland Ohio for the past three years and it is by far our best selling product, accounting for over 70% for the companies sales and enquires from investors all over the Globe. However recently we have seen an upside in the prices and also a shortage of inventory indicating that with a large demand for these types of houses from the overseas market, sellers and suppliers have an opportunity to increase their prices. Also with the amount of overseas and domestic investors snapping up these types of properties we are also finding it harder to locate good inventory that meets our investors criteria. Unfortunately for potential or current investors looking at investing in Cleveland it looks like the clock is ticking. Prices are on the rise and the supply of these types of turnkey homes is down and finding good tenanted or renovated properties in good neighbourhoods is getting tougher. If you are looking at buying a house in Cleveland as a potential investment opportunity, in our opinion you must act now or certainly in the next 3-6 months to capitalise on these prices and returns while they are still around. All indicators point to growing income, a solid job market, and increasing home values in Ohio. The Cleveland real estate market prediction is incredibly positive. Investors and home buyers will reap benefits when considering the city and its suburbs over the next 5 – 10 years hence the huge demand for these types of properties now. Cleveland is home to just under 400,000 people. The larger metropolitan area is home to roughly two million people. That makes the Cleveland real estate market the 32nd largest in the country. If you include the Cleveland-Akron-Canton metro area there are three and a half million people in the “combined statistical area”, making it the 15th largest metropolitan area in the United States. This century old city was once a major manufacturing centre and now has reinvented itself as a medical and bio-med hub. “ We have been expecting this rise in prices and reduced supply for some time now. Very similar to what happened in Detroit 5-6 years ago. Cleveland is still an incredible opportunity for both the overseas and the domestic buyer but any client looking at getting involved needs to look at higher prices for these types of houses. The prices cant stay the same with such demand, lack of supply and huge investment into the city. These price increases were inevitable. “ I still think as a company we have another 12 months in the city before prices get too high. I think for a good, well located single family home any client should be looking at spending around $50k to $60k and for a well located Duplex they will need to look at between $60k and $80k. “ Mike Moodie CEO Global Investments Incorporated Although prices are on the rise Cleveland Ohio still offers an incredible opportunity for any cash buyer to get well priced tenanted houses with great cash on cash returns and good appreciation over the coming 5-10 years. If you would like more information on our Cleveland Ohio Investments or have any general questions on the US market place and what opportunities are available please contact any of the team at Global at [email protected]

Why are rentals strong in Milwaukee ?

According to the Greater Milwaukee Association of Realtors, the Milwaukee metro area needs about 3,600 additional homes to satisfy pent-up demand. But as the Milwaukee Business Journal points out, rising land prices in Southeastern Wisconsin (where Milwaukee is located) may keep housing prices rising. In turn, this may create a growing demand for rental property if people can’t afford to buy. Key Market Stats: Median rent in Milwaukee is $1,143 per month and $1,321 in the greater Milwaukee metropolitan area (as of Oct. 2019). Over the last five years, rents in Milwaukee have risen by more than 15%. According to RENTCafé the average rent in Milwaukee grew by 4% over the last year alone. 45% of the housing units in Milwaukee are occupied by renters. About 69% of the total rental units in Milwaukee rent for between $701 and $1,500 per month. Neighbourhoods in Milwaukee with the lowest average monthly rents include Cold Spring Park, Concordia, and Hawthorne Glen where rents are $584 per month. Areas in Milwaukee where the rents are highest include Yankee Hill, Kilbourn Town, and Schlitz Park where rents range between $1,460 and $1,521 per month. The below graphs show the renting statistics in Milwaukee, as you can see 77% of the rental market is located in the price range Global Investments property lie : Milwaukee real estate and rents are both relatively affordable, but what matters most is how much locals can afford. It is their incomes relative to rental rates and property prices that determine whether or not they can buy a home. Wisconsin came in third on a 2017 housing affordability report. Home prices are going up relative to incomes, and that’s forcing many renters to remain renters and newcomers to the area to rent instead of buy. Constrained Supply Keeps Property Values Strong. Milwaukee’s real estate market is seeing home values go up due to limited supply. The issue is particularly acute for properties costing less than $300,000. This means that many families that want to live in a house will have to rent, because they struggle to find homes to buy. The supply isn’t helped by the modest pace of home construction because most properties being built cost over $300,000. Another factor is the labor market itself. There is a scarcity of skilled labor to build new homes at the rate they’re needed. Yes, the Milwaukee real estate market is seeing homes built, but as we already said, most of the talent that is available is building luxury homes – not affordable ones. Conclusion : Despite Covid, property prices are set to rise in Milwaukee in 2021 and the rental market is stronger than ever. As the Number 1 agent for USA Investment properties for overseas buyers, Global Investments work exclusively with leading brokers in Milwaukee ensuring our clients get the best choice of investment properties. If you are interested in seeing our latest investment opportunities please contact Global Investments by email today at : invest@globalinvestmentsincorporated.