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Buying an overseas property in need of renovation. Pros, Cons, and Considerations

As a company Global Investments Incorporated have been selling in Cleveland for over 5 years and have sold over 1000 houses in the city. As stated in previous blogs, for investors the clock is ticking. Prices are continually on the rise and the issue still seems to be the gap between supply and demand. Finding good tenanted properties in good neighbourhoods is getting tougher as each month passes. The simple fact is that It is rare to find the perfect property in the exact location you desire within budget. This applies to a home you are looking for to live but also for a buy to let investment property overseas. However, if you are open to buying a house that needs renovating, the options can vastly increase. Taking on a renovation can be a slightly more time consuming commitment, so it’s best to be well-informed upfront as to the potential pros and cons of embarking on such a project. In this post, we explore these pros and cons so you can make the right decision for your investment property. Pro’s 1. Capital Appreciation Finding a property for a reasonable price that has yet to reach its full potential provides maximum scope for capital appreciation. Upgrading kitchens and bathrooms, knocking walls through to create open-plan living areas, adding extensions, or completing loft or basement extensions are just some of the ways that you can add significant value to a property. However, renovations needn’t always be massive undertakings. Sometimes, the right property in the right street just needs a little TLC to bring it up to scratch. Typical minor renovation repairs include repainting and decorating, resealing wet areas, retiling, replacing old flooring, fixing broken windows, repairing cracks in walls, etc. With our experience, Global Investments have the best suppliers finding the best property options available. In partnership with some of the best contractors in the City we will find you the perfect fixer-upper ! 2. Rental stability Maintaining a stable profitable income is the key to obtaining that high ROI everyone wishes. The Net ROI does not take into consideration 2 factors. Maintenance and vacancy. The main benefits to owning a newly renovated property is firstly the management company can place a brand new tenant on a fresh contract which has been vetted and personally approved by the landlord. Tenants moving into a clean, updated property are less likely to wish to move on giving you a steady rental income. Secondly, a newly renovated property will rarely require maintenance, of course there can be the odd unanticipated eventuality but generally speaking there should be no reason why each month you obtain the full rental income less of course the management companies 10% fee Cons 1. Understanding the budget of a renovated property. While it is easy to get carried away with lofty redesign ideas, it’s important to remember that the majority of any profit gained is dependent upon the initial purchase price. Finding a property with potential that has not yet been realised and then making sure that you don’t overspend on your renovation work concerning the area’s market values is key to maintaining the chance of healthy profits. However, before you purchase a property from Global Investments that is in need of some renovation work we obtain an official quote from the contractors. With all of the costs factored ( purchase price / renovation costs / rental potential ) You can make a sound decision before you go ahead with the purchase. 2. Vacancy Due to the high demand of rental properties in City’s like Cleveland obtaining a freshly renovated property ( ready to go ) is obviously harder than we would like. When available they sell in a matter of hours leaving many buyers keeping a keen eye on our stock disappointed they missed out. The majority of Global’s renovation projects ( And often the best deals ) The works are completed after the new owner closes on the property. This means the funds to complete the renovations are held in Escrow by the title company and transferred to the contractors after closing. Of course in this situation the new owner must anticipate this and appreciate that it will take a matter or weeks and sometimes months depending on the scope of the renovations before the house will be ready for a tenant to be placed. Investors will need to factor this into their financial plans and understand that the rental income will not be made available immediately. Of course the benefit of this is that the investor will have the option to many more properties available and in fact potentially find the best deals. If you are interested or wish for a call and for more detailed information on the latest renovation properties Global Investments can offer then please email us today at : invest@globalinvestmentsincorporated.

Cleveland’s 2022 Capital plan

The historical Euclid Beach arch, which still stands at the previous entryway to the previous lakefront theme park on Cleveland’s northeast side, will quickly discover a brand-new location. The City of Cleveland means to bring back the century-old archway and move it to a lower place of the old Euclid Beach theme park, now mainly inhabited by the Cleveland Metroparks in North Collinwood. Mayor Justin Bibb means to utilise $54 million in bond profits on about 25 particular tasks, in addition to lots of other regular yearly jobs such as fixing roofing systems on city structures, changing harmed play ground devices, and fixing tree-damaged ones, in his very first year of preparation capital tasks walkways. Officials have actually not selected a precise place for the arch, however council member Mike Polensek stated it is anticipated to be someplace within Metroparks’ lake home, which jointly consists of Euclid Beach Park, Villa Angela Park and Wildwood Park. The relocation will likely occur at some point next year, he stated. “We all concur that it requires to be moved over a walkway [or bicycle path] so that individuals can take a look at it, go through it and appreciate it,” stated Polensek. The arch has actually long been a tip of the theme park, which drew in countless Clevelander’s till it closed in 1969. The Cleveland Landmarks Commission provides the building and construction date as 1895, while Cleveland State University’s history blog site, Cleveland Historical, states it was integrated in the 1920s to change an earlier structure. The arch carefully covers East 159th Street, where traffic, consisting of large emergency vehicles consistently pass under it. This setup has actually led to several falls and resulting damage. The city’s resettlement efforts intend to protect the arch for future generations. The taking apart is an obstacle, Polensek stated, however a beneficial undertaking since of its historic significance. Future associated work might consist of widening East 159th Street. And with the Western Reserve Land Conservancy’s current purchase of a mobile house park surrounding to the Metroparks home, a redesign of the surrounding Lakeshore Boulevard passage is likewise in the works, although strategies are still in the early phases, Polensek stated. The arch is presently anticipated to cost $800,000 to bring back and move, however that number might alter. Moving of the Arch is just part of a $54 million capital strategy for Cleveland and here is a summary of a few of the bigger tasks allocated for the funds: West Side Market: $4.6 million for roofing system repair work and 3 replacement elevators Fire Station: $5.9 million for a brand-new fire station to change the present one on Kinsman Road Sterling Recreation Center: $4.7 million for a total remodelling Clark Recreation Center: $2.7 million for a total remodelling Woodland Recreation Center: $2.6 million for remodelling Police Stables: $2 million to prepare the website for future building and construction of brand-new stables and a park JFK Recreation Center demolition: $1.6 million. (The structure closed in December after the brand-new Frederick Douglass entertainment centre opened.) Calgary Park: $1 million for a total park remodelling at West 23rd Street and Calgary Avenue. Canal Basin Park: $750,000, covering part of the cash required for a structure and other enhancements Woodhill Choice: $6.8 million to build roadways for brand-new public real estate Circle Square: $1.5 million to reconstruct Euclid Avenue and the Reserve Court around the University Circle advancement Other roadway tasks, the majority of which are approximated at about $1 million each, will likewise be moneyed with the bonds. These areas consist of: Carnegie Avenue, in between East 55th and East 79th Streets East 140th Street, in between St. Clair and Lakeshore Avenue East 79th Street, in between Woodland and Chester Avenue Street Extensions by Frank and Hudson South and North Moreland Boulevards, in between Larchmere Boulevard and Griffing Avenue. If you would like more information and are interested in Cleveland property investments please email the team at : [email protected]

Is the US housing market starting to cool down

Over the last few years we have written several articles on the US housing market and how we seen a shortage of supply leading to a frenzy of rising prices and bidding wars.But now with interest rates on the rise in the US it looks like we are starting to turn a corner, some markets in particular are starting to slow down.Is this a good thing or a bad thing ? Well it depends if you are the Buyer or Seller ? If you are buying a property it puts you in a stronger position as Sellers need to adjust their expectations. Bill Kowalczuk from Coldwell Banker Warburg said “Sellers have to be more realistic” It is important to note that this cooling down is not across the whole of the US but seems to be in certain pockets in different States. We see the biggest cooling down taking place on the West with California leading the way but we need to bear in mind that cities like San Jose and Sacramneto probably seen the highest levels of over heating in the last few years. According to Federal Reserve data, the average US home selling price during the first quarter of 2020 was $329,000, with that number rising to nearly $429,000 two years later. Real estate agents say bidding wars have become less frequent and inventory is rising. A growing share of sellers are also being forced to trim their asking prices to find a buyer.But it is not just on the West we also see cooling down in cities like Albany in New York, El Paso in Texas, Rochester also in New York and Bridgeport in Connecticut. So we can see its the higher priced markets that are being the most impacted as 30 year mortgage rates are approaching 6%.The Federal Reserve reversed course this year after inflation spiked, making the price of food, fuel, housing and other essentials a dominant economic concern. The central bank has bumped up its benchmark interest rate three times in 2022 and signalled that four more increases are pending.So we see that market is cooling in certain areas of the the US but does this mean it is slowing down ? Well it depends how you look at things.Ralph DiBugnara president of Home Qualified, stated “The summer market will stay mostly high because of an increased urgency to buy,” he says. “This urgency is spurred by fears of further rising rates and more homes coming to market, due to more sellers wanting to cash in on the equity they’ve gained over the last few years.”Selma Hepp, deputy chief economist for CoreLogic stated “The market will continue to see relatively strong demand from buyers and an elevated rate of home price growth, despite slowing notably from ultra-hot early spring 2022 conditions” 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. as the market slows, home prices aren’t growing at the same rate as they have been but they are not falling either.When a hot housing market cools down a bit, it doesn’t mean home prices are falling (or even going down). It just means they’re growing at a slower rate. In other words, a cooler housing market is actually good news for both buyers and sellers.But no one can say for sure how the housing market will trend in the second half of 2022. How high will mortgage rates go? how much will buyer demand slow down? how many new units will hit the market and will they be enough ? But either way we are all keen to see what changes will take place in the next six months.

The US Housing Market & 6 month Review

We are getting to close to reaching half way through 2022 so now is a good time to review what happened in the first six months. We have previously written articles on growth in the US housing market in 2020 and 2021 but how about 2022 ? are we starting to see a slow down or is the growth still continuing ? Looking at recent articles on this years trends prices are not just increasing they have been surging in some States, some are quoting explosive growth. I think this might come as a surprise to some people as we have seen interest rates rise, very low inventory over the last 12 months and year on year price increases. The issue still seems to be the gap between supply and demand, the same trend continuing since 2021, many experts are predicting the prices will still continue to rise for the remainder of this year. Fannie Mae (Government sponsored body) predicts prices will move up in 2022 by 10.8%. Freddie Mac stated the US market lacks around 4 million homes to meet the country’s needs, the shortage is a result of a decade of insufficient homebuilders available for new home construction. Both the labor shortage and supply crisis are keeping construction from bouncing back. Key materials like lumber are more expensive after the pandemic and have cut into profit margins for builders, a shortage of available workers has also cramped housing projects as firms have struggled to rehire. With both trends putting pressure on builders, buyers will be stuck bidding on a small supply of homes for the next several months. While all of this seems bad for the Buyers its good news for the Sellers, homeowners are seeing more equity gains this year as compared to previous years, some U.S. Sellers achieved $60,000 in equity, according to a recent CoreLogic report. But the this level of growth could not be sustained in the long run, according to Reuters house price inflation will drop to 10%, half its current rate this year, and slow further over the next two years. Since the pandemic started we have seen nearly zero borrowing costs and a panic by Buyers to buy more properties, properties on average have risen by one-third from the beginning of the pandemic. The Federal Reserve have raised interest rates since March with more raises expected this year.The Federal Reserve raised its key interest rate by a cumulative 75 basis points since March, with more expected this year and next, pushing up the key 30-year fixed mortgage rate above 5% in April, its highest in more than a decade. The rise in home prices has been staggering, and we do expect a significant slowdown going forward, particularly in the wake of a near-doubling of mortgage rates,” said Brad Hunter, head of consultancy Hunter Housing Economics. Around 80 percent of the typical homes listed have seen the cost of financing increase by 50 percent compared to a year ago from a combination of the all-time high listing prices and higher interest rates according to Realtor.com While housing prices aren’t expected to drop this year, the increasing rise of prices should slow down. Many experts believe home values will increase at roughly half the rate (single-digit increases) we saw during the peak of 2021. The current median sale price of houses sold in the US in the first quarter of 2022 was $428,700 according to the St Louis Federal Reserve. Most economists though agree that the pace of rising prices can’t continue and will at worst level off or rise more slowly. So if prices are not forecasted to decline in 2023 but increase at a slower place what does that mean for investors. According to Fannie Mae year-on-year home inflation will drop to 4.4% in the second quarter of 2023 and end the year at 2.9%. So if If Fannie Mae’s predictions are correct, homebuyers are in for a mixed experience. It will looks like it wil be easier to find a home in the next two years but being able to afford it will be a different matter.

E 185th Street, Cleveland Transformation

CLEVELAND, Ohio East 185th Street on Cleveland’s east side will undergo an $11.5 million transformation, a two-mile renovation, and beautification with new intersections, crosswalks, and street lights, and a new waterline. “The whole street will have a newer, more modern appearance and that will appeal to people, bring more people down here,” said Scott Hanson, who’s run Scotti’s Italian Eatery since 1999. East 185th Street is the border between Euclid and Cleveland with both cities funding the project along with the Ohio Department of Transportation, which will manage it. “I’m optimistic working with the new administration indicated, Mayor Bibb, that he wants to focus on the ‘Middle Neighbourhoods,’ which my area is,” said Cleveland City Councilman Mike Polensek of Ward 8 which encompasses the Collinwood neighbourhood. “It’s the areas that are links, outer edge links to the suburbs.” “The business along the street will — on their own — just fix themselves up, once they see how nice the street it is,” said Hanson, who expects the renovation to help the area. Councilman Polensek expects the project to take about a year. Despite its proximity to Bratenahl, the exclusive residential municipality to its west, Collinwood is a blue-collar enclave. Once a booming industrial area that boasted major railroad switching yards, a diverse array of factories and a confluence of cultures — home to vibrant Irish, Slovenian and Italian communities — the area was also home to Euclid Beach Park, the long-beloved entertainment destination. While Cleveland’s urban-revival success stories — Ohio City, Tremont and Gordon Square — are all located on the city’s near West Side, they represent a trek for suburban East Siders. Collinwood is on Cleveland’s East Side, less than nine miles from Public Square and about six miles from University Circle. The neighbourhood is an exit ramp away from the Interstate 90 corridor and a short drive from Lake County. “This has the potential to become the East Side’s Tremont,” says Polensek, “And we have approximately three miles of lakefront in this ward. Not too many other districts in the city can say that. Waterloo is less than a mile from the lake.” During a walk through the neighbourhood, Polensek says that about $4 million has been committed to structural and cosmetic improvements. (Friedman says the figure is closer to $5.5 million, a combination of federal transportation dollars matched by city funding. Additionally, two arts grants totaling $1.1 million are being invested in the neighbourhood.) Repairs to the roadway and curbs, new, widened sidewalks, public furnishings and other pedestrian-friendly amenities, plus new noise-reduction walls and rebuilding nearby Lakeshore Boulevard, are set to begin.

10 Questions to ask when looking at Investing in the US Buy to Let market

Real Estate has produced many of the worlds wealthiest people and one of the most lucrative buy to let markets at the moment is the USA. Investors all over the globe are taking advantage of the low priced homes and the high returns offered by different housing markets in certain States. But like any investment it is better to be well versed before diving in with all or even some of your savings. You need to arm yourself with as much information as possible so you can make an informed decision before making the plunge. Manchester Based firm Global Investments Incorporated have been selling these types of investments for coming up to a decade and lead the market in sales to the Overseas and Domestic investor. We asked CEO Mike Moodie what his advice would be and what questions a first time buyer should ask before they get involved. Mike suggested the below 10 points investors should consider before investing. Which Company should I buy from? – In my opinion this is one of the most important choices and obviously this is the first decision you will make before even looking at the properties. This is very important as you will be looking to build a relationship with this company moving forward and taking their advice and guidance on many matters so its really important that you feel comfortable and confident in them. You should always look to speak with someone rather than just email communication. I would also look for a company that has a good track record in this given market and has at least a few years in this business. As a company we offer a personalised one to one meeting either on Zoom or in our offices to discuss the clients needs and requirements. ( The majority would be done on Zoom or whats app calls ) Which State should I buy in? – Well this is a hard one as its really a personal choice sometimes and depends on the individual. All of the areas we sell in offer excellent returns and also good capital appreciation, some more than others. I guess that the investor really needs to decide whats more important? The net return or growth or in some cases getting a balance of both. ( My advice would be to look at all the options before making a decision and see what each area offers you and you’re given budget ) Right now Cleveland Ohio, St Louis Missouri and Detroit in Michigan would be our top 3 markets. Should I buy in my own name or a company? – For the fist time investor I think its probably better to initially invest in their own name and later if we want we can always open an LLC and transfer the ownership over from them to the company. It is really only beneficial to own in an LLC if the investor is looking at purchasing multiple homes. So its very easy to make this decision after the first purchase has been completed. Obviously if the clients intention is to build a portfolio then we would advise the company set up and purchase in the name of the LLC from the start. We work with an excellent CPA in Michigan that can incorporate the LLC and set a bank account up with Bank of America for our investors. Cost is around $1000. Should I buy a vacant or tenanted property? – I think that both of these options are good, again it is sometimes a personal choice. Buying a tenanted home is great as it gives an immediate income from day 1 but the buyer should ensure that all the correct due diligence has been done on the lease agreements and rent history of the current tenants. On the other hand I do speak with some investors that like to buy a vacant refurbished home that they can have an involvement in the tenant placement with the new management company. The downside is that maybe it may take a month or two before they find the right tenant but I do remind my investors that a few months on a 5-10 year investment is really small and not a big issue. So again really its down to the individual. As a company we offer both vacant and fully rented options. Can I have an Inspection? – This has to be the biggest question the buyer should be asking as hey should never close out on a property unless they can see a full independent inspection. They should also ensure that any fees or deposits are subject to this inspection and that should they not like the report these funds can be transferred to an alternative of their choice. ( All of our contracts and reservations are subject to the inspection ) Should I buy a Section 8 house or private – Again this comes down to personal choice. Both tenants can prove to be excellent but again comes down to how well they have been vetted. Obviously a lot of investors like the idea of Section 8 as the rent is paid direct to the landlord but if a private tenant has been vetted correctly by the managing agent then the rent should be as good as guaranteed anyway. ( Section 8 homes would also normally come with a premium due to the guaranteed factor ) Can I have a US account for my rent? – This is one of the biggest questions that we get asked and its really simple. The bottom line is it doesn’t actually matter. The managing agents that we use will send your rent to which ever account that you nominate. Obviously it can save on wire fees etc. if you do have a US account. You can only open a personal account if you are present in the bank in the US however we can open company accounts for our clients without them being present. The only reason you would need to open a LLC and bank account is if you buy Section 8 housing as these payments can only be sent to a LLC and not an individual. Who will manage

Cleveland Clinic Cleveland Clinic announces $1.3 billion in projects, including new Neurological Institute on its main campus in Cleveland

Located in Cleveland, Ohio, Cleveland Clinic is a nonprofit, multi-specialty academic medical centre that integrates clinical and hospital care with research and education. The Cleveland Clinic announced on Friday that it will invest $1.3 billion in capital projects including new buildings and renovation of facilities in Ohio, Florida, and London. To help make way for one of the biggest projects, a new, 1-million-square-foot Neurological Institute between East 86th Street and East 90th Street on its main campus in Cleveland, the Clinic said it would demolish the historic Cleveland Play House complex at East 85th Street and Euclid Avenue. The Play House includes the theatre’s original 1926 building and a 1983 expansion designed by architect Philip Johnson, a Cleveland native who became one of America’s most important 20th-century architects. The Clinic acquired the Play House property in 2009 when the theatre company moved to Playhouse Square in downtown Cleveland. In the Clinic’s announcement, CEO and President Tom Mihaljevic said that “our services have never been in greater demand.’’ He said the new construction projects “reflect the needs of our organisation and will ensure cutting-edge care for the next generation of patients. By building, partnering, and innovating with technology, we are preparing current and future caregivers to deliver the best care.” The Clinic released a rendering of the Neurological Institute building, which will be designed by London-based Michael Hopkins Architects and Cleveland-based Stantec. On the main campus, in addition to the Neurological Institute building, Clinic plans to expand its Cole Eye Institute building and expand research facilities through its commitment to the Cleveland Innovation District. The district is a joint project of the Clinic, MetroHealth System, University Hospitals, Case Western Reserve University, and Cleveland State University to collaborate on research and job creation. The State of Ohio and JobsOhio invested $200 million in the project, and the Clinic invested $300 million. The new projects announced by the Clinic will be funded in large part by philanthropy, and will add more than 2,000 indirect and 7,500 direct jobs, the institution said. The Clinic’s news release stated that the Neurological Institute will provide inpatient and outpatient care, along with imaging and surgical services and research laboratories. The building’s mission will include investigating the function of the human brain and developing new neurological treatments. Neurological services are currently located at several locations on the main Clinic campus, which stretches across 165 acres between the Midtown neighbourhood and University Circle. The new facility is intended to bring neurological caregivers and services together in a single place to facilitate collaboration. The design and planning of the project are supported by a $10 million donation from the Charles L. Shor Foundation, the Clinic said. In honour of the gift, the Clinic is naming its epilepsy centre The Charles Shor Epilepsy Centre. Work on the project will begin this year with the first patient expected to be seen in 2026. The Cole Eye Institute at the Cleveland Clinic, a Cesar Pelli building, will soon be expanded. The area to be cleared by the demolition of the Play House complex “will initially be used to support the building of the new neurological building where all equipment and vehicles will be contained on Cleveland Clinic property during construction,’’ the news release said. “This will ensure that local residents have uninterrupted access to parking in their neighbourhood during this time.” Architect Philip Johnson brought together old and new elements in his 1983 design of the Cleveland Play House complex at 8500 Euclid Ave. The Clinic said in its news release that potential long-term plans for the Play House site could include “a new mixed-use neighbourhood development project.” Further east on the main campus, at Euclid Avenue, between E. 100th and E. 105th streets, the Clinic plans to add 150,000 square feet to its Cole Eye Institute building, plus additional renovations. The project will add additional operating rooms and procedure rooms. Donors Jeffrey A. Cole and his wife Patricia O’Brien Cole have made a $31 million commitment for the expanded clinical and surgical capabilities at the Cole Institute, and to enhance research and education there. The expansion will be named the Jeffrey and Patricia Cole Building, the Clinic said. An additional $10 million grant from the Timken Foundation of Canton helped support the planning for the Cole expansion and established The Louise Timken Ophthalmic Education Center, the Clinic said. A groundbreaking ceremony for the project will be held on Friday, May 20, and the completion of the institute’s expansion is expected at the end of 2025. The Clinic called the project the largest research effort in its history. Its goals include positioning “Northeast Ohio at the forefront of pathogen research and preparing for the next pandemic.”

The Detroit housing market is not cooling down !

Detroit had a rollercoaster year last year with many ups and downs, it seen the re-opening of nightlife and restaurants but also seen the closure of many small business due to the after math of the pandemic. 2022 is full steam ahead for Detroit, with the revitalization of long-abandoned historic landmarks to affordable housing developments, safer streetscapes, urban forests and exciting new projects across the city, there is a lot to look forward to in 2022. Detroits new development projects include. Joe Louis Greenway: A 27-mile loop for biking and hiking, starting at the Detroit Riverfront and passing through Dearborn, Hamtramck, and Highland Park. Ford’s Mobility Innovation District: A walkable 30-acre Corktown campus next to the renovated Michigan Central Station that will serve as the automaker’s hub for research and development for a range of new mobility products, from self-driving cars to non-gas vehicles. Love Building: Once this space is completed, the Allied Media Projects will share it with Detroit Community Technology Project, Detroit Disability Power, Detroit Justice Center, Detroit Narrative Agency, and Paradise Natural Foods to promote unity and social justice in the community. Dreamtroit: A mixed-use development with 81 apartments and 38,000 square feet of commercial space. Osi Art Apartments: A colorful, four-story, 30-unit housing complex in Woodbridge, half the units are set aside for people with household incomes of less than $60,000 and commercial space is available for rent. Former Michigan State Fairgrounds turn to Amazon Distribution Center: 142 acres, 78 of which are currently being leased to Amazon, will be turned into a distribution center that will employ approximately 1,200 workers. All of these new developments are having a positive impact on the housing market, the Detroit housing market is seeing traditional seasonal trends, which may present a window of opportunity for buyers looking to invest in rental property in Detroit. Of the 180 neighborhoods in Detroit, the most expensive neighborhood to buy a home is Boston Edison West where the median listing price is $305,000. The highest residential sale in Detroit was recently recorded, the Fisher Mansion at 1771 Balmoral in Palmer Woods recently sold for $4.9 million to Stellantis North America COO Mark Stewart and Antonio Gamez Galaz. But we do need to take into consideration the soaring inflation rates, we see a 8.5% inflation rate, being the highest seen in the past 41 years. There also has been an increase in interest rates, in just the past 60 days we have seen mortgage rates for a 30 year fixed climb from an average of 3% all the way up to 5.13% for a new mortgage. But no matter how you look at it 5.13% is still a decent inters rate, it has risen to nearly 7% , there might be a slight decrease in buyers in the real estate market, but not enough to cause any sort of a ‘bubble burst like we seen in the past. This is why now is the time to buy in Detroit, with so many developments taking place its attracting new residents to the City, this is pushing up rent prices, even with interest rates beginning to rise, by waiting a year for rates to drop back down near 4%, the increase in home values will cost you more than the increased interest rate. In fact, higher rates could be contributing to a sense of urgency for buyers to find a house before rates rise further, although one different than the “fear of missing out” urgency that was more common last year and the year before following the initial surge of COVID-19. “The fact is for every house that hits the market, there are at least four or five buyers that are attempting to get it,” said Realtor Teri Spiro, president of the Greater Metropolitan Association of Realtors. “The shortage of entry-level housing is really almost catastrophic If you would like to see any of great Detroit properties please [email protected]

Amazon expanding in Cleveland & Slavic Village

Amazon is reportedly pivoting to a new site for a distribution centre on the southeast side of Cleveland yet would remain in Slavic Village, according to two sources familiar with the project. The global giant will apparently be the anchor for a new warehouse development on a 40-acre site that could grow further if additional properties around the fringes are added to it. The site, between the east side of Interstate 77 and East 55th Street, is owned by trucking firm Morabito Enterprises Inc. It intends to sell the bulk storage facility to Atlanta-based Stonemont Financial Group to develop with two or three separate warehouse structures totalling 500,000 square feet. Nearly two years ago, Amazon had considered locating in another Slavic Village development site on the west side of I-77. That location, the Job Ready Site in the Cuyahoga Valley Industrial Center (CVIC), would have hosted a 112,000-square-foot Amazon delivery station to be called DCL6 (the sixth Delivery Center Cleveland). But Amazon favoured development of a 123,355-square-foot facility, now under construction at a former drive-in movie theatre site on Memphis Avenue in suburban Brooklyn. The 40-acre plot in the CVIC is under consideration for Cuyahoga County’s new consolidated jail facility, or for relocating a container shipping yard to open up another potential jail site near the main post office closer to downtown. Both of those options have met with opposition from Cleveland City Council, led by Ward 12 Councilwoman Rebecca Maurer. Amazon hasn’t given up on building a distribution centre on the city’s southeast side.Their latest acquisition was the 1.273-acre site of the former Mound Elementary School on Mound Avenue at East 55th. Acquisition of that vacant plot by the Morabito-Slavic Village Development partnership won approval in November from the City Planning Commission. Additional properties are being sought to give greater flexibility in placing large structures and parking areas for workers and trucks on the site. That may include acquiring more than a dozen mostly vacant residential parcels north of Mound as well as vacating Eliza Avenue plus portions of East 53rd and 54th streets. The Morabito site was re-platted by the county at the end of December as a single parcel that also removed several dead street rights of way through the site, including for a portion of East 52nd Street and the entirety of Morgana Avenue. However, even if the Morabito land transferred today, it will still take up to two years to level the site, install new sanitary and storm sewers, electrical and communications lines, access roads, parking lots and construct new buildings for Amazon and other as-yet unidentified tenants. But the demand for light-industrial and logistic/shipping facilities in Greater Cleveland exceeds supply. Much of that demand has been provided by the growth in e-commerce. In just the last few years, Amazon has leased these new “Delivery Center Cleveland” facilities to serve the Greater Cleveland market: CLE1 – 2020 Euclid Ave, Cleveland (Hub Locker) CLE2 – 21500 Emery Rd, North Randall, 855,000 SF CLE3 – 1155 Babbitt Rd, Euclid 850,000 SF CLE4 – 2550 Columbus Road NE, Canton, 1 million SF CLE5 – 8685 Independence Pkwy, Twinsburg 248,000 SF There are also these Amazon delivery stations, which is what the Slavic Village facility would reportedly be: DCL1 – 26555 Bluestone Blvd., Euclid, 127,020 SF DCL2 – 2823 Gilchrist Rd., Akron, 640,000 SF DCL3 – 12111 Debartolo Dr., North Jackson, 43,200 SF DCL4 – 24800 Miles Rd., Warrensville Hts., 145,200 SF DCL5 – 2040 S Reynolds Rd., Toledo, 150,000 SF DCL6 – 10575 Memphis Ave., Brooklyn, 123,366 SF DCL7 -10801 Madison Ave., Cleveland, 168,750 SF Global Investments have seen a sharp increase in demand for properties in the Slavic Village area mainly fuelled by investor demand. The smart investor is not looking to buy and flip properties immediately. A property purchase in Slavic Village today could look like a bargain in 2-3 years time when Amazons plans have been completed and the infrastructure is in place. Supply certainly will be highly demanded for employees and that will only increase prices. If you are interested or wish for a call and more information on the latest properties Global Investments can offer in this location then please email us today at : invest@globalinvestmentsincorporated.

A guide to buy-to-let properties in Manchester

There is a growing consensus that Manchester is fast-becoming the second city of the United Kingdom. Ever since the BBC announced it was moving a huge portion of its broadcasting operations to Media City in 2011, Greater Manchester has grown to become a Northern capital worthy of its status as a business and cultural hub. From a property investment point of view, Manchester is very much a tale of two cities. The modern, contemporary new-build apartment and commercial complexes that pepper the city are balanced by areas which offer examples of best-in-class urban regeneration. Viewed very much as a key location in the industrial revolution, from an architectural point of view Manchester still retains many of the older, characterful buildings of its past. Repurposed as trendy loft spaces in former Victorian warehouses, the regeneration of Manchester’s Northern Quarter in particular has been a resounding success. In the process creating an aspirational market for city-centre living in a location rich with amenities, achingly cool eateries and a vibrant cultural scene. The problem with Manchester is not so much whether to invest in a city with so much opportunity, but where is best to invest to make a good long-term return. Early doors investors in decades old city-centre developments have been the big winners from long-term investment due to the rapid rise of the Northern Economy centred around the city. With both easy access to transport and an international airport close by, urban developments have quickly sprung up to service a growing financial, professional and creative workforce who choose Manchester as their home. House prices in Manchester have responded swiftly as a result – with current prices sitting at an average of £248,704 – 21% higher than the previous 2019 peak, according to Right Move. Although technically a rival city to Manchester, Salford in Greater Manchester has been a particular benefactor of the significant investment into commercial regeneration of the wider area. The creation of the Media City hub on Salford Quays and the subsequent relocation of several major BBC departments was a positive signal to the rest of the UK. A signal that not only was Manchester a place to do business, but traditionally London-centric industries could benefit from the change. For relocating staff it meant lower house-prices than they were used to in the South and a cheaper cost of living. But for Salford, it led to a 44% increase in house prices in just 5 years. The study by Xendpay found that between 2016 and 2021, Salford had one of the biggest increases in house prices in the Greater Manchester area – signalling that long-term regeneration had indeed had a positive effect on the area. With so many districts of Manchester performing well from an investment point of view, it does beg the question is there anywhere left for property investors to go? The answer is quite simply, UP! City-centre living remains enduringly popular amongst professionals and students alike, and that is certainly the case with some of the UK’s finest attractions and amenities on the doorstep in Manchester. Indeed, Manchester retains one of the biggest city-living populations in the UK. With the bohemian Northern Quarter now a thriving and aspirational area for young professionals and city dwellers – new areas of the city have started to spring up in investment circles as the next new hotspot for urban dwellers and property investors. Ancoats is one such area. A formerly grimy industrial hotspot, easy access to the city centre means Ancoats’ former warehouses are quickly being transformed into trendy apartments as well as newer build contemporary schemes. Similarly, neighbouring New Islington has the feeling of an up-and-coming area that has not quite hit the up yet. However, with some incredibly smart new build developments underway, it won’t be too long till the Northern Quarter will be fighting to retain its title of top trendy Manchester spot. Perhaps the most highly anticipated new development in the city, though, is Manchester Waters – the stunning new waterfront apartments, which promise to become a vibrant community for those who want easy access to both Media City and Manchester City Centre. Want to find out more about our Manchester developments or any of our other buy-to-let investment opportunities? Get in touch today [email protected].