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The Benefits of Investing in Buy-to-Let Properties with Housing Association Tenants vs. Standard AST Single-Family Tenants

The Benefits of Investing in Buy-to-Let Properties with Housing Association Tenants vs. Standard AST Single-Family Tenants When it comes to buy-to-let investments, one of the most important decisions for property investors is choosing the type of tenant to target. A popular debate often arises between renting to a housing association tenant and opting for a standard assured shorthold tenancy (AST) with a single-family tenant. Each approach offers unique benefits and drawbacks, but housing association tenants can provide distinct advantages that are often overlooked. · Government backed income · Long-Term Agreements · Reduced Management Effort · Lower Risk of Property Damage · Supporting Social Responsibility If you prioritise stability, Government backed income, and reduced management responsibilities, housing association leases are an excellent choice. Let’s look at the benefits of renting to housing association tenants compared to a standard AST single-family tenant. Government backed income One of the most significant benefits of housing association agreements is the potential for Government backed income. In many cases, housing associations enter into long-term lease agreements with landlords, ensuring a consistent rental income regardless of occupancy or tenant circumstances. This eliminates the risk of rent arrears that can occasionally occur with AST tenants. You know your rental payments will arrive on time every month, providing peace of mind and consistent cash flow. Long-Term Agreements Housing associations typically prefer longer-term lease agreements, often 25 years. This provides stability and minimises void periods, a common challenge with AST single-family tenants where turnovers can occur every 6 to 12 months. With a housing association lease, you won’t have to worry about frequent tenant changes, marketing costs, or re-letting fees. Reduced Management Effort With housing association tenants, the association often takes on significant management responsibilities. They handle day-to-day tenant interactions, including rent collection, maintenance requests, and any tenancy issues. This hands-off approach is ideal for investors looking for a passive income stream or those managing multiple properties. In with ASTs for single-family tenants, landlords often need to actively manage or outsource tasks, adding to their workload or costs. Lower Risk of Property Damage Housing associations are incentivised to maintain properties in good condition, as they are responsible for housing vulnerable individuals or families. They may even conduct periodic inspections and cover general wear and tear, reducing the risk of significant property damage. While single-family tenants under AST agreements may look after the property well, housing associations offer a higher level of accountability and oversight. Supporting Social Responsibility Investing in properties leased to housing associations allows landlords to contribute to social housing initiatives, providing safe, affordable housing to individuals and families in need. While this may not directly impact your financial bottom line, it can enhance your reputation as an investor and align with socially responsible goals. Key Differences with AST Single-Family Tenants While housing associations offer numerous benefits, it’s important to weigh them against the advantages of standard AST tenants, such as Higher Rent Potential: Single-family tenants may pay higher market rents compared to what housing associations offer, as the latter may negotiate lower rates due to bulk agreements or capped budgets. Greater Property Control: With ASTs, landlords retain full control over tenant selection and property usage, giving them more flexibility. Upside Potential: With an AST, landlords can regularly adjust rent to match market conditions, which is less feasible with fixed-rate housing association leases. Conclusion Choosing between a housing association tenant and an AST single-family tenant ultimately depends on your investment goals. If you prioritise stability, Government backed income, and reduced management responsibilities, housing association leases are an excellent choice. However, if your strategy focuses on maximizing rental yield and retaining full control, a standard AST might align better. For many landlords, diversifying across both models can provide a balanced portfolio, blending stability with market-driven income potential. Whichever route you choose, understanding your financial and operational goals will ensure your buy-to-let investment is successful and sustainable. Looking for tailored advice on financing your next property investment? Whether you’re purchasing for single-family rentals or leasing to a housing association, Global Investments can help you secure the right funding to meet your goals. Contact us today to speak to a property investments specialist.

Our Guide to Hassle-Free Property Investment for Passive Income

In the realm of wealth creation, few strategies match the reliability and long-term benefits of property investment. However, the traditional image of property investment often conjures up visions of endless paperwork, tenant management, and property maintenance. But what if there was a way to enjoy the benefits of property investment without the hassle? Enter the world of hassle-free property investment for passive income. Passive income is the holy grail of financial freedom, offering the promise of earning money with minimal effort and time investment. When it comes to property investment, passive income typically comes in the form of rental income generated from tenants occupying the property. The key to achieving true passive income lies in streamlining the investment process to minimize your involvement while maximizing returns. In today’s digital age, technology has revolutionised every aspect of our lives, including property investment. Investors can now leverage various platforms and services to streamline the entire investment process, from property search and acquisition to tenant management and With the rise of virtual reality and 3D technology, investors can now conduct property tours from the comfort of their own homes. Virtual tours provide a realistic and immersive experience, allowing investors to evaluate properties without the need for physical visits, saving time and resources. Tenant screening can be a time-consuming process, but with the help of automated screening services, investors can quickly vet potential tenants based on criteria such as credit history, income verification, and rental references. This helps ensure that only qualified tenants are selected, reducing the risk of late payments or evictions. Passive investment strategies are designed to minimise the need for active management, allowing investors to generate income with little to no ongoing effort. When it comes to property investment, there are several passive strategies that investors can employ to maximize returns while minimizing hassle such as the buy-and-hold strategy involves purchasing properties with the intention of holding onto them for the long term, allowing them to appreciate in value while generating rental income. By investing in stable markets and selecting properties with strong rental potential, investors can enjoy consistent passive income without the need for frequent buying or selling. Investment Trusts offer investors the opportunity to invest in real estate without directly owning physical properties. These publicly traded companies own and manage a portfolio of properties, generating rental income that is distributed to investors in the form of dividends. REITs provide diversification, liquidity, and passive income without the hassle of property management. Crowdfunding platforms allow investors to pool their money together to invest in real estate projects, such as residential or commercial developments. These platforms handle all aspects of the investment process, from property selection to management, allowing investors to passively earn income without the need for hands-on involvement. Hassle-free property investment offers a range of benefits for investors looking to generate passive income with minimal effort. Here at Global Investments our team of property investment specialists can talk you through the different options available to you. In particular we have an agreement in place with a Social Housing provider offering a completely hands-free long term passive income starting at 9% and rising over a 25-year lease term with increases based upon the consumer price index. Our properties give you. 1. Time Freedom: By outsourcing property management tasks to professionals and leveraging technology, investors can reclaim their time and focus on other aspects of their lives or pursue additional investment opportunities. 2. Reduced Stress: Managing rental properties can be stressful and time-consuming, especially for inexperienced investors. Hassle-free investment strategies eliminate the need for hands-on management, reducing stress and allowing investors to enjoy a more passive income stream. 3. Scalability: With hassle-free investment strategies, investors can easily scale their property portfolios without being limited by the constraints of time or resources by acquiring additional rental properties. Scalability is a key advantage of hassle-free property investment. In conclusion, hassle-free property investment offers investors the opportunity to generate passive income with minimal effort and maximum returns. By outsourcing management tasks, and embracing passive investment strategies, investors can enjoy the benefits of property ownership without the hassle of day-to-day management. Whether you’re a seasoned investor or just starting out, hassle-free property investment provides a pathway to financial freedom and long-term wealth accumulation. Let us here at Global Investments talk you through the different options available to you. Get in touch.

What Is Section 8?

What Is Section 8? The Section 8 program helps low-income, elderly, and disabled tenants afford decent and safe housing outside of the public housing system. With traditional housing assistance, many of these renters had to live in public housing facilities often located in rougher neighbourhoods, with very few other housing options. Using the Section 8 Housing Choice Voucher Program, tenants receive a housing voucher they can use for any privately owned apartment, townhouse, or house that has qualified for the Section 8 program. To start working with the Section 8 program, landlords and tenants must receive approval from the local housing authority. Requirements to become a Section 8 housing landlord and qualifications for renters vary by area. Approved applicants are put on a waiting list, unless housing is immediately available. Public housing agencies can give some preference to families that are homeless, living in substandard housing, involuntarily displaced, or paying more than half of their income on rent. Landlords, tenants, and the public housing agency then enter into a contract that outlines the roles and responsibilities for each of the parties involved. How Section 8 Works Each year, every state receives a block grant from the federal government to cover housing assistance costs. The states use a portion of this funding to cover the cost of the Section 8 program and to pay for a portion of the tenant’s rent and utility costs. Usually, the housing authority will pay around 70% of the tenant’s costs but in many cases can pay 100% of the tenant’s costs. As an example, consider a Section 8 tenant who has a monthly rent of $700 and averages $150 a month in utility expenses. Based on the 70% calculation, the housing authority would pay $630 of the tenant’s living expenses each month, divided between the landlord and the utility company. The tenant will then pay the remaining 30%. How much rent does Section 8 pay ? The Department of Housing and Urban Development (HUD) requires all housing authorities to determine an appropriate rent amount for all properties leasing in the Housing Choice Voucher Program. When the Request for Tenancy Approval is submitted, CMHA will check to make sure the rent is affordable for the family and reasonable for the area and amenities. The gross rent for your units (ie., the sum of rent and tenant paid utilities) must be reasonable. Rent reasonableness is defined as one that does not exceed gross rent charged for comparable unassisted units in the same market area. CMHA determines rent reasonableness by comparing the proposed unit to two comparable unassisted units in the area. CMHA takes many factors into consideration in determining rent reasonableness, including: Location Amenities Size/Type Utilities In addition to being reasonable, the gross rent must be affordable for the family. Affordability is determined by several factors: voucher bedroom size, payment standard, utility that the family is responsible for, and family income. For an initial contract, the total tenant portion (the monthly rent paid directly to you by the family) can be no more than 40% of the family’s monthly income. If the rent is not affordable because the family share would be more than 40% of the family’s monthly adjusted income, HCVP will negotiate with the owner to reduce the rent for the family so it is in compliance with HUD guidelines. Payment Standards CMHA’s payment standards are based on Fair Market Rent (FMRs). CMHA has established payment standards between 90% and 110% of the FMRs established by HUD. Please note: The payment standard is NOT the maximum amount that the landlord can charge; it is the maximum amount of subsidy that the CMHA will pay toward each tenant’s rent portion. Fair Market Rents and Payment Standards Fiscal Year 2024 CMHA established exception rent payment standards for well-resourced communities and for communities where HUD has identified by zip code the fair market rent as being greater than the fair market rents indicated in CMHA’s “Primary Fair Market Rents and Payment Standards FY 2024” table. In 2024, CMHA will continue to offer exception payment standards based on 2024 FMRs and Small Area FMRs. CMHA has done this to offer greater and more competitive housing opportunities to its voucher holders and landlords. The following is a guideline for current FMR/PS ( Fair Market Rents / Primary Standards ) Source – CHMA Government Housing Authority 2024 The above figures are current 2024 guidelines. Monthly rents can differ slightly from various ZIP codes. What are the benefits of Section 8 housing as an investor ? 1. Consistent, stable and guaranteed Rent Payments Once the Local Housing Authority inspects the property and clears the tenant for the rental assistance program, the landlord can expect to consistently collect monthly rent. This can be much more reliable than any other tenants because the housing authorities are government agencies and will make sure that the rental units are paid for. The rents are paid direct to the landlord via the City each month. 2. Pre-Screened Tenants Another great benefit of investing in section 8 housing is that the tenants are already screened. This is because, in order to qualify for the housing vouchers, the tenants must meet certain requirements. So, the local Public Housing Authority will conduct thorough background checks on every tenant to make sure that they meet all the requirements. If they uncover something, such as a criminal history, they will not be granted a voucher. 3. Low Vacancy Rates Vacancy rates in Section 8 real estate can be lower because tenants tend to stay where they are and renew year after year. If you would like to enquire more specifically in relation to purchasing a property with Section 8 tenants please feel free to email our team – invest@globalinvestmentsincorporated.com

The Power of Diversifying Your Portfolio with Real Estate Investments

In the ever-evolving landscape of investment opportunities, savvy investors are constantly seeking ways to diversify their portfolios, mitigate risks, and unlock new avenues for wealth creation. One such avenue that has proven to be a stalwart in providing stability and substantial growth potential is real estate investment. This article explores the benefits of diversifying your portfolio through the inclusion of real estate assets, highlighting the unique attributes that make real estate a compelling choice for investors seeking long-term success. 1. Tangibility and Stability: Unlike some financial instruments that may seem intangible, real estate is a tangible asset with intrinsic value. Physical properties, whether residential or commercial, provide a sense of stability and security. The stability of real estate markets, coupled with the ongoing demand for housing and commercial spaces, makes real estate a reliable and enduring investment choice. 2. Income Generation and Cash Flow: Real estate investments offer a dual advantage of potential appreciation and regular income generation. Rental properties, in particular, can provide a consistent stream of passive income, offering investors a reliable cash flow. This income not only contributes to the property’s overall return on investment but also acts as a hedge against market volatility, providing financial stability in varying economic conditions. 3. Diversification Beyond Traditional Assets: Diversification is a cornerstone of sound investment strategy, and real estate presents an opportunity to diversify beyond traditional assets such as stocks and bonds. While these assets can be influenced by market sentiment and economic fluctuations, real estate often operates independently, offering a layer of insulation against systemic risks. 4. Hedge Against Inflation: Real estate has historically served as a hedge against inflation. As the cost of living rises, so does the value of tangible assets like real estate. Investing in properties that have the potential to appreciate over time allows investors to preserve and grow their wealth, even in the face of inflationary pressures. 5. Long-Term Appreciation: The real estate market, though subject to cyclical fluctuations, has shown a tendency to appreciate over the long term. Strategic investment in well-located properties can lead to substantial capital gains as the demand for housing and commercial spaces increases. Patient investors who adopt a long-term perspective often see their real estate holdings appreciate significantly over time. 6. Portfolio Risk Management: Adding real estate to a diversified investment portfolio can act as a risk management tool. The real estate market doesn’t always move in tandem with traditional financial markets. During periods of economic uncertainty or stock market volatility, the stability of real estate can help balance a portfolio and reduce overall risk exposure. 7. Real Estate Investment Trusts (REITs): For those looking to diversify without the direct ownership of physical properties, Real Estate Investment Trusts (REITs) offer a viable alternative. REITs allow investors to pool their funds to invest in a diversified portfolio of income-generating real estate assets, providing liquidity and flexibility in comparison to direct property ownership. Conclusion: Diversifying your investment portfolio with real estate offers a multifaceted approach to wealth creation, combining stability, income generation, and long-term appreciation. As with any investment, thorough research and due diligence are essential. Whether through direct property ownership or indirect investment vehicles like REITs, incorporating real estate into your investment strategy can provide a robust foundation for financial success, helping you weather market fluctuations and achieve your long-term financial goals.

Why invest in a UK property with a housing association tenant

Investing in a property with a housing association tenant can offer several positive advantages, which may make it an attractive option for certain investors. Here are some of the key benefits: Stable Rental Income Housing association tenants are generally reliable payers, and their rent is often guaranteed by the housing association or local authority. This stable rental income can provide you with a predictable cash flow and reduce the risk of rental arrears or void periods. Longer Tenancies Housing association tenants often sign longer-term tenancy agreements compared to private renters. Longer tenancies mean less turnover and reduced costs associated with finding new tenants and preparing the property for new occupants. Lower Vacancy Risk The demand for social housing is usually high, which means there is a consistent pool of potential tenants. As a result, the property is less likely to be vacant for extended periods, minimizing income gaps. Less Management Responsibility In many cases, the housing association takes on the responsibility of managing the property and dealing with tenant-related matters. This can be a significant advantage for landlords who prefer a more hands-off approach to property management. Social Impact Investing in social housing through housing associations allows you to contribute positively to society by providing affordable housing to those in need. Some investors find this aspect rewarding as they can make a difference in their community. Lower Tenant Turnover Costs With longer and more stable tenancies, you can save money on advertising for new tenants, tenant background checks, and property maintenance between tenancies. Government Support and Stability Social housing is often backed by government policies and initiatives, which can provide additional stability to your investment. Government support can also mean fewer policy changes that could negatively impact your rental income. Potential for Lower Property Prices Properties in areas with a high proportion of social housing may be more affordable compared to those in high-demand locations. This could make it easier for investors to enter the property market and diversify their portfolio. Hands-On Housing Associations Some housing associations actively maintain and improve their properties, which can result in better-maintained homes and potentially higher property values. It’s essential to note that the advantages of investing in housing association properties can vary depending on the specific location, housing association, and prevailing market conditions. As with any investment, there are also risks and considerations to consider, such as potential changes in government policies, the financial stability of the housing association, and the overall condition of the property. Conduct thorough research and seek professional advice before making any investment decisions. If you would like to know more about investing in Housing association tenanted properties and receive our current availability, please get in touch.

If I pay my fee and holding deposit am I committed to buy the house?

One of the most common questions by some of our investors are on the payments that are needed to reserve or book a property. To book and reserve a property and take the property off market are two payments, one payment of $3,900. This is our arrangement fee. And a $2,000 deposit which is sent to the title company in the relevant state. ( This is called an Ernest Money Deposit ) Even though these are not large payments clients see these as a commitments which they are. One of the questions that come up quite a lot is if the property inspection does not meet the clients expectations or there is something majorly wrong with the property then what happens with my downpayment and the fee paid to Global Investments. So let me cover this. Once a client pays the fee and the Ernest money to the Title company we sign a purchase contract. This purchase contract is subject to a full independent inspection. This is where we would check the main fundamental items in the property. Roof, foundation, electric, plumbing and also we check for any structural movement. If for whatever reason we don’t like something in the inspection we can simply cancel the sale and any funds paid are fully transferable to an alternative property of your choice. ( This its very rare as our suppliers give us excellent properties. ) Saying that normally like with any tenanted house the inspection can bring up minor maintenance items. Once we are happy that the house is in good standing and all the main items are fine we would ask the seller to take care of any maintenance items that are brought up by the inspection before we close. So even though you are making a financial commitment you are not committing to buy that specific house until we are 100% happy with the inspection. What you are committing to is buying a house in the US. We cover every aspect in the process and if there is something we do not like about the inspection then we would actually advise you to cancel the contract and we can start sourcing a more suitable property and like I said there is no cost to the client for this. These investments are long term 5-10 year projects so if it takes a few extra weeks to find the right house for you then this gives our clients the peace of mind that we have their best interests at heart. Mike Moodie – CEO Global Investments Inc

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

Section 8, A Buyers Guide

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

Baltimore Investments – Should I buy Vacant or Tenanted

The age old question when buying any property for investment is should I buy a property with tenants in place already or a vacant property and place my own tenants ? Since Global Investments have launched in Baltimore it is a question that is coming up a lot for the Manchester based firm as there are a lot of excellent houses available on the market that may need minor cosmetic work but obviously come vacant and not with tenants in place. We asked Global Investments incorporated CEO Mike Moodie his thoughts on the matter. “ Well, its not the easiest question to answer as there are pluses and minuses for both sides, so as an investor you need to weigh these up before making a decision. The majority of the enquiries that we receive would normally be for properties that have an immediate income which means that they would want properties that already have tenants in place. In my opinion as long as the tenants have been vetted by the management company and the normal checks have been done on the rent history etc… then these types of tenanted properties make a great investment. “ So if this is the case then why would an investor want to buy a property that is vacant? We asked Mike the same question? Mike added. “ Tenanted properties are great and like I said as long as the checks have been done will provide a great investment but there is an argument to say that buying a property that has been freshly rehabbed allows the investor and the management company to place a fresh new tenant on a long term lease. The only down side to this is that if may take a few weeks or even a month for the management company to do the correct checks and then place the tenant. If we look at the big picture our investors are buying these homes for 5-10 years so a month to place an excellent long term tenant is not really a big deal. I believe this to be the case even more with our Baltimore product as we are getting a lot of excellent inventory but some of the houses need work. We have an excellent team of contractors that basically do a walkthrough on the home before we market it. The works are included in the price of the property so our buyers are getting a newly updated home which is ready and easily rented to new tenants on long term rolling leases. “ Global Investments incorporated have been providing USA turn key properties for the overseas investor now for 7 years and have sold more than 4,700 homes in many cities, Detroit, NY, Florida and Ohio. As a company they provide a one stop shop for the investor, delivering on the ground management and an unrivalled after sales service. We asked Mike how important the management is in both of the scenarios. “ Well management in my opinion is the key to these investments, as without good management a great property can become a bad investment. We have been working with a few excellent management companies in all the states that we work in for some years now. In both of the scenarios management will play an important roll as with a tenanted property we would ask them to check all the lease agreements and rent rolls and history of the current tenants to ensure that the return for our investor would be immediate. In the case of a vacant property, well its the management company that would be sourcing and vetting the new tenants on behalf of the new owner. So in both cases the management does play a vital roll. As a company we strive to provide the best quality turn key property both tenanted and tenant ready in all of the areas in the US that we sell homes. “ To see available turn key and tenant ready homes in Cleveland, Baltimore, Detroit and Kansas please contact any of the team at Global on invest@globalinvestmentsincorporated.com

INSURANCE FOR MY USA BUY TO LET PROPERTY??

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 to ensure the property is insured correctly although it’s not compulsory, if you own the property, insurance should be a top priority as an overseas or domestic investor. Protecting your investment property in the US from the unexpected is extremely important. Global investments work with various companies with specifically structured policies designed for the overseas and domestic buyer. The insurance covers both the structure and your liability against ‘all risks’. Whichever state you purchase in we make sure you have the correct policy in place that has you covered from as little as $1 per day. Our insurance partners can protect both residential and commercial property and if required can cover just liability. For maximum convenience you can chose to pay monthly or pay for a whole year up front. 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. The Building (Hazard) Insurance covers the “structure” of the property against damage and is on a cash value basis. Based on Global Investments clients needs our insurance partners offer an ‘All Risks’ policy so if it is not specifically excluded, it is covered. This type of insurance is designed mainly for total loss cases, covering the “structure” of the building from things like fire, weather damage, and even some severe cases of theft. Clients should all purchase Building Insurance to protect their investment and to replace it in the event of a major catastrophe or total loss. The policy does not cover against blocked pipes or leaky roofs, for this you would need to purchase a Home Warranty for items of that nature. If you wish to discuss if this is necessary for your rental property speak to a member of our staff for the best advice. The Liability Coverage for overseas investors is equally important and necessary. Liability coverage is there to protect you from being sued if someone were to injure themselves whilst on your property. As I am sure many people are aware of the American suing culture and private medical costs, having liability insurance is also a top priority and advisable. When you complete on a property Global Investments after sales team will complete the insurance application forms on your behalf and ensure you receive a competitive quote which covers buildings and liability cover immediately. This is a no obligation quote and of course if you wish you can always search for your own policy. If you wish to learn more or you have any specific technical questions relating to insuring your overseas investment property then please feel free to contact us at…..invest@globalinvestmentsincorporated.com