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Cleveland News – Largest Hough development in a century

The largest planned, single development in a century is proposed for Cleveland’s Hough neighbourhood by reutilising the huge site of the closed Martin Luther King Jr. High School, 1651 E. 71st St. On that 11-acre property bounded by Hough and Lexington avenues plus East 71st and 73rd streets, 310 housing units and two divisible commercial spaces are planned as part of a neighbourhood destination. They are intended to serve a variety of residents — ranging from the growing workforce and student population in the University Circle area to those retired and looking for modern, single-level housing. In the centre of the development, a roughly 3-acre community park is envisioned with gardens, farms, a pond, fountain and quarter-mile-long walking path. Proposed by Structures Unlimited LLC of Greenbelt, MD in suburban Washington DC, with offices in Cleveland and West Palm Beach, FL, the developer has built major residential and commercial projects in suburban Maryland but also in Baltimore, Durham, NC and elsewhere. The minority-owned firm also touts its use of a panellised building technology made and marketed by Emmedue M2 Systems of Italy to quickly and affordably build structures. Structures Unlimited proposes to build on the MLK school site 213 apartments in two L-shaped buildings featuring 22,789 square feet of commercial spaces on their ground floors facing Hough Avenue. In the commercial spaces, the developer’s Founder and Managing Member Kareem Abdus-Salaam said he he envisions an organic food market, an incubator for entrepreneurs, and a white-tablecloth restaurant. Around the perimeter of the north half of the site, halved by an extension of Quimby Avenue, 97 townhomes are planned. They will range in size from 635 square feet on one level for seniors to as much as 1,917 square feet for market-rate homes. According to plans submitted to the city by the project’s architect LDA of Cleveland, the market-rate townhomes will be for-sale units and there will be 24 senior homes. There also will be 276 off-street parking spaces and 93 on- street spaces. On its Web site, Structures Unlimited said the MLK school site development will feature “a diverse range of housing options, catering to various income levels, thereby fostering a socially diverse and inclusive community. The residential units will be thoughtfully designed, energy-efficient, and equipped with modern amenities, ensuring that residents enjoy a comfortable and contemporary living experience. By prioritising environmental responsibility and social cohesion, this project will set a new standard for future urban developments, paving the way for healthier and more resilient communities. Also, two years ago, the firm requested city approvals to develop the south side of Hough Avenue at East 85th Street with multiple retail spaces called the Madame CJ Walker Business District, named after an early 20th-century African American businesswoman who was active nationwide. But that proposed project, centred at 8502 Hough, was denied a permit by the city’s Building Department due to several nonconformance zoning issues, according to city records. The application will be resubmitted. That project, proposed on city land bank properties yet to be acquired by Structures Unlimited, will likely benefit from the city adopting a form-based zoning code. The design review committee has on its agenda the Hough Form-Based Code Pilot Area on land north of Chester Avenue between East 55th and East 90th streets. The land on which the MLK school was built was originally the site of University School before it moved to Shaker Heights in 1926. The property was sold to the Cleveland Public Schools which remodelled the building as Thomas A. Edison School for boys. Structures Unlimited’s proposed developments could result in restoration of Hough’s former business district.

USA Housing Market Predictions for 2024

As we enter an new year many Buyers are hoping that prices start to stabilise this year, the last few years we have seen limited availability, soaring mortgage rates and property price hikes. Last year mortgage rates surged in October racking new heights at 7.79%, the median price for a home in the US in October was just under $400,000, the fifth straight month of year-over-year price increases. 2023 we seen a phenomenon called the “mortgage rate lock-in effect” this brought the industry nearly to a standstill, putting downward pressure on everything from inventory levels to home sales. But some positive news is that mortgage rates have dropped steadily over the last seven weeks, averaging 6.61 % for a 30-year fixed mortgage. Even though mortgages rates are coming down the rates are still very high compared to previous years.Mortgage rates are likely to remain well above pandemic-era record lows because financial markets increasingly believe the country will avoid a recession in 2024,” says Redfin Chief Economist Daryl On top high of mortgage rates still being high we still have low inventory levels. Many first time Buyers still feel very negative about being able to afford a home. Lower mortgage rates will undoubtedly improve affordability for borrowers, but with that will come increased demand. This will keep home prices high and likely push them up even further. Finding a home for a first time Buyer in your given price range might become even trickier, and you may need to make a lot of offers before you get one accepted. A lot of experts are also saying dont expect to see and end to the shortage of homes in the US, another trend that is continuing. Odeta Kushi, deputy chief economist at First American stated “that a supply shortage is a very hard thing to undo, it will take years of accelerated new home construction to narrow the supply shortage gap from more than a decade of underbuilding,” One positive though is construction is now back on track, Robert Dietz, the chief economist for the National Association of Home Builders is forecasting a gain for single-family housing construction starts in 2024. This will be the first year of increase after declines in 2022 and 2023.“Due to low existing inventory, new construction has increased to approximately one-third of total single-family inventory in recent months when historically it was only 10% to 15%,” Dietz says. But how about property prices, are we going to see them go down this year ? Despite predictions that prices would fall last year they didn’t, as of October 2023, prices rose 6.3% last year, according to the S&P CoreLogic Case-Shiller index. High mortgage rates were a major challenge for the housing market last year, significantly slowing home buying demand. In spite of this, prices still rose. In fact most forecaster are saying by the end of this year we can see more price rises across the US. Fannie Mae’s recent survey of housing experts offers valuable insights into the future of the housing market, predicting a shift from the fast pace of 2023 to a more moderate rhythm in 2024 and 2025. The projected slowdown to 2.4% and 2.7% growth in 2024 and 2025, respectively, marks a significant departure from the anticipated 5.9% surge in 2023.Zillow’s updated predictions for 2024 anticipate the national, non-seasonally adjusted Zillow Home Value Index (ZHVI) to remain flat in 2024. It will be interesting this year to see how the different factors impact the US Housing Market, what will be the balance be like between demand and supply, will new policies be implemented to shape the market, will mortgage rates go up or down. One thing that is certain is we are looking at another year of low supply one way or another. Of course these are all just predictions but we can conclude that if you are planning to buy a house in the US is 2024 now is the time to start planning, overall it look like this year will be slightly better for Buyers but in a way it will be more challenging than 2023 due to prices and the competition in the market.

Looking forward to 2024 in the UK Property Market

We reflect on a tumultuous year as 2023 draws to a close, marked by the highest mortgage rates in 15 years, a dip in house prices, and a decrease in property transactions. Despite the rollercoaster ride, portfolio landlords resiliently held onto their buy-to-lets, and market confidence began to recover as the Bank of England maintained the base rate. With the year concluding and the new year on the horizon the approaching year offers a strategic opportunity for property investment, enabling wealth-building amid the conditions of a buyer’s market. Savills predicts a substantial 17.9% growth in property prices by 2028. While property prices experienced monthly fluctuations throughout the year, there was an overall year-on-year decline, with Rightmove forecasting a further 1% drop in 2024. While this may not be the most encouraging news for existing landlords, it presents an opportunity for investors to enter or expand their portfolios at more affordable prices. Zoopla notes that current market conditions are as favourable for buyers as they were in 2018. Moreover, Savills predicts a substantial 17.9% growth in property prices by 2028, suggesting that entering the market in 2024, when prices are low, could yield significant benefits in terms of capital appreciation. The trend of declining house prices coincides with a surge in seller discounts. Not only did prices decrease between November and December, but property discounts also reached a 5-year high. Zoopla reports an average discount of 5.5%, translating to £18,000 off the original asking price. These favourable market conditions have resulted in a 6% increase in buyer demand. As competition among buyers intensifies, investors are advised to consider entering the market sooner rather than later to capitalize on the current discounts offered by sellers. The property market, previously characterized by fierce competition and a limited supply of properties during the pandemic, has undergone significant changes. There is now a healthier supply of properties, with the number of listed properties reaching a 6-year high. Property sales volume has also increased by 15% compared to 2022. This increased supply and demand give new investors a broader selection to find the right buy-to-let property. Three and four-bedroom properties have experienced the most significant market growth, offering landlords the opportunity to diversify their portfolios with potential HMO properties. Following 14 consecutive rate hikes, the Bank of England opted to maintain interest rates at 5.25% in September, subsequently holding them steady in November and December. This decision prompted lenders to reduce their interest rates, leading to an influx of sub-5% mortgage products. Analysts predict that if this trend continues and the base rate further decreases, sub-4% products could be available by the first half of 2024. The positive outlook on interest rates compared to the 15-year peak in July 2023 makes 2024 an opportune year to secure a competitive rate for buy-to-let purchases. The combination of competitive mortgage rates and declining property prices extends the reach of an investor’s capital, providing access to better properties and increased potential for high returns. The National Residential Landlords Association (NRLA) research reveals that 71% of landlords reported increased rental demand in the current year, nearly tripling the 2019 figure of 22% and 76% of landlords reporting increased tenant interest. There is continued Growth in Rental Demand. This heightened demand provides investors with confidence in the property market for 2024, knowing that high returns are achievable due to the available demand for their investment. As stability returns to the property market at the close of 2023, indications suggest that this trend will continue into 2024. With property capital appreciation expected to reach 17.9% in 2028, entering the market in the upcoming year positions investors to benefit from the projected capital growth. For your New Year Buy-to-Let Property Global Investments UK property investment division has ready to rent property investments wating for you. Please contact us for our latest availability.

How to make your property buy to let investment work in the UK market

Investing in buy-to-let properties in the UK can be a lucrative endeavour, but it’s essential to approach it with careful planning and consideration. Here we set out some key steps to make your buy-to-let investment work in the UK market. You must research the Market. Start by researching the local property market in the area where you intend to invest. Look for areas with strong rental demand, potential for capital growth, and amenities that attract renters. Setting clear goals allows you to define your investment goals, such as your desired rental yield, investment timeline, and target tenants. Understanding your objectives will help guide your decisions. Budget Wisely. Calculate your budget, including the purchase price, legal fees, stamp duty, renovation costs, and ongoing expenses. Be realistic about your financial capabilities. If available explore your financing options, whether it’s through a buy-to-let mortgage or other means. Consider speaking to a financial advisor or mortgage broker to find the best deal for your situation. Some deals are cash only, these often offer long term leases and decent returns if your able to consider. Select a property that aligns with your investment goals. Consider factors like location, property type, and the potential for future growth and calculate the potential rental yield by estimating the monthly rental income and comparing it to your initial investment. A good yield is typically around 5-8%. Understand the legal and tax implications of buy-to-let investments in the UK. Consider consulting with a tax advisor to optimize your tax strategy and decide whether you’ll manage the property yourself or hire a property management company. Management can be time-consuming, so factor in the cost of professional management if needed. Screen tenants carefully to minimize the risk of non-payment or damage to the property. Ensure that tenants meet all legal requirements and have a good rental history. Regularly maintain the property to keep it in good condition. Promptly address any repair or maintenance issues to maintain the property’s value and appeal. Keep an Eye on the Market, monitor the property market for changes in rental prices and demand. Stay flexible and be willing to adjust your rental rates as market conditions fluctuate. Consider diversifying your property portfolio by investing in different types of properties or in various locations to spread risk. Buy-to-let investments are typically a long-term endeavour. Be patient and expect that it may take several years to see substantial returns. Its important to develop an exit strategy. Understand how and when you plan to sell the property and under what circumstances. Keep up with changes in the rental market, property regulations, and tax laws. Being informed allows you to adapt to market conditions and legal requirements. Investing in buy-to-let properties can be a profitable venture when approached wisely and diligently. It’s important to do your homework, stay organized, and be prepared for the responsibilities that come with property management. Consider seeking advice from experienced property investors or professionals to help you make informed decisions. Here at Global Investments, we have readymade property investments for you. Tenanted ready property offering 8% and 9% net returns along with 10-to-25-year leases. Get in touch with us to find out more.

Cuyahoga Land Bank to Lead $122 Million Redevelopment in East Cleveland

The city of East Cleveland, Ohio, is on the brink of an exciting transformation, thanks to a significant redevelopment project led by the Cuyahoga Land Bank. With a whopping $122 million investment, this project promises to revitalize East Cleveland, breathe new life into its communities, and provide hope for a brighter future. In this blog post, we’ll explore the details of this redevelopment initiative, its potential impact, and the role of the Cuyahoga Land Bank in driving positive change. Understanding the Cuyahoga Land Bank: To appreciate the significance of this redevelopment project, it’s essential to understand the role of the Cuyahoga Land Bank. Established in 2009, the Cuyahoga Land Bank is a nonprofit organization dedicated to repurposing vacant, abandoned, and tax-foreclosed properties. Their mission is to stabilize neighborhoods and promote economic growth through strategic property acquisitions and revitalization efforts. The $122 Million Investment: The $122 million investment represents a considerable commitment to East Cleveland’s revitalization. It encompasses a range of initiatives, including: Housing Rehabilitation: A significant portion of the funds will be allocated to rehabilitating existing housing stock. This means renovating and restoring vacant and blighted properties, ultimately providing safe and affordable housing options for residents. Commercial and Retail Development: The project aims to attract businesses and retailers to the area, creating job opportunities and increasing economic activity. This could be a game-changer for East Cleveland’s local economy. Green Spaces and Community Amenities: The redevelopment plan includes the creation of green spaces and community amenities. Parks, playgrounds, and recreational facilities will enhance the quality of life for residents. Infrastructure Improvement: Essential infrastructure like roads, water supply, and sewage systems will see much-needed upgrades, ensuring that the community has access to reliable services. Potential Impact on East Cleveland: Economic Revival: The injection of $122 million into East Cleveland’s economy has the potential to catalyze economic revival. The creation of jobs, new business opportunities, and increased property values can help uplift the community. Enhanced Quality of Life: The development of green spaces and community amenities will not only improve aesthetics but also contribute to a better quality of life for East Cleveland residents. Community Pride: As blighted properties are transformed into vibrant spaces, residents are likely to feel a renewed sense of pride in their community. Community Involvement: It’s crucial to note that successful redevelopment projects often involve active community participation. The Cuyahoga Land Bank is likely to collaborate with local organizations, residents, and stakeholders to ensure that the redevelopment aligns with the community’s needs and aspirations. Challenges and Considerations: While this redevelopment initiative holds immense promise, it also faces challenges such as managing the logistics of a project of this scale, ensuring that the benefits are equitably distributed, and maintaining the character and affordability of the neighborhood for existing residents. Conclusion: The Cuyahoga Land Bank’s leadership in this $122 million redevelopment project presents an exciting opportunity for East Cleveland. As the project unfolds, it has the potential to transform the city, create economic opportunities, and improve the overall quality of life for its residents. While challenges may arise, the commitment to revitalizing East Cleveland is a significant step toward a brighter future for the community and a testament to the power of strategic redevelopment efforts.

Can UK Councils Home the Homeless alone, could Housing Associations fill the gap ?

The effectiveness of UK councils in housing homeless individuals can vary widely depending on several factors, including local policies, funding availability, resources, and the specific approach taken by each council. While some councils may excel in providing support and housing options for homeless individuals, others might face challenges that hinder their ability to effectively address homelessness. The UK government has made efforts to address homelessness through various initiatives, such as the Homelessness Reduction Act 2017, which places more emphasis on prevention and support for those at risk of becoming homeless. Additionally, there have been programs aimed at providing temporary accommodation and support services for homeless individuals. However, there have been reports of overcrowded and inadequate temporary accommodations, long waiting lists for social housing, and budget constraints that impact the ability of some councils to effectively house homeless individuals. Moreover, the causes of homelessness are complex and often interconnected, including issues like poverty, mental health, addiction, and lack of affordable housing, which can make it challenging for councils to address the root causes of homelessness. It’s important to note that the situation can change over time and from one location to another within the UK. Some councils may have more successful programs and resources dedicated to tackling homelessness, while others may struggle due to various reasons. Public opinion on how well councils are doing in addressing homelessness can also vary based on individual experiences and perspectives. If you’re interested in the status of how UK councils are handling homelessness, I recommend looking up recent reports, studies, and news articles that provide insights into specific council efforts and outcomes related to homelessness in different regions of the UK. Housing associations can play a significant role in addressing the housing crisis in the UK, but they are one part of a broader solution that requires collaboration between various stakeholders, including governments, local authorities, private developers, and social organizations. Housing associations are non-profit organizations that provide affordable housing and support services to a wide range of people, including those on lower incomes, key workers, and vulnerable populations. There are some ways in which housing associations can contribute to solving the housing crisis. Housing associations often focus on building and managing affordable housing units that cater to individuals and families who might not be able to afford market-rate housing. By offering affordable options, they help address the gap between housing demand and supply. Many housing associations provide social housing, which is rented housing typically provided by the government or non-profit organizations to those in need. This type of housing helps support individuals and families with lower incomes. Housing associations can develop mixed-income housing projects that include a combination of market-rate, affordable, and social housing units. This approach promotes social integration and reduces the concentration of poverty. Housing associations often offer additional support services to residents, such as employment assistance, education and training programs, and community-building initiatives. These services can help residents improve their overall quality of life and work towards long-term stability. Housing associations can be at the forefront of innovative housing design and sustainable building practices, helping to create housing that is not only affordable but also environmentally friendly and energy efficient. Collaborating with local governments, private developers, and community organizations allows housing associations to pool resources, share expertise, and create comprehensive solutions that address various aspects of the housing crisis. Housing associations can work on preventing homelessness by providing transitional housing and support for individuals at risk of becoming homeless. While housing associations have a role to play, it’s important to note that the housing crisis is a complex issue with multiple underlying causes, including housing supply shortages, affordability challenges, economic disparities, and more. Addressing the crisis requires a multi-faceted approach that involves policy changes, increased funding, land use reforms, and coordinated efforts among various stakeholders. Ultimately, housing associations can contribute significantly to alleviating the housing crisis in the UK, but their impact will be most effective when combined with broader systemic changes and strategic partnerships across the housing sector. Here at Global we and our partners work with Housing associations who take tenancies in our investors properties providing a long term net income with no voids to the investors and homes for those who maybe homeless without this opportunity.

Can I maximize my property investment returns renting to a housing association?

Getting better returns from a housing association tenant in the UK can depend on various factors, including the location of the property, the terms of the tenancy agreement, and the demand for rental properties in that area. Here are some considerations to keep in mind: The location of the property is a crucial factor in determining rental returns. Properties in high-demand areas, such as city centres or areas with good transport links, tend to have better rental yields. Research the local rental market to understand the demand and rental rates in the specific area where your housing association property is located. The condition of the property can significantly impact its rental potential. Ensure that the property is well-maintained, clean, and in good repair. A well-presented property is more likely to attract tenants and command higher rents. Depending on your budget, consider making value-add improvements to the property. These could include upgrading the kitchen or bathroom, enhancing the curb appeal, or adding features that tenants might find attractive. However, be cautious not to overspend on improvements that won’t yield a significant increase in rent. Analyse the demand for rental properties in your area. If there is a shortage of rental housing and a high demand for housing association properties, you might have the opportunity to command higher rents. Conduct thorough market research to understand the rental rates for similar properties in the area. This will help you set a competitive rental price that offers good value to tenants while maximizing your returns. Consider whether you will manage the property yourself or hire a property management company. While managing the property yourself might save money, a professional property manager can handle tasks such as tenant communication, maintenance, and rent collection, potentially reducing the stress and time investment on your part. Choosing reliable and responsible tenants is essential to ensure consistent rental income and to minimize the risk of property damage. Proper tenant screening can help you avoid potential problems in the future. Make sure you understand the legal obligations and responsibilities that come with renting out a property, including adhering to the terms of the housing association agreement and complying with relevant landlord-tenant laws. Consider your long-term goals for the property. Are you looking for short-term rental income, or do you plan to hold onto the property for capital appreciation over time? Your strategy might influence how you approach rent pricing and property management. Global investments specialise, with their partners, in the sourcing and selling of housing association stock that comes with upon completion of the transaction a tenant in place for 10years with an increasing rent and a full repairing and insuring lease. We have sold many properties of this type and can help in the right selection to fit your budget and circumstances. It’s important to note that the relationship with a housing association might come with certain restrictions and guidelines that could impact your ability to set rents or make certain changes to the property. Always consult with legal and financial professionals before making any decisions that could affect your returns or the terms of the housing association agreement. Contact us to speak with one of our experts.

There is a shortage of Social Housing in the UK currently

Shelter makes the point on their website (https://england.shelter.org.uk/) that the Social Housing (Regulation) Act is now law – but the government must do more. After years of demanding positive change to protect tenants, this legislation is a huge step forward. But stronger regulation alone isn’t enough. Investment in more social housing is desperately needed to help over a million households stuck on social housing waiting lists and the 100,000 households who are homeless right now, they say. The following is an extract from their proposals. There is a social housing deficit. More people than ever are struggling to afford a secure place to live. Yet, not enough social homes are being built. Over 1 million households are waiting for social homes. Last year, 29,000 social homes were sold or demolished, and less than 7,000 were built. In England, there are now 1.4 million fewer households in social housing than there were in 1980. As a result, millions of households have been pushed into the private rented sector, which has more than doubled in this time. Their facts and figures explain the issue. There are not enough homes in the UK. They state that a home is a fundamental human need. But right now, there are simply not enough good quality, low-cost homes available for everyone who needs one. Social housing on the decline. Social housebuilding in England is at its lowest rate in decades. Since 1991, there has been an average annual net loss of 24,000 social homes. Fewer social homes are built, compared to those lost through sales and demolitions. The result is a deficit in social housing. home cost 8 x average salary. There are many unaffordable homes. The housing emergency is affecting many people across the country. Priced out of owning a home and denied social housing, people are forced to take what they can afford. Even if it’s damp, cramped, or away from jobs and support networks. Social housing has declined as fewer homes have been built in England since 1923 Private housebuilding and social housing delivery peaked in England in the 1930s and again in the 1950s through to the 1970s, with house prices climbing gradually. Since the 1980s, construction of social housing and private homes has severely declined, with steep increases in house prices from the mid-1990s onwards. Housebuilding has almost halved in 50 years. In the 1960s, 3 million homes were built in England. Since 2010 the UK has built just 1.3 million homes. This is one reason why house prices are so high. And the UK relies on the private sector to build houses. And the goal of the private sector is to make a profit. When fewer people can afford to buy their own home, it affects the number of homes developers sell. And as a result, developers build fewer homes. Since 1990, as part of their developments, developers must contribute about a quarter of new builds as Affordable Housing (AH). So, when private developers don’t build houses, that means we’re losing out on social housing too. So, what is ‘affordable housing’? The government’s definition of Affordable Housing (AH) is housing for sale or rent for those whose needs are not met by the market. This includes housing that provides a subsidised route to home ownership and/or is for essential local workers. This definition complies with one or more of the following definitions, social rented housing – low rent and secure housing which is prioritised by need. Affordable rent – this is higher rent (80% of the market rate). It is less secure housing, prioritised by need. Subsidised home ownership. Starter homes. Discounted market sale housing. Shared ownership – housing where you buy part of a home and pay part rent. Since 2000, successive governments have known that too few homes are being built and set a target of 250,000 new homes annually. Each year this target is missed. UK is now short of around 1.5 million homes. The reliance on developer contributions to deliver affordable homes means that when fewer houses are built, social housing levels fall. Since the 1980s, the UK has seen private developers build less. Worse still, the government has abandoned social housing delivery to the private market, hoping profit-seeking developers will build social housing as part of their planning permission. Today, the government provides very little direct funding for social housing. That strategy has obviously failed and is the main reason why there’s such a social housing deficit. The percentage of renters in overcrowded homes has steadily increased since 1995. Since 2000, the percentage of renters in overcrowded homes increased from 4.5 to 7.6. People become overcrowded when there is not enough affordable housing available, or when housing costs are high. On top of this, many families up and down the country are forced to settle for temporary homes. People ending up in temporary accommodation (TA) has more than doubled in the past decade, It last hit this level in 2007, just before the financial crisis. This is when housing costs rocketed, even though the waiting list for social housing has flattened since 2012, the number of families in TA is back up. Since 2012, the waiting list for social housing in England seemed to flatten. However, it’s important to note this isn’t because desperate families were placed in social housing. The reason goes back to 2011 when councils purged their waiting lists due to a massive shortage of social homes. In 2011, councils were given more flexibility in how they managed their waiting lists. This included limiting lists to people who lived locally for a certain length of time. Many councils introduced new criteria to help manage how they provided social homes. If families didn’t meet these criteria, they were removed from council waiting lists. The impact is clear. Since 2012, more people have been forced into temporary accommodation because there are simply not enough social homes available. While need for social homes is up, the number built is falling. And while the government has spent money on so-called ‘affordable’ housing – homes that aren’t affordable

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.

Detroit news July 2023

10 years after Detroit bankruptcy properties are seeing development again The Residence at Water Square A new skyscraper apartment building, renovated parking garages and a more walkable riverfront space are among the active projects on properties Detroit ceded to creditors in the settlement of the city’s bankruptcy. The city settled more than $1.4 billion in troubled pension debts with New York-based Financial Guaranty Insurance Co. (FGIC) and Bermuda bond insurer Syncora Guarantee Inc. The process resulted in FGIC gaining control of the redevelopment of the former Joe Louis Arena site on prime riverfront real estate, while Syncora also received development rights to riverfront properties and lucrative leases like for the Windsor-Detroit Tunnel. Local developers, however, have since brought the properties under their control. Now that they have, construction has risen, beautification and site preparation are underway and some sites have reopened to the public. The development at the Joe Louis (Arena) site may have taken longer than expected, but is a very beneficial outcome and looks like a positive outcome in the long-term. Joe Louis Arena site The city-funded demolition completed in 2020 of Joe Louis Arena, the home of the NHL’s Detroit Red Wings franchise until July 2017, when the team moved to Little Caesars Arena, is perhaps the most significant change to emerge from Detroit’s bankruptcy land deals. An affiliate of Detroit developer Sterling Group acquired option rights to the property from FGIC in a $14 million deal in 2019, buying the site of the former arena and its nearby parking garage. A hotel originally had been planned for the arena site, though a lawsuit from FGIC against the city in 2018 suggests those plans might have changed based on the city’s preferences as the downtown real estate market shifted. Sterling Group is now completing construction on a 25-story, 496-unit glassy apartment building it calls The Residence at Water Square, which features floor-to-ceiling windows and rooftop lounges that overlook downtown, the Detroit River and Windsor, Ontario. Applications for leasing the studio, one-bedroom and two-bedroom penthouse suites opened last month, with move-ins expected to begin in February, two years after site preparation work began. Danny Samson, Sterling Group’s chief development officer, likened the development to those seen in major real-estate markets like Chicago and New York, saying Detroit is now ready for an apartment complex like this one that can offer a walkable, upscale lifestyle. “It’s indicative of what is happening in the city of Detroit,” Samson said. “We have overcome challenging times and now are onto a brighter future with every opportunity today and for tomorrow.” The site itself has been dubbed Water Square, and there will be a walkable, interactive space around the building in future phases, Samson said, with more details to come. Sterling Group has been in talks with the Detroit Regional Convention Facility Authority board about building a 600- to 800-room hotel that would be connected to Huntington Place. The two entities entered an agreement in January, and property has been deeded to the city for the expansion, Bruce Goldman, the city’s chief assistant corporation counsel, said in an email. The riverfront convention centre sits within a short walking distance of the Residences at Water Square. Residents of the apartment complex won’t have their own parking, though valet service will be available. In early 2021, Grosse Pointe-based Foster Financial Co. purchased the eight-story Joe Louis Parking Garage at 900 W. Jefferson Ave. from Sterling Group to offer parking for tenants of the commercial building it owns at 211 W. Fort St. and for the public. “There is major demand in downtown Detroit, regardless of whether people are working from home,” said Brad Foster, president of Foster Financial. “There is a deficit of parking spaces.” The garage reopened in March 2022 after $10 million in renovations of the first five floors involving concrete work, waterproofing, new lighting and new security measures. Another $14 million in work is expected to be completed in the next year on the top three floors. Developments such as The Residence at Water Square ( just one example ) solidifies the increase and positive future for Detroit. Business, professional services, electronics, software and IT services and of course construction and real estate and financial services are showing great promise in the city. Global Investments are also seeing a growing re-interest in the Detroit buy to let investment market. If you are ready to invest in the Detroit housing market, or wish for a call and more information on the latest properties Global Investments can offer then please email us today at : invest@globalinvestmentsincorporated.