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If you ask most people what was their best investment during the course of their life, a lot of them would say their home. The general premise is that over time property tends to appreciate in value. Eventually you end up paying off the loan you received in the form of a mortgage and so down the road you have plenty of equity in the property. From an investment standpoint not a lot has changed over the years, the consensus still remains that investing in bricks and mortar is, generally speaking, the most popular form of investment. So, if this is the case then why are an increasing number of Millennials now choosing to rent as opposed to owning a property? In the United States, cities like Cleveland are witnessing a boom in the rental market, as the younger generation choose to pay for housing on a monthly basis rather than take on the burden of a mortgage. Having significantly increased our own presence in Cleveland over the last 18 months, a common question we are asked by buyers is, “Why is the rental market in Cleveland strong? If the property is good value for money then why are people renting and not buying themselves given our earlier premise?” From a logical standpoint this seems a fair question. But the answer is a complex one that takes into account a range of factors. Obviously, in life there will always be a percentage of people that cannot obtain the funds to buy a property, and this leaves them with no option but to rent. Similarly, banks have taken a more cautious approach to lending on property in recent years and are only willing to mortgage certain types of real estate. In the US, in particular, lending against low value properties is not as commonplace as it once was. However, surprisingly the primary reason for the increase in the rental market is neither of these. For the current Millennial generation, renting is simply a more appealing option than home ownership. Let me explain why. Firstly, in today’s world the average Millennial is much less likely to work in the city they grew up in. Through globalisation and technology, it has become easier and easier to find jobs in other cities or other countries for that matter. Thanks to the arrival of the Internet and social media, the world is now a small place and flexibility is valued ahead of settling and laying down roots for many. And thanks to a Packing up and testing out a new city has never been more effortless. If you purchase a home, statistics show you are much less likely to pack up and move to a different city than someone who is moving from one rental property to another. There is no hard evidence to understand why this is the case, however one could hypothesise that the homeowner feels trapped with their home and unwilling/unable to pack up and leave. So, let’s look at a typical example. You are a young person or family that has just moved to Cleveland with a new job, an exciting new city and life ahead. You look for a home to live in and you assess the options: shall I rent or shall I buy? Let’s look at a few negatives, in this instance, for home ownership. The most common mortgage in the United States is a 30-year fixed mortgage. If you get a 30-year fixed mortgage for your property, the first few years almost all of the mortgage payments to the bank each month are for interest. Very little of that mortgage payment is going to pay off the actual debt on your house. Most likely, you will have to live there for over 7 years before you begin to pay off any capital on the property. Ask a Millennial working in the city where they will be in 7 years and if they could see themselves living in a different city in 10? Also, with any property you own you will need to have money set aside for any repairs or maintenance items that come up such as a roof leak, new siding, HVAC system, hot water heater, windows, toilets, locks, yard maintenance, etc. This ongoing drain on disposable income is less appealing to the professionals and families of today. Over the last 10 years, the average length of time a homeowner lives in their house is estimated to be 8.4 years. In the previous 10 years from 1999-2009 the average length of time a homeowner lived in their house was just over 6 years. From these statistics it is clear that most homeowners did not make much money when they sold their house, simply due to the length of time they lived in the house. So, basically the main reason for the increase in the rental market – especially in cities such as Cleveland – is the change in lifestyle and the perception of the world we live in. If you wish to truly gain from capital appreciation as a household with a long-term mortgage, you need to be set on holding onto your house for a long period of time (at least 15 years). The current generation of Millennials are not following in their parents’ footsteps, growing up and living in the same neighbourhood, living in the sea home for 30 years. Instead, many Millennials like the idea of keeping their investment options open and many look upon family homes owned by their parents as a future nest egg/inheritance, which frees them up to live a more flexible and transient lifestyle. The good news for Global Investments investors is that the rental market is growing in places like Cleveland. This means that for those looking to build a property portfolio, they can be confident in: Increasing rental demand Increasing property values A stable future market should tenants leave This is one of the main reasons why we are seeing so many overseas investors get involved in buying turnkey homes in

Cleveland is going through an economic boom right now and it looks like it’s not going to stop any time soon. Over the last 10 years Downtown Cleveland has been totally transformed thanks to a combination of private and public investments working hand in hand.  From 2011-2015 a total of $8 billion was invested in new developments in Cleveland. This included an estimated $1.37 billion on new hotels; $1.23 billion on mixed-use development projects; $694 million of residential housing; $1.78 billion on “meds & eds” tech structures; $508 million on arts development;  $1.4 million on public space;  $982 million on infrastructure improvements and $451 million on renovation and business attractions.

These numbers don’t take into consideration the $350 million spent in total by AT&T in improving the Cleveland area network over the last 3 years. During this time Cleveland has also developed the clean and safe ambassador programme and created a walkable transit-friendly city. Altogether, these initiatives have resulted in one of the fastest-growing multifaceted cities in Ohio.

 Downtown Cleveland Alliance recently released the Downtown Cleveland Annual Report, which is a comprehensive summary of the area’s development in housing, office, retail, innovation, advocacy and hospitality markets. The report reinforces the key components that established Downtown Cleveland as the fastest growing city in Northeast Ohio.

 Three notable companies – Electronic Merchant Systems, NRP Group and Millennia Companies – relocated their corporate headquarters to Downtown Cleveland, making Northeast Ohio the second-largest concentration of corporate headquarter jobs in the U.S. Cleveland is a city that never stops and this year we are seeing huge new developments taking place all over Downtown Cleveland.
 A $185 million makeover of the Rocket Mortgage Fieldhouse (formerly known as the Quicken Loans Arena) will incorporate a stunning glass facade and dramatic-looking exterior to the home of the Cleveland Cavaliers basketball team and the Cleveland Lumberjacks ice hockey team. In 2018 it was announced that the arena will host the 2022 NBA All-Star Game.

Phase III of the redevelopment to the Flats East Bank brings a 12-story mixed-use building with 300+ apartments, rooftop green space, an outdoor pool and lots of retail. Ohio City’s Market Plaza shopping center is being transformed into a mixed-use space complete with a 12-story office building, another for apartments, and a shopping mall.

We also see major developments in the Skyline. Dan Gilbert will be redeveloping the May Company building into a mixed-use icon. The one-time department store will house 308 apartments, retail galore, nearly an acre of green space and a rooftop patio.

The Residences at Terminal Tower will offer an exclusive club-style lounge and 300+ apartments – all just a quick stroll from Public Square, JACK Casino and the Gateway district. The 34-story The Lumen at Playhouse Square will take centre stage in 2019 with a striking glass exterior and 22,000 square foot amenity deck. Cleveland is reinventing itself as a truly 21st century city, leveraging billions of dollars in public and private investment to help create a strong and healthy economy. Many of the city’s historical buildings are being renovated and repurposed, alongside a number of impressive ground-up developments to enhance Cleveland’s appeal to a new generation of residents. From entrepreneurs and new business owners to college-educated professionals drawn to the city’s many leading corporations, it’s no surprise that Cleveland is emerging as a vibrant and popular city.

As a company we have been selling investment properties in Cleveland Ohio for the past two years and it is by far our best selling product, accounting for over 70% for the companies sales and enquires from investors all over the Globe. However recently we have seen an upside in the prices and also a shortage of inventory indicating that with a large demand for these types of houses from the overseas market, sellers and suppliers have an opportunity to increase their prices. Also with the amount of overseas and domestic investors snapping up these types of properties we are also finding it harder to locate good inventory that meets our investors criteria. If you are looking at buying a house in Cleveland as a potential investment opportunity, in our opinion you must act now or certainly in the next 3-6 months to capitalise on these prices and returns while they are still around.  Cleveland is often looked at as a has-been market. However, its turnaround has created a number of opportunities for investors and residents alike. The Cleveland housing market is rebounding. All indicators point to growing income, a solid job market, and increasing home values in Ohio. The Cleveland real estate market prediction is incredibly positive. Investors and home buyers will reap benefits when considering the city and its suburbs over the next few years. Cleveland is home to just under 400,000 people. The larger metropolitan area is home to roughly two million people. That makes the Cleveland real estate market the 32nd largest in the country. If you include the Cleveland-Akron-Canton metro area,  ( Areas that we are also looking at as a company ) there are three and a half million people in the “combined statistical area”, making it the 15th largest metropolitan area in the United States. This century old city was once a major manufacturing center. It is reinventing itself as a medical and biomed hub. Let us discuss the latest market trends and find out what are the prospects of Cleveland real estate investment in 2019. In 2018, a forecast for the Cleveland, Ohio housing market suggested that home-price appreciation could begin to slow down, following a year of double-digit gains. In a separate report, Cleveland was singled out as one of the cities where it’s actually cheaper to buy a home than to rent. Home prices in Cleveland rose steadily and significantly during 2018, and they were expected to continue trending north for the foreseeable future. This is according to a recent forecast for the Cleveland real estate market that stretches into 2019. The median home value in Cleveland is $55,300 on Zillow. Cleveland home values have gone up 7.8% over the past year and Zillow’s Cleveland real estate market prediction is that the prices will rise even more in 2020. The median list price per square foot in Cleveland is $69, which is lower than the Cleveland-Elyria Metro average of $109. The median price of homes currently listed in Cleveland is $79,900 while the median price of homes that sold is $65,500. The median rent price in Cleveland is $900, which is lower than the Cleveland-Elyria Metro median of $1,100. Both of these aspects meaning investors can purchase cheap houses with decent rents producing double digit returns in the high teens.   The Cleveland housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Cleveland housing market trend prediction is 83%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Cleveland is 83% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.   All of these factors certainly point towards what we are already starting to see,  higher prices and lower available inventory in the price range that we normally look for.    I think that we will see another 12 months out of this market but my advice for any investors sitting on the fence or others that are looking at adding to their own current portfolio is “ Don’t waste any time and get involved now “    I see the same thing happening in Cleveland that happened in the Orlando market. 8-9 years ago we were seeing a single family home sold for 50k USD with rents of $1,000 and a CAP of 20%. The same house now will cost 100k and the rents are the same. We could be looking at the same thing in Cleveland in 4-5 years time.    We have new inventory hopefully coming on this week so for anyone interested contact any of the sales team at Global Investments Incorporated or email us at   [email protected].    Please go to our site to see all our latest inventory.    Mike Moodie – CEO. Global Investments Incorporated. 

Global Investments Incorporated are coming into their 8th year of business in 2019. The Manchester based firm have been selling investment properties in the US to overseas buyers for the past 7 years and have sold in excess of 4,500 homes in this short period. This time last year CEO Mike Moodie predicted that the Cleveland market would challenge Detroit in terms of sales and enquiries in 2018 and it looks like his prediction has come to fruition with Cleveland surpassing Detroit by producing more than double in both sales and general enquiries and is now officially the companies best selling product. We asked Mike what his thoughts are on the change, why the Cleveland market is on fire and why there is such a high demand for these types of turn key homes in the city. Mike commented. “ This time last year we were seeing a rise in the prices in the Detroit market and also a decline in the number of properties available at the prices that our investors wanted. As a company we always have to be on the lookout for the next big thing and like to be the first to venture into these new markets giving our investors the best opportunities and at the right time. At this time we had heard a-lot of positive things coming out of Cleveland so we started working with a number of suppliers and management companies in the area. Well the rest is kind of history and right now we are selling more homes in Cleveland than any other overseas company. As we get properties listed they are literally selling within hours. It is already becoming increasingly difficult for me to find the properties and my days are literally spent on the phone with my brokers hunting down the best deals for our investors. Making sure we have homes in the right locations and then negotiating with the Sellers and driving the price down to deliver great priced homes in excellent locations to our buyers with the highest possible returns. “ See below just 5 reasons why so many investors are getting involved in the Cleveland property boom: PNC Financial Services Group will move 500 employees to downtown Cleveland by the end of the year. The move was first announced by regional president Paul Clark at a Downtown Cleveland Alliance event on Sept. 26, as reported by Cleveland.com. PNC Centre will be full for the first time in years. PNC Bank is the third-largest bank in Northeast Ohio and the fourth-largest bank in the state by deposit market share. It’s also among commercial banks that raised prime lending rates to 5.25% in reaction to the Federal Reserve’s latest interest rate hike on Sept. 26. Cleveland and Akron metros beat Midwest averages in some key areas Cleveland and Akron are defying some stereotypes and doing pretty well — and better than their Midwestern peers, in some respects.Those are among the findings of the Brookings Metropolitan Policy Program’s Oct. 18 report, “The State of the Heartland: Fact Book 2018,” which looked at data across 26 socioeconomic indicators in 19 states to gauge and rank the current condition and trajectory of cities and states. The geography in the report runs from Minnesota in the north to Georgia in the south, and east to west from Ohio to Nebraska. Cleveland and Akron are both cities with their own data sets within the report — and the data’s encouraging, Brookings says. Both cities scored above regional and national averages in terms of important indicators, including their poverty rates, median income levels, and the percentage of local residents between 20 and 64 with jobs — the employment rate, as opposed to an unemployment rate. The region also is less expensive than the coasts, while still having strong entrepreneurial environments around major universities like those in Akron and Cleveland, Muro said. That’s likely to cause money from the coasts to seek a home in Midwest investments, he added — something that local entrepreneurs say they’re already beginning to see in terms of where their capital comes from. There’s been evidence of that in Cleveland as of late, with money from the East Coast making substantial investments in downtown real estate, most recently with the purchase of the 1111 Superior Building by New York City investors. Another downtown Cleveland skyscraper is sold Following a formula rarely executed successfully in downtown Cleveland, Skokie Ill.-based American Landmark Properties bought, remodeled, boosted occupancy and sold the 1111 Superior office building in the Nine Twelve District. The building’s new owner is Baruch Superior LLC, an affiliate of Zamir Equities of New York City, which on Oct. 10 assumed a long-term lease that controls the building from an affiliate of American Landmark called 1111 Superior, according to Cuyahoga County land records. Control of the building, which is named after its street address, hinges on a lease because it was constructed on a site leased from the Catholic Diocese of Cleveland that adjoins church offices and St. John Cathedral. A spokesman for Zamir Equities who declined to be identified by name said the purchase is the company’s first in the Midwest. Most of its properties are in New York City and New Jersey. The company had a portfolio of 1.4 million square feet, consisting of six office buildings and a shopping center in Cedar Hill, Texas, before buying 1111 Superior, according to the firm’s website. Ohio Moves up 24 Spots in Forbes Annual Ranking of Best States for Business In its annual ranking of Best States for Business, Forbes placed Ohio at #14 on its list, a jump of more than 20 spots from 2016. Forbes cited Ohio’s low business costs and improved economy. In addition, Forbes ranked Ohio #2 in its quality of life metric thanks to the state’s low cost of living, short commutes and a plethora of top-rate colleges and cultural and recreational opportunities. Centrally located between New York City, Chicago and Toronto, Ohio affords quick market access

2017 was a busy, exciting and prosperous year for the City of Cleveland! And 2018 looks even better. After decades of disinvestment and decline as a former rust belt manufacturing mecca, Cleveland is reinventing itself into a 21st century City while leveraging billions of public and private investment into a new and changing economy. A combination of re-purposing and renovating historical buildings, new ground-up construction, entrepreneurs starting businesses and the attraction and relocation of college educated talent is bringing about the rebirth of Cleveland as an  emerging and vibrant city. Local and out- of- state developers are investing in Cleveland, turning it into a boomtown while creating excitement that has been written in editorials across the country. From 2011-2015 a total of $8 billion was invested in new development in Cleveland. The project investment included: $1.37 billion on the new hotels; $1.23 billion on mixed-use development projects; $694 million of residential housing; $1.78 billion on “meds & eds” tech structures; $508 million on arts development;  $1.4 million on public space, bike paths / trails and public parks  such as the transformation of one of Cleveland’s iconic and oldest parks -public square; $982 million on infrastructure improvements with the Innerbelt Bridge construction; and the $451 million on renovation and business attraction such as Link 59. These numbers don’t take into consideration $350 million total dollars AT&T spent building out their Cleveland area network over the last 3- years. Most of this year’s investment for the RNC are permanent and will be left enhancing Cleveland as a smart, connected City. “What we’re seeing is an increase in residents and jobs, and our amenities are performing well,” said Joe Marinucci, president and CEO of the Downtown Cleveland Alliance, a nonprofit that works to improve downtown, including balancing the interests of businesses & residents. With an estimated $19 billion in development completed or planned since 2010. Occupancy rates are at an astonishing 98% and home sales are up 12% year after year. Bonus: you can still buy properties at a fraction of their mid-2000 prices ! Global Investments Incorporation have seen a huge increase in Cleveland sales over the last six months and as local investment continues to increase and unemployment falls we expect this trend to continue over the coming months. Cleveland is becoming known around the country and around the world as a comeback city with billions being invested in infrastructure and development, great suburban schools, parks, culture and so much more. Investors have taken notice of Cleveland, Ohio—and you should, too. If you would like more information on our Cleveland properties please contact Mike or any of the Global team.