Category: Real Estate

Amidst the doom and gloom, concern and confusion surrounding the US government’s response to the coronavirus pandemic, foreign investors seem to be looking more long-term. Even prior to the coronavirus pandemic, the US real estate market was seen by many foreign investors as “the” market to be in during 2020. Despite the threat of a significant economic hit, it would appear that the vultures are already hovering ready to swoop on bargain buys.

Cheap finance

The world is currently awash with cheap finance and, if property prices do fall significantly in the short to medium term, rental yields could become even more attractive. The truth is that whether via government financial assistance or utilising employment income, everybody needs somewhere to live. It is highly unlikely US, never mind worldwide, interest rates will rise significantly for the foreseeable future. As a consequence, as markets do eventually start to pick up after the pandemic is over those liquid investors brave enough to buy at the “bottom” could see a significant revaluation in their assets. Continue reading “Property investors eyeing US real estate bargains”

Historically, much of the property investment by High Net Worth Individuals has centred round London and the South-East of England. It is fair to say these two regional economies have been the most prosperous in recent times. However, the situation seems to be changing and there is now a greater focus on the North of England with investment in Manchester as well as Derby, Leeds, Liverpool and Birmingham on an upward trend.

Why is the North of England prospering?

The North of England has received significant focus over the last few years with the government promising to create a new economic base from which the region can benefit. It is fair to say that so far there has been little in the way of real assistance from the government but focus is starting to turn away from London and the South East of England. There are a number of reasons why property in the North of England is more popular today which include:-

• Decentralisation of Public Services

Over the last couple of years we have seen a number of public services (and private companies) reducing their exposure to London and spreading employment across other areas of the country. As well as HMRC opening offices in Leeds and Birmingham we also have the likes of Channel 4 relocating there head office to Leeds. As the cost of property and employment is markedly lower in the North of England, compared to central London, this phased decentralisation is likely to continue. Continue reading “Why HNWIs are looking to the North for hands off Investments”

It is fair to say that any lending opportunity is only as safe as the security offered and the skills and experience of the borrower. Those who follow investment markets will be well aware that UK base rates are near their historic low. As we also live in an era where Private Rental Accommodation is in short supply and high demand, what better investment opportunity than to bring the two together.

As a consequence, there are many opportunities to fund property developments in exchange for potential double-digit percentage returns with a partner with the experience and skills to fulfil market demand.

• Buoyant property market

In order to crystallise a return on initial capital used to fund property developments there needs to be strict control on costs and long-term demand for the accommodation. There are many areas in the UK that fulfil these criteria:-

• Purpose Built Student Accommodation

Through the boom times and the recessions the UK government continues to plough more and more money into the education system. As a consequence, both domestic and international demand for UK university places has led to a significant increase in demand for student accommodation. In what can often become a self-fulfilling prophecy, cities with high numbers of graduates often have prosperous business markets thereby tempting many graduates to remain there after finishing university. This creates more demand for private rental properties, as well as the constant flow of demand for student accommodation. Continue reading “A Guide to Lending Opportunities”

A few decades back, a house worth a million wasn’t too many. Today, if you live in places like Vancouver, you are already worth a million. Most, if not all houses in Vancouver, are worth a million or two. However, when it comes to the most expensive houses in the world, they surely are worth a lot more than a few million.

What do the Most Expensive Houses in the World Cost?

House prices always climb steadily and never experience a downward fall. According to research by Grand View Research, the global real estate market will hit $4,263 billion by 2020.

That being said, some houses sell for prices that are as high as the sky! Continue reading “3 Most Expensive Houses in the World”

In the run up to the 2008 US mortgage crash, which ultimately led to a worldwide recession, we saw a significant shift from rental to homeownership in the US. Many expected this trend to continue but recent US homeownership figures suggest otherwise. Homeownership levels are now back down to levels last seen in the 1960s and many believe the move to rental accommodation will continue. However, the makeup of the market is changing and we know that millennials are the new driving force behind the US housing market. So, why are we seeing a switch back to rental accommodation?

Millennials struggling to raise funds

A tightening of US mortgage regulations in light of the 2008 crash have made it more difficult for first-time buyers to raise sufficient funds to acquire their dream home. We have also seen suggestions that the “bank of mum and dad” is starting to dry up as the squeeze continues. As a consequence, already stretched affordability rates continue to move against first-time buyers. We also know that more millennials are now living with their parents for longer as they look to raise funds for a deposit. Continue reading “US homeownership down to levels not seen since the 1960s”

Our article about the impact Amazon has had on the Seattle real estate market has prompted a number of questions. On the surface we can see the enormous benefits Amazon has brought to the Seattle economy but how has this benefited Amazon and Amazon shareholders?

Tax incentives

Is it fair to suggest that companies such as Amazon which has invested an enormous amount of money, time and effort into its Seattle headquarters should receive some appreciation from the local authorities? The more traditional form of local authority appreciation comes in the shape of tax incentives or part funding of a company’s expansion plans by the local authority itself. This may take in cold hard cash or perhaps the transfer of land which the company could use to expand its operations. Continue reading “Tax incentives, large corporations and real estate markets”

Sometimes real estate investors only see the headlines and do not delve too deep to see what is going on under the surface. As a consequence, those who rushed towards the Seattle real estate market may be thinking again with online giant Amazon calling time on the expansion of its Seattle operation. Amazon has to all intents and purposes been the main reason why Seattle real estate is now recognised as one of the “hottest housing markets” in the US. So, if Amazon begins to pull back on future growth how will this impact the Seattle real estate market?

Setting the scene

Before we begin to look at the potential impact of Amazon calling time on expansion of its Seattle headquarters, it is worth looking at the local real estate market today. The simple fact that 9000 new Seattle apartments will come online this year says everything. There is extreme demand for rental property at this moment in time and with Amazon yet to fill 6500 jobs in Seattle there is even more demand on the way. So, we will likely see some upward pressure on Seattle rental valuations in the short to medium term but the longer term could go a little softer. Continue reading “Is Seattle real estate overdependent on Amazon?”

Despite the fact that the US economy is not “firing on all cylinders” there is still strong demand for US real estate from overseas investors. For the fourth consecutive year Chinese investors are leading the way invest in a staggering $31.7 billion in US residential property during 2016. This is an increase of 10% on the $28.6 billion figure back in 2015 and miles ahead of the nearest competitor. Can you guess the nearest competitor?

Canadian investors switching to US

For some time now there have been discussions regarding skyhigh real estate valuations across Canada with the likes of Vancouver, etc grabbing the headlines. Canadian investment in US residential property increased to a record $19 billion during 2016 and there are signs this could increase yet further. We can only guess at the impact this could have on Canadian real estate prices if investors sell their Canadian assets to switching to the US. When you bear in mind that Chinese investors already lead the Canadian real estate market, where would this leave Canada? Continue reading “Overseas demand for US real estate to grow”

The US rental market is now running at its highest level since 1965 as more people now look to renting as opposed to an outright purchase of their home. A survey showed that in 2016 36.6% of household heads rented their homes, a level which has not been achieved since 1965 when it stood at 37%. When you also bear a mind there are now an additional 7.6 million households in the US over the last decade and household head ownership has remained static in number this just about says everything.

Why the increase in rental numbers?

There are a number of suspicions as to why rental numbers have increased to near-record levels. They include ever increasing amounts of student debt and concerns about a future house price collapse. These would appear to be the main issues in the back of a potential house buyers mind as they look to part with their hard earned cash. This is also reflected in the numbers for those aged 35 and under with household head rental numbers now standing at 65%, up 8% since 2006. So, it does seem as though the younger generation is struggling to climb aboard the property ladder? Continue reading “US rental numbers highest since 1965”

When Donald Trump became president of the USA it was through gritted teeth that he agreed to place his business interests in an arm’s-length trust over which he would have no influence. This included the profits from a $250 million plus real estate portfolio which until he became president was the focus of his expertise. Over the last few weeks the USA Today program has been investigating Donald Trump’s real estate assets and found some potentially disturbing developments.

Limited liability companies

There is nothing illegal or immoral in using limited liability companies to acquire assets. In effect these companies allow individuals to acquire asset without legally being obliged to reveal their identity. In a world where money-laundering and similar issues have been at the centre of the financial sector, it does make you wonder why such arrangements are still on the table. However, as they stand today limited liability companies are perfectly legal and above board. Continue reading “Donald Trump’s real estate assets back in focus”