Our research team has put together fantastic comparisons of the average property prices of the major global cities and their respective rental yields.
*The price per square meter refers to the cost of a 120 square meter apartment in the city center.
As you can see, property prices are high in the world’s major global cities, and gross rental yields are generally under 4% in local currency. More importantly, limited financing is available for non-resident foreign nationals.
For a property investor, why would you pay more and get less?
This is what makes investing in U.S. real estate so appealing for investors:
- Low-cost entry point
- Positive cash flow
- Capital appreciation
- Strong USD
- Up to 75% financing based on rental income only, not personal financials
- Tax benefits from owning via LLC
- Lack of supply of housing causing rents and prices to increase
- Remote property management
The 1% Rule!
In fact, the U.S. is one of the few (maybe only) major real estate markets where you can find rental properties that fit the 1% rule!
That is, a property whose rental income is at least 1% of the purchase price. For example, if the rental property is $500,000, the monthly rental should be at least $5,000.
15% rental yield is on the horizon!
We have long maintained that this will continue to increase as the lack of housing will create an environment where the average buyer will have to rent instead, normalizing a higher portion of disposable income for rent.
As of 1Q2024, some of the top rental yield markets in the U.S. are already nearing mid-teens gross rental yield, according to an Attom Report, March 13, 2024.
This is just a snapshot of what the market is like in the U.S. at the moment. There are other investment strategies like the BRRRR Method which forces capital appreciation.
Seize this opportunity and explore how America Mortgages can support you in achieving your real estate goals. Reach out to us today to discover more and begin your path to financial success. Alternatively, connect with us for a no-obligation consultation with one of our globally based U.S. mortgage loan officers by using this 24/7 calendar link.
