Author: Premela R.

Ex-post, Ex-ante + Which States are Equity-rich?

U.S. Home Prices - America Mortgage

Ex-post

Biden cancels $10,000 in student debt – timing before the mid-term elections are interesting, but no one can deny that it is a big problem that is stifling growth in many ways. The main event was Federal Reserve chairman Powell’s speech at Jackson Hole, which was a reminder that inflation is being treated more seriously than we are expecting. Risk assets have been correcting ever since – yet bonds haven’t moved with the same intent indicating smart money had priced in the Fed’s response. While 10Y treasuries do not dictate mortgage rates, they 2 are correlated, and we expect some upward pressure on rates. 

Ex-ante

Over the next week, we will be paying attention to the Case-Schiller index as a gauge year-on-year home prices, and the big one is August ISM manufacturing index, which consensus has at 51.8 (under 50 is a contraction). If this is lower than consensus, it may portend to be something more recessionary. As we highlighted in last week’s “Ex-ante, Ex-post,” there is historically a big contraction in manufacturing output when rates rise to a certain extent.

U.S. HOME PRICES

We reiterate the underlying fundamentals of housing are very supportive, with an abundant amount of equity and well-known shortage. 

In an article written by the Fed, on 7 May 2021, “Housing Supply: A Growing Deficit”, The claim in 2018, the housing shortage was 2.5 million units, and now, more recently, in 2020, the U.S. has a housing shortage of 3.8 million units. 

That is to say, 3.8 million units are needed to not only meet the demand from the growing number of households but also to maintain a target vacancy rate of 13%. Between 2018 and 2020, the housing stock deficit increased by approximately 52% 

Elsewhere, In Bloomberg’s article published, 5 August 2022, “Almost Half of Mortgaged Homes in U.S. Now Considered Equity-Rich .”This would be the 9th straight quarterly rise, according to the article, fuelled by strong house valuations during the pandemic area. The article definition of Equity-Rich as owners having over 50% in home equity. Some of the highest equity-rich states are Florida, California, Washington, Utah, Idaho (surprising), and Vermont. 

Updated Target housing Stock
Equity Rich Graph

LOANS OF THE WEEK!

Singapore citizen purchases new development in Manhattan, New York

Location: New York CityPrice: $1,000,000
Property: CondominiumLoan Amount: $600,000
Use: InvestmentLoan-to-Value: 60%
Loan: AM Foreign National+Rate: 6.875%
Term: 30-year fixed

Singapore client attended a presentation by an international realtor on a New York condo launch. America Mortgages was attending the event and helped the client discuss the financing options available.

Philippines businessman purchases home in Florida

Location: Fort LauderdalePrice: $650,000
Property: Single Family HomeLoan Amount: $455,000
Use: InvestmentLoan-to-Value: 70%
Loan: AM Foreign National +Rate: 6.875%
Term: 30-year fixed

Referred by his local private bank, the client wanted to own a retirement home for the future (he’s only 58) but liked how rental rates have been rising in the area and also wanted more USD income.

Swedish National purchases home in Texas

Location: AustinPrice: $9,500,000
Property: Single Family HomeLoan Amount: $5,225,000
Use: InvestmentLoan-to-Value: 55%
Loan: AM HNW+ (Super Jumbo)Rate: 7.25%
Term: 5-year fixed, 30-year amortized

Swedish client saw our ad on LinkedIn and reached out to discuss the financing options for a Texas property. He was surprised at how easy it was to qualify and close for direct U.S. lending option.

Interested in releasing equity? America Mortgages has a 97% approval rate for both U.S. Citizens & Foreign Nationals. As a company our only focus is providing market rate U.S. mortgage financing for foreign nationals and U.S. expats.

Schedule a call with us at [email protected] today! 

www.americamortgages.com

They’re Back! Overseas Buyers of US Real Estate

Overseas Buyers of US Real Estate
They’re Back! Overseas Buyers of US Real Estate

Overseas Buyers of US Real Estate

The past several years have been volatile for all areas of the U.S. economy, but especially the real estate market, which as seen price appreciation from a low-interest rate environment. Anyone who has tried to purchase a new home in the U.S. during this time has learned what it means to be a buyer in a seller’s market, but it wasn’t as bad as it could have been.

As a result of pandemic-related travel restrictions, the true scope of potential foreign buyers into U.S. real estate was not felt. That meant less competition from wealthy, overseas cash buyers. 

However, that’s beginning to change as overseas buyers of US real estate return.

According to a report by the National Association of Realtors (NAR), Non-U.S. citizens comprised $59 billion worth of home purchases in the United States from March 2021 to March 2022, a 9% increase from the previous year and the first increase in three years. 44% of these foreign buyers paid cash and the average price of homes purchased has increased by 18%, nearing $600,000.

All of this comes in the wake of a real estate environment characterized by low mortgage rates that created bidding wars, housing shortages, and price surges across the country. However, the madness may wane as interest rates rise, and an uncertain economy could sideline many potential domestic buyers.

This is good news for foreign buyers making all-cash offers because they are effectively immune from interest rate changes. As pandemic-related travel opens up, more and more foreign buyers can enter the U.S. real estate market.

Who is a foreign buyer? or overseas buyers of US real estate?

According to the NAR, a “foreign buyer” is a non-US citizen with a permanent address in another country. Moreover, 57% of these foreign buyers are non-U.S. citizens and recent immigrants who have been living stateside for less than two years or non-immigrant visa holders who have resided in the U.S. for at least six months. 

Where do most foreign buyers come from?

From March 2021 to March 2022, foreign buyers living abroad spent $24.9 billion on purchasing homes in the United States, an increase of 13.2%.

Canadians have the highest share of existing home sales at 11%, followed by Mexicans (8%), Chinese (6%), Indians (5%), Brazilians (3%), and Colombians (3%).

While Chinese buyers purchased fewer homes than Canadians, the dollar value of their purchases was substantially higher, with $5.5 billion coming from Canada vs $6.1 billion from China.

Which states are they going to?

For the 14th year running, the leading location for foreign buyers was Florida, with 45% of international purchases occurring in the Sunshine State. After Florida were California (11%), Texas (8%), Arizona (7%), New York (4%), and North Carolina (4%).

As domestic buyers are on hold due to an unpredictable economy and rising interest rates, the opportunity for foreign buyers to capture great deals will also increase. If you’re considering purchasing a house in the U.S., you may want to get in early before the rest of the world scrambles to get in on the action.

Whether you want to buy/rent a residential home or invest in U.S. real estate, it is in your best interest to connect with real estate experts committed to seeing your housing dreams come true.

At America Mortgages, we leveraged decades of experience in mortgage lending to match you with our pool of lenders. Our only focus is providing market rate U.S. mortgage financing for foreign nationals and U.S. expats. No one does it better!

Contact us today at [email protected] to find your dream home or learn why you should invest in U.S. real estate market now.

Liquidity Issues? AM Bridge Loans to the Rescue!

Liquidity Issues

The housing market has seen intense competition, massive price surges, and dwindling inventory since 2020 – But if you’re a real estate investor, all of that may be about to change, and for the better. 

Mortgage rates are rising. In mid-June of 2022, the 30-year fixed-rate mortgage averaged 5.81%. That may seem high; however, rates now are where they were right after the financial crisis of 2008, when many people were actively trying to obtain a mortgage. 

What makes this type of market great for real estate investors? These higher rates make it more difficult for would-be home buyers to afford new homes. It’s not that people are trying to buy extravagant houses, but that a modest home with an increase of $50 a month in mortgage payments could be the difference between buying or renting. 

These higher costs are putting pressure on the housing market. It has already led to a decrease in mortgage applications to purchase and refinance for owner-occupied property, but an increase in investor mortgage applications getting in on high rental prices, demand, and lack of available rentals. What once was a seller’s market is shifting slightly, causing properties to stay on the market longer. For some, this has resulted in a liquidity issue for investors looking to sell their properties quickly to buy additional properties.

Luckily, there is a relatively simple and easy financing solution – AM bridge loans. 

What is a Bridge Loan?

Investors use real estate bridge loans as a short-term financing tool to bridge gaps in financing. For example, an investor might take out a bridge loan against a property they are selling in order to purchase or act on another investment property immediately. 

In this case, the homeowner may need the money before their property sells. They can now use an AM Bridge loan to extract equity today while waiting for the right price to sell.

Bridge loans can be secured quickly, often closing within a week to 10 days, and with little paperwork, because lenders are more interested in the collateral (i.e., a house) than a credit score or cash flow.

How to Use Bridge Loans to Free up Liquidity 

Bridge loans allow investors to quickly free up liquidity using their real estate assets as collateral. This is a quick asset-backed mortgage where your financials or credit are not the primary underwriting criteria; the asset is. In order to better understand how this works, let’s take a look at two examples;

1. Waiting for a property to sell at the right price:

You’re selling a property but waiting for the right price. Another investment property becomes available that is too good to pass up, but you won’t have the available funds until after you sell the existing property. No problem. Extract the equity from the property you’re selling. Take advantage of the new investment. Wait for your property to sell and pay off the bridge. It’s that easy and quick! 

2. Financial strain:

Often, unpredictable circumstances can impact our financial position. The equity in your property can be the perfect way to ride out the storm without worrying if you’ll qualify for a “conventional” mortgage loan. It is easy, quick, and straightforward to release up to 70% equity from your property based on the asset value alone. We can also structure these loans to where you do not have to make any monthly debt servicing for up to 12 months. This allows you to get the liquidity you need and then relax, reset and focus on your situation at hand. 

When do Bridge Loans Benefit Investors? 

As explained above, bridge loans are a great way to free up liquidity. A bridge loan may also be a good fit for you if you:

  • Need to free up liquidity in a fast-moving market
  • Can’t afford to take out a mortgage on a new property without selling your other property.
  • Need to secure funds to acquire or renovate real estate quickly.
  • Already purchased a property, but you can’t sell your current property quickly enough.
  • Financial strain where conventional financing won’t work or is difficult to obtain. 

The housing market is evolving rapidly. Investors would be wise to understand their options so that they are able to adapt, take advantage of opportunities, and free up liquidity when they need it. 

As a company, our only focus is providing U.S. market-rate mortgages for Foreign national and U.S. expat investors. Get in touch with us today to learn more about the structures and options of short-term bridge financing solutions [email protected].

www.americamortgages.com

Rising interest rates are a good thing for U.S. Real Estate Investors

Looking for passive income? Now is the time to strike!
Rising interest rates are a good thing for U.S. Real Estate Investors

Are you an overseas non-resident investor looking to purchase property in the U.S. but are thinking twice because of the increase in interest rates? Let’s break it down.

Let’s face it, interest rates are high, but if you are looking for passive income and long-term investment, we know now is the time to strike. 

When interest rates are high, it is actually more beneficial to residential rental property owners because the demand for rental homes and apartments increases as many people that once were looking will not be able to qualify for a mortgage. Individuals and families who have put off their house hunting will need a place to live. When this happens, the rental demand skyrockets, and – this is the sign you’ve been looking for –the opportunity for real estate investors looking to purchase rental property is here!

What makes American Mortgages loans unique is the rate can be fixed for 30 years regardless of the borrower’s age. Your rate today will be the same 30 years for now, but the rent you will receive will likely be significantly more! Want an even better yield? Try our 10 year fixed interest only loan program that converts to a 30 year fixed without a rate adjustment. Total tenure of 40 years!

As a foreign national or U.S. expat investor, there are a few things to consider when you want to purchase a property in the U.S. There is no denying that the interest rates have increased, but if you are looking at real estate investment, you have to consider its long-term benefits – mainly building equity and wealth, property cash flow, and rental yield.

Build Equity and Wealth

Did you know that real estate remains a wealth-building tool for the majority of moguls? An estimated 90% of millionaires were created through real estate investing. Most High-Net-Worth individuals in the U.S. or around the globe invest in real estate in some form or the other.

As you pay a property mortgage, you build equity—an asset that’s part of your net worth. As you build equity, you have the leverage to buy more properties which in turn will increase your cash flow and wealth even more. America Mortgages has no limitation on the number of mortgages one investor can have. Portfolio loans are also available.

Why Rental Yield is so Important

Rental prices are soaring in many parts of the U.S. According to Government consumer price data, the average rent that the typical Americans actually pay rose 4.8% over the past year – a higher than the average rate of increase. According to Redfin, the average monthly rent rose to $1,985 in November – an increase of 6.8% monthly and 20.5% annually. The median rent nationwide in May reached $2,000 monthly, according to Redfin.

If you are keen to invest in U.S. real estate but have not found a property yet, AM Concierge ‘Property finder’ services can help you secure your dream home. Once you have purchased the property and your tenants are in place, your rental should run on autopilot. Our America Mortgages loan officer are with you for the long run. In the event rates change, special rate promotions or new loan programs, you’ll know first.

Real Estate Cash flow

How do real estate investors get so much cash flow? You probably read a million times that “real estate is a classic wealth-building technique.” Most investments don’t provide cash flow. Take, for example, stocks -you invest and leave without accessing them until you sell them. However, when you put resources into buy and hold real estate, you bring in cash flow monthly when you have tenants paying rent. The difference between the rent collected and your expenses is your income. You can utilize it to cover your bills, save for the future, or even make a greater real estate portfolio. Passive income is the income you can survive with, regardless of whether your other investments work out or not.

Now is the time to strike while the iron is hot. If you are still on the fence about investing in U.S. real estate, speak to our mortgage specialist to discover your options. 100% of our clients are living abroad. This is all we do, and no one does it better. [email protected]

www.americamortgages.com

How Equity Rich Homeowners are Cashing In

Equity Rich Homeowners
How Equity Rich Homeowners are Cashing In

U.S. homeowners have seen their equity increase by over 32.2% since the first quarter of 2021. That’s a year-over-year gain of over $3.8 trillion. This significant increase in home equity has provided many homeowners with the opportunities to cash in through home equity loans, cash-out refinancing, or home equity lines of credit (HELOC). 

What Does it Mean to be Equity Rich?

Equity is the market value of your home minus your mortgage balance. Homeowners are considered equity rich when they have a minimum of 50% equity in their homes. The number of equity-rich homeowners typically increases as property values soar because the market value of people’s homes is increasing while the amount they owe does not. 

Understanding the tremendous increase in property value across the United States over the past year, it’s only logical that there would be a steep increase in equity-rich homeowners. 

Why is Home Equity Important?

Home equity is an excellent long-term wealth-building strategy. To demonstrate just how true this is, let’s compare an auto loan to a mortgage. When you take out an auto loan, you are paying interest on an asset that depreciates in value as soon as you drive it off the lot. That means that when you’ve paid off the loan, the car will most likely be worth less than your purchase price and you will have paid interest. 

In contrast, mortgage payments reduce your debt while your home increases in value. Of course, property values could drop, but that is unlikely to happen over the long term. One very financially powerful aspect of this is that you don’t need to sell your home to profit from it. 

How to Access Home Equity

  1. Home Equity Loan — Think of this as taking out a second mortgage for a fixed rate that must be repaid within a set period. Home equity loans often have slightly higher interest rates than primary mortgages because if a home is foreclosed, the primary lender must be repaid first.
  2. HELOC — Like a home equity loan, a home equity line of credit (HELOC) acts like a second mortgage, but it provides more flexibility for the borrower. That’s because HELOCs have a revolving balance like a low-interest rate credit card—you can borrow what you need, repay it, and borrow again. There are usually no closing costs, and HELOCs typically have adjustable rates that vary with the prime rate.
  3. Cash-Out Refinance — This option leaves homeowners with less equityin their home because you are refinancing your home for a larger amount and taking the difference in cash. Banks typically see this as riskier, meaning that closing costs can be higher. 

The best for cashing in on your equity depends on your goals. For example, a home equity loan would be great for medical fees, educational expenses, and debt consolidation because you have immediate access to the money. 

In contrast, a homeowner who needs money periodically for home improvements or a business might opt for a HELOC, and a cash-out refinance is typically best for those who need cash immediately. 

Should Equity Rich Homeowners Buy or Sell?

Both buying, selling, and staying in a home with untapped equity could be beneficial. Homeowners who want to sell can purchase another property and use a HELOC to make renovations on their first home while they live in their second. They could also take an equity line of credit to make a downpayment on a new home. 

However, staying in an equity-rich home can also be a wise financial decision. You can still cash in on the equity and enjoy the increasing value of the home. Keep in mind that if you sell a home in an up market, you will have to buy a home in an up market. 

Interested in releasing equity? America Mortgages has a 97% approval rate for both U.S. Citizens & Foreign Nationals. As a company our only focus is providing market rate U.S. mortgage financing for foreign nationals and U.S. expats. No one does it better!

Schedule a call with us at [email protected] today! 

www.americamortgages.com

Tampa is Now the Hottest Housing Market in the U.S.

Housing Market in the U.S.
2022 has been a particularly hot year for the U.S. housing market overall, but in sunny Tampa, Florida, that market is scorching.

2022 has been a particularly hot year for the U.S. housing market overall, but in sunny Tampa, Florida, that market is scorching. The city was rated as the hottest market of 2022 by Zillow, outranking other hot markets like Austin, Texas, and Phoenix, Arizona.

Overseas buyers likely know Florida for its excellent weather and as a mecca for retirees, but this is not the primary impetus for its home value growth. Rather, the city is experiencing growth at the same time the average 30-year fixed U.S. mortgage rate has jumped above 5%. Furthermore, Fannie Mae has recently predicted that home prices will increase by 10.8% this year and another 3% in 2023.

In short, the city of the sun is experiencing a perfect storm for home prices to break even more records in 2022.

Price Growth

Throughout the fiscal year of 2021, home values experienced record-breaking growth across the United States. This was due, in part, to limited inventory. Additionally, many millennials began reaching prime home-buying age while boomers were downsizing for retirement. This demographic shuffle, exaggerated further by the pandemic, created the perfect environment for increased valuations.

This course is likely to continue into 2022 as the housing supply is still limited and prices are already high. Some markets are expected to slow as they reach a ceiling of valuation, however,

Tampa is a unique case, leaping from the fourth-fastest home value growth in 2021 to the fastest this year.

Supply and Demand

Anyone who has sat through an Econ 101 class could understand the variables fuelling the meteoric gains in value taking place in the Tampa housing market. They are:

● High demand

● Restricted supply

● Fewer willing sellers

● Fewer homes are being built.

The demand is not only due to people looking to buy a home right now, but because they have been looking for a new home since 2021. Many Americans found themselves touring home after home last year, only to find crowds of competitors putting in higher and higher offers to snatch up their dream home. This put the ball in the seller’s court, allowing them to set higher and higher prices.

In a state like Florida, where many boomers retire, and many millennials are moving for business opportunities, this phenomena has been even more pronounced.

Former Hot Spots Cooling Down

Formerly hot markets like New York, San Francisco, and Chicago are expected to be the coolest of 2022. These cities offer fewer jobs and unfavourable demographic trends compared to a market like Tampa.

Many individuals who lived in or would have moved to these megacities in the past have been untethered by remote work and want to take advantage of lower taxes, competitive business conditions, year-round sunshine, and miles of white-sand beaches.

Risks

No investment is without risk, and the Tampa housing market is no exception. Home loans will likely become more expensive as U.S. and Florida mortgage interest rates are expected to rise in 2022. The result would be restricted inventory access in expensive markets like Tampa and could increase competition for cheaper homes.

Sellers already invested in this market may benefit, but those looking to leap into this hot market would be wise to start looking sooner rather than later.

100% of our clients are living outside the U.S. Every loan program America Mortgages features are specific to these markets. We understand the landscape, the clients, and the process better than anyone else. 

Keen to know more? Arrange a no-obligation call with one of our loan specialists today. [email protected].

The Standard Home in Canada Now Costs Twice as Much as in the U.S.!

US Home Loan

Canada’s housing market is hot. Home prices have rocketed 30% since early 2020, and the Canadian Real Estate Association recently reported that the average price of a Canadian home was nine times the average household income. 

It wouldn’t be ridiculous to assume that things might be comparable just across the border to the south in the U.S. In fact, price increases in the U.S. have been only slightly lower, at 27%. Despite this, the standard home in Canada now costs twice as much in the U.S. There is clearly more to the story here.

Canadian Housing Market vs. The U.S. Housing Market

Just how much more expensive is the Canadian market compared to the U.S.? Here’s some perspective. Home prices in both countries have been rising since 2010; however, while disposable income in the U.S. has roughly matched its home prices, Canadian disposable income has become entirely uncoupled from them. 

Disposable income in the U.S. is only about 10% higher than its neighbour to the north, but Canadian home prices are about 75% higher than in the U.S. What this tells us is that despite a surge in the price of real estate in the U.S., it is likely not in a bubble. In contrast, Canadian prices are severed from fundamentals, which should unsettle any would-be investor. 

What if The U.S. Market Was as Hot as Canada’s?

To further put the dramatic difference in perspective, let’s imagine that the U.S. had a comparably hot market. The average median home price in the United States is roughly $375,000. If what’s happening in Canada happened in the U.S., the median home price would jump to around $656,000.

That’s just the median. Expensive coastal real estate markets likely wouldn’t see an increase of 75%, but it’s possible that they would jump by double-digit percentages. 

Most Affordable Countries in the World

The U.S. real estate isn’t just more affordable than Canada’s, it’s the second most affordable country in the world, according to data from Numbeo, Canada is the 17th. The report takes income, gross rental yield, price-to-rent, and international mortgage as a percentage of income into account when ranking each country. 

According to the data, the average Canadian spends a whopping 49.62% of their income on their mortgage. 

Investing in Real Estate in the U.S. 

Canadians are buying US real estate. In fact, Canadians bought more real estate in the United States from April 2020 to May 2021 than any other country in the world, spending about $4.2 billion dollars (foreign buyers from the U.K. only spent $2.3 billion).

Furthermore, in 2022, the Canadian government announced that it will ban overseas buyers from buying houses in Canada in hopes that it will help the housing market cool off. This will likely funnel more investment into U.S. real estate. 

Despite being a business-friendly economic powerhouse, with geographic diversity, excellent weather, and an abundance of land, real estate in the United States remains a bargain and one with great potential for returns. 

America Mortgages is the world’s leading U.S. mortgage specialist based overseas. We are expats ourselves so know exactly how to best serve you. Explore your possibilities when you speak to our U.S. mortgage specialists today!

Sounds enticing? Schedule a call with us to find out all about this and more! [email protected]

www.americamortgages.com

Globally How Much Real Estate Can You Get for USD$1 Million?

U.S. Expat Investor
Real Estate Can You Get for USD$1

As a foreign national or U.S. expat investor, real estate remains one of the wisest and most lucrative investments one can make. With technology making the world smaller every day, there is no reason investors shouldn’t be searching out opportunities globally. However, when looking to invest in real estate, getting the best bang for your buck will help you get the most out of your investment when your property appreciates. Investing in global cities might not get you the profits you are looking for.

Below is a list of how many square feet of real estate you can buy for $1 million in 8 different cities around the world.

U.S. Average Price Per Square Foot
Global - Average Price Per Square Foot

Austin, Texas

Austin has become a hot spot for real estate investors because of its continued growth and high demand. The state reported a population of about 960,000 in 2020, a 21.7% increase over 10 years. It is one of the best-performing U.S. metro areas for business. While 2020 hit the economies of most U.S. cities hard, Austin added over 11,000 jobs. It’s home to advanced manufacturing, cleantech, digital tech, financial services, and space tech. If you are looking to buy property in the USA, Austin should be somewhere near the top of your list.

  • Average Price Per Square Foot — $370
  • Square Feet for $1 million — 2,702 

Seattle, Washington

A seaport city on America’s North-West Coast, Seattle is the largest city in Washington. Due to low mortgage rates, real estate sales in Seattle have remained robust in 2021 and 2022. A 2021 report from The Urban Land Institute (ULI) named Seattle as a boomtown, drawing in talented young workers. The local economy is expected to continue to grow, putting upward pressure on the price of real estate.

  • Average Price Per Square Foot — $620
  • Square Feet for $1 million — 1,613

New York, New York

New York is the most densely populated city in the United States, with almost 9 million people distributed over 300.46 square miles and over 20 million people in its metropolitan statistical area. Over the past decade, the city has continued to grow, gaining 629,000 residents between 2010 and 2020, more than any other city in the U.S. With its history as a port of entry for immigrants, New York is extremely diverse, and about 37% of its population is foreign born. In 2021, the city saw its highest sales volume since 1989 due to New York’s low mortgage rates, pandemic-related pent-up demand, and the reopening of the economy.

  • Average Price Per Square Foot — $633
  • Square Feet for $1 million — 1,579 

Los Angeles, California

Southern California is known for its year-round sunshine and overall excellent climate. Los Angeles is the second-largest country in the United States and boasts a stable job market, and is an excellent place for buying-to-let opportunities. It’s important to note that there are vast differences between neighbourhoods in L.A.; some are safe, expensive, and home to Hollywood elites, like Beverly Hills, while others have high crime and poverty rates.

  • Average Price Per Square Foot — $651 
  • Square Feet for $1 million — 1,536

Sydney, Australia

Sydney was the strongest performing Australian housing market in 2021, with property values increasing in nearly every area of Sydney. Some locations experienced as much as a 24% growth in housing prices. Among the global cities we compare, Sydney ranked 1st.

  • Average Price Per Square Foot — $1,042
  • Square Feet for $1 million — 1,000

Singapore

Singapore’s property market has a strong reputation as a solid investment sector. The island city-state boasts a highly developed market economy and is widely regarded as a free, innovative, and dynamic place to do business. Despite the pandemic, Singapore’s housing market has remained relatively healthy, with house prices rising by 2.16% year-over-year in 2020. This continued increase in housing prices signals strong demand.

  • Average Price Per Square Foot — $1,319
  • Square Feet for $1 million — 758

Tokyo, Japan

Japan remains the third-largest economy in the world, with many of its prefectures and regions having economies larger than even developed countries. Measured in terms of economic strength, Tokyo is the world’s largest city. It is home to a number of major corporations and attracts plenty of foreign businesses as a result of good working standards and a welcoming tax environment.

  • Average Price Per Square Foot — $1,626
  • Square Feet for $1 million — 615

Hong Kong

Hong Kong is the world’s most expensive city for real estate. However, the city is economically vibrant and relatively stable. Its low taxes, business-friendly policies, and excellent location have made it a favourite of investors around the world. Until 1997, Hong Kong was still a British Colony and has historically served as an important trade port, leading to its current prosperity.

  • Average Price Per Square Foot — $2,082
  • Square Feet for $1 million — 480

In comparison, the U.S. cities give you the best value for your money per sqft, and no global city seems to come close to it. Based on our list, if we compare the most affordable U.S. city – Austin, and the most affordable global city – Australia, the price per square foot in Sydney is 2.8x that of Austin’s! If this doesn’t convince you to set your sights on U.S. property, take a look at the rest of the cities:

Price comparison per Sqft:

Price comparison per Sqft

All of the global cities price per sqft are double if not triple that of U.S. cities. Investing in U.S. real estate might just help you get the best value for your money and prove itself to be a lucrative investment opportunity. 

At America Mortgages, our only focus is to provide mortgage financing solutions to foreign nationals and U.S. expat investors. This is all we do, and no one does it better.

Ready to start your journey? Arrange a no-obligation call with one of our loan specialists today. [email protected].

www.americamortgages.com 

Top 10 Best Places to Buy a House in the U.S. for Price Appreciation

Buying Property In The U.S.
Whether you're a foreign national or U.S. expat looking for an overseas investment property, buying real estate in the U.S. can be a wise and lucrative financial decision. However, in a country so vast, diverse, and spread out, choosing the best location can be a daunting task.

Whether you’re a foreign national or U.S. expat looking for an overseas investment property, buying real estate in the U.S. can be a wise and lucrative financial decision. However, in a country so vast, diverse, and spread out, choosing the best location can be a daunting task.

Luckily, a recent SmartAsset study examined home prices in over 400 U.S. metropolitan areas since 1997 and ranked them based on price stability and home value growth. The following are the top 10 best places to buy a house in the U.S. if you’re looking for the best return on your investment.  

1. Austin-Round Rock-Georgetown, Texas

The Austin-Round Rock-Georgetown Metropolitan area, also known as Greater Austin, is situated on the edge of the American South in Central Texas. The region is home to a number of major universities and boasts a diverse economy fuelled by software, semiconductors, education, and government services. 

  • Price Change — 368%
  • Population — 2,173,808
  • Median Age — 35
  • Median Household Income — $80,852
  • Median Value of Owner-Occupied Housing Units — $303,300

2. Boulder, Colorado

Boulder, Colorado, sits in the Boulder Valley, where the Great Plains and the Rocky Mountains meet. The city has a temperate climate, with most days of the year being sunny. Top employers include the University of Colorado at Boulder, IBM Corporation, Google, and Ball Corporation.

  • Price Change — 277%
  • Population — 108,777
  • Median Age — 28.8 
  • Median Household Income — $72,279
  • Median Value of Owner-Occupied Housing Units — $736,000

3. Midland, Texas

Midland, Texas, is a major producer of oil and natural gas and had the lowest unemployment rate in the United States, according to a 2014 report. The city is located in the plains of West Texas and has a semi-arid climate with cool to mild winters and hot summers.

  • Price Change — 266%
  • Population — 141,194
  • Median Age — 31.4
  • Median Household Income — $83,616
  • Median Value of Owner-Occupied Housing Units — $238,000

4. Odessa, Texas 

Odessa, Texas, ranked as the third-fastest-growing small city in the United States in a 2014 Forbes article. The city is the former home of the Bush family and is primarily fueled by the oil industry, with its economy rising and falling with the price of crude oil.

  • Price Change — 247%
  • Population — 122,630
  • Median Age — 30.4
  • Median Household Income — $63,829
  • Median Value of Owner-Occupied Housing Units — $159,700

5. Fort Collins, Colorado

Fort Collins, Colorado, is a mid-sized college town with an economy based on a mix of service-related business and manufacturing. High-tech companies like Hewlett Packard, Intel, and Microsoft all have offices in Fort Collins due to the resources of the Colorado State University research facilities.

  • Price Change — 242%
  • Population — 166,069
  • Median Age — 29.9
  • Median Household Income — $70,528
  • Median Value of Owner-Occupied Housing Units — $398,800

6. Rapid City, South Dakota

Rapid City, South Dakota, is home to many famous attractions, and Mount Rushmore is located in the nearby Black Hills. Rapid City’s largest sector is government services, with tourism and finance, and investment companies also making up a large part of the city’s economy.

  • Price Change — 231%
  • Population — 76,541
  • Median Age — 37.2
  • Median Household Income — $53,760
  • Median Value of Owner-Occupied Housing Units — $194,100

7. Dallas-Plano-Irving, Texas

Dallas-Plano-Irving, Texas, is one of North America’s largest business centers and is home to a diverse metropolitan economy. The region has an expanding light rail transit system that spans over 90 miles and 60 stations. 300 corporations, including 24 Fortune 500 companies, are headquartered here.

  • Price Change — 228%
  • Population — 4,997,015
  • Median Age — 34.9
  • Median Household Income — $74,251
  • Median Value of Owner-Occupied Housing Units — $254,300

8. Houston-The Woodlands-Sugar Land, Texas

Houston-The Woodlands-Sugar Land, Texas is also known as Greater Houston. It is the fifth-most populous metropolitan area in the United States and ranked first in employment growth in 2017. It has routinely been categorized as one of the top 10 best places to do business in the United States. 

  • Price Change — 221%
  • Population — 6,979,613
  • Median Age — 34.5
  • Median Household Income — $69,328
  • Median Value of Owner-Occupied Housing Units — $208,100

9. Kennewick-Richland, Washington

Kennewick-Richland, Washington’s economy is based on the Hanford Nuclear Reservation and agriculture. Three nearby rivers provide enough water for growing wheat, its most common product, and its semi-arid climate allows grapes to grow in its many wineries. 

  • Price Change — 217%
  • Population — 294,396
  • Median Age — 34.1
  • Median Household Income — $70,545
  • Median Value of Owner-Occupied Housing Units — $246,700

10. San Angelo, Texas 

San Angelo, Texas, has been routinely ranked as one of the best small cities for business and employment. For a city of its size, San Angelo has a diverse economy. Oil fields to the west employ many local residents, and the city boasts a strong agricultural industry.

  • Price Change — 214%
  • Population — 100,509
  • Median Age — 34
  • Median Household Income — $55,682
  • Median Value of Owner-Occupied Housing Units — $143,300

At America Mortgages, 100% of our clients are either Foreign Nationals or U.S. Expats. We understand the intricacies and complexities of this type of lending for our borrowers. It’s as simple as that. Providing competitive pricing with the assurance that your loan will close is our only focus, and no one does it better. Ready to begin your journey? Speak to us to find out more! [email protected]

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