Author: Premela R.

U.S. Housing Boom: More Real Estate Investors Are Releasing Equity to Purchase Their Second Home!

U.S. Housing Boom

The pandemic and rising level of inflation have birthed a global housing boom. This spike prompted U.S. property investors to invest in a second home and building their real estate investment portfolios. Sophisticated U.S. real estate investors can foresee that rental prices will steadily increase along with rates. The question is; how exactly are they pulling this off? By releasing their equity for existing realestate! 

It’s safe to say that this trend began in last year’s second quarter. As per stats from Black Knight, Inc., that period saw the most significant quarterly volume in cash-out refinances in over a decade, with U.S. homeowners withdrawing $63 billion in equity from their homes. 

It’s tricky to identify the exact number of U.S. real estate owners cashing out from their current properties to purchase more. However, this pool has both experienced real estate tycoons and beginner investors hoping to become the next thriving generation of lessors. 

What Are The Chances Of Success? 

Of course, releasing equity to invest in a second home or investment may seem somewhat risky, especially for a first-timer, but this is not necessarily a doomed endeavour if you play your cards right. In fact, cash-out refinances have enabled countless non-resident and U.S. expat property investors to grow exponentially within a limited period. A majority of those who sunk that money into rentals now bring in thousands of dollars in rent. 

The thing is, interest rates have increased all across the nation. As a result, many first-time buyers cannot afford to purchase homes due to high mortgage rates, so they are forced to settle for rentals until the housing market becomes friendlier. With the soaring demand for these properties, landlords have no option but to push up rents. Therefore, you are likely to make huge profits from your rental property, which might even pave the way for you to purchase more. 

As you contemplate buying a second home or investment in the U.S. through releasing equity from your existing property, do your homework. Don’t make any purchase decision before you know exactly what you are getting yourself into by remortgaging. For example, what are the costs involved, and how do they measure against the potential proceeds from your new property or the expenses you will incur to take the best care of it? If these sound daunting, fret not, this is where America Mortgages comes in! Consult our team of expert mortgage advisors tohelp you judge if you are making the right choice. 100% of our clients are living abroad. As the global leader in this market, we know how to navigate through this process better than anyone. 

If becoming a U.S. real estate investor is on your bucket list this year and you own U.S. real estate, releasing your equity could be the fastest path to get you there. Yes, this could easily be a holiday home for you and your loved ones, or a buy-to-let and boost your monthly income. 

America Mortgages’ ONLY focus is to provide U.S. mortgage financing to foreign nationals and U.S. expats looking to buy, refinance or release equity for U.S. property. We offer the most comprehensive loan programs for international real estate investors. Ready to release equity to purchase your U.S. home?

Ready to release equity to purchase your second U.S. home? Speak to us today to find out more! [email protected]

Is an interest rate rise a good thing for a real estate investor? We say, Yes!

Interest Rate Rise

Interest rates are going up – there is no doubt. However, depending on the property’s purchase price, a rise in rates amortized over a 30 year period may not be as bad as one may think. Interest rate increase converts the average home buyer into a renter. This creates a shortage of available rentals, which in return drives up rental rates. This could be the opportunity and time to increase your rental portfolio as a real estate investor. In fact, over the past couple of weeks, we’ve seen an increase in the number of applications received. Most of the applications are not first-time investors. These are seasoned and sophisticated investors that look at real estate investing not as a quick flip but as a long-term hold.

Nick Worthing, America Mortgages’ Head of Sales, states, “The amount of money real estate investors make from rent is more significant when interest rates are higher. When interest rates go up, it will be more expensive for people to borrow money, which means that they will be less likely to buy a house or apartment and rent instead. When rates go up, landlords see an increase in their rental income simply because people will be willing to pay higher rents for properties with higher yields”.

How are increased rates advantageous to real estate investors?

1. Rent is at an all-time high.

Low inventory and higher prices equate to more people being forced to rent. According to John Burns Real Estate Consulting, the overall number of renters has increased 29% since 2000. Vacancies for rental units are at a 25-year low. Interest rates are on the rise, forcing buyers out of the market. This is a perfect storm for real estate investors. Real estate investors can use leverage to increase their property portfolio, fix a specific monthly housing expense for 30 years, and see their yield increase with time.

2. Rent prices are increasing.

In December 2021, single-family rent growth tripled year-over-year in the U.S., as reported by CoreLogic’s Single-Family Rental Index. Real estate professionals and investors tapping into the rental market are capturing this added value and supplementing a sizeable income. Increasing rent prices can translate to increased monthly income for investors. For instance, New York City, where rent has increased over 60% since 2009, still has one of the highest demands for rental properties.

3. The rise of property technology has changed the rental sector.

​​There is a growing relationship between technology and real estate, commonly known in the industry as proptech (property technology). Integrating technology has exploded during the pandemic and has streamlined how real estate investors, property managers, and other professionals conduct their business. Real estate investors now have more tools at their fingertips to find properties for the right price with the highest-earning yields. As we have always stated at America Mortgages, it shouldn’t matter where the property and the property owner are located with the use of sophisticated technology and an efficient and trustworthy property management company. Real estate investors can use the same technology and software regardless if they are 10 miles away or 10,000 miles away.

What do these trends mean for investors?

The real estate industry is in an exciting place right now. It’s going through some historic moments with interest rates, low housing inventory, and a booming rental market. However, the demand for rentals is unquestionable at this point, so for U.S. Expats and Foreign National investors, we believe this is an excellent time to acquire properties. For those “still on the fence” or “just looking,” we think this is the perfect time to strike while the iron is hot.

At America Mortgages, our ONLY focus is providing U.S. mortgage financing for U.S. Expats and Foreign Nationals looking to invest in U.S. properties. America Mortgages approves 97% of the loans submitted. This is all we do, and no one does it better.

Speak to us today to find out more. [email protected]

www.americamortgages.com

The top 10 U.S. cities to buy a home for under $250,000

Buying Property In The U.S.

The U.S. property market has been a wild ride for the past few years. As millennials move from metropolitan areas to the suburbs and interest in vacation homes has spiked, home prices have also jumped. Whether you’re buying your first home or building your real estate portfolio, picking the correct city to invest in could make a difference in appreciation and rental yield.

In general, investing in property offers cash flow, tax benefits, and equity building. Real estate is a fantastic investment choice. It can create constant revenue through rentals and be an excellent long-term investment, especially if the property’s value increases over time. For most investors, it may be the start to building wealth. Previously we compared real estate prices in The Aloha State; this week, using data from various online sites, we compiled a list of 10 U.S. cities where you could buy a home for under $250,000 that features appreciation and yield opportunity.

1. Pittsburgh, PA 

 Median home price: $216,600

What attracts investors to Pittsburgh? It’s reliable real estate growth! The best features of The Steel City are the conveniences it offers to its residents, such as various shopping districts, dining spots, and bountiful tranquil nature. According to WalletHub, Pittsburgh is one of the top 50 cities in the U.S. for renters. Investors who take advantage of the opportunity Pittsburgh presents would see passive income flowing in. 

2. Rochester, NY

Median home price: $221,300

Real estate markets in the northeast of New York remain strong, and Rochester is no exception. Rochester’s low cost of living and its incredible quality of life makes this city appealing to families and millennials. Rochester’s rental market is strong too, with 61% of the occupied houses in the city being made up of renters.  Purchasing a property for rental income? Rochester ticks the box! 

3. Little Rock, AR

Median home price: $223,330

The Arkansas River and its serene surroundings makes Little Rock a great option for individuals and families looking to buy a home. Its low cost of living, business opportunities, and high quality of life help keep Little Rock’s housing market strong. Altogether, Little Rock offers a really great opportunity for investment property in the entire country.

4. Detroit, MI

Median home price: $226,630

If you are looking to finance your mortgage with rental income, Detroit’s red hot real estate market might just be the city for you. With the median price of a single-family home at $226,630 and its rental demand, real estate investors can snap up this opportunity and then choose to refinance to lower their costs in the future. Detroit serves as an opportunity with a tremendous cash flow advantage!

5. Dayton, OH

Median home price: $233,660

Dayton’s high quality of life and robust economy are among the many reasons that attract renters. Its median home price is $233,660, making Dayton one of the few inexpensive property markets in the country. With its affordable prices and the demand for rental homes, investors will always have a strong pool of potential renters for their investment properties. Coupled with its capital appreciation, Dayton is a city not to be overlooked. 

6. Buffalo, NY 

Median home price: $236,030

Buffalo’s return on investment and its rental demand will show investors that purchasing a property in Buffalo is undoubtedly profitable. Considering its median home price is $236,030, it proves to be a potential solid source of passive income through its rental market. 

7. Memphis, TN

Median home price: $243,150

Looking to buy a property for rental income? Then the city of Memphis might be perfect for you. It is known as one of the most affordable places to own real estate property. Its median home prices are at $243,150, and its solid rental market will leave investors with extra cash in their wallets. 

8. McAllen, TX 

Median home price: $247,220

McAllen’s proximity to the U.S.-Mexico border makes it a major tourist destination. It is the largest city in the Hidalgo County of Texas. The cost of living, growth, affordability, and amenities concludes that this City of Palms is an excellent property investment location in the U.S.

9. Florence, OR

Median home price: $249,500

Famous for its rolling sand dunes, stunning beaches together with its exceptionally well-priced properties, Florence has a lot to offer investors looking to invest there. Its coastal location at the mouth of the Siuslaw River, combined with its scenic location, makes it a popular tourist destination.With Florence’s median home price at $249,500 and its property price appreciation makes investing in this city a great opportunity.

10. St. Louis, MO

Median home price: $249,600

Known for beer, barbecue, and baseball, St. Louis’ appeal is the reason for its flourishing real estate market. St. Louis’ demand comes from investors and people looking to rent a home. With this city’s affordable real estate, we think owning a property in St. Louis will be a profitable investment.

Whether you’re looking to grow your real estate portfolio or purchase your first home in the U.S., America Mortgages can help you achieve your goal. Looking to buy a home in one of these cities? If you’re a non-U.S. citizen, you can qualify for up to 75% in all 50 states with no U.S. credit. U.S. Expat? No problem, we have you covered. Up to 80% LTV! 

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].

Rental property shortage. High rental demand. Soaring rental prices…the perfect real estate investor storm!

Rental property shortage

U.S. Rental Properties for Sale

More metropolitan areas see a surge in rental market demand. Rents in U.S. increased by 14% in December 2021 – the most considerable jump in more than two years, according to an analysis conducted by Redfin. The highest surge was seen by Austin, Texas, followed by New York City and Florida, all of which exceeded over 30% increase in rental prices. According to Redfin, the East Coast areas, Austin, TX, and Portland, OR, saw the biggest growth in rent prices year-over-year. 

What does this mean for U.S. real estate investors? 

Earlier this year, we highlighted New York, NY, and Palm Beach, FL, as one of the best cities on the East Coast to buy rental property due to high rental income and great capital appreciation over the years. According to Redfin’s 10 best metro areas with the quickest rising rents, both New York, NY, and Palm Beach, FL made the cut!

If you are looking to purchase properties on the East Coast, here are the best places to invest in with the fastest-growing rent prices:

  • Austin, TX (40%)
  • Newark, NJ (35%)
  • New York, NY (35%)
  • Miami, FL (34%)
  • Palm Beach FL (34%)
  • Fort Lauderdale, FL (34%)
  • Jacksonville, FL (31%)
  • Portland, OR (29%)

Buying an Investment Property to Rent

To compare, in 2020, the average monthly rental price across the U.S. rose only 3% compared to a year earlier, as reported by Redfin. Homeowners looking to purchase U.S. real estate in these areas as a rental property would not need to worry about renters as the demand is exceptionally high. With rental prices’ biggest increase over the past year, there’s no end in sight. Homebuyers can benefit by using rental income to pay their mortgage and, at the same time, will profit from capital appreciation over the years. 

Investors, if you’re on the fence … 

America Mortgages has programs for Foreign Nationals and U.S. Expats to purchase U.S. rental properties with up to 75% financing in all 50 states. No U.S. credit is required. No income required loans available.

100% of our clients live outside of the U.S., which means ALL our loan programs are specific for these types of borrowers. Want to learn more? Schedule a call with our U.S. mortgage specialist to find out your mortgage options. [email protected]

www.americamortgages.com

U.S. Mortgage Loans…Beyond your Expectations!  

U.S. Mortgage Loans...Beyond your Expectations!  

Are you a U.S. real estate investor looking for a mortgage loan but have been rejected by various banks, lenders or brokers because you are a Foreign National or a U.S. Expat? Add self-employed, being an entrepreneur, or lumpy income into the mix, and you’re really out of options. Let’s face the facts; even as a U.S. citizen living and working in the U.S., it is often hard to get a real estate mortgage loan as an investor, compound this with not living or working in the U.S., and it adds an entire layer of risk which many banks do not want to take on. 

In general, due to stringent underwriting requirements, banks are not very flexible towards entrepreneurs, non-residents, and U.S. Expats, especially with no credit footprint. Most banks operate to service the local community and focus on providing mortgage loans to borrowers for owner-occupied properties. It’s the same all over the world and makes perfect sense unless you fall out of that box. However, contrary to what banks and lenders may have told you, it is possible for non-resident investors to get a mortgage. How? With America Mortgages!

We recognised this four years ago in Global Mortgage Group, which was the very reason America Mortgages was formed. As a company, America Mortgages’ ONLY focus is providing U.S. market rate mortgage financing for Foreign Nationals and U.S. Expats. That is all we do, and no one does it better. Whether you’re looking to own a multi-family complex in Texas, purchase a vacation summer home in Florida, or want to invest in rental property in Atlanta, we got you covered. America Mortgages’ has loan programs with up to 75% LTV in all 50 states regardless of your passport or credit profile. 

Our goal at America Mortgages is to go beyond your expectations. 100% of our clients are either U.S. Expats or Foreign Nationals looking to buy U.S. property. With our U.S. Expat + mortgage program, you’ll be able to qualify just as you would if you walked into a local bank back home in the U.S. With our Foreign National program, you can qualify using ONLY the rental income of the property. Yes, that means NO personal income documents are required. 

What’s the unique thing that America Mortgages does that banks can’t? You can actually qualify for a U.S. mortgage with the following: 

  • No U.S credit needed
  • No personal income required 
  • No W2 required 
  • Qualifying based on rental income

We also offer the following based on individual client situations: 

  • Interest-only mortgages
  • 10-year fixed interest only
  • Recourse and non-recourse loans available
  • Pure asset-based lending

Here at America Mortgages, we go beyond your expectation and tap into our extensive network of lenders, and find the best possible option based on your situation. 

Self-employed? No problem! Foreign National investor? No problem! U.S. Expat with no U.S. credit? No Problem! 

Get started with our team of U.S. mortgage specialists today. [email protected]

www.americamortgages.com

What do Red Packets and U.S. Real Estate have in common?

Red Packets and U.S. Real Estate

CNY: The Origin & Traditions

More commonly known as Chinese New Year, the Lunar New Year is more than just the beginning of a new calendar year. The Lunar New Year is viewed as a period of gathering and rebirth, denoting the end of winter and the beginning of spring. Legend has it that a wild monster, Nian, appeared at the end of every year, attacking and killing villagers. Firecrackers and bright lights were used to scare the beast away, and the Chinese New Year festivities were born.

For two weeks, the celebration incorporates the act of giving and ceremonies that bring in luck to invoke a prosperous and blissful year ahead. It all starts on the 26th day of the last lunar month when cakes and puddings are made, believing that eating them will lead to growth and progress in the upcoming new year.

Following that, a major clean-up is done in homes on the 28th day. It’s believed that the act of cleaning frees your home from any misfortune that is collected throughout the past year.

The main feast formally happens on New Year’s Eve, with loved ones gathering around the table as the countdown to New Year begins. The main dish is, more often than not, the hot pot. The reunion dinner addresses solidarity, unity, and togetherness, with loved ones gathering to eat without apprehensions or quarrels over food.

The menu is painstakingly picked to incorporate dishes related to luck, including fish (the Chinese word for it translates to “abundance”), puddings (represents headway), and food sources that appear as gold ingots (like dumplings).

Countries that observe the Lunar New Year regularly offer three to seven days of public holidays; however, festivities aren’t finished until the fifteenth day of the first lunar month, otherwise called the Lantern Festival.

Interest in Property Peaks during CNY

During Chinese New Year, many who celebrate believe that it’s the time of good fortune and that investments and new wealth acquired during this period will be beneficial to them throughout the year. For the high net worth, new wealth comes in the form of acquiring real estate or upgrading their current investment. 

Many who are considering buying real estate often use the holidays to do their research while traveling. Pre-Covid, Chinese New Year was the most popular time of year for travel by Chinese citizens. Global cities such as the U.S., Australia, Canada, and Singapore tend to see wealthy Chinese buyers looking to purchase property. 

In the U.S., with interest rates being low, these homebuyers often use the property as a summer vacation home. It is then used as short-term rental giving the owners passive income throughout the new year.

With America Mortgage’s Holiday / Airbnb Investor Program, investors can get up to 75% LTV in all 50 states. Best part? You can get pre-approved for this loan within 72 hours, and once approved; you’ll be issued an “approval letter,” which will allow you to go shopping! It’s as easy as it sounds.

Planning to usher in the new year with a property in the U.S.? Speak to us today and get pre-approved within 72 hours! [email protected]

www.americamortgages.com

From the warm, sandy beaches of Waikiki to the lava-flowing volcanos on the island of Hawaii (Big Island), we compare real estate prices in The Aloha State of Hawaii. Enjoy.

Hawaii's property appreciation

Hawaii’s property appreciation is one of the main reasons the Aloha state brings in many real estate investors, overseas and local. There is no shortage of tourists looking to rent a property, and long-term rental yields are some of the best in the U.S. For U.S. expats and Foreign Nationals looking to invest in Hawaii, buying an investment property on one of the major islands is generally a safe and very rewarding investment. Is it time to invest in your dream Hawaiian vacation home?

Last week, we compared real estate prices on the East Coast and their profitability. This week, we venture into The Aloha State and bring you property prices and average rental income between four popular investment areas in Hawaii – Oahu, Maui, Big Island, and Kauai.

Owning a piece of paradise is a dream for most people that visit Hawaii on holiday. Many real estate investors utilize their property in Hawaii as short-term vacation rentals. Although some locations on the islands may be restrictions on the minimum stay a property investor is allowed to advertise, there is surely never a lack of demand. Whether it’s February, July, or October, Hawaii sees vacationers at any season. It’s the perfect temperature, ample sunshine, and some of the best beaches in the world that play an important part in investors being able to rent out all year round. It’s the ultimate “home away from home.” Prefer a more stable long-term tenant? Not a problem. The rental prices in Hawaii are some of the highest in the nation giving fantastic yields with long-term, stable tenancies. 

Oahu

According to data from the Honolulu Board of Realtors, Oahu median sales prices have constantly increased yearly since 1985. Oahu has an active and competitive real estate market with its low inventory, combined with its high demand, making it an ideal opportunity to consider investing in Oahu property. From here on, prices and demand are likely to only go one way – up!

Location: Waikele, Oahu
Avg Purchase PriceUSD 1,065,640 (2000 sqft)USD 649,500 (830 sqft)
Avg Rental IncomeUSD 4,580USD 3,640
Price Per SqftUSD 530USD 900
Location: Waikiki, Oahu
Avg Purchase PriceUSD 2,640,000 (2000 sqft)USD 432,500 (830 sqft)
Avg Rental IncomeUSD 15,280USD 4,755
Price Per SqftUSD 1,318USD 840

Maui

Among the 8 major islands in the Aloha State, Maui is perhaps the most famous place to visit. Due to its popularity for surfing, amazing restaurants, popular white-sand beaches, and wonderful landscapes, sightseers from around the globe just can’t get enough of Maui. According to the Hawaii Tourism Authority, millions of tourists worldwide travel to Maui every year, with a record number of 3,071,596 vacationers in 2019. These are not just the only people Maui attracts; Real estate investors find Maui’s rental yield, purchase price, and property appreciation extremely alluring.

Location: Kihei, Maui
Avg Purchase PriceUSD 2,532,040 (2000 sqft)USD 772,000 (830 sqft)
Avg Rental IncomeUSD 12,425USD 6,995
Price Per SqftUSD 1,266USD 980
Location:  Wailea, Maui
Avg Purchase PriceUSD 4,540,000 (2000 sqft)USD 847,250 (830 sqft)
Avg Rental IncomeUSD 22,440USD 7,030
Price Per SqftUSD 2,270USD 3,450

Kauai 

Based on WSJ, this Hawaiian island has become a major destination for primary and secondary homeowners during the coronavirus pandemic. Ranked 6th in the list of places to buy a seaside property, Kauai’s real estate demand is steady and sure. Because of Kauai’s laws, only one out of every odd property can be utilized as a vacation rental creating properties that can be used as a vacation rental significantly more valuable and highly sought after. Properties that can be classified as vacation rentals can be categorized as one of two categories:

1.      They are situated in A VDA (Visitor Destination Area) like Princeville and Poipu

2.      They have a TVR (excursion permit). The region of Kauai isn’t giving out vacation licenses, so a property either has one or it doesn’t.

Location:  Kauai
Avg Purchase PriceUSD 1,060,800 (2000 sqft)USD 444,750 (830 sqft)
Avg Rental IncomeUSD 9,525USD 3,410
Price Per SqftUSD 530USD 580
Location:  Princeville, Kauai
Avg Purchase PriceUSD 1,765,980 (2000 sqft)USD 873,250 (830 sqft)
Avg Rental IncomeUSD 10,560USD 4,558
Price Per SqftUSD 880USD 690

The Island of Hawaii (Big Island)

Hilo

Positioned as a property investment opportunity zone, the Hilo area is home to lavish wilderness, dazzling waterfalls, and vast green farmlands that continue into Kohala mountains. A fantastic scene of calderas, magma streams, and endemic Ohia trees can be viewed from the Hawaii Volcanoes National Park. Hilo’s location makes it ideal for investors to purchase an investment home and receive passive income.

Location:  Hilo, The Big Island  
Avg Purchase PriceUSD 611,550 (2000 sqft)USD 453,250 (830 sqft)
Avg Rental IncomeUSD 4,000USD 3,650
Price Per SqftUSD 305USD 630

Kailua-Kona

Kailua-Kona Known for its reasonable real estate prices and amazing value appreciation, the Big Island of Hawaii is most certainly drawing investors from around the globe. Big Island is known for its elite luxury resorts attracting a lot of High-Net-Worth vacationers. Like Hilo, it is also ranked as an opportunity zone for real estate, making it a very profitable and tax-efficient investment.

Location: Kailua-Kona, The Big Island
Avg Purchase PriceUSD 1,119,210 (2000 sqft)USD 698,000 (830 sqft)
Avg Rental IncomeUSD 5,016USD 3,957
Price Per SqftUSD 560USD 640

Whether it is to have a pure investment property or a second home to relax and get away from, Hawaii is an opportunity investment that many dream about, but few achieve. When you invest in Hawaii real estate, you get peace of mind knowing that it is one of the most stable real estate markets in the U.S. Sit back, relax, have a Mai Tai, and enjoy investing and earning passive income while the property appreciations roll in like the wave. Ready to find your place in paradise?

As a company, America Mortgages’ ONLY focus is providing market-rate mortgages financing for U.S. Expats and Foreign Nationals. 100% of our clients are clients just like you. Get in touch with us at America Mortgages to understand more about how a mortgage can get you that dream home in Hawaii. [email protected].

From Florida’s sunny shores to New York’s trophy buildings – we compare real estate prices on the east coast.

mortgage for foreigners in usa

America’s East Coast housing market is home to the best real estate to invest in the world. From sunny Florida to New York excitement, we feature the average cost per home, rental prices and cost per square foot. Where do you get the most value for your dollar? Enjoy. 

Moving or investing in America’s East Coast might be highly enticing considering its seaside locations, urban areas, and quaint towns. Last week, we compared several U.S. states against popular global cities to help you determine why you should invest in the U.S. . This week, we dive a little deeper and specifically into the East Coast, one of the most popular real estate investment destinations, to help you decide where your next or first U.S. property investment should be. We researched entry-level, mid-level, and high-end real estate from New York to Florida. We compare the prices in seven hot spots up the coast. We compare 2,000 square foot properties while considering factors such as rental income, average purchase price and price per square foot, and return on investment.  

Based on our data, the best cities on the East Coast to buy rental property are:

1. Palm Beach, FL

With its strong rental market and its location, Palm Beach makes it one of the best and most popular locations to invest in property. U.S. News & World Report ranked Florida as the 10th best state in the country with regard to education, economy, and stability. Palm Beach home values jumped 28.0% over the past year based on Zillow with no end in sight. Investors can also expect an average of $3,476 in rental income. 

LocationPalm Beach, FL
Avg Purchase PriceUSD 529,585
Avg Rental IncomeUSD 3,476
Price Per SqftUSD 264

2. Nashville, TN

The home of Elvis Presley features the trifecta; very affordable real estate, low cost of living, and high employment rate. These are just a few of the reasons why U.S. real estate investors choose to purchase in Nashville. Apart from affordability, single-family homes are a popular choice among renters, with investors earning an average of $3,162 in rental a month. According to Local Market Monitor, Nashville ranked 4th for single-family real estate investment properties.

LocationNashville, TN
Avg Purchase PriceUSD 576,397
Avg Rental IncomeUSD 3,162
Price Per SqftUSD 288

3. Atlanta, GA

The home of CNN, Atlanta’s economic growth is one of the main reasons why it has a strong rental market. With global companies like Coca-Cola, Delta, AT&T, and many Fortune 500 companies bringing in job prospects, its rental demand is sky-high. Investing in a property in Atlanta has proven to be a great potential value because of it’s low purchase price but high rental yield, on average, $2,344 a month just in rental.

LocationAtlanta, GA
Avg Purchase PriceUSD 217,118
Avg Rental IncomeUSD 2,344
Price Per SqftUSD 108

4. Baltimore, MD

One of America’s original seaports, Baltimore is known as one of the best areas to purchase an investment property for cash flow and appreciation. Given the generally low cost of properties in Baltimore, investors can anticipate getting a good return on investment and a decent rental income, on average $1,928. Furthermore, Millennials flocking to the city are causing a high demand for rentals in hot spots suburbs like Brewers Hill.

LocationBaltimore, MD
Avg Purchase PriceUSD 270,510
Avg Rental IncomeUSD 1,928
Price Per SqftUSD 135

5. Boston, MA

Constantly ranked as one of the best places to live and work in, if you are looking to invest in a metro area in a big city, Boston real estate might be the perfect solution for you. Real estate investors take home on average $2,553 just in rental income.

LocationBoston, MA
Avg Purchase PriceUSD 581,216
Avg Rental IncomeUSD 2,553
Price Per SqftUSD 290

6. Manhattan, NY 

New York City is a global center for business, finance, culture, and entertainment. It offers a perfect lifestyle and investment profile to both Americans and foreigners alike. Needless to say, Manhattan’s real estate prices are steeper than average. However, even though Manhattan’s real estate price is relatively high, its profits in the form of capital appreciation is surely something to consider. With Manhattan’s median rent at $3,450, investing in Manhattan is worth a look.

LocationManhattan, NY
Avg Purchase PriceUSD 839,692
Avg Rental IncomeUSD 5,624
Price Per SqftUSD 419

7. Providence, RI

This vibrant capital city of Rhode Island is home to Ivy League school Brown University, RI School of Design, and Providence College. The number of students Providence draws in every year impacts the real estate market directly. It’s hot rental market makes it ideal for investors, with an average rental at $5,624 a month.

LocationProvidence, RI
Avg Purchase PriceUSD 209,841
Avg Rental IncomeUSD 3,454
Price Per SqftUSD 104

Based on the list, here are the most affordable East Coast cities to invest in:

RankCitiesPurchase PriceRental IncomePrice per Sqft
1Baltimore$270,510$1,928$135
2Atlanta$217,118$2,344$108
3Boston$581,216$2,553$290
4Nashville$576,397$3,162$288
5Providence$209,841$3,454$104
6Palm Beach$529,585$3,476$264
7Manhattan$839,692$5,624$419

The most affordable East Coast city is Boston, with its average purchase price at $270,510, and the most expensive, of course, is the bustling Manhattan at $839,692. However, investors should not be put off by the higher property prices; let us show you why.

Comparison of the most expensive property vs. the least expensive property on the East Coast:

CityPurchase PriceLoan AmountLoan TenureLTVMonthly RepaymentRental Income
Baltimore270,510202,882.530-year fixed75%$894.131,928
Manhattan839,692629,54430-year fixed75%$2,774.495,624

Lets break it down further to understand the profits:

CityRental income after monthly repayment# of years to repay loanTotal profits at the end of repayment period
Baltimore$1033.8730$372,193
Manhattan$2,849.5130$1,025,823

Apples to Apples, we can deduce that even though Manhattan has a higher purchase price, with amortization and capital appreciation, investing in Manhattan gives you significant appreciation and profits.

Ready to invest in East Coast real estate?

As a company, America Mortgages’ only focus is providing U.S. mortgage financing for U.S. expats and foreign nationals. We know exactly what is required to ensure that your mortgage journey is stress-free. We qualify 97% of our client’s for a U.S. mortgage.  What are you waiting for? Schedule a call with our U.S. mortgage specialist to find out your mortgage options.  [email protected]

Next week … We travel to the Hawaiian Islands for a comprehensive look at the Aloha State real estate market! Aloha. 

www.americamortgages.com

From Hong Kong to Austin. London to Miami. We compare real estate with the most bang for your buck!

Atanta GA & Sydney AU Real Estate

Globally real estate markets are red-hot, and even a pandemic can’t stop it. For the U.S., mortgage applications for foreigners to purchase U.S. real estate have consistently expanded year-over-year as property prices in most global cities have reached record highs. 

What makes the U.S. real estate market so enticing to investors? 

Anyone who has invested time and effort in house hunting for investment properties in Hong Kong, Singapore, Paris, London, Sydney, or Vancouver will acknowledge just how inexpensive real estate has become. Markets outside the U.S. have been increasingly hit with various cooling measures, taxes, stamp duty, and mortgage restrictions impacting real estate investors from either entering the market initially or growing their portfolios. What makes the U.S. market unique: there are no restrictions for foreign investment in any real estate asset class. The market also dictates the rise and fall of real estate values, not the government. You can buy a starter property in Texas for $200,000 or a penthouse in Miami for $10,000,000 regardless of your passport. 

Below we compare the cost of purchasing real estate in various global and U.S. cities. With up to 75% leverage in all 50 U.S. states, America Mortgages provides an opportunity for anyone to invest in U.S. real estate. You no longer need to battle with banks or pay AUM to become a successful real estate investor.

With U.S. interest rates currently at historic lows, mortgage programs are creative, including qualifying not off your personal income but off the property’s rental income, and it is available for both U.S. citizens and Non-U.S. Citizens. The ability to get up to 75% leverage with a 30-year amortization regardless of the borrower’s age increases rental yields and the affordability of investment properties. This kind of leverage is available ONLY in the U.S. market.

If you are wondering whether U.S. real estate merits putting your money into, the short answer is yes. Let’s look at various global real estate price points versus the U.S.

Price comparison of investment properties:

Price comparison of investment properties
Price comparison of Real Estate

Let’s take for example Atlanta, Georgia 2000 sqft home:

Purchase Price: $300,200

LTV: 75%

Loan amount: $225,150

Interest rate: 4.75%

Loan Tenure: 30 years

Monthly Loan repayment: $1,174

Rental Income: $2,500

With the rental yield at $2,500, your monthly repayment is $0 with a profit of $1,326 per month; that’s $15,912 per annum. Within 7.5 years, you’d have fully paid off your loan.

Looking at this, we can clearly deduce that the purchase prices and rental yield of a U.S. property prove that it is a great investment, especially when you consider Return on investment (ROI) and the option to finance your property with higher leverage. With purchase prices significantly lower than the rest of the cities globally, your rental income will cover should, at a minimum, cover your mortgage costs. Smart money management and possibly in a few years, will turn into passive income. 

According to Billionaire Andrew Carnegie, around 90% of the world’s tycoons have been created by investing in real estate. Real estate offers the most ideal way to build wealth as an investor. Likewise, with all possible types of assets and loan programs available, it is ideal to strike when the iron is hot.

If you are keen to invest in U.S. real estate as a U.S. Expat or foreign national, the first step is to get pre-approved for a mortgage. America Mortgages’ ONLY focus is providing market-rate mortgage financing for U.S. Expats and Foreign Nationals. Our most popular programs are AM No Income Mortgages+ and  AM U.S. Expat Mortgage +. However, if for some reason that doesn’t fit your profile or you prefer something more bespoke, our global mortgage team with over 100 years of combined experience is only a phone call away. So investors rejoice and connect with us today at [email protected].