overseas investment property Archives

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].

How do I invest in U.S property without traveling there?

The house-buying experience is often synonymous with physically travelling to the location and exploring every aspect of the house in person. The very idea of investing in property that you’ve never seen physically is unusual – for some people. The “old” way of investing in Real Estate is becoming synonymous with the “old” way of buying socks in a store and not online. With the right partners in place – Mortgage Broker, Realtor, Property Manager, buying a property outside of the city, state, or country where you live is not only possible, it is almost as common as buying “socks” online these days.

Let’s first dispel the notion that the best property to invest in are those that are in the same country code as you. Location absolutely matters, but not in the traditional sense. Global real estate investors in the ‘know’ will tell you the most important factors are asset location and yield – their own proximity to their investment shouldn’t be a factor. Another thing they’ll probably tell you would be that the U.S is by far the best place to invest right now.

Why the U.S?

For one, it’s extremely easy – anyone can buy and own property in the U.S, regardless of citizenship. There are no restrictions (or stamp duties/extra costs) that prevent an individual of foreign citizenship from owning or buying a home in the U.S.

For another, the International Investor Survey done by AFIRE (Association of Foreign Investors in Real Estate) found that the U.S. continues to lead the world in terms of offering the best opportunity for capital appreciation. The same survey also found that 58% of respondents felt that the U.S is the most stable for real estate investment. Moreover, mortgage rates are expected to stay low for some time, resulting in the ability to secure cheap loans and fuelling demand for property within the U.S.

Can I do it?

The answer to this question would be quite different if it was 20 years ago when the ability to build a portfolio in markets beyond where you live was something you could do only if you were extremely wealthy. However, what seemed impossible is easily achieved these days, thanks to the Internet making the world a much, much smaller place. The key to success here is trust in the right partners.

It is essential that you find people you can trust throughout the process – look for licensed realtors and property managers with local expertise in the markets you find the most appealing. Whenever possible, ask associates for referrals, do website searches, find locals in real estate directories and check references. If you do decide to opt for financing, it’s all the more important you find experts who understand the situation and have experience with these transactions.

American Mortgages has proven results-driven solutions for U.S Expats and Foreign Nationals. We understand the requirements of our international borrowers and provide tailor-made mortgage solutions to purchase, refinance or release equity regardless if you have U.S. credit or prior investment experience. Speak to us today to understand how you can obtain a mortgage for U.S property without leaving the comfort of your home. Visit us at www.americamortgages.com to find out more.