Global Property Investor – U.K. Home Prices Forecast Up 3.5%

Canada

Canada's housing market saw a 3.7% increase in home sales in June 2024, driven by a Bank of Canada rate cut. However, prices are still below last year's levels, and consumer sentiment remains cautious. In Toronto, property listings have surged to the highest in over a decade as homeowners rush to sell before facing higher mortgage payments. Experts anticipate a potential 10% drop in prices by year-end.

GMG Canada loan program is designed to help investors navigate the evolving housing market.

Source: Supply in Canada's property market surges as mortgage renewals loom

U.K.

U.K. home prices rose to an average of £285,201 in May, up 1.2% from April and 2.2% year-on-year. London saw a 3.9% monthly increase, reaching £523,376, though annual growth was minimal. The West Midlands, Yorkshire, and Northern Ireland also experienced price increases. England's average house price reached £302,393, reflecting positive market sentiment despite political stability and upcoming Bank of England rate decisions.

Source: U.K. house prices jump to £285k in May

U.K. Outlook

Bloomberg reports that a U.K. rate cut in August seems unlikely despite strong wage growth and stable economic conditions. Wages are up 5.7% annually, aligning with expectations, while the labour market cools in a post-pandemic adjustment. Real wage growth and solid savings rates suggest a positive economic outlook, supported by robust consumer spending and strong corporate results.

GMG U.K. loan programs make it easier for investors to capitalize on current property trends.

Source: Rate Cut or No, the U.K. Economy Is in Good Shape

USA

Experts believe that if Donald Trump wins the 2024 presidential election, it could trigger a massive refinance boom and record home sales. Marty Harlee expects Trump to urge the Federal Reserve to lower interest rates, boosting the economy and the housing market. Dennis Shirshikov adds that Trump's policies on deregulation and tax cuts could increase disposable income and drive up demand for homes. However, concerns about potential inflation and market volatility could affect housing affordability and stability.

Source: Trump Victory Could Ignite Massive Refinance Boom And Record Home Sales, Experts Say

Investment Hotspots

CNBC ranks the best U.S. states for housing, with Florida leading due to high home value appreciation and active construction. South Carolina, Arizona, North Carolina, and New Jersey also feature prominently, showing strong housing markets with varying affordability and price growth.

With America Mortgages loan programs, investors can now capitalize on market shifts and hotspots.

Source: These are America's 10 best states for buying and selling a home in 2024, with a big caveat at No. 1

Dubai

Dubai's real estate market saw a 12.2% increase in transaction volumes in H1 2024. Dubai's Arabian Ranches 3 achieved the highest ROI for luxury villas at 6.42%, while Dubai Silicon Oasis led for affordable apartments with a 9.19% ROI. Key areas for luxury properties included Dubai Hills Estate and Dubai Marina, while DAMAC Hills 2 and International City were popular for affordable options.

GMG Dubai loan program enables investors to capitalize on Dubai’s booming real estate market.

Source: Dubai's real estate sector sees 12.2 percent rise in transaction volumes in H1 2024: Report

America Mortgages Weekly

Great news for international investors: U.S. mortgage rates have dropped to their lowest since early March, with 30-year fixed rates at 6.87% and 15-year rates at 6.49%. This creates a fantastic opportunity for foreign nationals and U.S. expats to enter the U.S. housing market with lower borrowing costs and better potential returns. With a 36% drop in international buyers due to high prices and a strong dollar, there's less competition, making it easier to secure good deals. America Mortgages offers tailored loan programs to help investors capitalize on these favorable conditions and navigate the U.S. housing market.

www.gmg.asia

Q&A: Unlocking Dubai Mortgages: A Guide for Expats and Overseas Investors

Q&A: - Global Mortgage Group

Khurram Asif, Manager for Dubai Mortgages, and Robert Chadwick explored the dynamic landscape of Dubai's real estate market. This webinar highlighted the various mortgage options, eligibility criteria, and Golden Visa opportunities. For those who couldn't attend, the recording is now accessible here.

Khurram Asif (KA) and Robert Chadwick (RC) addressed a range of inquiries, providing insightful responses tailored to assist investors in making informed decisions, with remarks edited for clarity and brevity.

1. Do you offer mortgages in New Zealand as well?

RC: Yes, GMG can provide mortgages in New Zealand. There are certain restrictions based on your passport, but we can assist with the process.

2. Am I able to get equity off my property in Dubai? Can GMG help?

KA: Yes, you can get equity release on your property in Dubai. GMG offers equity release programs where the bank will evaluate your property's current market value and provide up to 50% of that value as cash in hand.

3. Are any specialised mortgage products from GMG designed specifically for international investors interested in Dubai's real estate market?

KA: Yes, GMG offers mortgage products for international investors, allowing them to borrow up to 65% financing without needing residency or income in Dubai.

4. Is it true that Dubai is a completely tax-free market for property owners?

KA: Yes, Dubai is a tax-free market for property owners. Property owners only pay community tax to the master developer, but there are no federal or income taxes.

5. Why Dubai? Why should investors purchase a property in Dubai as opposed to other major cities?

KA: Dubai offers a tax-free environment and high security, making it an attractive destination for property investment compared to other major cities where taxes on property and capital appreciation are common.

6. If you have a Dubai Golden Visa, how much can you borrow?

KA: The Dubai Golden Visa does not affect the amount one can borrow. However, it can streamline the compliance process with the bank.

7. Do I need a local partner who owns 51% of the LLC in Dubai if I want to buy property using an LLC?

KA: No, the requirement for a local sponsor owning 51% of the LLC is no longer applicable. You can own 100% of the business and property. However, banks do not offer mortgages to properties registered under a company name; the property would need to be transferred to your personal name for mortgage purposes.

8. What are the interest rates for these mortgages for non-UAE residents (We are Singapore residents but Indian citizens)?

KA: Interest rates for non-UAE residents start from 5.8%, fixed for three years, and can go up to 7%, depending on the case and buyer's profile.

9. Can we purchase investment property in Dubai, and how can we find tenants for it?

KA: Yes, you can purchase investment property in Dubai and get up to 65% financing on a ready property. We also offer services to help find tenants and manage the property, including maintenance and cleaning.

10. Is the LTV the only thing affected if you work for a startup in Dubai?

KA: No, the LTV is not the only factor. The bank will also consider the validity and stability of the startup. If the startup is relatively new, it could be challenging to secure a mortgage.

11. What's the outlook for the property market in Dubai? Is it already a bubble?

KA: The property market in Dubai is not considered a bubble. There is strong demand with more buyers than properties available, and the market is seen as expanding with significant growth prospects.

12. What do you need to get a Golden Visa?

KA: You need to purchase a property worth at least 2 million dirhams. Financing a portion of this is allowed, and you can still obtain the Golden Visa even if you borrow part of the amount. The Golden Visa lasts for a minimum of ten years, allowing you to reside in the country without the hassle of visa renewals, medical tests, or other requirements. Additionally, holders can open bank accounts and obtain driver's licenses locally.

13. 3.89% for borrowers with Dubai income. What is the interest rate for those with income outside the UAE?

KA: The interest rate for non-residents with income outside the UAE starts from 5.8%, fixed for three years. This rate can go up to 7%, depending on factors such as your profile, tenure in your current job, and the property price. However, 5.8% represents a competitive rate, especially advantageous for individuals earning outside the UAE.

14. Cost of Golden Visa application?

KA: Depending on various factors, the cost ranges from 13,000 to 18,000 dirhams.

www.gmg.asia

Global Real Estate Update: Positive Market Trends for International Investors

Here is the latest roundup of global real estate trends in key real estate markets around the world. Whether you're a seasoned investor or just starting out, these insights can help inform your global investment strategy.

Australia

The Australian housing market is facing varied price increases over the next year. Smaller capitals like Perth and Adelaide are leading with significant growth prospects due to affordability and limited supply. Hobart and Canberra show more modest forecasts, while Sydney, Melbourne, and Brisbane are looking at moderate rises. Suburbs in Perth and Adelaide, such as Darlington and Plympton, had notable price spikes, a sign of a strong market.

GMG Australia Loan Program:

  • Rate: Starting at 7.8% variable
  • Term: 30 years max
  • Max Loan-to-Value (LTV): 85% LTV and interest-only payment available.
  • Max Loan Amount: AU$2,000,000
  • Second Home Allowed: Yes
  • Borrower Type: Salaried and self-employed
  • Processing Time: 30 days after documents are submitted

Read more: Where home prices are forecast to increase most in the next year

Canada

Despite the Bank of Canada's quarter-point interest rate cut not leading to a surge in homebuyer demand, Canada's housing market shows resilience in other areas. The national aggregate home price increased by 1.9% year-over-year to reach $824,300 in the second quarter of 2024. Demand continues to outpace supply in regions like the Prairies and Quebec, highlighting robust market dynamics even as activity slows in cities like Toronto and Vancouver.

GMG Canada Loan Program: 

  • Rate: Starting at 4.99% - 6.79% fixed rates; variable rates at 5.8% - 7.2%
  • Term: 1-10 years fixed; 5-year variable rate; maximum 35 years amortization
  • Max Loan-to-Value (LTV): Up to 95%*
  • Max Loan Amount: No maximum
  • Second Home Allowed: Only for permanent resident card holders or expats
  • Borrower Types: U.S. expats or foreign nationals
  • Processing Time: Conditional approval within a week; funded within 30 days

Read more: The tale the market tells': An update on Canada's real estate markets

UK

UK house sales are expected to rise in the next three months as a reduction in mortgage rates is anticipated. A Rics survey shows a positive outlook, with 20% of professionals predicting increased home sales - the highest since January 2022. Following expectations of Bank of England's rate cut from 5.25% to 5%, major banks have already started to lower mortgage rates. The newly elected Labour government has targeted to deliver 1.5 million homes, boosting market confidence. Additionally, 54% of survey respondents expect house prices to rise, indicating a vote of confidence despite current challenges.

GMG UK Loan Program:

  • Rate: Starting at 5.5% (lowest)
  • Term: Up to 25 years
  • Max Loan-to-Value (LTV): 75%
  • Max Loan Amount: £10 million (higher amounts possible)
  • Second Home Allowed: Yes
  • Borrower Types: No primary residence requirement
  • Processing Time: 5-6 weeks

Read more: UK property market set to rebound amid mortgage rate drop expectations

Portugal

Planning to retire in Portugal post-Golden Visa reforms? The recent end to Portugal's 'golden visa' scheme, aimed at easing pressure on the housing market, has reshaped residency options but hasn't closed all doors. While property investment no longer qualifies, alternatives like investing in research or cultural projects under the Autorização de Residência para Atividade de Investimento (ARI) visa are viable. Another popular option is the D7 visa, requiring proof of steady income, such as pensions or rental earnings. Despite the changes, Portugal’s appeal remains attractive, with lower living costs compared to other cities, making it a desirable investment destination.

GMG Portugal Loan Program: 

  • Rate: Starting at 3.5%
  • Term: Flexible terms available
  • Max Loan-to-Value (LTV): Up to 70% (max 60% preferred)
  • Max Loan Amount: Varies
  • Second Home Allowed: Yes
  • Processing Time: 6-8 weeks
  • Requirements: DTI up to 40% (can exceed in some cases)

Read more: How to Retire to Portugal From the UK Post-Golden Visa

France

The French Riviera's luxury property market is seeing a cooling trend after surging during the pandemic. Prices in places like Cannes and St. Jean Cap Ferrat have dipped slightly, providing a great opportunity for potential buyers. Global uncertainties and higher interest rates have slowed demand from foreign buyers. Despite this, exclusive areas like Saint Tropez and Monaco continue to command high prices due to their limited supply and prestige.

GMG France Loan Program:

  • Rate: Starting at 3.5%
  • Term: Maximum 75 years old and/or 20 years
  • Max Loan-to-Value: 70%
  • Max Loan Amount: No maximum
  • Second Home Allowed: Yes
  • Loan Costs: Approximately 0.5% from the lender
  • Processing Time: 3 months
  • Requirements: DTI 35%

Read more: A Window Has Cracked Open For Buyers Looking For Homes Along the French Riviera

Whether you are investing in Tokyo's vibrant wards, considering retirement in Portugal, or exploring opportunities in the U.S.Global Mortgage Group offers tailored lending solutions to support your international investment goals. Stay informed, seize opportunities, and navigate global real estate with confidence. Get in touch with us today to make well-informed decisions for your investments.

[email protected]

Need cash? Your global home equity can help!

global home - Bridging Loan Canada

Has your international property appreciated in value? If so, your equity—the portion of the property you own—has likely increased as well! 

A popular way to tap into this growing equity without selling your home is through a conventional Cash-out refinancing or Asset-backed bridging loan.

Quick Comparison

Bridging loan

  • Approval 48 hours
  • Funding in as fast as 7 days
  • Up to 70% of your home's value
  • Available for primary homes, second homes, and investment properties
  • Short-term (1-2 years) and not meant to replace a bank loan
  • No age restriction in many countries
  • Qualify on property value only (no need to show income)

Cash-out refinance

  • Exactly the same as a conventional residential mortgage
  • Qualify using your salary or rental income of the property
  • 30-45 days funding times (each country may vary)
  • Often used to purchase more property

How Bridging Loans Work

Bridging loans are short-term loans, usually 1-2 years, used to bridge a funding gap where banks cannot meet borrower requirements such as speed of funding, loan-to-value (LTV), and certainty. These loans are asset-backed, relying on the collateral value of the property rather than the borrower's personal financials. They typically feature "interest-only" or "interest-servicing only" payments with a bullet repayment at the end of the term. 

$186M bridging loans funded in Singapore YTD!

In a recent press release in Singapore, Global Mortgage Group set a new benchmark in a record-breaking month by facilitating bridge loans for two high-end condominiums, three bungalows, and one Good Class Bungalow (GCB). In 2024, GMG has funded over $186 million in bridging loans in Singapore alone.

Recent Funded International “Bridging Loans”

USA

  • An Indonesian family office owned 3 homes in California free and clear, worth $17M. Since the homes were empty and used as second homes, bank financing was not an option, and the client needed funding within a month to be repatriated back home for working capital. We secured an interest-only $10M loan for 2 years, funded in 2 weeks!

England

  • A private bank referred a client who needed to purchase a Golden Visa in Europe. However, since their country had capital controls, they were not able to move the required amount of funds in the necessary time frame. We secured a bridging loan against their U.K. prime real estate to be used for the Golden Visa investment. Terms were 1 year, 70% LTV, funded in 3 weeks! 

Singapore

  • Our client, a Singaporean entrepreneur, owns a $15 million bungalow. To expand his retail business, he secured a $11.25 million bridge loan (75% LTV) over 12 months. This provided liquidity to complete his shophouse purchase without selling his bungalow, funded in 3 weeks!

Amount of Home Equity in the U.S., England and Australia

With global home values rising and equity growing, many homeowners now have significant equity to extract cash for personal use.

USA

  • $17 trillion in U.S. home equity!
  • 38% of homes are debt-free (CoreLogic, 1Q2024)

England

  • 8.8m homes are owned outright.
  • Total home equity is estimated at £2.5 trillion (Octane Capital, 2022)

Australia

  • Home value $9.3 trillion vs corresponding debt level of around $2 trillion 
  • 78% home equity of $7.3 trillion (Robert Baharian, 2022)

Global Bridging Loans

For investors looking to release equity from their property globally, Global Mortgage Group offers bridge financing in the U.S., Canada, U.K., Europe, Australia, Dubai, Singapore, Hong Kong, Philippines, and Thailand.

Global Bridging Loans

For investors looking to release equity from their property globally, Global Mortgage Group offers bridge financing in the U.S., Canada, U.K., Europe, Australia, Dubai, Singapore, Hong Kong, Philippines, and Thailand. 

USA - from our subsidiary, America Mortgages

A practical way to tap into this growing equity without selling your home is through a conventional cash-out refinancemortgage or an asset-based bridge loan

Foreign nationals and U.S. expats often face unique challenges when leveraging home equity in the U.S. America Mortgages's loan programs are designed to meet these needs, making the process smoother and more accessible.

1. Conventional Cash-out Refinance Mortgages 

Cash-out refinance mortgages are a good option if you have consistently made regular mortgage payments in a timely manner since owning the property or if you have no existing mortgage on the property. However, we recognize securing a mortgage can be challenging for foreign nationals and often U.S. expats because they lack a U.S. credit history. At America Mortgages, we can use international credit reports and other financial documents in lieu of U.S. credit. It’s so straightforward that Foreign nationals are eligible to borrow up to 75% of their property's appraised value, while U.S. expats can borrow up to 80%.

Key Loan Features and Requirements

  • Income: Foreign income accepted
  • Credit: Overseas income and credit accepted (if required)
  • Term Lengths: 30-year and 40-year fixed-rate mortgages regardless of the borrower's age 
  • Term Options: Fixed 10-year, Interest-Servicing Only (Interest-Only) mortgages available
  • Loan Amounts: From US$100,000
  • Cash-out Refinance Loan-to-Value: Up to 80% for a U.S. expat and 70% for a Foreign National
  • Property Types: Single-family, multi-family (5+ units), duplexes, triplexes, quadplexes, condominiums, townhomes, commercial, industrial
  • Location: All 50 U.S. States
  • Amortization: All loans can be amortized over 30 years, regardless of age
  • Closing Time: 30-45 days

2. Asset-backed real estate bridge loans

Asset-backed bridge loans are designed for U.S. expats and foreign nationals who need flexibility and quick access to funds. These loans are perfect for short-term financial needs or investment opportunities and normally do not require the borrower to provide financials. 

Key Loan Features and Requirements

  • Income: No income required
  • Credit: No U.S. credit is required
  • Eligible Loan Types: Purchase, refinance, and cash-out refinance
  • Term Lengths: 12-24 months
  • Loan Amounts: US$200,000 to US$100m
  • Payment Options: Monthly, interest-only, interest rolled up
  • Loan-to-Value: Up to 75%
  • Property Types: Single-family, multi-family (5+ units), duplexes, triplexes, quadplexes, condominiums, townhomes, commercial, industrial
  • Location: All 50 U.S. States
  • Amortization: Interest-Only Servicing 
  • Closing Time: 3-10 days

America Mortgages and Global Mortgage Group aims to simplify the process for foreign nationals and U.S. expats, providing the financial flexibility they need. Our tailored loan programs are designed to suit your unique situations, helping you make the most of your property's equity.

With our fast approval process, flexible terms, and international reach, we’re here to support your financial needs. Schedule a meeting with us today, and let’s turn your home equity into cash for whatever you need. Get started now!

www.gmg.asia

Your child gets accepted to a U.S. university, and you want to buy a home nearby…

Your child gets accepted to a U.S. university and you want to buy a home nearby..

Here is a video of our initial idea when we raised our first round of funding

There are 3 types of real estate purchases:

  1. Trophy assets
  2. Education-related
  3. Investment

There is obviously an overlap but for this article, we focus on #2 - education-related.  

This was my journey when I left Asia to study in the U.S. as well as most, if not all, of my friends. In fact, through our research, we have concluded that education is the most popular reason to invest in overseas property. 

Top 10 Asian countries with students attending U.S. universities as of 2023:

China – 289,526   

India – 268,923 

South Korea – 43,897 

Vietnam – 21,900

Taiwan – 21,834  

Japan – 16,054 

Bangladesh – 13,563  

Indonesia – 8,467

Hong Kong – 5,867

Singapore – 3,182

I'm fairly sure that most of these parents would also like to own an investment property - now they can!

Your child gets accepted to a U.S. university, and you want to buy a home nearby….

After 4 years of university, you can:

  • Sell the home, and the capital gains can be used to recoup the college tuition
  • Have your child stay in the apartment while they work in the U.S. to get "international" experience before they come back home
  • Transfer to your child's name to build credit and or earn rental income while they are living in the U.S.
  • Keep it to earn rental income

What happens next?

You speak to your local bank, and they do not offer U.S. mortgages - no overseas banks offer U.S. mortgages (but you don't know that). 

You search online and do not see any U.S. banks - U.S. lenders do not advertise outside the U.S. (you didn't know that either).

You give up and pay for the home with cash!  

Foreign home buyers face this problem every day!

Did you know that over the past 10 years, non-U.S. citizens have purchased $1 trillion worth of U.S. real estate, and almost 70% of it is paid with cash because of the problems mentioned above?

Our subsidiary, America Mortgages, is the world's only U.S. mortgage broker outside the U.S., focusing on overseas borrowers, both foreign nationals and U.S. expats - that is all we do.

Some common misconceptions:

  • My child/student can not be the tenant - wrong!

Our "AM Student +" loan program is the world's only mortgage that allows this - just need a F-1 student visa.

  • My child/student can not qualify since they have no income - wrong!

We use a rental comparable to qualify - if it the comparables exceed the mortgage expenses - you qualify!

  • I need U.S. credit - wrong!

We accept overseas credit or a letter from your accountant

  • I need to be a salaried employee - wrong!

You can qualify with the rental income of the property - no need to show income!

  • I need to be living in the U.S. - wrong!

All of our clients are living outside the U.S.

  • I can't get a mortgage - obviously wrong!

We founded America Mortgages to fix the problem of obtaining a U.S. mortgage while living overseas

  • I'm too old to qualify for a loan - wrong!

There are no age restrictions in the U.S.

  • Banks don't give loans to foreigners - wrong!

We created loan programs specifically for foreign borrowers

  • I can't borrow much as a foreigner - wrong!

Our programs can lend up to 75% of the property value

  • The process is very difficult and takes too long - wrong!

We have streamlined the process with technology and our average loan takes 30-45 days to close - faster than any bank!

  • I need to stay up late at night to speak to a loan officer - wrong!

We have loan officers in your timezone, speaking your language, 24/7

Investing in a home near your child's university in the U.S. offers financial benefits, from potential capital gains to rental income. At America Mortgages, we make it easy for international buyers to secure U.S. home loans, debunking myths and simplifying the process. Ready to invest? Contact us today at [email protected].

www.gmg.asia

LLC and Tax Strategies for U.S. Real Estate Investors

Tax Strategies for U.S.

What is an LLC or Limited Liability Company

Investing in U.S. real estate can be an amazing opportunity for non-U.S. residents, offering opportunities for substantial yields, capital appreciation, stability and portfolio diversification. However, navigating the complexities of the U.S. tax system and legal environment requires expert advice, and America Mortgages, besides being your mortgage partner, is there with you at every step of the process. One of the most common and effective strategies for foreign national investorsis to use a U.S. Limited Liability Company (LLC) combined with smart and logical tax planning. Here’s why;

1. Liability Protection

An LLC offers liability protection, meaning that investors are typically not personally responsible for the debts and liabilities of the company. This is crucial for foreign investors who may not be familiar with U.S. litigation risks. Should any legal issues arise, the LLC structure can help shield personal assets from lawsuits or creditors.

2. Flexible Tax Treatment

LLCs provide flexible tax options. By default, a single-member LLC is treated as a disregarded entity for tax purposes, meaning income is reported on the investor's personal tax return. Multi-member LLCs are treated as partnerships. However, an LLC can also elect to be taxed as a corporation. This flexibility allows foreign investors to choose the tax treatment that best suits their financial situation and goals.

3. Simplified Estate Planning

Every investor should be aware of U.S. estate tax laws, especially in the event of the property owner's death. By holding property through an LLC, foreign investors can structure ownership in a way that may mitigate these estate tax implications. For example, ownership interests in the LLC can be transferred more easily than direct ownership of property, simplifying estate planning and succession.

5. Operational Efficiency

Owning U.S. real estate through an LLC can simplify the daily operations, especially if the LLC holds multiple properties. This centralization can streamline property management, accounting, and tax filing processes, making owning and managing real estate from abroad as easy as owning it in their home country (maybe even easier).

6. Proper Tax Planning

While an LLC offers numerous benefits, proper tax planning is essential to maximize those benefits and ensure compliance with U.S. tax laws. America Mortgages works with professionals who understand the complexities of foreign-owned or U.S. expat-owned real estate. Here are key considerations for foreign investors:

7. Understanding U.S. Tax Obligations

The U.S. tax filings are not as complicated as many people believe. It is important that foreign national investors understand their U.S. tax obligations, including federal, state, and local taxes. Engaging a tax professional experienced in international taxation can help navigate these obligations and identify opportunities for tax savings.

8. Utilizing Tax Treaties

The U.S. has tax treaties with many countries that can provide benefits such as reduced withholding rates on dividends, interest, and other income. Investors should review applicable treaties and incorporate them into their tax planning strategy.

9. Structuring Investments

Proper structuring can minimize tax liabilities. For example, layering LLCs or using a combination of LLCs and other entities, like corporations or trusts, can provide tax advantages and additional asset protection.

10. Consulting with Experts

Given the complexity of U.S. tax laws, consulting with legal and tax professionals who specialize in real estate and international taxation is essential. They can provide tailored advice, ensuring compliance and optimizing the investment’s tax efficiency.

In conclusion

For foreign nationals, investing in U.S. real estate through an LLC offers significant advantages, including liability protection, flexible tax options, and simplified estate planning. However, these benefits can only be fully realized through careful tax planning and compliance with U.S. tax laws. By leveraging the expertise of professionals and utilizing strategic planning, foreign investors can navigate the complexities of the U.S. real estate market effectively and achieve their investment goals.

Contact us today at [email protected] for a seamless investment experience.

Want to learn more?

We are excited to invite you to our month-long webinar series, offering a wealth of information on U.S. real estate investment.

First, join us for an informative session on "Why and How to use an LLC for U.S. Real Estate Investing." Discover the benefits of forming an LLC for overseas property investment, including legal protection, asset security, tax advantages and cost of set-up. 

Webinar: Why and How to Use an LLC for U.S. Real Estate Investing

  • Date and Time: June 7, 2024, 07:30 AM SGT
  • Registration Link: Register here

Next, don’t miss our session on "3 Tax-Smart Strategies for U.S. Real Estate Investing" Learn how strategic tax planning can enhance rental income for overseas investors, offering insights into U.S. tax strategies that reduce liabilities and boost cash flow.

Webinar: 3 Tax-Smart Strategies for U.S. Real Estate Investing

  • Date and Time: June 13, 2024, 6:30 PM SGT
  • Registration Link: Register here

Get ready to elevate your investment game! We can't wait to see you there.

U.K.’s Rental Potential: Your Next Big Investment Awaits!

U.K.'s Rental Potential

The rental market in the U.K. is thriving! Rental prices are soaring, and this presents a golden investment opportunity. At Global Mortgage Group, we're here to help you navigate the U.K. property market with expert advice and strategies tailored to your needs.

High Demand and Rising Rents

As the number of individuals relocating to the U.K. increases, so does the demand for rental properties. Consequently, this leads to higher prices in a competitive market. According to a recent Bloomberg analysis, this trend is expected to continue, providing real estate investors with a stable source of rental income and the potential for property value appreciation.

Investment Potential

Investing in the U.K. rental market offers several benefits:

  • Stable Returns: Consistent rental income due to high demand.
  • Capital Growth: Properties in high-demand areas are more likely to appreciate over time.
  • Portfolio Strengthening: Adding real estate assets for a well-rounded investment strategy.

To Maximise Returns in the U.K. Rental Market

  • Research and Location: Invest in areas with strong rental demand and growth potential, such as cities with large student populations or strong job markets.
  • Property Management: Employ professional property management services to maintain profitability.
  • Do The Math: Calculate costs, expenses, and potential income.

GMG Foreign National England+ Loan Program

Navigating U.K. financing as a foreign national can be challenging, but Global Mortgage Group makes it straightforward. Our Foreign National England+ loan program is tailored for non-resident investors seeking to tap into the U.K. rental market. With no U.K. credit or residency requirements, our program offers up to 70% loan-to-value, providing accessibility and flexibility for property investors. Get pre-approved within 48 hours and a formal approval in just 7 days. Investors can complete the closing process conveniently outside England.

Explore the potential of the U.K. rental market with Global Mortgage Group. Contact us today at [email protected] to learn more about our Foreign National England+ loan program and start your investment journey.

By leveraging GMG's expertise and resources, foreign national investors can confidently invest in the U.K. rental market, securing properties with high return potential.

For specific information on rates and terms, please reach out to our team at [email protected].

International Real Estate Financing

We also offer residential mortgages in the U.S., Canada, LATAM, France, Spain, Portugal, Dubai, Japan, Thailand, and the Philippines.

International Equity Cash-out "Bridging Loans"

Need Cash Fast? We offer short-term loans based on the equity value of your home in: the U.S., Canada, U.K., Singapore, Hong Kong, Philippines, Thailand and Australia. These have been popular ways to access cash when speed of financing, high loan-to-values and certainty are the priority. 

www.gmg.asia 

Australia’s Rental Boom: Your Investment Opportunity Awaits!

Rental Boom - Australia Mortgages

Australia's rental market is heating up, catching investors' attention nationwide. With rental prices skyrocketing, many view it as a prime investment opportunity. Seizing this opportunity requires savvy strategies, and Global Mortgage Group is here to assist you.

Australia's Rental Market 

A recent report from The Business Times shows that Australia's rental market is not just heating up; it's in full swing. Rent prices are soaring due to surging demand, limited housing supply, and rising property values. Tenants in bustling cities and quiet regions feel the pressure as rents hit new highs. According to the property data provider CoreLogic, the median rent in Australia is now $627 a week. 

Investment Opportunity

For investors, this rental surge offers promising prospects. With high rental demand, there's potential for a steady income and attractive returns. Plus, property values may rise over time, boosting profits.

To Thrive in the Rental Market:

  • Location, Location, Location: Choose areas with strong rental demand and growth potential.
  • Choose wisely: Invest in properties that meet renters' needs.
  • Crunch the numbers: Calculate costs, expenses, and potential income.

GMG Australia + Loan Program

With our expertise in international financing and Australian property, we help foreign investors confidently secure loans. Our GMG Australia + loan program is designed specifically for non-resident investors interested in the Australian rental market. It does not require Australian credit or residency, and you can get up to 85% LTV with GMG Australia +.

Australia's rental market boom holds tremendous potential for investors hungry for high returns. Non-resident investors can navigate the market terrain effectively by using savvy strategies and partnering with Global Mortgage Group. Contact us today at [email protected].

For more information, please contact Leonard Lee, Head of Australia, at [email protected] or +65 8282-5388.

International Real Estate Financing

We also offer residential mortgages in: the U.S., Canada, LATAM, U.K., France, Spain, Portugal, Dubai, Japan, Thailand, and Philippines.

International Equity Cash-out “Bridging Loans”

Need Cash Fast? We offer short-term loans based on the equity value of your home in: the U.S., Canada, U.K., Singapore, Hong Kong, Philippines, Thailand and Australia. These have been popular ways to access cash when speed of financing, high loan-to-values and certainty are the priority. 

www.gmg.asia

The Top 5! Which 5 foreign buyers are buying which 5 U.S. states?

Real Estate - Canadian Mortgages

Top 5 Foreign Buyers of U.S. Residential Real Estate*

  1. China 13% of total = $13.6B
  2. Mexico 11% of total = $4.2B
  3. Canada 10% of total = $6.6B
  4. India 7% of total = $3.4B
  5. Colombia 3% of total = $900M

Top 5 States for Foreign Buyers*

  1. Florida 23%
  2. California 12%
  3. Texas 12%
  4. North Carolina 4%
  5. Arizona 4%

US$53.3 billion*
The total value of foreign buyers of U.S. real estate

$639,900*
The average purchase price by a foreign buyer

*National Association of Realtors, year ending March 2023

Contents:

  • Average purchase price of top 5 foreign buyers
  • Top 5 states buyers from China, Mexico, Canada, India and Colombia are choosing, respectively
  • Top 5 origin of foreign buyers in Florida, California, Texas, North Carolina and Arizona, respectively
  • What surprised us from our research!

TOP 5 FOREIGN BUYER ANALYSIS

Asian buyers continue to lead the charge as the largest group of buyers, with a 38% market share. Going forward, we expect to see increased demand from SE Asia as growth in this region continues to exceed expectations.

LATAM was the runner-up with a 31% share of total foreign buyers, not far behind China. We are very excited about the growth outlook for LATAM as the reshoring of manufacturing to The Americas, and the growth outlook improves. One interesting point is that Colombia replaced the United Kingdom as the 5th largest international buyer, proving the growth of LATAM at the moment. We have recently set up an office in Panama and are looking to rapidly expand our footprint here. 

European buyers accounted for 14% of foreign buyers, while Canadian buyers alone accounted for 10%.

Chinese buyers continue to have the highest average purchase price at $1.2 million, as buyers purchased in expensive states: 33% of Chinese buyers purchased a property in California, and 6% purchased in New York. This makes sense since California and New York have better-known schools, and a big driver in this decision is education. See our Deep Dive on The Best U.S. High Schools

Watch Now: Irvine, California - Why is it the most popular destination for Asian homebuyers over the past 10 years?

Mexican buyers typically purchased the least expensive properties, with Texas as the preferred destination. This can be explained by the geographic proximity. 

Average purchase prices for Foreign Buyers

  1. China $1.2M
  2. Mexico $449K
  3. Canada $779K
  4. India $577
  5. Colombia $355K

Buyers from China - Top 5 Destinations

  1. California 33%
  2. Florida 16%
  3. Texas 8%
  4. Colorado 6%
  5. New York 6%

Buyers from Mexico - Top 5 Destinations

  1. Texas 48%
  2. California 18%
  3. Ohio 6%
  4. Arizona 4%
  5. Florida 4%

Buyers from Canada - Top 5 Destinations

  1. Florida 55%
  2. Arizona 14%
  3. California 4%
  4. Louisiana 4%
  5. Montana 4%

Buyers from India - Top 5 Destinations

  1. California 20%
  2. Pennsylvania 14%
  3. Texas 11%
  4. Alaska 9%
  5. Illinois 9%

Buyers from Colombia - Top 3 Destinations

  1. Florida 80%
  2. California 13%
  3. Illinois 7%

TOP 5 DESTINATION ANALYSIS FOR FOREIGN BUYERS

Florida is the top destination for foreign buyers with 23% market share, mostly coming from LATAM 46%, Canada 24%, Europe 16% and Asia 14%. Florida has the best combination of vacation home, investment property and also luxury homes. 

California has the 2nd largest market share of foreign buyers at 12%, mostly coming from Asia. Direct flights, temperate weather, and well-known universities make it an obvious destination for Asian buyers. See our California Report.

Texas was the 3rd top foreign buyer destination, with a 12% market share. Texas is one of our top 3 choices for pure real estate investments. The zero-state tax rate will always generate an incoming population from gentrification and also companies setting up their headquarters. For example, Dallas is the headquarters for the Fortune 500 companies in the world!

North Carolina was the biggest surprise to me as the 4th-highest destination for foreign buyers. One of the prettiest and underappreciated states, North Carolina, deserves more research on what is driving the interest of foreign buyers. We will keep you posted. 

Arizona has always been a popular destination for foreign buyers and is the 5th-most popular destination, with 4% of all foreign buyers.

Share of Top 5 State to Total Foreign Home Buyer Purchases

  1. Florida 23%
  2. California 12%
  3. Texas 12%
  4. North Carolina 4%
  5. Arizona 4%

Florida - Origin of Foreign Buyers

  1. LATAM/Caribbean 46%
  2. Canada 24%
  3. Europe 16%
  4. Asia/Oceania 14%

California - Origin of Foreign Buyers

  1. Asia/Oceania 61%
  2. LATAM/Caribbean 22%
  3. Europe 7%
  4. Africa 7%
  5. Canada 3%

Texas - Origin of Foreign Buyers

  1. LATAM/Caribbean 55%
  2. Asia/Oceania 25%
  3. Europe 11%
  4. Africa 5%
  5. Canada 4%

North Carolina - Origin of Foreign Buyers

  1. Asia/Oceania 50%
  2. Europe 22%
  3. LATAM/Caribbean 22%
  4. Canada 6%

Arizona - Origin of Foreign Buyers

  1. Canada 37%
  2. Africa 26%
  3. Asia/Oceania 16%
  4. Europe 11%
  5. LATAM/Caribbean 11%

What surprised us from our research?

  • The average price for a Chinese buyer is $1.2M
  • North Carolina, the 4th most popular state for foreign buyers
  • Asians are the largest foreign buyers of North Carolina real estate
  • Indian buyers prefer Pennsylvania as their 2nd most favorite state
  • Canadians are the largest foreign buyers in Arizona
  • Africa, the 2nd largest foreign buyer of Arizona real estate

Our analysis reveals fascinating trends in the U.S. residential real estate market driven by foreign buyers. While China remains a major player, Asian buyers take the lead overall. Florida stands out as the top destination, but California, Texas, and even a surprising North Carolina, all attract significant foreign investment. The data highlights the diverse motivations behind these purchases, with factors like education, investment potential, and proximity influencing location choices.

Ready to explore your U.S. real estate opportunities? Contact us today at [email protected] or schedule a call with our loan officers and schedule a commitment-free meeting with one of our U.S. loan officers to explore your U.S. mortgage options further, you can do so using our 24/7 calendar link. Our team can help you navigate the intricacies of financing your U.S. investment property.