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

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!

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.

Turn your home equity into cash (globally)!

International Mortgage Broker UK

Need cash fast? Tap into your home equity today!

U.S. homeowners are the most “equity-rich” they have ever been, thanks to their home equity increasing over 32.2% since 1Q2021. That’s a year-over-year gain of over $3.8 trillion for the entire housing market. 

This significant increase in home equity has provided many homeowners with the opportunities to cash in through home equity loans and cash-out refinancing!

Article Contents:

  • Why is home equity important?
  • How to access your home equity?
  • Common use of funds
  • Global bridging loans

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

Equity-rich homeowners have two options for accessing their equity without selling their homes:

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.

2. Cash-Out Refinance: This option is excellent when you’ve seen an increase in the value of your property. If you’ve just recently purchased a property, you’ll need to wait for at least 6-12 months to use the new value. 

The best way to cash in on your equity depends on your goals. For example, releasing equity is a well-known way to acquire more real estate and build a portfolio.

Common Use of Funds (to name a few)

  • Refinancing
  • Renovations
  • College tuition
  • Pay off high-interest debt
  • Personal business needs
  • Purchasing more property (BRRRR method)
  • Cash while waiting for sale
  • Down-payments
  • Other investments

Global Bridging Loans

Bridging loans are short-term loans, normally 1-2 years, which are used to “bridge” a funding gap where banks are unable to meet the borrowers requirements, usually - speed of funding, loan to value and certainty.

Bridging loans are based on the collateral value of the property (asset-backed) and not the borrower's personal financials. Loans are normally “interest-only or interest-servicing only” with a bullet repayment at the end of the terms. These loans have been very popular over the past few years as retail banks have significantly reduced their willingness to lend on property (globally), and private loans (private credit) have filled the gap.   

Countries We Offer Bridge Financing in:

  • USA
  • Canada
  • UK
  • Australia
  • Singapore
  • Hong Kong
  • Philippines
  • Thailand

Basic Details

  • Get approved in 24 hours and funding in as fast as 7 days
  • Up to 70% of your home’s value
  • Available for primary homes, second homes, and investment properties
  • Priority is speed of funding, certainty, and high loan-to-value
  • Short-term and not meant to replace a bank loan
  • No age restriction in many countries

With our fast approval process, flexible terms, and international reach, we’re here to support your financial needs. Reach out to our International Loan Officers today, and let’s turn your home equity into cash for whatever you need. Get started now!

www.gmg.asia

Average U.S. rental yields are 8% and rising!

International Mortgage Broker UK

8% and Rising!

That's right! Not a typo. The average rental yield in the U.S. is 8%.

It is unheard of in any major country, and it is quite a shock to nearly everyone who hears this, but it's true.

More importantly, we have a loan program specifically-created for international investors looking for an easy way to qualify for a mortgage by using the rental income and not personal financials (see below).

This article is a summary of a presentation we made to our clients.

On a LinkedIn survey last week, we also asked the following: 

What is the average rental yield in America?

RangeResponses
4% - 5%57%
5% - 6%20%
6% - 7%9%
7% - 8%14%

You can see the mean expectation is 4-5%, but in fact, if I could put 3-4%, most would probably choose that, but we couldn't put that many choices and still accommodate for 7-8%.

This illustrates the fact that most investors don’t realize the cash flow opportunities from investing in U.S. real estate. We want to change that perception. 

Global Rental Yield Comparisons

UAE 12.3% (Ranked #1)
USA 8.1% (Ranked #12)

G7
UK 4.3%
Canada 3.9%
France 2.6%
Italy 4.2%
Germany 3.4%
Japan 2.4%

As you can see, most developed countries have a rental yield lower than 4%, and half of the major Asian countries have a rental yield under 3%. Greater China countries are below 2%!   

When investing in these markets, investors “hope” prices will rise for capital appreciation but there is little to no cash flow opportunities. 

Why is the U.S. so high?

Severe Housing Shortage

From 2012 to 2022, 6.5 million 'more' households were formed compared to homes built. "Household Formation" refers to the change in the number of households (persons living under one roof or occupying a separate housing unit) from one year to the next. Let that sink in for a bit….

There is currently a 5.5M home shortage to meet existing demand.

Higher labor and raw material costs with stringent zoning laws make it difficult to build homes fast enough to meet demand.

Existing Home Sales

Existing home sales normally account for 90% of total home sales. 

Of the existing homeowners with a mortgage, 

99% are UNDER 6%
80% are UNDER 5%, and
40% are UNDER 3%

What this means is the supply is not moving unless sellers are willing to pay capital gains or move to a higher priced home using a 1031 Exchange - regardless, they will have to face a higher mortgage rate.

It's no surprise that in 2023, existing home sales fell to the lowest level in nearly 30 years, while the median price hit a record high, according to a recent report by the National Association of Realtors.

Scylla and Charybdis

Similar to boats crossing the Straits of Messina in Homer's Odyssey, homebuilders face a similar dilemma of whether to construct houses that buyers may not be able to afford with 7%+ mortgage rates or to hold back and therefore make long-term housing supply issues worse.

Institutional Buying

The current lack of supply plays right into the hands of Blackstone and its peers. 

The Blackstone Playbook is well-known : 

  • Identify supply-demand imbalances
  • Invest billions to build giant landlords
  • Dictate rental pricing

January 2024, Blackstone announced the acquisition of Tricon Residential for $3.5B, making it the 3rd largest landlord (62K homes) in the U.S. behind Progress Residential (84K homes) and Invitation Homes (82K homes). 

Meanwhile, just last week, Blackstone purchased private rental housing apartment firm Air Communities for $10B in cash! 

Demand

COVID accelerated WFM which was growing 2.5% per year before the pandemic. It suddenly went to 100% and reversing this trend is difficult and technology has become so good that execution-based roles can be done remotely. 

Meanwhile, when companies get to a certain size in expensive states such as California and New York, it becomes too expensive to live and operate a company, and many move their headquarters to a state with a lower cost of living and state taxes, like Texas. For example, Dallas has the most Fortune 500 companies in the world as their headquarters, and this is increasing every year

U.S. Rental Yields

Here is where it gets interesting….look at some of these rental yields!

Detroit32.9%Tulsa13.5%Las Vegas10.8%
Milwaukee20.7%Colorado Springs13.2%Anchorage10.4%
Omaha18.3%Nashville12.7%Atlanta10.3%
Baltimore17.2%Spokane12.3%Miami10.1%
Indianapolis17%Madison11.5%Denver9.5%
Memphis15.9%Tucson11.4%
New Orleans13.6%Ann Arbor11.1%

This is an illustration of what is happening due to the reasons stated above:

  • Unfixable housing shortage
  • Gentrification to lower cost-of-living states
  • Supply is further being squeezed by institutional buying
  • Marginal homebuyer has to rent, given high mortgage rates

It's never been a better time to be a landlord!

I always tell clients, if you can make the numbers work now, they will only get better because rental yields WILL RISE, and when mortgage rates decline, you can refinance to a lower rate. Over time, your net cash flow will only rise.

More importantly, when the value of the home rises, you can refinance 70% of the increased home value to lower the investment cost!

Mortgages for International Investors

AM Rental Coverage+

Our loan program was designed specifically for international investors looking for an easy way to qualify for a mortgage by using the rental income and not personal financials.

  • Up to 75% loan-to-value
  • 30-45 days closing
  • If rental income > mortgage and other costs = you qualify!!
  • No age restrictions
  • Closing documents signed at your local U.S. embassy

If you’re interested in learning more, reach out to us at [email protected] or visit our website at www.gmg.asia. Additionally, if you’d like to 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.

Interview with August One: Portugal Investment + Residency Program

Mortgage Loan Canada

GMGadvisor presents….

This week, we are doing something a little different and discussing the wildly popular Portugal Golden Visa Program. I learned quite a bit from this interview and wanted to share the findings with our audience. 

The Portugal Golden Visa has been very popular with U.S., Canada, and Asia-based clients looking to lower their cost of living and build residency in one of the most vibrant countries in the world. Even U.S.-based clients want to build a rental portfolio in the U.S. but live in Portugal. 

August One & Atlantico-II Fund

We had the privilege of sitting down with Sameer Narula, founder of August One, whose Atlantico-II fund offers investors access to the Portuguese Golden Visa, with a path to a European passport for them and their families. 

August One is a private investment firm that invests in innovative companies and real assets that have the potential to transform traditional industries, reverse climate change, and generate significant returns. They are regulated by the Monetary Authority of Singapore and the Portuguese Capital Markets Commission in the EU.

In the video, Sameer talks about:

  • Why clients pick Portugal for residency
  • His own and clients' experiences
  • The fund's strategy, sectors, and investment criteria
  • Rumours about Portugal's residency program cancellation
  • Next steps for interested parties
  • Potential returns and the local market outlook

Watch the Interview with Sameer

Portugal and The Golden Visa

Introduced in 2012, the Portugal Golden Visa program has attracted over €6 billion in investments thus far.

Much of the information uncovered in our research was new to me, and I never appreciated how amazing it is to live and do business in Portugal.  

Known as “The California of Europe,” Portugal has been the birthplace of several unicorns such as Feedzai, Talkdesk, Farfetch, Remote, and others. Portugal has also been voted one of the best globally in many categories: Lisbon, 4th best globally for starting a business, the cheapest country in Europe for running a business, and the best country in the world for trading across borders. 

What Makes Portugal Special?

When it comes to citizenship, Portugal ticks many of the boxes international families find important:

  • Safety - Ranked as the fourth safest country in the world, with low crime rates

  • Affordability - The cost of living is, on average, 35.3% lower than in the United States, with rent in Portugal being, on average, 51.1% lower than in the U.S.

  • High Living Standards - Portugal is one of the top 5 countries for expats, with an 84% satisfaction rate among those who have moved to the country

  • Blue Zone Quality of Health - Portugal boasts a life expectancy at birth of around 82 years, surpassing the OECD average of 81 years

  • Strongly Rated Passport - With Visa-free and easy access to most of the world

  • Innovation - The second-best country for innovation in the ECB, only behind Norway

  • Graduates - Second highest rate of engineering graduates in Europe

  • Quality of Life - Ranked #1 in quality of life out of 68 countries

How to Obtain the Golden Visa Through Atlantico-II Fund

An investment of €500,000 into an Atlantico-II fund will gain a Golden Visa residency permit for a family, including dependent children, as well as easy access to all countries in the Schengen Zone. After five years of residency (with only a 7-day stay requirement per year), an individual has the opportunity to obtain Portuguese citizenship for themselves as well as their spouse, dependent children, and parents. There are associated costs, including legal and government fees (contact us).

Begin your Golden Visa journey now 

Financing Options

GMG offers short-term bridging loans on U.S., Canada, U.K., Singapore, Thailand, Philippines, and Australian homes, which have been used to fund the €500,000 investment requirement. Given there is a deadline looming in December 2024 when some tax benefits of the residency program disappear, there is a rush to get access to the program as quickly as possible. 

Our loans can monetize up to 70% of the home value towards other investments -> such as the Portugal Golden Visa. For example, €500,000 - US$535,000 minimum investment amount. So if you had a home worth $800,000 (assuming no debt), you could borrow up to 70% or $560,000 -> used as an investment into the fund. This is purely illustrative purposes to show how financing can be done. The funds would be used towards the investment and given the recent rates of return generated by the fund, it could more than offset the cost of financing.   

Please contact us on the link below for more information:

Portugal Investment into Residency/Citizenship Program

Portugal Mortgages

While real estate investments do not count towards the Golden Visa, many of our clients naturally want to own property, especially if they are planning to spend more time in the country; our Portugal mortgage program is specifically designed for international investors with a process made easy to accommodate the needs of our global clientele.   

Here is the latest GMG Portugal Mortgage Program Sheet

For more information regarding a Portuguese mortgage, contact our European Market Head: [email protected]

[email protected]

Dubai Property – Financing Update (good news!) + How-to guide

Mortgage Rates Singapore

Did you know that Dubai offers the highest rental yield of any major city globally at 12%?

Our Dubai-based team has updated their loan program to make it easier and more accessible for international investors (details below). 

Cities with high rental yields normally don't see dramatic price appreciation, and vice versa, but Dubai is blessed with a perfect combination of people moving there for career opportunities, low inventory, and an influx of money simply looking for some capital gains. 

Dubai's real estate market offers super-high rental yields and enticing tax advantages, offering good diversification for international property investors.

Understanding Property Ownership in Dubai

Navigating the process of purchasing property in Dubai is relatively straightforward, similar to the process in major markets like the U.S., U.K., Canada, etc.

Here are the Key Requirements:

International investors are able to own freehold property in Dubai and there are no visa requirements. There are however some specific areas earmarked for foreigners, according to "Article 3 or Regulation 3 of 2006".

How Much Tax Do I Pay When Buying a Property in Dubai?

Dubai has built its reputation as a tax-friendly hub for business and property investments. There is a 4% transfer fee payable to the Dubai Land Department upon property transfer, along with a monthly' housing fee' equivalent to 5% of the area's average rental value. This tax regime contrasts sharply with other countries, where property transactions may incur substantial tax burdens.

How to Find a Property in Dubai? 

While there are many online sites that are a good reference tool, our international clientele still prefer speaking to a trusted real estate agent who understands their requirements. Contact GMG's Dubai team to be your trusted realtor and mortgage originator. 

Where to Buy Property in Dubai? 

Dubai presents a plethora of options for property investment, catering to diverse preferences and budgets. The following areas are popular with GMG's high-net-worth clients: Palm Jumeirah, CityWalk Dubai, Jumeirah Beach Residence, Dubai Marina, and Arabian Ranches. Each offers unique advantages ranging from scenic waterfront living to vibrant urban experiences.  

Our team in Dubai only works with international clientele so we understand the types of homes that are the best in rental yield and or price appreciation. Similar to investing in the U.S., there is a price point for all types of investors. 

How to Avoid Problems When Buying Property in Dubai? 

In any hot market, regardless of the asset, there are always bad actors.

Given Dubai's thriving property market, there are people who can take advantage of the misinformed international buyer.

Some things to look out for:

Scams and fraudulent listings: Ensure agents and property developers are registered with RERA (Real Estate Regulatory Authority), verifying credentials for both completed and off-plan projects.

Overpaying: Prior to committing to contracts or transactions, conduct thorough research on neighborhood rates to make informed decisions.

Paperwork discrepancies: Verify critical documents such as the Memorandum of Understanding (MOU) and No Objection Certificate (NOC), ensuring they're authenticated by your real estate agent.

Bad locations: Utilize rental yield data to select prime areas for investment, conducting independent research to validate seller claims.

Unauthorized sales: Confirm the seller possesses legal rights to the property.

Invest in Dubai with Global Mortgage Group

GMG offers unparalleled expertise in Dubai's real estate investment market, guiding investors through the property acquisition process with professionalism and sophistication.

Investing in an overseas market can be daunting in the beginning, but having a trusted partner like GMG to educate, guide, and look out for your best interest is crucial. 

GMG Dubai Mortgage Loans for International Investors

GMG Dubai Investor + is a loan program specifically designed for international, non-resident borrowers to make qualifying with your local income and credit easy. We have made some changes to the program to make it EVEN BETTER. 

  • Lower minimum loan amount
  • No need to set up local SPV
  • More types of homes available for financing

Get in touch with us today to find out more at [email protected].

Global Cities Price & Rental Yield Comparison

Bridging Loan Canada

Our research team has put together fantastic comparisons of the average property prices of the major global cities and their respective rental yields.

As you can see, property prices are high in the world’s major global cities, and gross rental yields are generally under 4% in local currency. More importantly, limited financing is available for non-resident foreign nationals.

For a property investor, why would you pay more and get less?

This is what makes investing in U.S. real estate so appealing for investors:

  • Low-cost entry point
  • Positive cash flow
  • Capital appreciation
  • Strong USD
  • Up to 75% financing based on rental income only, not personal financials
  • Tax benefits from owning via LLC
  • Lack of supply of housing causing rents and prices to increase
  • Remote property management

The 1% Rule!

In fact, the U.S. is one of the few (maybe only) major real estate markets where you can find rental properties that fit the 1% rule!

That is, a property whose rental income is at least 1% of the purchase price. For example, if the rental property is $500,000, the monthly rental should be at least $5,000.

15% rental yield is on the horizon!

We have long maintained that this will continue to increase as the lack of housing will create an environment where the average buyer will have to rent instead, normalizing a higher portion of disposable income for rent.   

As of 1Q2024, some of the top rental yield markets in the U.S. are already nearing mid-teens gross rental yield, according to a Attom Report, March 13, 2024.

This is just a snapshot of what the market is like in the U.S. at the moment. There are other investment strategies like the BRRRR Method which forces capital appreciation.

Seize this opportunity and explore how America Mortgages can support you in achieving your real estate goals. Reach out to us today to discover more and begin your path to financial success. Alternatively, connect with us for a no-obligation consultation with one of our globally based U.S. mortgage loan officers by using this 24/7 calendar link.

www.gmg.asia