Global Mortgage Group’s Record-Breaking Month with Bridge Loans for Condos Bungalows and a GCB
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:
- Trophy assets
- Education-related
- 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].
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.
Australia’s Rental Boom: Your Investment Opportunity Awaits!
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.
The Top 5! Which 5 foreign buyers are buying which 5 U.S. states?
Top 5 Foreign Buyers of U.S. Residential Real Estate*
- China 13% of total = $13.6B
- Mexico 11% of total = $4.2B
- Canada 10% of total = $6.6B
- India 7% of total = $3.4B
- Colombia 3% of total = $900M
Top 5 States for Foreign Buyers*
- Florida 23%
- California 12%
- Texas 12%
- North Carolina 4%
- 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.
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
- China $1.2M
- Mexico $449K
- Canada $779K
- India $577
- Colombia $355K
Buyers from China - Top 5 Destinations
- California 33%
- Florida 16%
- Texas 8%
- Colorado 6%
- New York 6%
Buyers from Mexico - Top 5 Destinations
- Texas 48%
- California 18%
- Ohio 6%
- Arizona 4%
- Florida 4%
Buyers from Canada - Top 5 Destinations
- Florida 55%
- Arizona 14%
- California 4%
- Louisiana 4%
- Montana 4%
Buyers from India - Top 5 Destinations
- California 20%
- Pennsylvania 14%
- Texas 11%
- Alaska 9%
- Illinois 9%
Buyers from Colombia - Top 3 Destinations
- Florida 80%
- California 13%
- 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
- Florida 23%
- California 12%
- Texas 12%
- North Carolina 4%
- Arizona 4%
Florida - Origin of Foreign Buyers
- LATAM/Caribbean 46%
- Canada 24%
- Europe 16%
- Asia/Oceania 14%
California - Origin of Foreign Buyers
- Asia/Oceania 61%
- LATAM/Caribbean 22%
- Europe 7%
- Africa 7%
- Canada 3%
Texas - Origin of Foreign Buyers
- LATAM/Caribbean 55%
- Asia/Oceania 25%
- Europe 11%
- Africa 5%
- Canada 4%
North Carolina - Origin of Foreign Buyers
- Asia/Oceania 50%
- Europe 22%
- LATAM/Caribbean 22%
- Canada 6%
Arizona - Origin of Foreign Buyers
- Canada 37%
- Africa 26%
- Asia/Oceania 16%
- Europe 11%
- 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)!
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!
Average U.S. rental yields are 8% and rising!
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?
| Range | Responses |
| 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!
| Detroit | 32.9% | Tulsa | 13.5% | Las Vegas | 10.8% |
| Milwaukee | 20.7% | Colorado Springs | 13.2% | Anchorage | 10.4% |
| Omaha | 18.3% | Nashville | 12.7% | Atlanta | 10.3% |
| Baltimore | 17.2% | Spokane | 12.3% | Miami | 10.1% |
| Indianapolis | 17% | Madison | 11.5% | Denver | 9.5% |
| Memphis | 15.9% | Tucson | 11.4% | ||
| New Orleans | 13.6% | Ann Arbor | 11.1% |
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
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]