Author: Premela R.

Global Real Estate Update: Positive Market Trends for International Investors

Post author By Premela R.
Post date July 12, 2024

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

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

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

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)

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%

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!

Post author By Premela R.
Post date June 28, 2024

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

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…

Post author By Premela R.
Post date June 18, 2024

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].

www.gmg.asia

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

Post author By Premela R.
Post date May 28, 2024

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.

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!

Post author By Premela R.
Post date May 17, 2024

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!

Post author By Premela R.
Post date May 10, 2024

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”

www.gmg.asia

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

Post author By Premela R.
Post date May 3, 2024

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.

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

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)!

Post author By Premela R.
Post date April 26, 2024

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

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

Post author By Premela R.
Post date April 6, 2024

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].