Calling all Client Advisors – Offer U.S. mortgages and earn a fee

Bridging Loan Canada

You can now offer U.S. mortgages to your clients

We are looking for private banks, EAMs, client advisors, mortgage brokers, and even social media influencers on LinkedIn, Facebook, and Instagram to offer our U.S. mortgage solutions.

We have created the world’s first U.S. mortgage that can be offered through intermediaries globally—without prior knowledge of the mortgage process. This presents a significant fee-income opportunity and a first-mover advantage.

We do the work. You keep the fees!

Watch our DemoDay video from 2019, where we first set out to solve this problem.

🏠 Housekeeping - If you want to receive U.S.-only content from America Mortgages, reply YES, and we will add you to our email list. Here are some of the topics we cover.

Strong Demand for U.S. Real Estate Investments

With over 1 million Asia-Pacific students studying in the U.S. (a number that continues to grow), there is a natural demand for real estate ownership from Asia. In fact, foreign buyers purchase approximately $50 billion worth of U.S. residential real estate annually—most paying in cash due to a lack of financing options.

There are no financing options outside the U.S. besides us America Mortgages Inc!

No banks outside the U.S. offer U.S. mortgages, and U.S. banks do not provide mortgages overseas.

We are the first!

Technology-Enabled

We have built an online portal to streamline the loan process for international borrowers—from loan application to signing closing statements.

Loan Highlights:

  • Up to 80% loan-to-value
  • Available in all 50 states
  • Qualify based on rental income, not personal salary
  • U.S. market rate mortgage products
  • No U.S. credit or residency required
  • Sign closing documents remotely in your home country

Upcoming Event – Join Me in Singapore!

I will be speaking at the Hubbis Independent Wealth Management Forum in Singapore on April 9th. Check out this article about our offering and how you can help your clients with their U.S. real estate financing needs.

How We Can Help You Get Started

✅ Assign a dedicated Account Executive in your time zone
✅ Conduct training sessions for your sales team
✅ Help you design a landing page on your website
✅ Provide Google AdWords suggestions and high-SEO-value articles

www.gmg.asia

Access your international home equity for cash

Global Asset-Backed Bridging Loans

Tight credit conditions globally have created a vacuum in bank lending and when borrowers need to access cash quickly, there are limited ways to accomplish this.

We can help! 

Access your home equity in the U.S., London, Australia and Singapore through a short-term loan called an Asset-backed bridging loan.

Bridging loan details:

  • Approval: 48 hours
  • Funding time: under 30 days (under 7 days possible if no debt)
  • Loan amount: Up to 70% of your home's value
  • Property type: Primary homes, second homes, investment properties, hospitality, commercial, to name a few
  • Loan tenure: Typically 1-2 years (not meant to replace a bank loan)
  • Age restrictions: none 
  • Qualify on: property value only (no need to show income)
  • Payment type: Interest-only with option to roll up interest

In Singapore, these loans are not bound by TDSR since they are private loans. We have funded over $300M over the past 18 months, many of which are Good Class Bungalows, Shophouses, Landed, Condos and other high-value properties.

Typical Uses of Funds Include:

  • Buying more property 
  • Golden Visas 
  • Crypto 
  • Tuition 
  • Healthcare costs 
  • Investment opportunities 
  • Working capital company-level 
  • Insurance premium 
  • Pay down high-cost debt 
  • And the list goes on

Our team of ex-bankers work with sophistication, discretion and care.

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. 

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.

Examples of how we helped our clients

USA

An SE Asian 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. The terms were 1 year, 70% LTV, and funded in 3 weeks! 

Singapore

Our client, a Singaporean entrepreneur, owns a $15 million landed property. 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!

Global Affiliate Program

If you have any friends or clients that require any global real estate financing, we pay a generous referral fee for any successful funding. Message me to learn more.

Scott Bessent was my client + Monetizing Gold → lower mortgage rates?!

Quick housekeeping: My interview with Max Chernov has reached 350,000 views. Check it out if you haven’t, where I talk about global real estate investing and financing. Lastly, please follow me on my new Instagram page @theglobalmortgageguy.

Please scroll down for Upcoming speaking events in Singapore and on our various YouTube channels.

Let’s start.

In my past life, I started one of the first hedge funds in Hong Kong and subsequently ran global hedge fund coverage desks for some of the top investment banks - in fact, my exact role was Harper Stern's, and eventually her boss Eric's job in the HBO Series, Industry.

Soros was one of my clients and Scott Bessent specialized in geopolitics and macro - my area of focus. I was the "China Guy" for many global hedge funds as China was the biggest theme globally, especially when it entered the WTO in 2001. 

Scott and the folks at Soros (and other hedge funds) in the 2000s were some of the brightest minds in the world - he certainly knows what he's doing, and bringing in a market participant to manage the current environment is a smart move.

In this week's Bloomberg Interview, Scott talked about the need to bring down the entire yield curve, particularly the 10-year as it relates to the cost of funding (mortgage rates) and monetizing the asset side of the government's balance sheet.

A few weeks into the job, and here are my takeaways: 

1. He criticized Janet Yellen for not "terming out" existing debt but then continued the same monetary policy. That tells me that there are no alternative options currently (Scylla and Charybdis).

2. DOGE is an incredible and long-overdue initiative. The U.S. simply spends too much.

However, -> the amount saved is still not enough to affect the deficit meaningfully.

Taken from Luke Gromen’s FFTT February 7th, 2025 => ”To frame this properly: Assuming $5T in Federal receipts this year (flat) and the annualized spending above, the U.S. could cut DoD spending by 100%, as well as cut all other Federal spending by 100%...and the U.S. would STILL run a $140B deficit. “DOGE” is gonna need a bigger boat.”

3. Any and all “out of the box” ideas are going to get attention - starting with the one below…

4. The Fed may revalue their Gold holdings at $42/oz (not a typo!) to the current market price of $2800/oz immediately adding nearly $1TN to the Treasury’s General Account. Read this fantastic FT Article from Sunday by Gillian Tett!

Here is the FT excerpt: 

=> This would lessen the need to issue longer term debt which will have the same effect as QE.

The big ticket items on the Annual Federal Budget

  • Health & Human Services $1.8TN
  • Social Security $1.5TN
  • Gross Interest Expenses $1.4TN
  • VA $400BN

Luke argues that the only thing that can be reduced is Gross Interest Expenses which relies on a much lower 10-year bond yield. 

If we get $500BN in savings from DOGE + $1TN revalue from Gold, and cut interest expenses to $800BN = then we are back in the game!

=> I think they have no choice but to engineer this to happen. There may be some short-term pain, mostly from equities, but imagine a world where mortgage rates are 3-4%.

Similar to 2019, the market priced in 2 rate cuts and we ended the year with 4 - NO ONE is expecting rates to fall this much! 

=> I think 10-year yields could end the year at 4-5%, falling to 3-4% in 2026

=> Needless to say, this is very bullish for U.S. home prices. 

Upcoming Events (DM me if interested):

  1. Speaking in Singapore: U.S. Real Estate Investing @ American Club on April 2nd; U.S. Tariffs & Market Impact @ 67 Pall Mall on March 18th; Hubbis Private Wealth Forum Singapore on April 9th.
  2. The Real Asia Show (YouTube): Jieun Wrigley (Goldman banker, turned Nutritionist); David Jacob (Marsh CEO, Global DJ, Tennis Champion); Renu Chainani (Indian Interior Designer); Rosanna Ocampo (Philippines and Milan Fashion Designer) and more.
  3. Global Mortgage Group (YouTube): MilkChoc (Australia Real Estate)
  4. America Mortgages (YouTube): Short Term Rentals (Rob Mehta, Founder, Rob Mehta + Partners LLC); How to Use an LLC for U.S. Real Estate Investing (Lucee Cesena, CEO/Founder, Nobility Consulting Services)
  5.  U.S. Realtors: Christine Najem (Boston); Mike Fiteni (Philadelphia); Steve Kim (Atlanta); Lily Ly (Irvine)

Tariffs 101, DeepSeek, Mortgage Rates + The Real Asia Show

Trade war has begun 

Trump has implemented 25% import tariffs from Mexico and Canada and 10% on Chinese imports. Honestly, there is no way to know the outcome, but one thing for sure is that commodity and asset prices will be volatile as we price in the "Tariff Uncertainty".

Interestingly, all of Canada's $200B trade surplus with the U.S. comes from oil coming from Alberta. This heavy-grade crude is mixed with U.S. crude and refined. I read that if you strip out oil, there would be no trade surplus. 

Tariff Economics

Tariffs are initially paid by importers, but who ultimately absorbs the cost depends on how easily they can find alternative suppliers.

If alternatives are readily available, suppliers may lower their prices, minimizing the impact on importers.

However, if finding substitutes is difficult, suppliers have little incentive to reduce costs, forcing importers to absorb the tariff burden.

During the tariff increases of 2018 and 2019, U.S. importers struggled to secure alternative suppliers, leading them to bear most of the costs (lower margins).

In the short term, businesses reliant on affected imports face higher production expenses and must decide whether to pass these costs onto consumers or absorb them by reducing profit margins.

=> Trump Angle: If corporate taxes are lowered I'm the U.S. (being discussed), companies will have some financial wiggle room to absorb any cost increases from higher tariffs.

DeepSeek

This is disruptive (on the surface) to AI as it appears to require less computing power (less GPUs) to achieve the same outcome, and clearly, the market will need to rethink its forecasts across the entire AI vertical. This "increases" the need for NVDA chips as more players will be able to get into the space with less capital. This will lead to a faster commoditised AI-information world (Singularity).

AI is currently in the training phase, which means we are only at the stage of AI that takes data - known as Large Language Models (LLM) - and "trains" it to answer questions – mostly search-related. The next stage of AI is the Inference Phase, which makes conclusions and decisions – not there yet, but not far away.

To me, AI is like a fast food restaurant. Each company has the same ingredients, but each is trying different sequences to create the fastest, cheapest and most delicious burger. McDonalds can put ketchup on the bread before the lettuce, and Burger King may put pickles before the ketchup, then patty before lettuce, etc.

This is what DeepSeek has done.

OpenAI used the sequence of both "Supervised Fine-tuning" then "Reinforcement Learning".

What DeepSeek did was take various sources of data but eventually only used "Reinforcement Learning" to skip steps (and lower costs).

Another misconception is "Open Code" and "Open Sourced".

DeepSeek is an Open Code, which means they publish a whitepaper and show models and model weights, BUT they DO NOT show the data, so it's not actually Open Sourced. 

There has been a big selloff across the AI vertical - Software, LLM, chips and Nuclear are all being sold off. While the timing of this is peculiar, with the origins of DeepSeek being from a quant hedge fund, you can't ignore its implications. 

I personally think it's too early to bottom-fish, given there are clearly some geo-political issues here, and the market will be focused on the trade wars happening, and chips will be a sensitive topic.

Rates

Fed unchanged, and long-term yields did not move during the FOMC meeting.

The 10-year moved up a little on the tariff announcement, and we saw some lenders raise mortgage rates, but we lowered our rates slightly last week. Honestly, I am surprised at the inactivity of the bond market – I suspect yields were kept under wraps with some AI selloff flow moving into bonds.

It will take a while to see how the tariffs will affect the economy, prices, and rates, but if we look at what happened in 2019, rates moved lower despite the trade war.

This time around is more serious, but the bottom line is rates are determined by inflation and growth expectations, to name a few – that is where we need to focus on.

On the other hand, after the Smoot Hawley Act in 1930, the last across-the-board tariff increases, the stock market suffered major losses, and the economy went into a deep recession.

My big bet on a weaker USD has not transpired yet which is the main wildcard for any growth to happen in the U.S. We need a weaker USD.

The Real Asia Show

Finally, I have started a YouTube channel called The Real Asia Show, where I interview interesting people across Asia on their journey to where they are now, the challenges they faced, and things they can teach us. Hopefully, there are some meaningful takeaways. Please subscribe.

I have also launched 2 Instagram channels:

The Global Mortgage Guy

Real Estate Investing 101

Happy Hunting!

Donald Klip, Co-Founder
Global Mortgage Group

Mobile: +65 9773-0273 

Email: donald.klip@gmg.asia

Schedule a call with me

LinkedIn

Trump, the USD, Stargate and The New Deal 2.0

The New Deal 2.0

Donald Trump is now the 47th U.S. president, and there is no denying a sense of optimism and hope. While no one knows exactly what will happen, given the wide range of rhetoric during the campaign, the early signs are super bullish, and I will focus on what I think will happen and how it will impact home prices, especially our overseas clientele.

Rates & The USD

While it is assumed that The Fed Funds rate will be cut in 2025, mortgage rates are more closely related to the 10-year Treasury pricing, which has been stubbornly high as the market expects more inflation due to continued and possibly increased fiscal deficits.

Fiscal deficit is essentially paying for goods and services with money you don't have (i.e., printing money). This causes inflation and money debasement.

What makes the U.S. unique is that it benefits from being a reserve currency. 

Therefore, higher rates = USD inflows = stronger USD, sucking dollars out of the global money system.

The leading expert on this phenomenon, called the "Dollar Milkshake Theory", is Brent Johnson, Santiago Capital.

We all need a weaker USD, and I think they will make this happen.

There is no policy being suggested by Trump that works with a strong USD, so this is important to watch. Ticker DXY is the Dollar Index, and we need to see this below 100 soon with clear intention towards 90. 

The weaker USD gives more economic flexibility to our trading partners (useful when we are trying to negotiate tariffs) and makes our exports more valuable.

That is, a weaker USD is good for global growth, so more of our overseas clients are doing better. 

More importantly => Weaker USD gives more flexibility for the 10-year treasury to come down, improving mortgage rates. 

A weaker USD makes U.S. real estate more affordable for our overseas clients through the exchange rate.

Economic Growth and Job Creation

Trump campaigned for pro-business policies aimed at boosting economic growth, such as tax cuts or deregulation, which would increase household income and demand for homes, pushing prices upward.

Stargate

Trump announced Stargate, a catchy movie-like name for an AI Infrastructure program which is mega-bullish, aiming to add up to 500,000 jobs over the near term. These new hires will undoubtedly need homes to live in, and being a landlord over the next few years is a big investment opportunity! 

Moving manufacturing onshore will increase spending on infrastructure, boosting local economies, particularly in regions benefiting from new projects, and driving up home prices in those areas. See CHIPS Act article from last week. 

Tax Policies

Trump may advocate for federal tax policies that favor homeowners, such as expanding the mortgage interest deduction, which could make owning a home more attractive and increase demand.

A reduction in capital gains taxes will incentivize more real estate transactions, increasing supply in the market and potentially moderating price growth.

The New Deal 2.0

Trump has created enthusiasm in the economy on the same level as FDR's The New Deal. A strong perception of economic stability under his leadership could drive more people into the housing market, increasing demand. 

Invest in States that see increased manufacturing

Areas with strong economies and high-demand housing markets (e.g., Texas and Florida) could see price growth if Trump's policies favor those regions. These are the markets we are bullish on, and they align with many of the states that are seeing increased manufacturing.

U.S. loan programs created just for you

Global Mortgage Group offers U.S. mortgages for overseas investors with loan programs that use rental income to qualify, known as a DSCR loan, except our programs are created specifically for people like you!

Whether you're an overseas investor navigating policy changes or a first-time buyer seeking tailored mortgage solutions, we are committed to guiding you every step of the way.

Contact us at donald.klip@gmg.asia, or visit www.gmg.asia to get started.

How we plan to add value in 2025!

Last week, I was interviewed by Max Chernov, a well-known YouTuber in Singapore who talks about expat life in Asia. In this interview, I also talk about how home equity loans are used for liquidity around the world – worth a listen.

We have decided to stop our Global Investor Weekly and focus on more value-added content regarding investment strategies, loan programs and other useful information.

To start the year, I want to quickly talk about our key offerings that help our global real estate investors.

  1. International Residential Mortgages
  2. Global Home Equity/Bridging Loans
  3. Referral Partner Program

1. International Residential Mortgages

While we offer residential mortgages to many countries, our core strength is offering U.S. mortgages to overseas Expats and Foreign Nationals. The U.S. continues to exhibit the strongest price appreciation for any G20 countries, with rental yields in the mid-teens on average. Download our recent eBook on the Highest Rental Yield cities globally.

2. Global Home Equity/Bridging Loans

Get access to cash quickly by tapping your home equity in the U.S., Canada, London, Australia and Singapore. In Singapore, we have funded over $400M over the past 2 years, illustrating the lack of traditional bank financing available when the need for cash arises.    

Given the flexibility of these loans, we have clients who use the funds for: 

  • Buying more property
  • Golden Visas
  • Crypto
  • Tuition
  • Healthcare costs
  • Investment opportunities
  • Working capital company level
  • Insurance premium
  • Pay down high-cost debt
  • And the list goes on

3. Global Referral Partners

Our team works with partners globally, primarily mortgage brokers, client advisors, private bankers, and even influencers! We pay a generous referral fee for any successful funding.

Housekeeping – If you want to receive content from our U.S. subsidiary, America Mortgages, please reply 'yes', and we will add you to that distribution list. This content will focus exclusively on U.S.-related topics, strategies, and loan programs.

All the best in 2025!

hello@gmg.asia

Global Property Investor – Singapore Landed Home Sales Jump 18.6% in 2024

USA

Mortgage applications in the U.S. increased by 33.3% for the week ending January 10, 2025. This marked the largest rise in a month, driven by both purchase and refinance applications. Refinance applications saw a 44% increase, while purchase applications grew by 27%. Refinance applications also saw an increase in share, rising to 42.7%.

Source: Mortgage Applications Increase in Latest MBA Weekly Survey

U.K.

In November 2024, U.K. house prices rose 3.3% year-over-year, the fastest increase since February 2023. This follows a 3.0% rise in October. Despite high borrowing costs, the property market remains strong. Private-sector rents also increased by 9.0% in December, with London seeing the highest increase at 11.5%. Investors expect further interest rate cuts from the Bank of England in 2025 after a surprise drop in inflation.

Source: House prices in UK rise by most since February 2023

Canada

In Q4 2024, Canadian home prices rose 3.8%, with the average price reaching $819,600. The median price for single-family homes increased 4.9% to $855,900, while condos saw a 1.5% rise to $592,700. Housing market activity picked up, especially in major cities, as buyers regained confidence, helped by interest rate cuts and mortgage rule changes. The market is expected to continue recovering, with a projected 6% increase in home prices by the end of 2025.

Source: Canada real estate: Home prices rose 3.8% in Q4 as sluggish market starts to pick up

Australia

Australia’s housing market showed resilience in 2024, with cities like Perth, Adelaide, and Brisbane reaching record highs in house and apartment prices. Perth led with a 19.5% rise in house prices, and apartment prices saw a 28.2% increase. However, growth slowed in the second half of the year, indicating market stabilization. Listings increased, favoring buyers, with Sydney seeing its highest number of listings in three years.

Source: Australian housing market: Record highs amid slowing growth

Dubai

Dubai’s real estate market saw $136 billion in transactions in 2024, a 27% increase. Investors earned $27.36 billion, with strong demand in Palm Jumeirah, Downtown Dubai, and Dubai Marina. Key factors driving growth include 3.3% economic growth, high rental yields in areas like Dubai Investments Park and Discovery Gardens, and a strong population growth of 4.66% in 2024.

Source: Dubai investors earn $27.36 billion from real estate sector in 2024

Singapore

In 2024, landed home sales in Singapore rose 18.6%, reaching S$6.1 billion. While prices for landed homes grew slightly by 0.1%, demand remained stable despite a 0.9% quarterly decline in Q4 2024. The Good Class Bungalow (GCB) segment also saw more transactions, with 14 GCBs sold in the second half of the year, 45% more than in the first half of 2024. Buyers continued to pay high prices, with the average unit land price rising to S$1,971 per square foot. Prices are expected to rise by 3% in 2025.

Source: Singapore landed home sales up 18.6% to S$6.1b in 2024

Buy property where CHIPS Act will add 500K jobs

PREVIEW: The CHIPS Act will add over 500,000 new jobs. As a property investor, you want to own in areas where employment will be robust with high-wage renters. 

The CHIPS and Science Act is a U.S. federal law enacted in August 2022 to bolster the domestic semiconductor industry, enhance technological innovation, and strengthen national security by bringing manufacturing onshore. 

Total funding, investment and spending is expected to be $500 billion.

More importantly, creating over 500,000 jobs over the next 5-10 years.

As a property investor, you want to own in areas where employment will be robust with high-wage renters. Learn which specific U.S. states will benefit the most.

THE HOUSING MARKET

The CHIPS and Science Act could have significant effects on the U.S. housing market due to its focus on stimulating domestic semiconductor manufacturing and fostering economic growth. 

Here's how the act might influence the housing market:

1. Increased Demand for Housing in Manufacturing Hubs

  • Job Creation: The CHIPS Act is expected to create 500,000 high-paying jobs in semiconductor manufacturing, research, and related sectors. This influx of employment will drive housing demand in areas surrounding major chip production facilities, such as:
    – Arizona (Phoenix)
    – Texas (Austin, Taylor)
    – New York (Clay, Albany)
    – Ohio (New Albany)
    – Oregon (Hillsboro)
  • Population Growth: Migration to these regions for employment opportunities will increase the need for housing, potentially driving up home prices and rents.

2. Boosted Construction Activity

  • Residential Development: Increased demand for housing near semiconductor facilities could spur residential construction projects to accommodate the growing workforce.
  • Infrastructure Expansion: Investments in roads, utilities, and public amenities to support these facilities may also enhance local real estate markets.

3. Rising Property Values

  • Economic Growth: The influx of jobs and investments is likely to enhance local economies, increasing property values and attracting real estate investors to these regions.
  • Regional Hot Spots: Cities and states benefiting from the CHIPS Act could experience accelerated growth in property values, creating new real estate hot spots.

4. Rental Market Growth

  • Short-Term Demand: Many workers relocating for semiconductor jobs may initially rent before purchasing homes, boosting rental market activity.
  • Corporate Housing: Companies building semiconductor facilities may also increase demand for temporary housing for contractors and employees.

5. Housing Affordability Challenges

  • Pressure on Supply: A surge in demand without corresponding increases in housing supply could exacerbate affordability issues in regions with already tight housing markets.
  • Gentrification Risks: Rapid economic growth could lead to higher housing costs, displacing lower-income residents in affected areas.
  • This is a perfect scenario for investors and rents are bid-up in these areas.

6. Long-Term National Impacts

  • Economic Stability: By strengthening the U.S. economy and ensuring supply chain resilience, the CHIPS Act may contribute to long-term stability in the national housing market.

STATES TO SEE THE BIGGEST IMPACT

1. Arizona

  • Major Projects: Intel’s expansion in Chandler and Taiwan Semiconductor Manufacturing Co. (TSMC) in Phoenix.
  • Investment: TSMC’s facility represents over $6.6 billion in funding, while Intel's expansion accounts for $7.87 billion.

=> Jobs: Intel's projects in Arizona are expected to create up to 30,000 jobs across multiple states, including Arizona, New Mexico, Ohio, and Oregon. 

2. New York

  • Major Projects: Micron Technology’s $100 billion commitment to a new chip factory in Clay, New York.
  • Incentives: $5.5 billion in state tax credits and $825 million in federal funding for Albany NanoTech.

=> Jobs: Micron's investment in Clay, New York, is projected to create approximately 20,000 jobs. 

3. Ohio

  • Major Projects: Intel’s semiconductor manufacturing expansion in New Albany.
  • Investment: Billions are allocated to develop a state-of-the-art chip production facility.

=> Jobs: Intel’s expansion in Ohio is part of a broader initiative expected to generate up to 30,000 jobs across multiple states. 

4. Texas

  • Major Projects: Samsung Electronics in Taylor and Texas Instruments across multiple locations.
  • Investment: Samsung has committed $17 billion, Texas Instruments $30 billion.

=> Jobs: Approximately 10,000-15,000 direct jobs in semiconductor manufacturing and an estimated 6,500 construction jobs during the build-out phase.

5. Oregon

  • Major Projects: Intel’s ongoing investment in Hillsboro as part of its U.S. manufacturing network.

=> Jobs: Intel's activities in Oregon are included in the company's expansion plans, which are expected to create up to 30,000 jobs.

6. Utah

  • Major Projects: Texas Instruments’ semiconductor wafer plant.
  • Investment: Part of Texas Instruments’ $1.6 billion allocation shared with Texas.

=> Jobs: Expected to create 500 to 800 direct jobs in manufacturing and engineering roles at the Lehi plant.

THE UPSHOT

The CHIPS Act aims to:

  • Reduce U.S. reliance on foreign semiconductor manufacturing.
  • Create high-paying jobs across the country.
  • Boost local economies in states with large manufacturing investments.

The CHIPS Act will likely stimulate regional housing markets near semiconductor manufacturing hubs through job creation and population growth. While it brings opportunities for investment and development, it may also pose challenges, such as affordability concerns and supply pressures, requiring proactive measures from policymakers and local governments to ensure balanced growth.

These states, due to existing infrastructure, workforce capabilities, and favorable policies, are emerging as leaders in the domestic semiconductor resurgence.

Over 500,000 total jobs are expected to be created over the next 5-10 years comprising of:

  • Direct and Indirect Jobs: 100,000–150,000 permanent jobs.
  • Construction Jobs: 100,000 temporary jobs.
  • Grand Total: 200,000–250,000 jobs 

The Housing Market

The CHIPS and Science Act could have a significant positive impact on the U.S. housing market due to its focus on stimulating domestic semiconductor manufacturing and fostering economic growth.

Here's how:

1. Increased Demand for Housing in Manufacturing Hubs

  • Job Creation: The CHIPS Act is expected to create 500,000 high-paying jobs in semiconductor manufacturing, research, and related sectors. This influx of employment will drive housing demand in areas surrounding major chip production facilities, such as:
    – Arizona (Phoenix)
    – Texas (Austin, Taylor)
    – New York (Clay, Albany)
    – Ohio (New Albany)
    – Oregon (Hillsboro)
  • Population Growth: Migration to these regions for employment opportunities will increase the need for housing, potentially driving up home prices and rents.

2. Boosted Construction Activity

  • Residential Development: Increased demand for housing near semiconductor facilities could spur residential construction projects to accommodate the growing workforce.
  • Infrastructure Expansion: Investments in roads, utilities, and public amenities to support these facilities may also enhance local real estate markets.

3. Rising Property Values

  • Economic Growth: The influx of jobs and investments is likely to enhance local economies, increasing property values and attracting real estate investors to these regions.
  • Regional Hot Spots: Cities and states benefiting from the CHIPS Act could experience accelerated growth in property values, creating new real estate hot spots.

4. Rental Market Growth

  • Short-Term Demand: Many workers relocating for semiconductor jobs may initially rent before purchasing homes, boosting rental market activity.
  • Corporate Housing: Companies building semiconductor facilities may also increase demand for temporary housing for contractors and employees.

5. Housing Affordability Challenges

  • Pressure on Supply: A surge in demand without corresponding increases in housing supply could exacerbate affordability issues in regions with already tight housing markets.
  • Gentrification Risks: Rapid economic growth could lead to higher housing costs, displacing lower-income residents in affected areas.
  • This is a perfect scenario for investors and rents are bid-up in these areas.

6. Long-Term National Impacts

  • Economic Stability: By strengthening the U.S. economy and ensuring supply chain resilience, the CHIPS Act may contribute to long-term stability in the national housing market.

STATES TO SEE THE BIGGEST IMPACT

1. Arizona

  • Major Projects: Intel’s expansion in Chandler and Taiwan Semiconductor Manufacturing Co. (TSMC) in Phoenix.
  • Investment: TSMC’s facility represents over $6.6 billion in funding, while Intel's expansion accounts for $7.87 billion.

=> Jobs: Intel's projects in Arizona are expected to create up to 30,000 jobs across multiple states, including Arizona, New Mexico, Ohio, and Oregon.

2. New York

  • Major Projects: Micron Technology’s $100 billion commitment to a new chip factory in Clay, New York.
  • Incentives: $5.5 billion in state tax credits and $825 million in federal funding for Albany NanoTech.

=> Jobs: Micron's investment in Clay, New York, is projected to create approximately 20,000 jobs. 

3. Ohio

  • Major Projects: Intel’s semiconductor manufacturing expansion in New Albany.
  • Investment: Billions are allocated to develop a state-of-the-art chip production facility.

=> Jobs: Intel’s expansion in Ohio is part of a broader initiative expected to generate up to 30,000 jobs across multiple states. 

4. Texas

  • Major Projects: Samsung Electronics in Taylor and Texas Instruments across multiple locations.
  • Investment: Samsung has committed $17 billion, Texas Instruments $30 billion.

=> Jobs: Approximately 10,000-15,000 direct jobs in semiconductor manufacturing and an estimated 6,500 construction jobs during the build-out phase.

5. Oregon

  • Major Projects: Intel’s ongoing investment in Hillsboro as part of its U.S. manufacturing network.

=> Jobs: Intel's activities in Oregon are included in the company's expansion plans, which are expected to create up to 30,000 jobs.

6. Utah

  • Major Projects: Texas Instruments’ semiconductor wafer plant.
  • Investment: Part of Texas Instruments’ $1.6 billion allocation shared with Texas.

=> Jobs: Expected to create 500 to 800 direct jobs in manufacturing and engineering roles at the Lehi plant.

THE UPSHOT

The CHIPS Act aims to:

  • Reduce U.S. reliance on foreign semiconductor manufacturing.
  • Create high-paying jobs across the country.
  • Boost local economies in states with large manufacturing investments.

The CHIPS Act will likely stimulate regional housing markets near semiconductor manufacturing hubs through job creation and population growth.

We are happy to introduce you to realtors and property managers in these areas. If there’s further interest, we’re happy to explore expanding these services.

These states, due to existing infrastructure, workforce capabilities, and favorable policies, are emerging as leaders in the domestic semiconductor resurgence.

Global Mortgage Group is ready to help you navigate these exciting opportunities. Whether you're an investor targeting high-demand markets or a homeowner exploring financing options, we provide tailored solutions to meet your needs.  

Contact us at donald.klip@gmg.asia, or visit www.gmg.asia to get started. Let us help you achieve your investment goals with expert guidance and customized mortgage solutions!

Global Property Investor – Dubai Real Estate Transactions Hit $136 Billion in 2024

USA

U.S. property prices rose nearly 5% year-over-year, according to Green Street. The industrial and residential sectors continue to perform well, and retail properties are also improving. Despite ongoing affordability and inventory challenges, analysts expect the market to remain strong for both domestic and international investors.

Source: U.S. Property Prices Up Nearly 5% Year-Over-Year

U.K.

U.K. house prices increased by 0.7% in December 2024 compared to November and by 4.7% year-over-year, with the average price reaching £269,426. The rise is mainly due to buyers rushing to complete purchases ahead of the planned April 2025 stamp duty increase. However, affordability remains an issue, particularly for first-time buyers in London.

Source: London first-time buyers: is 2025 your year to buy a home?

Canada

In 2025, Canada's housing market faces a need for investment in older rental properties, with many units built before 2000. Upgrading these properties is key to addressing the growing demand for affordable rentals. Experts also predict slightly lower mortgage rates this year, which may ease financial pressures for buyers and renters.

Source: Mortgage outlook 2025: Canadians can expect lower rates, deals this year

Australia

Queensland stands out in Australia's housing market for its affordability and growth potential. Nationally, house prices fell 0.2% in December 2024, marking the first decline in nearly two years. Sydney and Melbourne recorded decreases, while Perth and Adelaide saw slight gains. High interest rates and affordability challenges continue to impact the market overall.

Source: Queensland on fire: Is Australia's Sunshine State the next buying opportunity?

Dubai

Dubai's real estate market saw property transactions exceed $136 billion in 2024. Key investment areas include Palm Jumeirah, Downtown Dubai, and Dubai Marina, with demand driven by luxury properties and global investor interest. Analysts predict a steady growth in both the luxury and affordable housing sectors in 2025.

Source: Dubai real estate transactions surpass $136 billion in 2024: Most popular areas to invest in this year

Singapore

In 2025, housing affordability and urban redevelopment are key concerns for Singapore's property market. Developers are calling for adjustments to the Additional Buyer's Stamp Duty (ABSD) to improve affordability for both local and foreign buyers. Redevelopment projects in key areas are expected to create new opportunities for investors.

Source: ABSD tweak, housing affordability, urban rejuvenation lead property players' Budget wish list