Why do you “have to” own where you live?

When it comes to real estate investing – that is, buying a home to earn capital appreciation and cash flow from rental income - it has been common practice to own where you live.

If you live in Vancouver, you buy in Vancouver.

If you live in Hong Kong, you buy in Hong Kong.

If you live in London, you buy in London.

This, of course, makes sense:

1. Knowledge

Living in the same area as your real estate investment makes you an expert. You know the nuances of that area that an outsider would not know – where the schools or shopping malls are, what areas are gentrifying, etc.

2. Financing

Bank financing is easier for its own citizens. Borrowers will have a credit history in the country and relationships with their existing banks, which they can visit at their branches.

3. Access

It is easier to visit new developments, and in hot markets (like in HK when I used to live there), you would have to line up to get a lottery ticket to earn the right to purchase a property. 

This has been a great recipe for success, and many of us have enjoyed the fruits of this type of real estate investing with this supportive macro landscape. Property prices have surged, creating unprecedented wealth for many, magnified by the ability to borrow and get leverage.

But things are different now…

Real estate investing as we know it does not exist anymore!

Rental yields are negative in most countries (rental income < mortgage), so you can only make money by “hoping” the value of the property goes up.

The U.S. is one of the very, very few countries that offer generous “positive” net rental yield + capital appreciation.

Peculiar behaviour when it comes to real estate investing…

If you invest in equities, I’m sure many of you have owned Apple, Amazon, and Google at some point over the past ten years, regardless of where you live in the world.

You don’t only buy Singapore stocks if you live in Singapore, and you don’t only buy U.K.-listed stocks if you live in England. Many people own Bitcoin and its virtual currency.

Why doesn’t this happen with real estate investing?

Why don’t more people buy property as an investment where they don’t live?

Let’s go back to the 3 reasons earlier

1. Knowledge

There is less information on real estate investment opportunities in other countries.

If you are living in Portugal and want to invest in Singapore, is Orchard Road better than Serangoon Road?

If you want to buy a condo in San Francisco - is Geary Street/18th Avenue better than 22nd Avenue?

Unless you have connections to that area (prior education), do extensive online research or have a friend or realtor contact that can give you on-the-ground advice, knowledge is more difficult in other countries.

2. Financing

Banks were created to serve their own citizens. Connecting to a loan officer at a bank in another country is nearly impossible, and most overseas banks do not lend to non-residents. In countries with mortgage brokers, finding financing solutions can be easier if there are mortgage options for overseas investors (hint – this is the problem that we fixed).

3. Access

Very little overseas property is sold in other countries. U.K. and Australian developments are regularly shown in Singapore and Hong Kong. Recently, Japanese and Vietnamese property has been popular, but virtually NO U.S. property is shown overseas - except for the occasional super-high-end New York condos.

This brings us to….

The (new) Real Estate Investing Paradigm…

Instead of solely betting on capital appreciation, it’s now time to look for “cash flow + capital appreciation.” That is, buying and hoping the price appreciates will no longer work in the new paradigm.

The new approach will require doing more research and being an expert on your investment.

The easy money days are over, but I would argue consistent and higher-probability money-making opportunities are available.

As an investor, you are motivated by the highest returns based on your individual circumstances (risk tolerance, time required, cost, etc). 

Moment =>If Knowledge, Financing and Access are made available, where the property is located should be irrelevant (less) when looking to maximize investment potential (Hint….U.S. real estate investment)

Of course, in reality…doing research and speaking to realtors, accountants, and friends takes time, but like with any investment, you need to be as well-informed as possible.

The goal of this report is to give a high-level snapshot of the attractiveness of U.S. real estate investing versus other major countries - from an absolute price and rental income standpoint.

Global Property Investor – Vancouver Home Sales Surge 28% Despite Persistent Affordability Issues

USA

In December 2024, experts predict that the U.S. housing market will face challenges in 2025, with high costs and limited affordability. Some areas might see small price drops, but strong demand in key regions is likely to keep prices up. Analysts expect mortgage rates to settle by mid-2025, which could help buyers a little. However, overall activity in the housing market is likely to stay low because of affordability problems.

Source: 4 Predictions for the U.S. Housing Market

U.K.

U.K. house prices saw their most significant rise since March 2022, driven by a modest recovery in buyer demand. According to recent reports, house prices grew by 1.7% in November 2024, with first-time buyers showing increased activity due to slightly lower mortgage rates. Despite this growth, analysts warn that high inflation and economic uncertainty may slow growth in 2025, with housing affordability remaining a key challenge for many.

Source: U.K. house prices up by most since March 2022

Canada

Vancouver home sales surged by 28% in November 2024 compared to the previous year, showing renewed buyer interest due to slightly lower mortgage rates. However, analysts warn that this rebound might not last long, as high prices and limited housing supply continue to make affordability a challenge. The market remains very competitive, with buyers frequently competing in bidding wars for popular properties.

Source: Vancouver home sales surged 28% in November

Australia

Australia's housing market lost momentum in late 2024, with property prices falling in key cities like Sydney and Melbourne. This decline is attributed to higher interest rates, tighter lending criteria, and reduced demand from first-time buyers. Experts predict that this cooling trend will likely persist into early 2025, potentially offering a window of opportunity for prospective buyers.

Source: Australia’s housing market loses steam with prices falling in Sydney and Melbourne

Dubai

Dubai’s real estate market continues its rapid growth, with home prices expected to surge again in 2025. According to Knight Frank, prices for luxury properties are projected to rise by up to 15%, fueled by strong international demand and government initiatives aimed at attracting foreign investors. The market's expansion is further supported by ongoing infrastructure developments and a robust economy.

Source: Dubai Home Prices Set to Surge Again in 2025, Knight Frank Says

Singapore

Singapore’s property market faces potential government intervention if current growth trends continue unchecked. Recent reports highlight that home prices remain elevated, despite cooling measures introduced earlier in 2024. Experts warn that harsher property curbs may be necessary in 2025 to address affordability concerns and prevent overheating in the market.

Source: Singapore Seen Facing Harsh Property Curbs If Boom Isn’t Tackled

Global Property Investor – Dubai’s Rental Market Set to Surge 18% in 2025 as Demand Grows

USA

In November 2024, U.S. mortgage rates decreased for the first time in over two months, leading to a surge in homebuyer activity and an increase in mortgage applications. The average rate for a 30-year fixed-rate mortgage fell to 6.86%, down from the previous week's 6.97%. This decline has slightly improved affordability, encouraging renewed interest in the housing market. Analysts say the market's growth depends on the economy and steady rates.

Source: U.S. mortgage rates drop, easing pressure on potential homebuyers

U.K.

Zoopla's November 2024 report indicates that U.K. house prices are no longer overvalued, thanks to strong income growth and lower mortgage rates enhancing affordability. The average house price has increased by 1.5% annually, reaching £267,600. Experts expect house prices to rise by 2.5% in 2025 and 7.5% over the next three years. However, Stamp Duty changes in April could slow this growth.

Source: Zoopla: U.K. house prices are no longer overvalued

Canada

According to Oxford Economics, Canadian mortgage rates are expected to rise starting in 2026, which could keep housing out of reach for many until 2035. While recent rate cuts have offered temporary relief, they may also push home prices higher, reducing affordability. Slower population growth could help ease price increases, but major improvements in affordability are unlikely in the near future.

Source: Canadian Mortgage Rates To Rise, Housing Unaffordable Until 2035: Oxford Econ

Australia

Foreign investment in Australia's property market has declined, with approved residential real estate investments dropping by 15% during 2024. This decrease is attributed to higher taxes, fees, and stricter regulations deterring foreign buyers, particularly from China and Hong Kong. The decrease in foreign investment raises concerns about housing supply and affordability, as these investors have traditionally played a key role in funding new housing developments.

Source: Why foreign buyers are exiting Australia’s property market

Dubai

Dubai’s real estate market is growing quickly, with property rentals expected to rise by 18% in 2025. Strong demand for both luxury and commercial properties, along with supportive government policies, is driving this growth. Ongoing infrastructure projects and urban developments are attracting more international buyers, keeping the market’s momentum strong.

Source: Dubai real estate: property rentals set to surge 18% in 2025

Singapore

Business sentiment among Singapore property players improved in Q3 2024, driven by falling interest rates and a stronger economic outlook. Key sectors like Hotels/Serviced Apartments and Suburban Residential show strong potential, making them attractive for investors. Despite some risks, Singapore’s stable and resilient market continues to offer promising opportunities for long-term investment.

Source: Business sentiment among Singapore property players improves in Q3 rate declines

Global Property Investor – Singapore’s Home Prices Set to Rise in 2025 as Market Confidence Grows

USA

In October 2024, U.S. existing home sales increased as a drop in mortgage rates offered a small boost to the housing market. The National Association of Realtors described the rise as encouraging, but affordability remains a concern due to high prices and rising interest rates. Analysts suggest that for this upward trend to last, borrowing conditions will need further improvement.

Source: U.S. existing-home sales rose in October after mortgage-rate drop

U.K.

Asking prices for homes in the U.K. dropped sharply in November 2024, marking the steepest decline for this time of year since 2018. Despite this, analysts predict a recovery in 2025 as the market stabilizes. The recent price cuts are largely due to sellers adjusting to cautious buyers but renewed economic confidence, and better interest rates could help the market bounce back in the months ahead.

Source: Asking prices for UK homes show big November dip but 2025 set for gains

Canada

Canadian home sales in October 2024 were down 6.7% year-over-year but rose 1.4% from the previous month. The national average home price held steady at $736,000, a 2.3% increase year-over-year. Vancouver stood out with stronger sales activity, reflecting steady demand despite ongoing affordability challenges. Experts point to improved borrowing conditions and strong immigration as key drivers of the trend.

Source: Canadian Home Sales Surge in October, Reaching a Two-Year High

Australia

Australia’s property market remained notably stable throughout 2024, with steady prices and consistent activity levels showing no significant downturns or spikes. Experts credit this stability to balanced supply and demand, a resilient economy, and low unemployment. Analysts expect this trend to continue into 2025, creating a favorable market for buyers and sellers.

Source: Australia's property market has seen an enormous amount of stability over the past year

Dubai

Dubai’s real estate market continues to thrive, fueled by strong demand for high-end properties and a supportive business environment. Experts highlight the emirate’s robust economic policies and growing global investor interest as key drivers of this growth. Both residential and commercial sectors are flourishing, with long-term prospects strengthened by strategic infrastructure developments.

Source: Why Dubai’s current real estate boom is here to stay

Singapore

Singapore’s home prices are projected to rise in 2025, driven by a strong economy and sustained demand, particularly in the luxury and prime property area. Analysts note that reduced cooling measures and foreign investor interest strengthen market confidence. The trend reflects similar growth expected in other global hubs like Hong Kong and Sydney.

Source: Home prices set to rise in Singapore, Hong Kong, Australia in 2025

Global Property Investor – Ontario Home Prices Climb 4.1% While British Columbia Faces Declines

Global Mortgage Group

USA

Federal Reserve Chair Jerome Powell says the main problem behind the U.S. housing crisis is a lack of homes for sale. This shortage has made houses more expensive and harder to afford. He emphasized that while the Federal Reserve can influence interest rates, it cannot directly address the housing supply problem, which requires action through local and national policies to encourage construction and development.

Source: Jerome Powell says the 'real issue' behind the U.S. housing crisis is 'not something the Fed can really fix' — here's why and what Americans can do

U.K.

Hamptons has revised its U.K. home price forecast, now predicting a 3% decline in 2024, influenced by recent budget measures introduced by the Labour government. These measures, aimed at addressing housing affordability, include increased taxes on high-value properties and incentives for first-time buyers. The forecast adjustment reflects expectations of a cooling housing market in response to these policy changes.

Source: Hamptons lowers U.K. home price forecast on Labour budget measures

Canada

In September 2024, Ontario's home prices rose by 4.1% compared to the previous month, with an average price of $851,478—a slight 0.2% increase year-over-year. In the Greater Toronto Area, prices grew 3.1% month-over-month to $1,107,291, though this was down 1.1% compared to last year. Meanwhile, British Columbia's average home price fell 2.4% year-over-year to $942,969, despite a small 0.5% monthly rise. This suggests that buyers may find more favorable conditions in British Columbia, while Ontario remains a competitive market.

Source: Posthaste: These are the best buyers' markets in Canadian real estate — for now

Australia

Brisbane's housing market remains strong, with prices reaching record levels. Since the start of COVID, home values in Brisbane have increased by 64%, even surpassing Melbourne's median home price. Despite increased listings and rising prices affecting affordability, demand remains robust, particularly for detached houses in inner and middle-ring suburbs. ANZ Bank forecasts a 5-7% property price rise in Brisbane in 2025.

Source: Brisbane's property market forecast for 2025

Dubai

Dubai's older buildings are attracting significant investor interest due to their prime locations, larger unit sizes, and established communities. These properties often cost less than newer ones, making them attractive to both buyers and renters who want more space in central locations. This trend highlights a shift in preference towards established properties that provide a balance of affordability and desirable locations.

Source: Dubai's Palm Jebel Ali: Are property investors diverting attention to city's new 'island'?

Singapore

In Q3 2024, private residential rents in Singapore rose for the first time in nine months, showing signs of market recovery. This increase is due to steady demand from local and foreign tenants, especially in the luxury market. Fewer property restrictions and a stable economy have also boosted confidence in the high-end rental market.

Source: Singapore private residential rents rise for the first time in nine months

Home Prices Set to Surge 5% in the 4 Months Following the Election

The elections are behind us, and with the political uncertainty out of the way, we can now look ahead with confidence.

On a national level, existing home sales dropped to a 14-year low in September, even with mortgage rates hitting a two-year low during that time, according to the National Association of Realtors®.

With that uncertainty gone, buyers will likely feel more secure in making this major decision.

Historically, home prices have shown a bullish trend!

Looking at the past five elections (2004–2020), a slowdown in home sales occurred in the four months leading up to just two of those elections—2004 and 2016.

Similarly, slowing price growth was seen before only two elections: 2004 and 2008.

But there’s more to the story—post-election, home sales and prices typically see a boost. 

Since 2004, home sales and prices have increased annually in the four months following each election, except in 2008, when the housing market was hit hard by the Great Recession.

Moreover, these post-election gains have generally outpaced the slowdown seen right before the election, with some exceptions (like 2012, where the improvement was modest). In contrast, years like 2016 and 2020 saw much sharper rebounds.

Key Insight => On average, home sales have increased by 7% annually in the four months following the last five presidential elections, and prices have risen by an average of 5%.

While mortgage rates and the overall economy are still the main drivers of homebuyer behaviour, the data points to a post-election bump in sales and price growth. The evidence suggests a positive outlook moving forward.

Here is a recent video we hosted on “Ask Us Anything About U.S. Real Estate Investing.”

In light of the election this week, we wanted to share some key insights with you. We’ll be back with our regular Global Property Investor update next week.

www.gmg.asia

Access Cash Quickly From Your International Home Equity!

International Home Equity "Bridging" Loans

We have seen an unusually high demand for short-term bridging loans over the past 3 months as global investors look to access cash quickly by tapping into their international home equity, mainly in:

- Singapore

- USA

- U.K. (London)

- Australia

 *other countries on a case-by-case basis

Why are our clients tapping into their home equity?

For home improvements to increase property value. In the U.S., the BRRRR method uses this strategy.

Debt consolidation for high-interest debt.

Major expenses, such as college tuition, medical bills, weddings, or even vacations!

Investment opportunities with a short funding window. We can typically fund within 1–4 weeks!

Raising cash before the sale of property.

For working capital for their operating company.

When their personal financials cannot support a traditional bank loan (asset-rich but cash-poor).

When traditional bank financing is not available.

Why Choose GMG International Bridging Loans?

Our team of loan officers act on your behalf to find a repayment plan that meets your exact requirements.

We structure the loans based on the asset value of the property, not your personal financials.

This is particularly useful for self-employed or elderly borrowers who are asset-rich (or book value-rich) but cash-poor.

Typically, there is no age restriction, and since these are private loans, they are not subject to traditional bank lending regulations (no TDSR).

Successful Loans Funded Over the Past 3 Months

Singapore

A Good Class Bungalow owner needed SG$20M to purchase a hotel overseas from a distressed seller (worth SG$40M book value) but needed funding within 30 days. Our client had reached their borrowing limit with their private bank (TDSR) but had a small SG$10M loan outstanding on their GCB worth SG$50M.

GMG Solution => We arranged a 70% LTV loan on the SG$50M GCB to extract SG$25M in net cash (SG$10M paid down the existing mortgage), all completed within one month.

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An elderly couple, empty nesters, owned a landed home worth SG$25M with no debt and had put it up for sale. They wanted to purchase 2 condos for their kids in a new development worth SG$5M each but were too old to qualify for a mortgage in Singapore.

GMG Solution => We helped the couple access SG$10M in home equity to purchase 2 condos. We structured the loan with no interest payments for 12 months while their home was on the market for sale.

USA

A Southeast Asian family office owned several properties in Beverly Hills worth US$60M, debt-free, and needed cash to support working capital for purchasing raw materials while commodity prices were low.

GMG Solution => We arranged a US$30M (50% LTV) short-term bridging loan within 2 weeks.

U.K.

An Indian high-net-worth family living in Dubai owned luxury apartments in London worth £15M. Knowing traditional U.K. mortgages take time, they needed cash quickly to purchase "off-market" real estate investments in the U.K.

GMG Solution => We arranged £10M in under 2 weeks, enabling our client to purchase the below-market London properties, which have since been revalued 40% higher, making the profit exceed the loan amount.

To learn more about our comprehensive bridge loans, contact us at hello@gmg.asia today.

Global Property Investor – Australia’s Property Market Slows as Interest Rates and Costs Rise

Global Mortgage Group

USA

The 30-year mortgage rate in the U.S. has jumped to 7.79%, the highest it’s been since 2000. This spike is making homes less affordable for many buyers, putting pressure on the housing market. While home sales have held up so far, experts are concerned that if rates keep climbing, buyer demand could start to slow in the coming months.

Source: Surging Mortgage Rates Threaten U.S. Housing Market Momentum

U.K. 

New home construction in the U.K. has dropped to its lowest level since 2009, with fewer than 88,000 homes started in the year through June 2024. High interest rates and sluggish development are making it harder for Prime Minister Keir Starmer to reach his goal of building 1.5 million homes over the next five years.

Source: Lowest U.K. Housing Starts Since 2009 Reveal Challenge for Labour

Canada 

Canada’s housing market is still facing serious challenges, and some experts think the problems may be more deep-rooted than temporary. High household debt and slow wage growth are making homes less affordable, even though prices have started to level out. Many Canadians are holding off on buying, worried that the affordability crisis could last a long time.

Source: Canada's Housing Crisis: A Feature, Not a Bug

Australia 

Australia’s housing market is starting to cool, especially in major cities, as rising interest rates and affordability issues make buying harder for many. In October 2024, the Victorian government launched an initiative to speed up building permits, focusing on townhouses to help ease housing shortages and support first-time buyers. But across the country, the market overall is slowing as borrowing costs continue to climb.

Source: Australia's Housing Market Shows Signs of Cooling in Major Cities 

Dubai 

Dubai’s luxury property market is still seeing price increases, even as other global luxury markets cool down. Data from October 2024 shows demand is strong, with prices rising, though new builds are becoming smaller. With more people wanting to live in the city, developers are focusing on high-end, compact properties that make the most of prime urban locations.

Source: Luxury Housing Markets Slow Globally, Prices Surging in Asian Cities

Singapore 

Private home prices in Singapore dipped by 0.7% in Q3 2024 as high interest rates and strict lending rules cooled the market. Still, some high-end properties, particularly those favored by wealthy foreign buyers, continue to do well. Analysts expect steady demand in the luxury sector to hold through the end of the year, even as the broader market slows down.

Source: Private Home Prices Decline 0.7% in Q3; Analysts Expect Momentum to Persist for Rest of Year

Global Property Investor – Singapore’s Luxury Real Estate Sees Surge in Private Home Sales Despite Market Challenges

USA

The 30-year mortgage rate in the U.S. has climbed to 6.54%, its highest since early August. While buyers face higher costs, new home sales jumped in September to their fastest pace in over a year, showing strong demand in the market despite rising rates.

Source: Mortgage Rates in U.S. Rise for Fourth Week, Climbing to 6.54%

U.K.

In October 2024, U.K. home sales rose 29% from last year, with the highest number of properties on the market in a decade, giving buyers more options and bargaining power. Despite strong sales, affordability is still an issue, with some buyers waiting on mortgage rate cuts and budget updates. The outlook for 2025 is positive but depends on affordability improvements.

Source: Number of homes sold in U.K. up by a third, says Rightmove

Canada

The Bank of Canada made a bold move by cutting its key interest rate by 50 basis points to 3.75% in October 2024. This action is aimed at reigniting the housing market after sluggish sales. While this rate cut could attract more buyers, concerns remain about rising household debt levels, which are already among the highest in advanced economies. Some potential buyers might delay their purchases, expecting further rate reductions.

Source: Bank of Canada's Deeper Cut Aims to Reignite a Sluggish Housing Market

Australia

Victoria is dealing with a severe housing crisis, prompting the state government to introduce new measures in October 2024 to expedite building permits, particularly for townhouses. This strategy is part of a broader plan to increase the housing supply in urban areas and ease affordability pressures for both homebuyers and renters. The plan is intended to help younger buyers, especially millennials, gain access to more affordable housing​.

Source: Premier plans to make Victoria the 'townhouse capital' of Australia in bid to help millennials own homes

Dubai

Dubai's real estate market continues to experience rising property prices, but homes are getting smaller. Data from October 2024 shows that while prices are increasing, particularly in key urban areas, the average size of homes has decreased. This reflects the growing demand for luxury properties despite space constraints in the rapidly expanding city​.

Source: Dubai Homes Are Getting Smaller While Property Prices Increase

Singapore

In October 2024, a single major project launch defied the slowing trend in Singapore’s residential market. While rising interest rates and stricter lending rules have reduced overall transactions, this project attracted strong interest, especially from wealthy individuals and foreign buyers. Despite challenges in the broader market, luxury properties remain in high demand.

Source: How a Single Project Launch Bucked the Trend in Singapore’s Residential Market