Look to America’s Heart for a High Yielding Property Investment
With Sterling’s value increasing to a 5 month high against the US Dollar and the numbers seeking rental accommodation rising due to continuing foreclosures, it would seem that the window of opportunity to invest in the US remains very much open.
Over the past 18 months a steady wave of international buyers have snapped up below market value properties at bargain prices with the states of Florida and Michigan receiving the lions share of interest however now, as these markets stabilise in line with national economic recovery, savvy investors are looking for the next buy-to-let hotspot.
And it is to Heartland America that attention is turning. The mid-western states of Missouri and Ohio, home to the growing cities of St Louis, Kansas City, Toledo and Columbus, present a highly appealing investment environment with sustained demand for rental accommodation generated by the large employment base and detached family homes available at up to half below replacement build costs.
Steven Worboys, MD of US property investment experts, Experience International, comments,
“There is huge demand for rental accommodation from working families in the mid-western cities such as St Louis and Toledo. Up to 50% of residents in St Louis rent their homes with the majority seeking detached family homes. Property prices in these cities are well below the national median of $182,600 (Zillow.com) and owners can expect rental incomes of up to 12.5% in addition to capital gain.”
Combined these cities hold a population in excess of 6 million and have faired the economic storm better than many other higher profile cities. According to the U.S. Department of Labor, Kansas City has held a lower unemployment rate than the national rate with the healthcare and service industries replacing most jobs lost in the manufacturing sector and Columbus has been ranked the nation’s 6th most stable market by Standard & Poor’s as well as one of the 10 safest real estate markets in the US by the P.M.I. Institute.
Data from the National Association of Realtors (NAR) revealed that property prices in St Louis for Q1 2010 were higher than the previous 12 months with appreciation at 15.1%, Toledo showed 13.3% appreciation, Columbus 6.3% and Kansas City 3.2% over the same period
Worboys continues,
“Many believe that the entire US was affected to the same extent by the recession but this is simply not the case. Indeed some states saw significant unemployment and as a consequence thousands of foreclosed properties but many states such as those in the Heartland due to diverse employment sectors avoided worst case scenarios and now as the economy shows continued albeit slow growth these cities are the first to recover.”
It is this recovery that shrewd international investors are keen to capitalise on. With 3 bedroom detached family homes available from as little as $24,500 (with 50% LTV finance) entry into the Toledo property market for example requires low cash outlay. Fully refurbished properties in sought after areas can expect to generate up to $860 per month and are sold with tenants already in place on long-term leases. 1 year’s home maintenance is also included and investors can take advantage of exclusive finance packages available.
To find out more about investing in property in Heartland America then contact the experts at Experience International on + 44 (0) 207 321 5858 or visit www.experience-international.co.uk.