By Sophie Carter – July 27th 2014 //
The US suffered the most from the financial crisis in 2008. During January to November 2013, the S&P/Case-Shiller national home price index skyrocketed by 13.88%*. Consequently, from 2008 to today, it has not been unusual to find yields in the 10% region in the USA.
By contrast in the UK, e.surv data found that house purchase approvals fell by 19%** between January and April of this year. This trend is expected to increase with base rate rise now expected towards the year end, given Mark Carney’s recent hints. Consequently, current yields on British property are typically between 4-6% broadly speaking. As such, there appears to be a window of opportunity for investing in US property.
Investing in new property markets is never to be taken lightly, so working with an expert partner can help you locate and manage the property. CityR specialises in investing in the US residential market, mainly through existing complexes for families, which deliver providing high yields from day one.
CityR invests up to 10% of the capital needed using its own funds, alongside a 75% mortgage from a US bank, which carries out the necessary due diligence on the property. The remaining funds are raised from investors, with a minimum investment of £25,000.
The model also ensures that investment partners will yield at least 10% annually by providing 8% preferred return. The yields are paid quarterly, with a time horizon of 3-5 years before selling. CityR manages the property on behalf of its partners.
* View More at Global Property Guide
** View More at e.surv