Read more »]]> In North Dakota, job seekers can make $100,000 a year with overtime and bonuses.

People are swarming to this oil boom state looking for work, and nearly everyone is finding it.

Williston, North Dakota is one of these cities situated on the Bakken formation, a deposit that is estimated to hold between 4 billion and 24 billion barrels of oil, reports the International Business Times.

Over 6,000 people have flocked to the state in search of jobs recently, the article reports, yet many of them cannot find homes.

The 2010 census reported that the population of the city is 14,716, says the Times, and with this new influx of workers there is little room for them to stay.

CNN tells several stories of these workers – people who have doubled or tripled their salaries yet are either homeless or living in poor conditions.

A man the article calls Matt told CNN that he has been living in his RV in a Walmart parking lot. He was transferred from Walmart in Minnesota over the summer, where his salary spiked.

Another family is living in a campground, having moved from a home with a yard to their yard-less RV, they told CNN.

The oil companies have been trying to help out the workers – without this manpower, the oil extraction would be much less efficient.

Some of the companies, the article reports, have rented out sections of hotels or apartment complexes, and many are also building low-budget housing around the areas for their workers.

This type of housing has been dubbed “man camps,” and though it’s cheap it is far from ideal.

Benjamin Lukes told CNN of his experience in these “man camps,” where he pays $400 a month for the space plus housekeeping and three meals a day.

And yet he equates the space to a “prison cell” and he hasn’t been able to bring his family to Williston with him, having no place for them to stay.

Unemployment in the state is 3.5%, one of the lowest in the country. And yet even the wealthy workers are homeless.

Read more »]]> In the early 1990s Austin , Texas was a city full of empty office towers , whereas now the likes of companies like Apple, Progressive Insurance and Whole Foods are moving into the city creating hundreds of job opportunities. The knock on effect of this is buyers from out of state are snapping up houses that in comparison to many areas are ridiculously cheap.

Many properties will have multiple offers and sell for full or more than full price and then be under contract within 48 hours.
Austin is ranked first on Forbes’ list of America’s Fastest Growing Cities for the second year in a row.
According to Moody’s Analytics, the Austin metropolitan area — including the northern suburb of Round Rock, home to Dell Computer — is expected to have an economic growth rate of 6% a year through 2016, more than double the nation as a whole. Apple is likely to sign off soon on plans to build a $304 million operations centre that will employ as many as 3,600 people.
When constructing the list of fastest growing cities all factors were needed to be taken into consideration , projections of economic and population growth from Moody’s were factored in with median income, unemployment rates and employment growth. This ensured comparisons were fair a good overall view was given.
Top Five Fastest Growing American Cities
1 . Austin , Texas
Projected economic growth rate, 2011-2016: 6.1%
Population growth rate: 2.8%
Current MSA population: 1.8 million
Median income: $56,613
2. Dallas, TX
Projected economic growth rate, 2011-2016: 5%
Population growth: 2.2%
Current population: 6.23 million
Median income: $55,526

3. San Hose CA
Projected economic growth rate, 2011-2016: 4.7%
Population growth: 0.9%
Current population: 1.88 million
Median income: $83,551
4. Houston, TX
Projected economic growth rate, 2011-2016: 6.1%
Population growth: 2%
Current population: 6.23 million
Median income: $55,297
5. Salt Lake City, UT
Projected economic growth rate, 2011-2016: 4.4%
Population growth: 1.5%
Current population: 1.16 million
Median income: $65,405

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Purchase Price: $57,900

Annual Rent: $10,740
Annual Cash Flow: $7,007
(on cash purchase)
This impressive 4 bed , 2 Bath property with drive, garage and gardens has been recently refurbished to a high standard. It is tenanted , so cash flowing from day 1 and is professionally tenanted. It is a mainly brick built property is 1,483 sq ft and was built in 1959.

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Read more »]]> Further to a meeting of ‘The Federal Reserve Board’ the Board have announced a more upbeat assessment of the economy.

With the Dow hitting its highest level since 2007 last month as well as car and real estate sales rising it can only be good news. The rise in Oil prices and interest rates are all a sign the economy is getting stronger, but how fast will these continue to rise ? The good news is The Fed Board have stated that they are committed to keeping short-term rates low until 2014. Long term rates will be dependent on the speed of economic recovery and there are still plenty of headwinds against a strong recovery. There are still millions of homes which are scheduled to go to foreclosure, that the real estate market need to absorb. Plus the world economy is still slowing and struggling in some areas such as Europe.
With all this considered a moderate but steady recovery is probably the best we can hope for and this would support low rates for the rest of 2012. But if we consider that rates have been the lowest of our generation, then even a small rise should still make the purchase of Investment Property an attractive proposition. So whilst there is a balance between rates and the economic recovery, it remains a good time to take advantage of it and make investments.

Read more »]]> After some promising recent data, which had seen Sterling move to 2012 highs against most of the major currencies, today’s preliminary reading of Gross Domestic Product (GDP) revealed that the UK economy has entered a ‘double dip’ recession. Growth in the UK, for Q1 2012, has contracted by -0.2%.

It is widely expected that the Pound will now begin to give up some of its recent gains.

If you are considering buying US property in the near future now would be a very good time to get your US dollars in place. You could also consider a ‘Forward Contract’ and fix your rate whilst you decide on which property you want.

If you need help with this, speak to us and we’ll happily put you in touch with our currency provider.

Read more »]]> Typically, landlords tend to be individuals or small firms that own just a handful of homes.

New investors believe the rental income can deliver returns well above those offered by Treasury securities or stock dividends. At the same time, economists say, they could help areas hardest hit by the housing crash reach a bottom of the market.

This year, a property investor signed a $400 million deal with a large unnamed investment company in Silicon Valley. The Investment Company plans to buy 10,000 to 15,000 more homes by the end of next year. Other large private equity investors have committed millions to these new markets, and Lewis Ranieri often called the inventor of the mortgage bond, is considering it too.

In February, the Federal Housing Finance Agency, which oversees government backed mortgage companies, announced that it would sell about 2,500 homes in a pilot program in eight metropolitan areas, including Atlanta, Chicago and Los Angeles.

And Bank of America said in late March that it would begin testing a plan to allow homeowners facing foreclosure the chance to rent back their homes and wipe out their mortgage debt. Eventually, the bank said it could sell the houses to investors.
The big investors are wooed by what they see as a vast opportunity. There is close to 650,000 foreclosed properties sitting on the books of lenders, according to RealtyTrac, a data provider. An additional 710,000 are in the foreclosure process, and according to the Mortgage Bankers Association, about 3.25 million borrowers are delinquent on their loans and in danger of losing their homes.

With so many families displaced from their homes by foreclosure, rental demand is rising. Others who might previously have bought are now unable to qualify for loans. The homeownership rate has dropped from a peak of 69.2 % in 2004 to 66 % at the end of 2011, according to census data.

Economists say that investors could help stabilize home prices. “If you have a lot of foreclosures in one community you will improve everybody’s home values if you take them off the market,” said Diane Swonk, the chief economist at Mesirow Financial. “If those homes are renovated and even rented, it is a lot better than having them stand empty.”

Read more »]]> It’s been coming….

A report from December 2010 has been circulating throughout our network of property professionals that the IRS – The US version of the Inland Revenue for tax collection is going to be targeting property investors and landlords.

Report available here (it’s a bit long and boring!)

One of the CPA’s had this to say on the subject:
“The IRS has increased their Audit Staff and we are going to be seeing increased audit activity in a lot of areas. The do pick “projects” where they target certain return types or activities. Once they feel like they have us whipped into shape they will move on to another area. I have seen this through the years. They are currently targeting Non-Profits too. I have spent the last three days in a non-profit audit and still have more to do on it.”

As clients of ours and landlords from all over the world that own property in the USA, now is the time to make sure your 2012 accounts have all t’s crossed, and i’s dotted.

Make sure you keep the IRS out of your life!

Read more »]]> Real Estate Experts offer 2012 forecasts for commercial property that stretch from deep worry about the availability of financing to near giddiness over the robust health of multifamily housing.

The range of views could be seen clearly at the annual Commercial Property Forecast Summit, hosted by the Realtors’ Commercial Council at Germantown Performing Arts Theatre.

Speakers addressed office, industrial, retail, multifamily, land and financing.

No one had happier news than Eric Bolton, CEO and chairman of MAA, the Memphis-based real estate investment trust that invests exclusively in multifamily housing.

What with housing loans tougher to acquire, student loan debt growing more oppressive, and twenty-somethings waiting longer to marry and start a family, the demand for apartment living is climbing, Bolton said.

“There’s no market I’m aware of in the country where rents are going down,” he said.

Investors noticed and participated in three times as many apartment-buying transactions in 2011 as they did in 2010, including $230 million worth in Memphis alone.

“America is rethinking how it meets its housing needs,” Bolton said.

Over the decades, about 64 percent of households owned their own homes and 35 percent rented. Ownership peaked in the mid-2000s at 69 percent, and is now 66 percent and dropping.

Bolton foresees the portion falling to about 60 percent.

The biggest age bracket for renters is 18-35, and there are 21 million more Americans in that group than in the 36-50 age range.

The supply of apartments won’t keep up with demand, meaning rent and occupancy rates should keep growing for investors, he said.

Clearly this is great news for overseas investors. yet again indicating that although the economy is slowly recovering and the real estate landscape is changing, now is the time to invest while property prices are low and demand for rental property is high.

Read more »]]> Home ownership used to be part and parcel of the American dream but this is no longer the case. The American dream has found a new direction that according to experts, is here to stay for the foreseeable future. In a slow recovering economy property sales have plummeted and it seems renting is the way forward.

The American real estate market has suffered greatly over recent years and with employment higher than ever and credit agencies still unwilling to lend, buying a property is no longer an attractive prospect or sometimes even an option for those looking to settle. People are understandably cautious about the future and are either choosing not to buy in a distressed market or simply cannot get a mortgage. The rental market in the majority of cities has recently taken a dramatic new direction as more and more people are choosing to rent on a long term basis.

Trulia.com previously released a list of the top ten American cities with the largest increases in rentals by comparing change from the third to the fourth quarters of 2010. Additional data, including unemployment, median incomes, home values and rents is from City-data.com.

San Diego-Carlsbad-San Marcos, CA
Rise in renters: +5%

San Diego statistics:
Median income: $59,901
Unemployment: 10.1%
Median house or condo value: $445,500
Median rent: $1,242

The vacancy rate for rental apartments in San Diego went down to 4.6 percent in the last quarter of 2010, from 5.0 percent the previous year, according to data from the property research company Reis. Home prices in the San Diego metro area are expected to rise 3.5% this year, according to a forecast from Real Estate Solutions.

Memphis, TN-AR-MS
Rise in renters: +6%

Memphis statistics:
Median income: $34,203
Unemployment: 10.2%
Median house or condo value: $ 101,400
Median rent: $745

Many rental properties in Memphis are owned by out-of-towners, says Jim Reddy of Memphis Investment Properties, in an article in the Memphis Daily News. He puts his own company’s extra-Memphis owners at about 80 percent, including investors from New Zealand and Australia. The article also notes that in January the average home in Shelby County sold for $50,000 or less.

Charlotte-Gastonia-Concord, NC-SC
Rise in renters: +6%

Charlotte statistics:
Median income: $49,779
Unemployment: 8.7%
Median house or condo value: $175,600
Median rent: $811

It’s a good time for investors in rental properties and not so good for renters in Charlotte, because increased occupancy in rentals means fewer enticements, higher rents, and possibly even shortages, The Charlotte Observer reported last month.

New Orleans-Metairie-Kenner, LA
Rise in renters: +6%

New Orleans statistics:
Median income: $36,468
Unemployment: 9.1%
Median house or condo value: $192,600
Median rent: $882

The picture painted by the Department of Housing and Urban Development is not a bright one. Median rent has increased since Katrina—from $662 to $882 (adjusted for inflation). Supply of available, intact rentals plummeted after the storm, so perhaps this increase in rentals is a good sign for a troubled city.

Worcester, MA
Rise in renters: +6%

Worcester statistics:
Median income: $47,415
Unemployment: 9.5%
Median house or condo value: $230,100
Median rent: $833

When single-family homes won’t sell for significantly less than their purchase price, many owners turn to renting them out, notes the Worcester Business Journal. The renters of these homes, in turn, are those reluctant to enter this home-buying market, and the high-end rental market has seen an uptick as well

Columbia, SC
Rise in renters: +8%

Columbia statistics:
Median income: $38,807
Unemployment: 15.2%
Median house or condo value: $165,700
Median rent: $756

The Columbia housing market continues to “remain in hibernation” until the third quarter of this year, according to studies by Fiserv and Moody’s Economy.com cited in a report by The Mather Company. Prices are expected to drop before possibly stabilizing by year’s end.

Syracuse, NY
Rise in renters: +9%

Syracuse statistics:
Median income: $30,075
Unemployment: 9%
Median house or condo value: $84,400
Median rent: $668

It’s the same old story you’ve heard in other cities: buyers are reluctant to risk buying in Syracuse, and New York’s loss of residence is being felt in this city, which has more than the usual amount of vacancies, says Housing Predictor.

Bakersfield, CA
Rise in renters: +10%

Bakersfield statistics:
Median income: $52,677
Unemployment: 11.5%
Median house or condo value: $196,300
Median rent: $919

Houses are being built in Bakersfield, and perhaps they’ll even be owned by their occupants: Kern County had the most housing starts in 2010 of the Central Valley markets, reported Bakersfield Economic and Community Development. In addition, the U.S. Department of Housing and Urban Development forecasts: “Increasing population and a slowdown in the shift to homeownership are expected to support the demand for 2,400 new market-rate rental units during the next 3 years.”

Greensboro-High Point, NC
Rise in renters: +11%

Greensboro statistics:
Median income: $38,694
Unemployment: 9.6%
Median house or condo value: $143,800
Median rent: $714

The number of homes for sale in Greensboro has decreased by 12% from a year ago, and the number of newly listed homes is down by 22%, according to the Greensboro Home Market Report.

Toledo, OH
Rise in renters: +16%

Toledo statistics:
Median income: $32,325
Unemployment: 11%
Median house or condo value: $92,900
Median rent: $602

Rents are up and vacancies down—so goes the by-now familiar report from The Blade in Toledo, Ohio. Vacancy rates are down at year’s end to 7.7% from 10 earlier last year. This is attributed to the region’s high foreclosure rate.

This is all great news for those wishing to invest in rental property in the U.S. Low property prices, reluctance to buy, higher demand for rental properties and higher rents in most cities means that the face of the real estate market is changing for the better for smart investors. Don’t miss out!