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Real estate opportunities in Cleveland, you have to invest smartly.
Real estate opportunities in Cleveland and Corona virus crisis. Real estate across the Atlantic maintains its reputation as a generator of good deals and profitability. What about Covid 19? Thibaut, head of Invest US and specialist in French-speaking clients in the United States, shares his knowledge of the current situation in the USA.
The United States has tried to delay the implementation of an economic brake, but we have all been in a lockdown for a month. However, the authorities are taking action to revive the economy as quickly as possible while being careful not to generate a second wave of contamination.
The government is helping businesses.
The state is developing aid for small businesses but also for workers who have lost their jobs. These aids go through bonuses, for some unemployment compensation for others it will be cheques ranging from $1300 to $3000 depending on the situation of each. These various aids allow tenants to continue the payments of their rents, no drop in the payment of rents currently observed.
The activity continues.
However, registrations for purchases continue. A weakening in sales volumes has been observed since the beginning of April mainly due to lack of air transport, but the situation is stabilizing. We are fortunate to have the trust of our former customers. Those who had already made a purchase with Invest US know that their investments are completely secure thanks to the whole team. I would like to thank them for this total confidence, it is these customers who allow us to continue our activity and thus preserve our jobs.
The crises in the United States.
The United States has already gone through various crises, the fall of the automotive industry, the subprime crisis… The early 2010s saw a redistribution of investment in the United States over almost the entire territory. Investments that are sometimes risky, often mishandled or ill-advised. Now the real estate market is healthy. To make a good investment in Cleveland, several small points remain essential. The most important point in my opinion is to focus on a strong, experienced team that speaks French and can be reached. The second important point is the proposed product. The renovation must be of quality. The third important point is the management after the purchase. A French-speaking management team, also experienced, is essential. It is the quality of rental management that determines your income. To sum up these words, a key word trust.
Investing in Cleveland, great opportunities.
Renovated family homes with prices ranging from $50,000 to $90,000. High profitability of 12-14%. A more-valued possibility in the medium term, the future will tell us how much the selling price of these houses will evolve, however, the purchase price is so reduced today that the more-valued is highly predictable. Some experts estimate that prices can double in a space-time ranging from 6 to 10 years.
The market remains stable.
There are no declines in sales prices today. Since 2008 and the outcome of the subprime crisis, property prices in Cleveland have been rising by about 11% each year. Depending on the duration of the epidemic these prices may vary, but for the moment the market is stable and foreign investors remain confident.
