SHOULD I LOOK FOR GOOD R.O.I OR GROWTH
The age old question of Real Estate Investments. “ Should I be looking for growth or return on my property investments? “ This is a question that is on the lips of every new and seasoned investor.
Global Investments Incorporated has been selling buy to let homes in the USA for 7 years now and has sold in many areas such as Up State NY, Cleveland Ohio, Toledo Ohio, Detroit Michigan, Baltimore in Maryland and are now looking to expand into more markets like Memphis, Kansas and Indiana in 2019.
The Manchester based firm basically follows markets that can provide steady growth and good returns for their investors.
We asked Sales Director Scott Neve what are his thoughts on this subject and what his investors are looking for and also what as a company they try to deliver to their clients.
Scott was quoted in saying…. “ Most of the investors and clients we deal with come from all corners of the Globe and on a whole are looking for the same thing, a good net return on their investment. Of course if they see some growth at the same time then this is great which as long as they stay in it for the long term they should definitely see.
As a company we try and follow markets and look for good priced houses that have high rental potential. These two factors provide our clients with a net return of anywhere between 15% and in some cases a 25% on their money. These markets of course can change. Look at Orlando 10 years ago as an example. You could buy a single family home for 50k USD that would rent for $1,000 a month. Giving a net ROI of around 20%. Today the same property will cost you 125k USD but the rent is the same giving a 10-11% ROI. This is the reason we don’t sell in Orlando as we can deliver higher returns in other States. But this is a prime example of what we try and deliver our clients. A solid investment property that will give them a excellent net ROI and in time very good Capital Growth… “
So we asked Scott in reality can Investors look for both a good ROI and also Growth. “ 100% but like I said earlier as long as they are in it for the long term. Listen, don’t get me wrong over short periods of time property markets can drop but in general if you take markets over a 10-20 year period you are almost 100% guaranteed to see growth. I mean if we all had a time machine and could go back 20 years what would we do?? We would all buy as much property as we could as we know over the 20 years property would be worth a lot more and in some case markets would have doubled or tripled in value. So my advice to anyone asking about ROI or Growth is that stick it out and growth is almost guaranteed and look for a good steady cash on cash return meaning that in most cases the property should pay for itself in 5-8 years depending on the net ROI.. “ Scott Neve – Sales Director – Global Investments Incorporated
If you would like more information on the different types of investments offered by Global Investments Incorporated please email Scott or any of his team at email@example.com