There is no doubting that the markets are on a roll this year. Look at the stock markets and they are going through the roof. Bitcoin has also taken off like a rocket ship. But don’t forget property investments. In the U.K., values have increased by nearly 5 percent and some regions have done even better.
While investing in property at home has been popular for some time, British investors are increasingly buying up land in the U.S. That’s right, we are taking back the colonies one parcel at a time.
Along with the opportunity to school our American cousins in the proper pronunciation, property investments in the U.S. highlight the opportunity to earn heaps of dosh on the other side of the pond. With that in mind, here are the five most popular U.S. markets for British property investors.
- 1. Miami
Whilst one might think New York would top the list, Miami has a few things that the Big Apple will never have. First, we have the fun in the sun – unless you are enamored with the mild summers and the dreary winter in the British Isles. But for the rest of us, a brief sojourn to Miami could be just what the doctor orders and why not? While the flights are a bit longer than those to New York, several airlines offer daily non-stop service between the two cities.
What’s the second reason? Whilst a holiday in Spain might offer an exotic respite from the drudgery of life in the city. But it seems like everyone has a place in the Spanish countryside these days. Investment in Miami not only offers a break from the norm, but the large expat population includes a significant number of Canadians and Chinese as well as people from Central and South America. All of this makes the city one of the more cosmopolitan places to get away in ‘the states’.
If the Miami market is out of your price range due to the inflated prices of international investment, try the neighboring cities to the north. Ft. Lauderdale, to the immediate north, offers excellent access to amenities and nightlife and the slightly farther north cities in Palm Beach County also offer excellent real estate investment opportunities at a fraction of the cost of Miami. Local West Palm Beach realtor Tim Frater of LiveWPB says, “the West Palm Beach luxury condo market, in particular, offers investors a little slice of paradise. It is close to beaches, world class shopping, and with the new high speed train system, can get you in (or out) of the hustle and bustle of Miami in about an hour.”
- 2. Chicago
The home of the skyscraper is also attracting an increasing number of British property investors. One reason for this is the return on investment as property values tend to be more reasonable than those in New York or Los Angeles. As such, wise investors are considering luxury condos for sale in the Chicago property market as a sound investment.
Additional reasons for the increased interest in Chicago are the number of large corporates who have their headquarters in the ‘Second City’ as well as O’Hare Airport – which happens to be the fourth busiest airport in the world. All of this makes the city an ideal place to do business.
Whilst winters in Chicago tends to be harsher than those in the Scottish Highlands, the summers are quite pleasant and if you are a fan of sailing, then Lake Michigan is a great place to get out on the water.
- 3. New York
You can’t have a list about the best property markets in the U.S. without mentioning New York. After all, we British have been flocking to the city and its environs for more than 400-years.
Besides the historic connections, New York is very much a world city – though one may argue that London is even more so. For this reason, there are a multitude of property types on offer for almost every investor.
For the posh set investments in Lower Manhattan or Midtown are the right fit. Whilst, the more business-minded investors are keen to benefit from rising valuations in the city’s up and coming neighborhoods as they offer solid cash flows for years to come.
- 4. Los Angeles
Yes, the City of Angels is half a world away from the U.K. and the city is sprawling but there is something you need to know about Los Angeles – it is basically a collection of neighborhoods. This means that there is something for everyone in L.A., regardless of lifestyle or budget.
Let’s face it, the city’s location is an ideal base for investment and lure of the entertainment industry means there will never be a shortage of renters.
- 5. San Francisco
Life in the city by the bay is expensive – very expensive. One reason for this is the tech boom which has essentially priced many buyers, and renters, out of the market. However, there still are opportunities to earn from investment in the local real estate market. The trick is knowing where to buy and how to get your cash out.
As such, the smart play in the San Francisco market isn’t really renting; especially with so many newly minted tech millionaires walking around. Instead, look for hidden gems, which can be flipped at a premium. On the high end of the market, this means converting commercial and industrial space into residences, whilst the move at the low end of the market is to subdivide.
There you have it, five of the most popular markets for U.K. property investors. Which market appeals to you?
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Daniel Peacock