For decades, U.S citizens have used real estate as a path to wealth. The potential is there, especially in today’s healthy real estate market, but does this plan work for international investors as well?
Put Your Property to Work
Most residential property income is obtained through basic rental agreements. Reasonable rate mortgage loans for international borrowers through Milo allow you to make money through rental agreements, with low monthly payments and high loan-to-value ratios. With a rental agreement, your tenants (or renters) will pay a fixed amount each month, which you can further invest either back into the property or through other real estate or stock market opportunities. Some people further create value in their investment opportunities by fixing and flipping the property. Flipping can be a lucrative way to add to your real estate portfolio if you know where to find good deals. Successful international flippers have amazing relationships with local real estate agents as well as Milo who provide mortgage solutions for non-U.S. citizens.
Increased Property Value
Real estate investments typically grow through appreciation. Ideally, as time goes on, the property should increase in value and then profits are realized when a property is sold. Your real estate investment can be refinanced with a lower interest loan to increase your return on investment. If your investment property is rented, this will lower your monthly cost on the property and allow you to increase profit margins as well.
With residential properties, location is often the most important factor contributing to the appreciation of the home. Improvements can also be made to further appreciation and can also increase monthly rental income. Access to schools, playgrounds, public transportation, and amenities will cause a home’s value to climb, so it is imperative that location plays a large role in your quest for the perfect investment property.
Watch for Zoning Rules
If you purchase a property as a rental investment within a community with a Home Owners Association (HOA), make sure you are fully aware of all the specific guidelines governing the neighborhood. HOAs can be strict, governing the outdoor look of the home and limiting your flipping efforts, so be sure you and your renters are comfortable with all of the requirements.
Certain cities might also regulate landlords through zoning requirements, so ensure a look into any requirements for your specific location before you decide to buy. There may be city zoning requirements or ordinances that you have to follow for a rental, but these same requirements wouldn’t be issues for a property owner. These ordinances include limits to the amount of people who can live on the property, whether or not a home-based business can be located in the rental home, and if pets can be allowed. Remember, you could face fines and other problems if you’re supposed to be following city zoning laws and fail to do so.
A strategic approach to real estate investment can help you maximize income and create increased profits through regular appreciation. Learn more about how you can fully access loans for foreign nationals and leverage the right solution for your real estate portfolio.