The pandemic and rising level of inflation have birthed a global housing boom. This spike prompted U.S. property investors to invest in a second home and building their real estate investment portfolios. Sophisticated U.S. real estate investors can foresee that rental prices will steadily increase along with rates. The question is; how exactly are they pulling this off? By releasing their equity for existing realestate!
It’s safe to say that this trend began in last year’s second quarter. As per stats from Black Knight, Inc., that period saw the most significant quarterly volume in cash-out refinances in over a decade, with U.S. homeowners withdrawing $63 billion in equity from their homes.
It’s tricky to identify the exact number of U.S. real estate owners cashing out from their current properties to purchase more. However, this pool has both experienced real estate tycoons and beginner investors hoping to become the next thriving generation of lessors.
What Are The Chances Of Success?
Of course, releasing equity to invest in a second home or investment may seem somewhat risky, especially for a first-timer, but this is not necessarily a doomed endeavour if you play your cards right. In fact, cash-out refinances have enabled countless non-resident and U.S. expat property investors to grow exponentially within a limited period. A majority of those who sunk that money into rentals now bring in thousands of dollars in rent.
The thing is, interest rates have increased all across the nation. As a result, many first-time buyers cannot afford to purchase homes due to high mortgage rates, so they are forced to settle for rentals until the housing market becomes friendlier. With the soaring demand for these properties, landlords have no option but to push up rents. Therefore, you are likely to make huge profits from your rental property, which might even pave the way for you to purchase more.
As you contemplate buying a second home or investment in the U.S. through releasing equity from your existing property, do your homework. Don’t make any purchase decision before you know exactly what you are getting yourself into by remortgaging. For example, what are the costs involved, and how do they measure against the potential proceeds from your new property or the expenses you will incur to take the best care of it? If these sound daunting, fret not, this is where America Mortgages comes in! Consult our team of expert mortgage advisors tohelp you judge if you are making the right choice. 100% of our clients are living abroad. As the global leader in this market, we know how to navigate through this process better than anyone.
If becoming a U.S. real estate investor is on your bucket list this year and you own U.S. real estate, releasing your equity could be the fastest path to get you there. Yes, this could easily be a holiday home for you and your loved ones, or a buy-to-let and boost your monthly income.
America Mortgages’ ONLY focus is to provide U.S. mortgage financing to foreign nationals and U.S. expats looking to buy, refinance or release equity for U.S. property. We offer the most comprehensive loan programs for international real estate investors. Ready to release equity to purchase your U.S. home?
Ready to release equity to purchase your second U.S. home? Speak to us today to find out more! [email protected]