American dream still alive for international investors
- US build-to-rent most popular property on TheMoveChannel.com
- Student housing accounts for three of top 10 listings
- Recovering Spanish and US markets attract investors
Photo credit: Cyndie
The American Dream is still alive for international investors, according to new research from TheMoveChannel.com. The portal's latest Investment Watch report shows that a build-to-rent scheme was the most popular listing on the site last month. The program offers investors a choice of 100 units in Charlotte, Dallas, Tampa and Cape Coral, with yields forecast up to 9.5 per cent annually.
The listing's runaway popularity follows a summer where lifestyle investors have become more prominent on the global stage, with more buyers focusing on the lifestyle benefits of a property purchase and the long-term potential for profit. The recovering US economy boosted the appeal of the build-to-rent scheme, though, as the combination of a steady market and reliable returns proved too good to resist.
That blend of stability and short-term profit was key to property investment strategies in August 2015, with a buy-to-let opportunity in the strong economy of Germany receiving the ninth biggest response from investors on TheMoveChannel.com. The same mix of factors is also responsible for ongoing interest in the UK student housing sector: university accommmodation accounted for three of the top 10 listings last month. With two of the three offering 10 per cent returns per annum for under £50,000, student property also proved more affordable than the US build-to-rent scheme.
The only other properties in the top 10 worth over £50,000 were lifestyle purchases, which ranged from an attractive condo in the UAE (second most popular) to a new build condo (sixth most popular) and an apartment (10th most popular), both in Spain. Land plots continued to generate strong interest, advertising both investment returns through capital growth and lifestyle potential through building a holiday home.
TheMoveChannel.com Director Dan Johnson comments: "The balance between lifestyle and investment continues to be a key question for buyers looking for overseas property. Improved conditions in both Spain and America mean that capital growth is on the cards, even for second home buyers, which makes any lifestyle purchase in a popular tourist area a worthwhile long-term investment. Likewise, opportunities for short-term income now carry a long-term appeal, as those seeking capital growth in recovering markets are also wooed by the potential for immediate returns. With August's build-to-rent scheme offering a projected appreciation of 5 to 10 per cent annually, in addition to 9.5 per cent per year through rental income, even as the dollar strengthens, the American Dream has still not faded."