Select Realty Online website recently ran an article titled “The Rustbelt Returns”, in which the north east USA city of Buffalo (New York State) was promoted as an excellent choice for overseas property investment. The article cites low cost properties, with strong yields and the possibility of capital growth over time – in fact, prices in Buffalo have grown 25% since 2014
The highest yields for the lowest purchase prices
We agree and that’s why we’ve been delivering investment property in Buffalo for six years. Our investment strategy in Buffalo is Maximum Income because the city offers:
• A consistent and safe rental market.
• Low risk and secure investments.
• Among the highest returns anywhere in the USA, typically 15% – 21% net yields.
• Exceptionally low purchase prices, with typical investments $30,000 – $50,000.
View and download our currently available Buffalo investment guide right away and read on for the OPP story.
Striking property gold in an “undervalued” city
The article says “rustbelt” cities, such as Buffalo, Rochester and Syracuse, are in “an unusual position” as they “missed out on the boom and are missing out on the bust too.” After a tough time during the 1970s recession (1973 – 1975), the economy in Buffalo has emerged through the current downturn relatively unscathed. With a broad-based economy, affordable premises, low cost of living and some geographical advantages, the city looks increasingly undervalued, which is reflected in the current yield anomaly. Buffalo lost its industrial base many years ago, so has not been wiped out in this recession in the same way as some other US “rustbelt” cities have.
Reasons to love Buffalo
Rather than the declining manufacturing-based economy of popular belief, Buffalo is now home to four large banking headquarters (HSBC US, Keystone Bank, First Niagara and A&T) and is now taking advantage of its cool climate and cheap electricity to establish itself as a key storage and distribution hub. It is also becoming a tourist attraction, being next to Niagara Falls. The city is re-inventing itself and has already left its legacy of heavy industry behind.
Buffalo has a good-yet-affordable quality of life, with a strong university and increasing numbers of knowledge-based businesses. For example, Buffalo is moving into university-backed research, with Roswell Cancer Research becoming a major employer in the city. It also has a strong rental culture, as the national difficulty in obtaining loans means most residents have to rent. This forces rental values higher than sale values, hence the unusually-buoyant yields.