Property Details

This is listed as a 6 bedroom single family property in New York State’s third largest city, Rochester NY. The tenants look after the property and are settled there, with their kids going to the local schools. There have been updates to this property which will benefit the new owners on lower maintenance costs.

 

Rochester is located in the North West of the State of New York, just south of Lake Ontario, which is the natural border with Canada. Rochester city has a population of 220,000 whilst the greater metropolitan area has a population of over 1 million inhabitants, making it the fourth largest city in the state of New York.

 

INDUSTRY

 

Rochester is famous for being the city where Xerox and Kodak, both world renowned companies, where founded and where they still have a significant presence.  The presence of these companies has attracted a large number of different optical and imaging companies such as Bausch & Lomb and Johnson & Johnson’s Ortho-Clinical Division.  These companies are of great importance for the local economy. Other companies which are just as important for the local economy include General Electric, General Motors, Delphi, ITT Corporation, Bird’s Eye, JP Morgan, Toshiba, Verizon, and Paychex.

 

UNIVERSITIES

 

Education is one of Rochester’s main economic activities as the University of Rochester is the main employer in the city, with 18,671 employees and according to its Website in the year 2009/2010 it will have 5,355 undergraduate students.  The other main education institution is the prestigious Rochester Institute of Technology which holds over 16,000 students. 

 

TOURISM

 

Due to its proximity to the outstanding natural beauty of Lake Ontario, it attracts a large number of visitors annually.

 

The city of Rochester has the necessary elements to see through the current financial climate affecting the world economy. It enjoys a diverse number of industries and educational establishments. Based on data from the Brookings Institution's new MetroMonitor study, BusinessWeek ranked the 100 largest metros by job growth, employment, economic growth and home prices - Rochester Ranked 20th on Strongest Economies List. Rochester ranks high in economic indicators such as IT, computer manufacturing, labour productivity and internet hosting.  Cities with such a diverse number of industries are much more dynamic and therefore can adapt better to change.

 

According to CNNMoney.com, Rochester home prices never bubbled during the boom years, but they enjoyed slow, steady growth during the bust, gaining 5.2% over the past three years. Since many of the area’s jobs pay reasonably well (the median household income is $63,000, which is above the national median), the relatively affordable housing market has been open to most of the population.

 

The prices also meant few homebuyers resorted to toxic mortgages, and New York’s strong consumer protection laws tended to discourage predatory lending. As a consequence, Rochester has been less burdened by foreclosures than most big property markets. Only one property for every 276 had a foreclosure filing against it during the first six months of 2009, about a third the national rate.

 

Why invest in Western New York?
 

•    Low Prices and High Yields - due to the acquired knowledge of the market and relationship’s with the most important realtors in Rochester, RTI can achieve rental properties at discounted rates which provide extraordinary yields. 
•    Cash Purchases – low prices allow investors to purchase without any added financial costs.
•    Rochester’s property market is a stable mature market, which does not suffer large fluctuations in prices.  Property prices will not rise or decrease dramatically.
•    Strong Rental Market - Traditionally people in Rochester have preferred to rent property allowing them to move wherever the work is. The culture of Rochester has always leaned towards renting property rather than owning. The universities and industries in the area also attract a large number of students, professors and working professionals who rent properties.
•    Safe Legal System - The US legal system is efficient and dynamic, where property owners are well protected against tenants who do not pay the rent.
•    Currency - Strength of the British Pound against the US Dollar, allowing the purchase of property to be cheaper.  It is also important for investors to hedge and diversify their investments not only in the types of investment product, but within different markets and currencies.
•    Professional Team - RTI only works with trusted and reputable partners, which can provide a first class service.

•    Low investment entry costs. Often £15,000 - £20,000.
•    Long term tenancies meaning very short void periods and maximum rental potential
•    Established property’s with long term rental histories. These properties are not new build properties and are often between 50 – 100 years old.
•    Simple and transparent buying process. A cash sale often takes about 5 – 6 weeks with regular communication with all parties involved.
•    Gross rental yields between 35 – 40% in some areas with net rental yields of 17% (as a minimum).

Property prices in Western New York
 
Capital growth varies for different regions within Western New York. The cities we will be focusing on are Rochester and Buffalo. These regions have seen steady capital growth of between 2 – 3% over the past few years. Although this is not huge growth, it is growth never the less. Areas which see this level of growth are usually stable areas with steady growth year on year. Rochester and Buffalo have recently come out of recession and are now experiencing steady price increases and regeneration. These cities did not experience a boom so we believe prices will increase on a steady basis for many years to come. Though the capital growth is not large in these areas the rental yields are amazing.

 

Reservation and Deposit. Reservation forms will be emailed and should be returned within 48 hours, with £1,200 payment for deposit.
 
£500 Of this will be non-refundable unless the sale collapses through no fault of the buyer. The rest will be used for the Home Inspection Fee, Appraisal fee and ITIN application. Any expenditure bourne will also be non-refundable. The rest will be deducted off the final balance. 

Contracts are sent for signature and should be returned within 24 hours. 

We would advise at this stage that you consider opening up a US $ bank account. As part of our service, we can guide you on the best way to do this.

 

RTI will introduce you to our team of licensed professionals in the US & UK who will assist you through the buying process. At this point you will be given details of Attorney, Management Company, Accountant etc.

Full property documentation is sent via email to the buyer. This includes Home Inspection report and Appraisal report.  

Your attorney/title company will send you a scheduled date for closing (completion of your purchase). This will include a financial breakdown of the purchase and other documentation. This must be signed and returned to the attorney/title company. 

Payment of all closing costs have to be paid to the attorney by Wire Transfer. (You must ensure your attorney has the cleared funds on or before the actual closing date). This is EXTREMELY important and could result in penalty charges if funds are delayed.

 

You will receive title deeds within a few days of closing. After the deed is recorded at the county, a copy of the recorded deed will also be sent to you. 

You must now apply for your ITIN number. We will guide you the best way to do this. 

 

(Hopefully by now you should also have had your US bank account opened)

 

At RTI we know the expectations of our investors and we ensure to meet it with the right investment opportunity. When you buy from RTI you will not only get a great cash flow from your investment but a great team of professionals looking after the transaction and your asset going forward.

 

 

RTI provide such great deals because we have the right contacts with Foreclosure Realtors, asset managers, and other sources not available to the average investor. Our aim is to find the best housing markets in the USA at prices that will generate a great rental cash flow to our investors making these the best deals available.

 

 

We work with the best property management companies around. We have screened through many property management companies and are now able to recommend property management companies with a great track record in the level of service they provide. We provide full contact details and manage the process of getting the property management company involved for each of our investors.

 

 

You can purchase your property in as little as 2 weeks. On average the whole process takes 3 weeks.

 

RTI always provide fully occupied properties meaning you start earning from your investment from the same day you purchase it. All the areas RTI operate in are high rental markets meaning void periods are very unlikely as tenants tend to remain in the property for the long term and could be replaced very quickly by the same management company who is looking after your property.

 

 

In the USA, property taxes are inherently high and will make the difference between you having a positive or negative cash flow investment property. All of the areas we work in and the properties that we source are carefully chosen after allowing for taxes to make sure your investment will have a positive cash flow. Property taxes can vary greatly from house to house even in the same neighbourhood so we make sure w do our homework. At RTI we always let you know your net rental income after taxes.

 

 

You can purchase a property in the same way as a US Citizen would. Property laws are similar to those of the UK and the whole process of purchasing is familiar to purchasing in a property in the UK.

 

 

No.  You can instead open a US  $ account in the UK and have your income paid into that. We have close relationships with FOREX companies that will not only save you money in transfer fees but will obtain much better rates of exchange than your bank when you decide to convert your earnings into sterling. We will advise you on the
best approach.

 

 

Some of our clients do, but very few. Our service is designed for the busy armchair investor and it is often not a viable solution for clients to visit because of time and the costs involved. Because so much of our work is designed around accommodating overseas investors we try to create a stree free environment for the client that is as seamless as possible, where clients can deal directly with their property manager.