As the purchasing power of the Hong Kong dollar continues to decline, more and more Hong Kong investors are beginning to look for overseas real estate as a way to preserve and increase the value of their assets.

The United States has become a popular choice with its sound legal system, relatively high rental returns and strong second-hand housing market. So, how can you invest in real estate in the United States with only HK$800,000 and achieve an annualized return on investment of 12%?

This article will provide you with a detailed analysis.

 

1. Investment Positioning

HK$800,000 is approximately equal to US$100,000, which makes it virtually impossible to purchase a home in first-tier U.S. cities such as New York or Los Angeles. However,  you can still find single-family homes or small condos priced between $50,000 and $100,000 in the Midwest and South. You can:

• Buy a low-priced property with full payment and save on loan interest

• With a down payment of $30,000 to $50,000, you can leverage larger assets and increase your cash return.

 

2. Calculation model to achieve 12% return rate

If you want to achieve an annualized return of 12%, you can start from the following two dimensions:

1. Rental Income

Suppose you purchase a property for $100,000 and rent it out for $1,200 per month:

• Annual rental income $1,200 × 12 = $14,400
• Deducting operating costs (such as property tax, insurance, maintenance, etc.) of approximately 30%
• Actual annual net rent $14,400 × 70% = $10,080
• Annual rate of return $10,080 ÷ $100,000 = 10.08%

If revenue can be further increased through short-term rentals on Airbnb, optimized tenant management, and increased rents, cash flow returns are expected to exceed 12%.

1. Capital Gains

In cities where house prices are rising moderately, assuming house prices rise by 2%–5% per year, the total return can easily exceed 12% when combined with rental income

 

3. Site selection advice: Which US cities are suitable for low barriers and high returns?

The following cities are often selected for investment

City	Average house price (USD)	Rental yield	Remarks
Cleveland, OH	$80,000 – $120,000	10%–14%	The rental market is mature, and education drive demand
Detroit, MI	$60,000 – $100,000	12%–16%	Low entry threshold, strong cash flow, high management costs
Memphis, TN	$90,000 – $130,000	9%–12%	Stable cash flow market, suitable for long-term holding
Pittsburgh, PA	$100,000 – $150,000	8%–11%	Medical care and education drive demand, and housing prices are rising steadily

 

4. Operation process and precautions

（1）Find the right platform and team

• Work with an experienced real estate company or investment advisor to ensure you understand the location and tenant background

• Choose a company that can provide property management services

（2）Legal and tax compliance

• Non-US residents can also legally own US real estate

• Rental income is subject to US tax, but there is no double taxation through Hong Kong.

（3）Investment strategy recommendations

• Choose areas with high occupancy rates rather than areas with high housing prices

• If you only own one property, you can choose to buy it in full to avoid leverage risk

• If credit financing is available, it is easier to increase the yield by combining property + loan.

5. Conclusion

Investing HK$800,000 in US real estate and achieving a 12% annual return is not a fantasy, but the result of choosing the right region + good management + cost control. For Hong Kong investors, this is not only a way to earn income, but also an important step to cope with the depreciation of the Hong Kong dollar and diversify global assets.

 

If you want to know more about real estate projects in the United States, please follow our website Capstone72.com to get the latest investment guides and city data.

 

By Bonnie Wu | Founder & CEO of Capstone 72

 

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