Bonnie Wu: How to Turn HK$800,000 into a 12% ROI Through US Real Estate


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%.

(2)    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

 

Related articles: How to Find the Best RealEstate Agent in Columbus, Ohio

此博客中的热门博文

Bonnie Wu: Forecast of US real estate trends in the next five years

图片
  In the next five years, the U.S. real estate market will face the impact of interest rate fluctuations, supply and demand imbalances, population migration and technological changes. Although there is uncertainty, by analyzing the current economy and trends, we can predict the main development directions of US real estate from 2024-2029. Here is Bonnie Wu’s analysis of the key trends. 1. Housing supply still exceeds demand, and housing price growth slows down but remains high The U.S. housing market has been facing a supply shortage over the past few years, especially for entry-level homes. This trend is likely to continue over the next five years, mainly due to the following reasons: Construction costs are high : Prices of building materials (such as wood and steel) and labor costs are still high, and developers are more inclined to build high-end homes rather than affordable housing. Mortgage rates affect demand : Even if the Fed cuts interest rates after 2025, they will still ...
阅读全文

Mid-Year U.S. Real Estate Pulse for 2025: A Strategic Prospect for Investors in Hong Kong

图片
The U.S. real estate market is at a crossroads as we enter the second half of 2025: ongoing inflation, mounting building costs, a resurgence in foreign investment, and increasing geopolitical unpredictability. This unstable environment offers investors in Hong Kong both unique chances and hazards, particularly in high-potential, cheap areas like Ohio. Mortgage Rates and the Performance of Regional Markets At about 6.7% for a 30-year fixed loan, mortgage rates are still high, making them unaffordable for local purchasers. Foreign investors, many of whom pay in cash and face less competition, are being welcomed under the same conditions. Regarding cost: • Strong demand and limited availability are driving the Northeast's +7% YoY growth, which puts it at the top of the group. • South & West: Softening demand and growing inventory are early indicators of cooling in places like Texas and Florida. • Midwest (Ohio): A promising region for investors who prioritize yield. Prices stay th...
阅读全文