Hungarian property developer Futureal is entering the United States rental home market with start-up capital of USD 15m, owner Gabor Futo said at a press conference on Wednesday.
Futureal has established an American unit, Cordia USA, with the aim of buying 500 homes in 4-5 US cities, renovating them and renting them out.
US home prices have fallen so much that rental fees can generate yields of up to 15pc, Mr Futo said. The company could double its investment with the sale of the homes five years from now, he added.
Cordia USA will start buying homes in the states of Georgia and Michigan this month. The company estimates that to purchase 500 homes, it has to look at 10,000 and make offers for 2,500. All of the homes were repossessed by banks and can be bought only for cash.
Although low rates for mortgage loans in the US make it cheaper for families to buy than to rent, many potential homebuyers do not qualify for loans.