It seems to be what everyone is talking about right now. The property market in the US is at an all-time low and there are many bargains to be had. But is the rental market strong enough to warrant determined investment?
There is no denying the Australian market is offering limited opportunities. November 2011 saw an 11.5% drop in the number of loans, indicating market hesitation, while RP Data has predicted that recovery won't start before 2013.
Real estate success comes from identifying opportunities and seizing them. Currently, the US has a depressed real estate market with opportunities coming in the form of below market value property prices and good rental demand.
US property is a very attractive proposition for those that like to look long term. This is not some whirlwind get rich quick scheme. Instead, savvy investors are keeping their eyes firmly locked on horizon and the re-sell profits they could make in the long term.
There are pitfalls and this is not a road for everyone. There are plenty of Australian investors who have dabbled in the US property market and been burned as a result. They have returned with war stories and battle scars, as well as depleted finances. There are hidden costs such as liens and building code violations, as well as property scams, bad neighbourhoods and unprofessional property managers that can cost you dearly.
The key to success is not to dabble, but to your homework properly and get assistance and advice you can trust and rely on.
Instead of being blinded by low asking prices, get someone who knows the market to offer guidance regarding the area in which you are purchasing. The US is huge and there can be huge variations in the character of neighbourhoods on adjacent streets. Also, US workers are very mobile and tend to follow the jobs. If factories and stores are closing down in an area, then your potential tenants are likely to pack up and move too. Get solid advice and stay ahead of the pack.
Good property managers are worth their weight in gold. Getting good advice and recommendations on these key personnel can't be stressed enough. You are going to be thousands of miles away and are thus reliant on your property manager to select the right tenants, collect your rents, ensure your property is well maintained and conforms to all the state’s building regulations.
You will also need some legal advice to ensure your assets are protected. The US has a blame culture and you can be sued for just about anything. Failing to do so could result in complete disaster.
The US property market will recover eventually. One thing is for certain: the current market makes it an ideal one for savvy Australian real estate investors to develop large property portfolios without massive expenditure.
Don’t let this opportunity pass you by! Contact us and let us show you the opportunities that await you in the US!
Matt Dunne is the director of House Buyers USA, a company that has almost 10 years experience in helping people find great properties in the US. Not only can House Buyers USA assist you in finding good real estate opportunities, but Matt’s team can also arrange for financing, legal assistance, renovations, property managers and extensive research to ensure your purchases are safe and hassle free.
Sign up for the House Buyers USA newsletter to receive more details, as well as free SMSF e-book entitled Controlling Tomorrow Today.
The above information is supplied by House Buyers USA.
Disclaimer: while due care is taken, the viewpoints expressed by sponsors do not necessarily reflect the opinions of Your Investment Property.
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