International Investors Like What They See In The Us Property Market

By Author: Roscoe Mays
Total Articles: 9
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Purchasing property in the US is growing in popularity among foreign investors, particularly those from nations such as Australia, Canada, New Zealand, Singapore and other places where the local currency is strong and property prices are at bubble-like levels.

At the same time, real estate prices in the United States have been driven to very low levels by the global economic crisis and the subprime disaster.

The wave of foreclosures that swept over US homeowners has created an opportunity for foreign purchasers to get in the US market at low prices.

Many Americans still can't get a mortage because banks have tightened up their lending criteria so they don't get burnt again in a classic over-reaction.

Those foreclosed homes are coming back on to the market and are being acquired by cash buyers. Foreign investors with some capital available will be able to find bargains in a several states including Georgia, Florida, Nevada, Arizona and many others.

Foreclosed homes are cash sales - there is no time to arrange conventional finance - and are normally sold “as is”, which essentially ...
... means the seller provides no warranty as to the condition.

Buyers usually bank on the need to spend some amount of money renovating the property. If a sensible estimate can be made (and confirmed via a building inspection) buyers simply add this to the total price and then determine whether it still makes sense in relation to cash flow and yield.

Now, of course all these people whose homes were repossessed still need houses in which to live, so in lots of markets there's a surplus of tenants and rental prices remain reasonably high, keeping the returns to investors at decent levels.

Of course investing in the US is more difficult and - in some ways - more risky than buying in your home country, however the potential rewards can be high.

Also, on a macro level the US economy is starting to bounce back from its long post-crisis trough and the property market is beginning to come to life, adding to this recovery. The US is starting to lower its deficit and obtain energy independence through shale gas, helping it to withdraw from conflicts in the Middle East and bolster its position as the dominant global superpower.

It's rapidly becoming an appealing investment destination again.

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