ABC 7.30 Report’s warning for Aussies buying US Real Estate
Aussies are splurging on US property right now, taking advantage of the many opportunities currently available along with the high dollar. But as alluring as the low interest rates, low price points and high rentals are in some areas of US real estate, there is a situation looming that potentially threatens those that buy with reckless abandon.
As the sub-prime crisis continues to unravel the US property market, with wave upon wave of foreclosures continuing to decimate, a new threat emerges. As home loan debts have been bought and sold so many times, the legality of title ownership and foreclosure processes is being questioned in some instances, potentially casting some doubt as to who actually owns the property. Although this could mean a nightmare for some new investors, it doesn’t mean that all properties are likely to be affected. Thorough due diligence and using trusted US real estate professionals enable risks to be minimised, and knowing what to look out for will certainly help in asking the right questions. As I always hear ‘knowledge is power’ and in this case, ‘knowledge is saving yourself from buying a property that someone else still legally owns’.
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