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ABC 7.30 Report’s warning for Aussies buying US Real Estate
Oct - 26 | 
Claudette | 
2 comments. | 
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’.
Click here to get the full transcript.
November 25th, 2010 at 2:50 pm
yes, so who are the trusted professionals? And what about us investors that do not necessarily want to benefit from foreclosures but just buy in a generally depressed market (I note some areas like Washington DC have not nosedived) because of the Aussie dollar and other related factors making this seem the right time.
January 3rd, 2011 at 4:03 am
Thanks for the comment Dan. When looking for trusted professionals I’d be looking for real testimonials of people who have used the service. Word of mouth via other investors is also a good way. In the beginning there may be a bit of trial and error but risks can be minimised by actually going over and checking out the market you’re interested in. Whatever you do, don’t buy site unseen as many Aussies have been burnt this way when they are new to the US market. Some areas have not rollercoastered as much as others. We talk about some of these as part of our membership service. We also provide access to US Real Estate people that may be able to get you on your way. You can find out more about the membership at http://www.usrealestate.com.au/non-members/.