Over the last few days there’s been much speculation about the prospect of a double dipped recession in the US. Unemployment rates continue to rise, waves of foreclosures are yet to come and the sales for new homes are the lowest they’ve been in decades, and in some areas continue to fall. In addition the first home buyer’s grants, a stimulus mechanism to keep the housing market afloat has now ceased. So what does this all mean for US real estate market?

Well, there are many voices in this space, some expert and some not so. This can make it confusing when trying to establish if this is a good time to invest in US real estate or not. One thing that is important to note, is that when researching the area (no doubt online from Australia), the entire country can seem to be one homogenous market, eg the whole housing market in the US is suffering and values are continuing to plummet. It’s like saying all of Australia’s housing market is the same and is all unaffordable. This is not actually the case. The US property market is huge and in fact consists of thousands of markets under its umbrella. Some areas have actually experienced decent capital gains. My father has just sold his house in Palm Springs at a very attractive price, and much more than what he paid for it 7 years ago. It’s a niche market and one that is doing quite well. By any barometer of sound property investment, parts of the US real estate market are ripe for the picking with low entry levels and positive yields being the norm rather than the exception. To put it into perspective, many houses are now below construction costs!

It’s important not to get caught up in the doom and gloom and try and see where the opportunities lie. And currently the US real estate market is abundant with opportunities for investors.

As a result of the GFC, banks have tightened their lending criteria, both here and in the US. Obtaining finance has been a limitation for many Aussies looking to invest in US real estate. And many offers of US real estate are for cash only. With US property prices being so low many investors would be able to purchase outright. However many people don’t have that kind of money readily available but do have available funds in SMSFs or equity within existing property. Having to buy a US property outright, albeit at lower entry levels than in Australia can create a couple of concerns for some investors with respect to leveraging. By tying up a large sum of money in one investment, it prevents utilising that money to the best of its leveraging capacity.

But as a result of demand in US real estate by Australians there are new options opening up. Some Australian mortgage brokers are realising that there is a huge opportunity for those wanting to invest in the US property market, and with enough security are willing to lend for US real estate.  Also, with higher LVRs (lending to value ratios) private funding can be made available by US based brokerages. Interest rates vary however if there is a higher interest rate, there is often a higher amortisation rate also, which means the property will be paid off in a shorter timeframe. To own a portfolio of US properties within a 5 – 7 year timeframe giving you the chance to replace your income is absolutely doable. If you’re interested in finding out more about US real estate and how to get into this exciting market click here.

Positively geared US real estate is currently more the norm than the exception. As Australians, finding real estate that puts money in your pocket usually means going regional and is often at the cost of capital growth. Negatively geared properties limit your capacity to invest and significantly impact upon your personal cash flow but is pretty much the only type of investment you’ll find in Australia’s capitals, where there is the chance of good capital growth.

The current US real estate climate is ideal for the investor ready to capitalise. Historically low priced property and low interest rates along with increasing rental demand means that positively geared property is quite normal. Yields of 15 – 25% are common, and the possibility of higher yields can be found, particularly with multi-dwelling properties such as duplexes, triplexes and apartment blocks. This then makes the strategy of replacing your income via a US property portfolio not only doable but can be done in the short to medium term. You’ll not only be well placed for a growth market – once people’s credit ratings improve and lending criteria loosen up in a couple of years, there’ll be a mass movement back into the market – it’ll be in US dollars which can be an advantage depending on where the Australian dollar sits. There are US property management companies that will offer private lending for foreign investors buying US real estate. This is often at a higher interest rate with a higher LVR, however the amortisation rate is quicker, so that you’ll own the US properties outright in 5 – 7 years. With rental incomes of $600 – $800+ a month, investing in say 10 properties at US $40k each in a stable area means that in 5 years you’ll have an income of US $6000 – $8000 per month, every month! Imagine never having to work again in as little as 5 years! This is definitely possible when looking at the US real estate market for a new and exciting investment strategy.

A studio in Sydney or an apartment block in the US? These are the kinds of US real estate opportunities that are available right now. As part of an investor club I get posted some amazing opportunities to invest in US property. A recent example was a 17 unit block  on one title for US $300k! Not only was it extremely positively geared, there was the ability to strata title, or do a condo conversion as they call it over there, where significant profits could be made selling the units off individually. This kind of money might get you a studio in one of the eastern capitals, or a 2 bedroom unit a bit further out of Australia’s major cities. And these properties are more than likely to be negatively geared meaning you’re dipping into your pocket for some time, hoping you’re gaining some capital growth. My dad often says ‘if it sounds too good to be true, it usually is’. And my experience of getting sucked into telemarketing deals or property development courses has made this cliche ring true. However, the US real estate market is a unique exemption, predominantly for 1 main reason – the GFC. Mass exodus from the mortgage market as a result of the sub-prime crisis along with historically low US property prices are creating the ideal climate for investing in US real estate – increasing rental demands and massively reduced property prices. This is something that we can’t get our head around in Australia. The US real estate market really is ‘too good to be true’ but as with any investment there are risks, some higher than others. Due diligence must be carried out and expert advice must be sought to ensure you capitalise on this amazing market.

You might be hearing more about the growing interest in US property. US real estate is at an unprecedented all time low as far as prices go. It is a market that is definitely worth further investigation if you’re looking for low outlay, positive cash flow and capital growth potential. But you might be feeling a bit out of your depth and feeling as though you need some advice or more information. There are many Australian companies that are spruiking courses and services on how to invest in the US market. There is no doubt that education and research is key to success when it comes to any investment. But just as you would do your due diligence on any real estate you purchased, you need to do the same for the people you are looking at to advise you. I have heard some buyers agents claiming that the bargains are not what they were a year ago, whilst they slug buyers with huge margins when buying properties for clients, who place all their trust in these agents. Same for courses that provide mentoring. What does this mentoring entail? Do you get direct access to all the service providers – accountants, lenders, property managers – that will enable you to purchase your new investment? Will they assist you in finding, not only the right areas but the right properties, complete with tenants and immediately putting money in your pocket? There is no doubt there are huge opportunities in the US right now. But when deciding that you need assistance to take you to the next level, make sure you do some due diligence. Look at some US real estate sites to get an idea of properties that are available now. Check out some US investor clubs to see what they’re saying. Go to the source of the info so you get an idea of what’s out there so that you know what kind of help you need and how much you’re willing to pay for it. There’s no doubt that US real estate is providing some once in a lifetime opportunities and deserves some serious consideration. Just make sure you find out as much as you can so you feel confident of spotting the right US property for you.

Commentary of the housing affordability situation in Australia has reached fever pitch in pretty much all mainstream media. There’s not a day that goes by where we’re not hearing about how most young Australians will not be able to afford to buy their own homes, let alone investment properties. Rising interest rates are creating tighter lending conditions and putting existing home owners and investors under greater stress, leaving little to no room for further investments. In addition, there is a growing debate about whether negative gearing tax concessions should be abolished or revised so as to diffuse the housing bubble. Despite the general improved economic conditions, Australian property investment is not easy currently.

The US real estate market may provide a solution to frustrated Australian investors. Positively geared properties are the norm in the US rather than the exception here in Australia. Positive cash flow, along with capital growth and a great currency exchange rate make US real estate a very viable option for Australian property investors. It’s not unusual to be able to find 15 – 25 % rental yields for US properties. the key to finding good valued, solid US real estate is to focus on stable employment rates and solid rental populations which are close to schools, transport and other important infrastructure. Following a few golden rules will enable you to decipher a good investment vs. one that will cost you, particularly as a foreign investor where you may not be as knowledgeable about the area. A double barreled benefit of positive cash flow and capital growth is surely one that is worth considering. Not to mention the benefits of currency exchange rates favouring the US dollar…

In Australia, we’re seeing the economic upswing of what turned out to be a fairly mild financial crisis. And our property prices are reflecting this. However the situation in the US is somewhat more complex to predict. Some economists are saying that there are indications showing the worst is over and now the only way is up. A more common consensus seems to indicate that with unemployment increasing with no end in sight, the US is still in an economic tailspin. What’s more, several economists have predicted more waves of foreclosures on the horizon which will only add to the devaluations of US properties.

The negative press around US banks continues to focus on their continual explosive payments of employees ‘compensation’ and bonuses, and rightly so. As a result, the precarious reputations of these financial institutions don’t have room for more bad news – which is why they are choosing to ignore the huge problem of continuing growth of bad debt. Many owner/occupiers are still under enormous financial stress and foreclosure of their homes is imminent.

So it seems that depressed house prices are here to stay for a little longer yet. If you’d like to find out more about investing in positively geared US real estate click here.

Economists are predicting the Australian dollar to climb higher this year with the potential of reaching parity with the US dollar by year’s end. Some are even predicting it will surpass the US dollar in value. This has not happened since the currency was floated and is largely due to the value of Australian exports and the general state of the Australian economy relative to the rest of the world. Although this is great news for Aussies it’s a double edged sword as Australian real estate is also set to keep climbing, already being out of reach to many investors and young people looking to buy property.  The US is still reeling from the GFC with more fallouts occurring monthly. Unemployment is increasing monthly and the end is not really in sight. The rate of foreclosures around the country continues to climb. Although unfortunate news for many Americans, this will provide more opportunities for Aussie investors looking further afield for investment opportunities.

“The US median existing home price tumbled 28 per cent over three years to $US164,800 in January, the lowest in more than seven years, according to the National Association of Realtors.

Existing home prices probably will fall 12 per cent this year (2009) to a median of $US173,800, while the new-home median likely will tumble 8.7 per cent to $US212,000, according to a forecast on Fannie Mae’s Web site. Combined sales of new and existing properties probably will drop 0.7 per cent to 5.36 million, even with the federal tax credit, after plunging 16 per cent last year.” (excerpt from SMH 21 Nov 2009).

Never have all the ducks lined up so perfectly for Aussies to buy US real estate. Click here to find out more about buying US property.

Investing in a foreign market will be a new and perhaps daunting experience for many people. But never before have we had so much information at our fingertips. A couple of hours on the internet can provide invaluable information for property investors when looking in not only their own backyard, but at a foreign market including the US Real Estate. At the moment there are some amazing opportunities in the US property market. Luckily for Aussies, the language is the same and the culture is not too different. In addition, many Aussies have actually travelled to the continent so have some understanding of the geography. Australia and the US have a lot of similarities in our standards of living. This helps when doing the usual due diligence required when looking to invest in new property. As with any investment property certain rules apply and that includes when Aussies are looking to invest in US Real Estate.

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You’ve probably seen a lot of media post the GFC showing radically cheap USA Real Estate. At one point you could buy a house on eBay for a couple of hundred dollars or less! The rates of bank foreclosures are unprecedented as people who could never afford to own a home were given cheap loans that they couldn’t pay. Supply exceeded demand and as logical economic theory goes, house prices in many areas of the US literally plummeted, almost overnight.

There’s no doubt there are absolute bargains to be had in US Real Estate right now. But before jumping in feet first be sure to carry out the usual due diligence procedures you would normally do for buying investment property anywhere. Consider the reasons why some areas have dropped in value more than others. What are the economic drivers in that area? What are the big employers that will sustain a healthy population? Is there a university nearby that will ensure a constant supply of students for example? Unfortunately for those who have lost their homes, but a positive for those considering investing in US real estate, rental markets will be driven up as ex-owner occupiers become renters.There are cases of owner occupiers become renters of the property they just lost to the bank.

As an investor in US real estate you want to be sure the property is not only rentable, but also has the potential for capital gains.  See if you can find out last sale information – although real estate agents may not have this info or it may be treated as confidential, you can find this out through the local assessor’s office. Make sure your US real estate agent can give you sufficient information on the demographics of the areas so as to determine whether a bargain will end up making you money or become a money pit…

There is likely to be concern about what happens to the USA property once acquired, when you the investor, are based in another country. This is a valid concern as there are many property managers in the US that do not have a great reputation. With minimal time to research, from another country, it is difficult to find out which property manager to use to get the best and most economical management for your property. Many foreign investors have been burnt by a property management experience that has cost them a lot of money.

But not all property managers are out to take advantage of your situation. The key is having access to reputable, credible property managers who are keen for your ongoing business.

Fees for property managers range from around 8% to over 30%. Like anywhere in the world, performance varies from company to company. As part of our service we only provide property management contacts of companies we are satisfied can meet and protect our credible reputation.

When buying property in a foreign environment, unless you know the area, you are placing your trust and money in someone else’s hands. Even with the extra tools available such as the internet to gain extensive information, you still may not be able to access all the information you need to make a fully informed decision. Real estate agents and buyers’ agents play a critical role in assisting you with selecting the right property investment for you, particularly when you are looking further afield in unfamiliar territory. But do you know which agent to go with? Often the only form of contact you may have is by phone, and even then where do you start if you’re starting from scratch? Using buyers agents through reputable sources such as someone you know who’s used the service, or through quality publications may be a good start. These starting points can be your first point of enquiry. Once you begin letting people know you may be interested in pursuing a new, foreign investment it’s amazing how many people know someone who knows someone who has done what you’re trying to do. Information comes to you in unexpected ways. But their experiences may be mixed so you may end up having to start from scratch again.

I’m very lucky in that although I live in Australia my father is a licensed realtor in the US. Who better to trust than your own family? This is one of the reasons why we decided to start our business. We realised we had a unique service we could offer to Australian investors wanting to buy US real estate. Access to current information and the ability of contacting real people can be valuable when delving into unknown territory.

If you’d like to find out about real estate listings and other helpful information on investing in US real estate, please sign up for our newsletter.

The thought of buying property in another country may be quite daunting – and understandably so. With different tax systems, real estate laws and property management arrangements, it’s a minefield of research that needs to be done and finding credible and relevant information may be difficult. As with purchasing any investment property, even in your own area, there may be some constraints to moving forward. This could feel amplified when you’re thinking of dabbling in a completely foreign space. But don’t let your hesitation or lack of knowledge stop you from pursuing opportunities such as investing in US Real Estate. Just begin by starting to ask questions and finding the places that offer the answers.

If you’d like to find out more about US property listings and other US real estate information, fill in the form below and one of our agents will get back to you shortly.

Well the good news is you do not need to be American to invest in the US Real Estate market. In fact you do not even need to be in the country. How would you like to buy a property site unseen? There are a number of ways to set yourself up as an investor. We have a number of steps and are in the process of making it as easy as possible for you to do so.

So the good news is that to buy US Real Estate, you don’t even need to visit USA to buy a property. All you need is to know qualified people who do live there, and who can help. Like us and our agents.

So it may come as a bit of a surprise that a foreign investor can buy American property relatively easily. To find out all the details and how to begin investing in US real estate, you can subscribe to our list. The good news is it can be done and with minimal time and effort.

Now here is something that you might not have thought much about, but with the global financial crisis many people have lost their homes.  But they still need somewhere to live, so the rental market is growing. This means that buying a house for around $100,000 and renting it for $400 a week puts you in front, and that is not taking into consideration that the value of the property will increase over time. Then once the market has recovered people will be buying so you will be able to take advantage of the capital gains that you have built.

So if you are ready to get the details and start hunting the US Real Estate market make sure you sign up to our newsletter.

Right now you could make money in the US Real Estate market and with out using hundreds and thousands of dollars. Let me give you an example. Here we have a house for sale for only $5000. Yes the place was in poor shape and the bank was desperate to get rid of it. It did need a work over. It would be safe to say an estimated that between $7000 and $10,000 was needed to renovate it and have it all looking good enough to sell or rent.

Now what was intresting is that the County Assessment on that property was $55,000.  That’s not the appraised value, which is generally higher just an assessment. But even leaving it at $55,000. You could have bought the entire house and had it ready to sell for only $15,000. You could have made a $40,000 profit on it, with minimal fuss.  Of course you had to be there to inspect and assess and buy the place. That’s why you need our team to inspect take photos and complete the appraisal for you.

Remember there are small extra costs and legal fees as well as the fact it would take time to fix the place up. But the question you should be asking yourself is, am I willing to put $15,000 and a little time into an investment, so that I can get all my money back and $30,000 to $40,000 more?  Well, of course.  Who wouldn’t? Where else are you going to get a deal like that?

It may even be better to hold onto the property and rent it out and have a positive geared property that will gain in capital and give you a return on your investment.

The housing market may be down today, but it’ll be up tomorrow. It’s the people investing today that will reap the rewards tomorrow.  Investing in US Real Estate, investing in American real estate, is the best way to make money with a minimal risk.

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As a foreigner have you ever thought about investing in US real estate?  For Australians, given the strong Australian economy and dollar, now is a good time to be an Aussie investing in US real estate. If you are willing to think outside of your current state or suburb than you’re facing one of the greatest investment opportunities of a lifetime. Right now American real estate is selling at bottom end prices. The cost of homes in the United States are at 30 year record lows. If you don’t think those prices are going to rise again, then you need to have a good look at the facts. America is the biggest, richest, most powerful, most dynamic nation in the world.  An economy like that isn’t going lie down forever. What’s more, everyone knows that the economy moves in cycles, what goes up must go down and vice versa.

Right now the biggest real estate sale in history is underway. Due to the GFC real estate in some areas has dropped by 40 – 60%. That’s a huge correction, but it also indicates that prices will reach that benchmark again. But with depressed prices like that, now is the right time to get over into the USA market and start buying.  The Australian  who invests in American real estate now could see that investment double and triple over the next few years.

But if you’re in Australia, how do you do it I hear you ask? How do you deal with the red tape, the beauracracy, the finances when you are a 16 hour flight away? Who can you trust with your investment funds?

These are all valid questions and are the greatest constraints to many foreigners moving to the next step of US property investment. Here you will find property that has been selected by Australians living in the USA working as licensed realtors in the US real estate industry.

Keep an eye out for the future blogs and newsletters as we will be putting together a number of tools and reports for you to completely understand the US real estate property advantage so you can feel confident in taking the next steps in your investment strategy.