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.