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…