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.