Why Invest In the USA?

USA real estate offers purchasers the prospect of owning a property that will serve either as a second home in a desirable location or as an investment opportunity. With careful selection in the current hotspots, we can provide buyers with exceptional returns

The USA is a top location in terms of relocation and holidays for European investors.

Investors seek to purchase in areas with well established infrastructure and tourist facilities to satisfy the stringent demands of today's visitors. With a bottomed out real estate market in many states and the strength of sterling, there are fantastic opportunities for savvy buyers with everything from multi unit apartment buildings, down to single family homes and beach front deals offering double digit returns on investments. 

The USA property market offers a similar stability to the UK market. The rate of exchange between the dollar and sterling is extremely favourable, allowing British buyers in the USA to get much more for their money. With exciting entertainment on offer, areas of natural beauty and a sunny climate, certain regions of the USA such as Florida, California, Nevada have long been attractive holiday destinations.

In recent years the USA has been popular amongst British buyers, after France and Spain, with the added advantage of English as the main language. Many purchasers are buying homes in prudently selected locations of the USA that will give them valuable long term profits as well as a growing rental market for their investments. A home or an investment property in the USA with all the facilities available fulfils the aspirations of many property buyers and investors both from financial and lifestyle perspectives.

Why I invested in the US and why I think you should too. 

I have properties in the UK but I believe that the UK has been done to death in terms of investment opportunities, at least ones that produce a decent positive cash flow. 

I believe that the people who got in early - even as recently as 3 or 4 years ago have done OK. Everyone after that is just playing catch up. Several people I know who have got in on the UK action over last 12 months or so are barely breaking even! 

The USA real estate marketplace is an established market which has the following benefits...

The language - yes it is multi-cultured and many languages are spoken but ENGLISH is predominant. No need to lose things in translation, the little things like your money! Your future!

Laws - they are built around old UK law and are similar to our own laws on property. They are understandable and workable - can the same be said for laws in Bulgaria, Romania etc?

Yields - The yields are, in a word - Great!  We have found properties for ourselves and our investors that yield between 10 - 80%. However, we have never come across a property that yields 100% despite some other websites claims - but they could be out there!

Why are yields high - BECAUSE USA PROPERTIES ARE CHEAP!

Oh and not let us forget - particularly at this moment in time - the strength of the pound! The good old QUID is very strong against the dollar at this time. It was better a couple of months ago but still remains strong! The weak dollar is providing us with a golden opportunity and has made buying an American home and/or investment property in a lot of states including Florida, Texas & New York Sate, (where I invest) a lot cheaper and more profitable due to the cost of buying a second home in America plunging nearly 10% over the past year as Sterling has surged against the Dollar.

Last but not least - currently it is a buyers market in the states!

US property foreclosures are up 65% as America's sub-prime mortgage crisis engulfed more homeowners in April 2008 as foreclosures leapt by 65% year-on-year. US based banks filed foreclosure papers on 243,353 properties in April 2008 alone. This figure was up 4% on March 2008. (Source - RealtyTrac) 

In the preceding couple of years Buyers borrowed too much money and cannot pay the interest. When rates go from 5% to 7%, that's a 40% increase in the amount of interest a buyer has to pay.

Banks happily loaned whatever amount borrowers wanted as long as the banks could then sell the loan, pushing the default risk onto Fannie Mae (taxpayers) or onto buyers of mortgage-backed bonds.

Now that it has become clear that a trillion dollars in mortgage loans will not be repaid, Fannie Mae is under pressure not to buy risky loans and investors do not want mortgage-backed bonds. This means that the money available for mortgages is falling, and house prices will keep falling, probably for 5 years or more. This is not just a sub-prime problem. All mortgages will be harder to get and they are.

In addition to this, there is a huge glut of empty housing in the states. Builders are being forced to drop prices even faster than owners. Builders have huge excess inventory that they cannot sell, and more houses are completed each day, making the housing slump worse. 

What about the people? Well, Baby Boomers are retiring! There are 77 million Americans born between 1946 -1964. One-third of these have zero retirement savings. The oldest are averaged at 62. The only money they have is equity in a house, so they must sell. 

Nationally, 25% of houses bought the last few years were pure speculation, not houses to live in, and the speculators are going into foreclosure in large numbers now. 

Interest rates increases. When rates go from 5% to 7%, that's a 40% increase in the amount of interest a buyer has to pay. House prices must drop proportionately to compensate. 

All of the above provide savvy investors with a great opportunity - don't miss out on it!

Especially in the areas that we focus our investments in, which are predominantly -

Florida  - We invest and advise on investments all over Florida, Orlando, Tampa, Miami and especially in sunny southwest Florida in and around the Lovely Fort Myers area!

Texas - again can be nice and warm. So are the property investments there. Houston, Austin DFW and San Antonio. Also, Galveston on the gulf coast is showing some fantastic investments at the moment!

NY State - not so warm - in terms of weather that is! But red hot for property investments - where else can you buy a fully rented property for $17,000 or just over £8,500! I know what you're thinking but it gets better - that property we bought is generating $800 a month profit - that's £400 pure profit ever month!

We do invest and help investors in other states too!

There are literally thousands of deals like this which we have been taking advantage of for both ourselves and our satisfied investors.

That is why you should invest in US properties! 

USA Vs Europe

So what about investing in Europe and further flung destinations such as Dubai etc?  

Well no doubt we all know of people who perhaps having 'missed the boat' in the UK turned their investment attentions to Europe. Spain, France, even so called current €œhotspots€Â like Bulgaria. I am no expert on these areas but it appears to me that now supply is outstripping demand in areas such as Bulgaria and even more exotic and long haul destinations like Dubai. I have friends who have had their fingers burnt in these areas and they are now regretting it!  

What is the point in investing in another country, with different laws, languages and cultures?  

If you ask people why they have invested in such countries, most would claim that it has excellent capital growth potential. They may also claim that when the country joins the EU prices will soar - just like people are assuming about Romania and Poland!  

If you ask them 'the typical investor's question': "What is the yield?" the majority will look at you sheepishly and ask you "what is yield?"

So, who is going to live in your property in Poland, Romania or wherever! They are not noted for being great holiday hotspots are they?  

The locals may rent your property but with 100,000's of Poles, Romanians etc leaving their own country and wages so low in these areas. The chances of you renting to locals and generating any reasonable cash flow isn't great either, is it?

SPAIN - The Brits favourite?  

No Comparison!

Spain

Florida

The above Florida Property is approx £27,000 cheaper and brings in a nice income of approx £16,000 pa!  

Hmmm... pause for thought!! NO BRAINER !! 

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