Is now the right time to invest in US property? Yes, of course it is. In the world of overseas property investment few argue with the fact that the current low prices of US property presents many opportunities the likes of which one will rarely ever see. That said as any impartial overseas property investment advice should tell you, investing in American property is currently only for those with a long term strategy, and there are just as many properties that are the opposite of good investments.
The American housing market is on its knees and while we all hope that prices will start to recover in 2 years at the most, we were all saying that in 2009 and look at us now. The truth is that this is the worst financial crisis the US has ever seen, and the US administration continues to underestimate just how bad things have gotten. Until they start giving it the respect it deserves there will be no recovery. Until the millions of repossessions on sale and in the pipeline can be cleared there will be no recovery. And no one knows how long it will be before the market returns to normal. Fact.
Yet some of the best overseas investment properties on the global market are undoubtedly to be found in America. When we are buying overseas investment property we are looking for good rental potential, and hopefully potential for capital growth as well. Obviously picking up a property for a price lower than its market value is a good start in any property investment, overseas or otherwise.
Right now, America has a great strength; an abundance of properties that are so far below market value that they are priced not on a discount to their market value, but against their replacement build cost -- a property priced at 60 percent below replacement build cost is a good deal in anyone's language. But it is in the reason why that America is a top international investment property destination.
America has suffered from millions of repossessions. This doesn't just mean the aforementioned abundance of BMV property, but it also means millions of families looking desperately for rented accommodation in the same area. The rental market in most locations across America is strong and only getting stronger.
This means that investors can buy into property investments with potential to earn strong rental yields, meaning that they have a secure and profitable income flow, giving them time to wait for the - arguably inevitable - capital growth. Of course, the standard practices for overseas property investments, like not overleveraging, carrying out due-diligence etc still applies in America like everywhere else.