USA investment property is becoming very popular these days, and many foreign investors, especially from the UK, Australia and Europe, would prefer purchasing properties in this country.
There are several economic reasons that are responsible for the US property market to work well, where investors can make large profits from relatively small investments. It is important therefore to comprehend the crucial elements that contribute to the unparalleled opportunities which are available now, as the country is fast becoming one of the top property investment locations.
Economy – Even with the economy still in recession, the USA remains the largest national economy in the world that is complemented by its huge land mass and population. The country has an appraised GDP of more than $14 trillion with a relatively low cost of living, and an advanced market with contemporary infrastructure consisting of large finance and private sectors.
Positive Business Climate – An extremely favorable approach to business and entrepreneurship is always an integral part of the US economy and culture. This translates to lower business taxes, and a transparent legal system that can make buying, selling, and investing much easier and faster than most other countries. The climate of entrepreneurship would allow you to gain more support for your investments, coupled with a larger base of buyers and investors the moment you want to sell your properties.
Diversity – Geographically, the USA is an extremely diverse multicultural society with a large variety of terrains, climate zones, and lifestyles. It has something to offer everyone, from those who want to live in big metropolitan cities, to those who are searching for a peaceful way of living near the beach or in desert. The cultural and social diversity paved the way for acceptance and tolerance which makes the USA an open culture, where a positive climate for your property investment is created. You then have a wide range of options with regards to USA investment property.
Abundant Below Market Value (BMV) Properties and Foreclosures – The USA property crisis, or say the USA mortgage crisis, caused a significant rise in the number of foreclosures. Repossessions occurred because borrowers were not able to pay their mortgage loans. The tremendous number of foreclosures created the steep rise in the number of below market value properties, providing real estate investors incomparable opportunities in their investments. Due to massive repossessions by the banks, properties are now available far below their fair market value, and the purchased price should be an important criteria for a USA property investment.
High Return on Investment – These below market value prices would surely produce higher rates of return with much lower risk on your investments. Compared to the UK, where you could expect a yield of 4% to 5%, you can expect a net return of up to 12% to 15% every year in the USA. The combination of a positive business and investment climate, below market value rental properties, and overall low risk make USA investment property very attractive.