Mostly Australian Investors tend to invest their money in American property, as there are many people see the benefits in investing on that super power country. Even though, there are some complications, such as exchanges and the difficulties of finding finance, but still there are many who see the benefits of property investment beyond the difficulties.
Now days there are many US homes being right now under foreclosure, and thus many prices marked well below what would seemingly be market value. In the first quarter of 2009 alone, there were more than 800,000 foreclosure fillings in the US, as unemployment continued to rise. Some experts say the situation can go worse than this. In fact, the home prices have fallen 19% from January 2009 from a year earlier, the largest drop on record for such a time frame, according to the S&P Case/ Schiller Index. Those figures just reflect the national average. Go to the locations hit hardest by oversupply and unemployment and you will find even greater bargain.
Yap, from USArealestatetours.com, who is organizing trips mainly to California and Florida for investors say those investors in these areas, should seek at least a 50% drop in price from the market value. In some cases, he says, you can find up to 70%. And for those with large sums of cash, even more discounted. Yap says one Asian investor he’s familiar with just bought two condominium buildings in Miami a total of 1000 properties, for 15% of the market value.
Those who think investing in US property right now is too risky could miss the chance to get in when the prices are low, he says. “America has always come back strong,” says Yap. “Eventually, the economy will come back up again this time, and you’ll have missed your opportunity.”
Moreover, he suggests that Australian’s who would like to buy in the US need to consider a place where people would likely buy property, but this does not mean that everyone should refer to buy in the city center , but investing in popular area will be better. For example, In California, you can do bargain- hunting for Beverly Hills and Orange County.
Always do double checks about the market value as there are plenty of unscrupulous businessmen looking to seize someone off. This means being skeptic person is better, so when you find that a property is below market value, ask yourself why that is. As an example, Yap adds that one realtor trying to push an apartment valued at $200,000 for $600,000. Furthermore, having an independent source which can tell you what a property is worth is better rather than rely on an agent.