Steady US Market Top Choice For Overseas Investors

USA Investment

The popularity of US property is now at such a high, the National Association of Realtors (NAR) has gone global to cater for international demand. Its Realtor.com listing website already attracts more than 575,000 buyers from non-US destinations per month and the desirability of Stateside stock is expected to increase even further.

NAR president, Ron Phipps, explains: "While all real estate in the US is local, the same is not true for property owners. The US continues to be a top destination for international buyers from all over the world. Foreign buyers understand the value of owning property in this country."

We understand this very well indeed at Axis and, in this article, we shall look at the optimum areas and strategies for Stateside investment success.

"Stunning" deals push up interest by 149%

With current concerns surrounding the UK economy, more and more UK-based investors are reported to be adding US property to their portfolios. Data from Prime Location show international searches for US property has increased by 149% in the past year, with a leap of 42% in August 2010 alone.

Nicholas Mar, chief executive of Homes Go Fast, comments: "Rumours of international bargains are now filtering through to investors who previously would not have considered investment in overseas property. The US is providing some stunning deals which far outweigh what you could get from ordinary bank savings and which are far less risky than shares."

He continues: "Investors are being enticed with tenanted property in Detroit, Michigan, Chicago and Buffalo, Western New York State. However, there will always be a market in traditional investment destinations and the number of people looking for Florida remains high."

Read on for details of Axis strategies for these leading investment locations!

Abundant inventory and stable prices

Yes, the USA offers some irresistible opportunities, but buyers are warned that there are still challenges to overcome.

Margaret Kelly, chief executive officer of international property and relocation agency RE/MAX, says: "To be successful in the current housing market, real estate professionals need to educate themselves about buying and selling distressed properties and working with investment buyers - who are a significant part of the market and who are being attracted by low mortgage rates, abundant inventory and stable prices."

Indeed, while the US property market presents a wider range of investment opportunities than ever before, it is imperative to understand the market. We have explored the overall market and purchase processes in previous articles, Stay Ahead Of The Market With Stateside Stock and Foreclosure Facts And Why Now Is The Time To Act, along with the reasons why it is crucial to work with an established team, like we have at Axis, to get the best deals from foreclosures, short sales and REOs.

Do realtors offer real deals?

Maybe and maybe not. Overseas investors are being advised against US-based realtors offering ‘too good to be true' deals. This is particularly true of short sales where realtors, acting on the behalf of the vendor, will ‘offer' rock bottom prices to buyers in order to gather as many bids as possible and thus push up the sale price.

Hot spots and success strategies

Axis clients, of course, receive the invaluable benefit of our long-standing and extremely experienced US partners. Our partners are based in strategic, ‘hot spot' locations with the greatest investment opportunities and we have especially-designed strategies for each area.

Rapid Cash Profits (Memphis, Tennessee) - provides short-term cash profits, with no long-term commitment. We buy foreclosed stock, refurbish within (typically) 15 to 30 days and then re-sell into the local market at a profit. Investors can expect a 30% to 50% Return On Investment (ROI) in 12 months.
Accelerated Capital Growth (Florida) - provides a greater-than-average capital growth and is ideal for investors wishing to purchase Buy To Let (BTL) property at up to 74% Below Market Value (BMV) and benefit from 3 to 5 years of rental yield while the property rises in value. We anticipate values to triple over that period of time and investors can expect a 200% ROI.
Robust Cash Flow (Buffalo, New York and Detroit, Michigan) - provides significantly-above-average rental income from BTL investment property, which can be sustained for at least 3 years. As with all US Axis investments, our partners manage all aspects. This is especially important for Robust Cash Flow, as a well-managed investment can provide a 12% to 22% net rental income per year.

We have just returned from spending two weeks touring the property hot spots in America and visiting our US partners and have returned with some excellent new property investment deals. To find out more today, contact our US portfolio manager, Greg Glagow, for a no obligation chat. He can be reached on the US hotline 0333 444 1440 and at greg@axiscontact.com

P.S. We are also about to enter a new US destination, Phoenix, Arizona, so keep reading our blogs because more information on this gem of a location will be coming soon!

Live with Abundance

Rod Thomas sig