Having a holiday home or an overseas property is a common practice today. Real estate experts opinion that this is the best time for you to make an investment in the US. There are several reasons that justify the claim. For one, with the real estate market in the US picking up, lending institutions have relaxed their rules and are more open to providing loans to foreigners. Also, the US encourages foreign investment. Besides these, there are several reasons why now is the best time to invest in the States.
Low Entry Margin
The current phase is a significant period for investment in the United States as the economy rapidly recovers from the 2008-2009 slump that the real estate market experienced. During this period, real estate value dropped by nearly 70 percent of its original value.
So, investing in the US market right now is the best option as the entry rates are substantially low. For young investors who have a limited income of less than $50,000 per annum, this is the ideal time to invest in the US Market as the initial deposits are as low as $25,000. This makes the US Market very attractive in the current scenario.
Cash Flow Guaranteed
If you are planning to invest in a rental property in the US, this is undoubtedly the best time, Every rental property in the USA, currently, promises positive cash flow from day one. Every property will at least yield between 8 percent to 10 percent returns in the form of rentals. If you invest in an expensive market you are likely to get 10 percent returns.
On the other hand, if you invest in a blue collared area, you are likely to get returns up to 14 percent. Capital gains from investments are also guaranteed. With properties yielding such high returns, you will definitely be able to get the most attractive come back price in the United States.
Low Mortgage Rates
The interest rates offered in the United States have also depreciated significantly. Therefore, even the mortgage opportunities in the US are quite appealing. The advantage with the US Mortgage is also that they can be fixed for up to 15 years. There are no cancellation fees or bottom line rates associated with these projects. As a result, the United States is one of the most favourable markets for international investors.
The United States is the world’s largest economy. As a result, the country has been able to cope with setbacks quite often and has shown immense aptitude to bounce back from the nadir. The market rates that have reached an ever low slump will definitely rise soon.
The economy in the United States has already shown significant recovery. Therefore, lending will increase in the coming years, thereby making real estate costs increase substantially. Now is the best time to make an investment if you are looking at owning real estate in the United States of America.
By waiting too long, you may lose out on an excellent opportunity to own some of the prime properties. Make sure you do not wait until it’s too late.
Matthew Vinson is freelance writer for ReadyChat.com, professional blogger and a real estate insider. He is from Toronto area and loves living in the New York City of Canada.
Photo Credit: EscapeArtist74