3 Benefits of Investing in American Real Estate

Although investing can be extremely profitable, still, it is not for the faint of heart. Especially when it comes to investing overseas. Yes, it can turn out to be the most profitable decision of your life, but on the other hand, you can also lose all your capital in the blink of an eye. Thus, deciding where to invest is the key.

At the moment, American real estate market seems to be alluring to Australian. The trend started few years ago and shows no sign of slowing down. Why is that?

Making a Profit

Given the fact that houses in United States are far more cheaper than in Australia, making a profit is only logical reasoning. Due to 2007 housing bubble, the prices of the USA homes have dropped significantly. However, the market is on the way to recovery. This means that if you buy a house worth $150,000 today, in a period of 5-10 years, the value may even double (depending on the market of course). Thus, you will profit. But the real money is in foreclosure homes.
At the moment American real estate market is full of such properties, which can be found for as low as $50,000. You may wonder how’s that possible. Reason why foreclosure homes are so cheap is the fact that they are sold by the lender (bank) and not the owner. The bank overtakes a property when the owner fails and is no longer able to pay monthly mortgage payments. And because banks are not looking to make a profit, the asking price is the outstanding payment. But, do not think that these properties are ideal. Usually, they are in need of extensive repair work, thus look for a property that is in decent condition and needs little to no repair. Such property is perfect money-making solution since even with the repair cost, you still will be in a favourable position.

Low Interest Rates

Because American real estate market has not fully recovered from the 2007 housing bubble, interest rates in USA are significantly low. Put in simple words, a monthly mortgage payment for the same size house in Australia and USA differs a lot. The lower the interest rates, the lower the monthly payment. Hence why growing number of Australian citizens decide to invest their cash in American real estate.

Additional Income

Renting your newly purchased USA house is another way to boost your bank account on a regular basis. Additional monthly income is more than welcome, right.