America’s slumping real estate market has been making headlines for some time now. As regions that once saw incredible booms now face sharp property price corrections, many British and international investors working in currencies other than the US dollar find themselves wondering if investing in real estate in the land of the stars and the stripes is worth the risk.
If you’ve been interested in buying or living in America but found the residential property prices too high, now could be the ideal time to look around for a bargain home.
Although there is both good and bad news in relation to the American real estate market, foreign buyers will find some rather decent bargains in the US at present. And what’s more, the American market is not likely to stay down for very long either. Striking while the iron is hot – especially in high-traffic tourism areas – is probably not a bad idea if you want long term profits from your real estate assets!
Florida for example, has long been a favourite for British and European expatriates and holiday makers. This semi-tropical paradise is home to theme parks, beaches and lots of sunshine and it is also home to rather well-developed expat communities – and here potential investors will find a buyers’ market at the moment.
As values drop, construction slows and inventories of available homes are really starting to pile up, buyers will find some incredible deals on property. Although it might be some time before this particular market rebounds to its former high-price glory, British investors for example who are also looking to call America’s Sunshine State home are likely to find some incredible deals. New construction builders are even slashing their prices in Florida!
While the future is uncertain for the American real estate market as a whole, several American cities are predicted to make a rather decent rebound in the coming years. CNNMoney is predicting a few regions in particular will begin to warm by 2009. The areas CNN say are worth watching closely include Dallas/Ft. Worth, New Orleans, Atlanta and Mobile. A few other cities such as St. Louis and Indianapolis are also on the list.
Although the sub-prime crisis and record foreclosures are making the overall American real estate market look bleak, chances are it will not stay down for terribly long because the basic fundamentals on which the market is built such as strong employment and decent affordability remain in place. Investors looking to get in on property in America will find the time for looking around for an entry point is now.
There are some tricks to buying in markets that have been traditionally hot – right now as the prices are plummeting and sellers are getting antsy, the potential for good buys is high. Some parts of the Tampa market for example have seen homes on the market for months without any interest. This means some sellers are so anxious to get out to prevent foreclosure that they’re willing to take the first reasonable offer they receive. So, the key to a cheap buy is to find desirable regions and desperate sellers – and unfortunately for the sellers, it’s not difficult to do right now.
As Americans face a foreclosure crisis and banks are willing to take buyouts below value, the US is becoming more attractive to buyers purchasing in a currency other than the dollar. Investors who want to get in and do so for reasonable prices will find the time to inspect property is nigh! Chances are certain regions will not stay down in price for long and by buying in low you stand the best chance of making the best profits over the medium to long term.
How to Profit From America"s Real Estate Market Slump
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