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I notice there is a big push by marketing companies to invest in US properties. This has been of interest to me for the past 5 years and I have attended many seminars and spoken at length with consultants. As an investor in Qld Australia and being successful in the past by using lending to leverage for capital growth. Since the GFC the world has changed and the new normal is now more about cashflow in our investments.
The properties do offer great value in the US and the rentals are strong as the local residents are unwilling or unable to get finance. They have a different lending system with non-recourse loans where you can hand the property back to the bank but then your credit rating is shot. Also there are many tenants in the US that are known as section 8 which are government assisted, so instead of getting benefits paid to them they get rent paid and food stamps for essentials.
A good renovated house of 3-4 bedrooms can be found near major cities and in good neighbourhoods for under $75,000 with a rental producing around 15% gross returnor $220pw. In Australia we do not have properties like this that I aware of anymore. Maybe you could find something in a rural area of NZ and that would be preferable for locals rather than overseas.
The major problem with investing in the US is:
1. Trustworthy team of property managers
2. Knowing the market in US as it is huge.
3. Cash only for first 1.5 years until you can achieve a credit rating to borrow from a US bank ato low rates.
4. A long way to go to resolve a problem and legal issues etc
As an investor with say $100,000 to invest and considering prospects globally in these turbulent times I think the major exporting US companies would be more appealing. Whilst nothing is certain you have liquidity and the protection of say an 8-10% stoploss should the market go pear shaped. Now must represent excellent buying but like all investing you have to do your homework and timing is crucial.
i am no expert in shares but I subscribe to experts that do their homework and have a track record. If you are looking for better than bank interest then this maybe the answer.
There are a lot of people forever speaking doom and gloom over the US economy but I don't believe the largest economy in the world and some of the greatest companies will fall. We are all finished financially and the other trading partners will not let this happen. China and India are still growing and a healthy US economy is needed for all of us.
Just some thoughts for you to consider. As I have said I have been a property investor in Australia and now starting to look at other opportunities in this changing world. Good luck in the World Cup this must be your year All Blacks.
The properties do offer great value in the US and the rentals are strong as the local residents are unwilling or unable to get finance. They have a different lending system with non-recourse loans where you can hand the property back to the bank but then your credit rating is shot. Also there are many tenants in the US that are known as section 8 which are government assisted, so instead of getting benefits paid to them they get rent paid and food stamps for essentials.
A good renovated house of 3-4 bedrooms can be found near major cities and in good neighbourhoods for under $75,000 with a rental producing around 15% gross returnor $220pw. In Australia we do not have properties like this that I aware of anymore. Maybe you could find something in a rural area of NZ and that would be preferable for locals rather than overseas.
The major problem with investing in the US is:
1. Trustworthy team of property managers
2. Knowing the market in US as it is huge.
3. Cash only for first 1.5 years until you can achieve a credit rating to borrow from a US bank ato low rates.
4. A long way to go to resolve a problem and legal issues etc
As an investor with say $100,000 to invest and considering prospects globally in these turbulent times I think the major exporting US companies would be more appealing. Whilst nothing is certain you have liquidity and the protection of say an 8-10% stoploss should the market go pear shaped. Now must represent excellent buying but like all investing you have to do your homework and timing is crucial.
i am no expert in shares but I subscribe to experts that do their homework and have a track record. If you are looking for better than bank interest then this maybe the answer.
There are a lot of people forever speaking doom and gloom over the US economy but I don't believe the largest economy in the world and some of the greatest companies will fall. We are all finished financially and the other trading partners will not let this happen. China and India are still growing and a healthy US economy is needed for all of us.
Just some thoughts for you to consider. As I have said I have been a property investor in Australia and now starting to look at other opportunities in this changing world. Good luck in the World Cup this must be your year All Blacks.
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