Why invest in US real estate

Hot investment Recent news coverage has made much of the difficulties facing the United States, but it seems that in the midst of all the complications, a certain, crucial market remains surprisingly attractive to both domestic and international buyers. Recent reports suggest that the American real estate market is currently a great option for low risk and high yield investment. Middle market real estate ventures in the USA are providing much-needed capital for developers, while also giving investors a home for their money that isn’t at the mercy of the stock market’s pendulum.

While it’s true that housing starts grew less than expected in recent months, this is primarily due to a drop in multi-family homes, which fell by 11.1 per cent to establish a yearly rate of 263,000. However, the number of new single-family homes has seen an increase of seven per cent to a yearly rate of 628,000 – and it’s this market that is the most exciting.

It’s likely that the slowing pace of multi-family home starts is down to a mortgage rate surge, prompted by expectations that the Federal Reserve would begin to slow the quantitative easing program that’s been allowing Americans to refinance their mortgages at lower rates. As of yet, though, the Fed hasn’t made any such changes. Understandably, a decline in the amount of permits for multi-family homes might not sound like the best news for investors looking to enter the market, but the spike in the number of permits for single-family homes means that this area looks set to strengthen in the coming months.

If you’re considering investing in American property, one way to succeed is to focus on cities where there’s slightly less capital ready to throw itself at real estate; prices in the secondary market won’t be so exorbitant. Instead of big-name metropolises, look out for smaller cities that are still seeing a rise in interest. Cities like Gainesville, Florida, which has a median market value of $139,000, or Lubbock, Texas, which has a median market value of $111,000, are both fantastic long-term investments. Likewise, Davidson County in Tennessee has a median market value of $149,000, and Williamson County in Texas enjoys a median market value of $158,000.

For those new to the American real estate market, you should be looking to invest a minimum of $100,000, and ideally you should hope to see a 20 per cent return once the project’s finished.

Whether you’re looking to sell up, move in or invest in the USA’s real estate market, we can help you to get the exact price or property that you’re looking for. With experience helping seasoned pros as well as first time buyers, we can offer you all the help and guidance that you need to make an informed decision about your next investment. To see how we can help you, simply check us out on Facebook or head over to our official E&V website.

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