In our view, today’s market conditions in the USA present a ‘once in a generation’ opportunity for investors who want to build capital as fast as possible, generate high levels of income and create exceptional capital growth.
Property prices have roughly halved since the 2006 peak. Property which was once overpriced is now incredibly cheap! The price crash is now levelling off in some areas, which means that time is of the essence and investors who buy now can expect the greatest capital growth over the next few years.
The USA property crash happened because mortgages were given to sub-prime borrowers who couldn’t afford repayments when interest rates rose. 2.8 million homeowners filed for foreclosure (equivalent of bank repossession in the UK).
A foreclosure furore spread across the States when banks were accused of “robo-signing” away too many foreclosures. This means there is still foreclosure property available to investors at rock-bottom prices (around 70% below peak pricing and 30% below current market value), but this window of opportunity will start to close very soon.
The USA has a scheme for low income earners who would not normally qualify for a mortgage loan. This program is Government-backed, administered by the Federal Housing Authority (FHA) and enables qualifying parties to buy their own home.
Additionally, the US Government provides a Section 8 Federal Assistance program which gives financial assistance to working families (similar to housing benefit in the UK) – typically between 60% and 100% of monthly rental payments.
For the investor, this means US Government-supported exit strategies at a substantial profit (when selling back into the community) and Government-supported rental income in the meantime.
Rental yields in the USA are, quite frankly, astounding! In the UK, gross rental yields typically range from 4% or 5% (for houses in London), up to 8% or 9% (for flats in the north of England). That’s if you are lucky!
In the USA, we have locations and strategies which give you up to 22% NET in rental yields. That’s AFTER any monthly charges on your investment property (city tax, HOA fees and management fees).
Every decade from 1960 onwards, has seen a fall in the UK / USA exchange rate. Historical factors indicate the downward pressure on the £ GBP will resume sometime soon, which means investors who invest now also take full advantage of the exchange rate cycle.
There are many regional variations and factors which offer fantastic property investment opportunities in the USA. We have carefully researched and located the areas which offer the most profitable combinations of unique factors.
We have professional, strategic partners in our chosen USA investment locations. Our partners have been selected for their expertise, experience and strong relationships with all the professionals you need to ensure your USA property investments run smoothly from end-to-end.