Understand American Real Estate Market

By Ava Brown, February 19, 2015

The American real estate market has noted a significant fall in the prices in the recent years. This is a result of the housing bubble that happened in 2007. The housing bubble was in fact an economic bubble that affected the housing market in almost half of the US states. The prices in the US real estate market began to decline in the beginning of 2006, and continued to fall up to 2012. It was stated that the American real estate market in 2008 has documented the largest fall in prices in the history.

American Real Estate Market

Because of low housing prices in the US, plus due to strong Australian dollar and high prices of home real estate, significant number of Australian investors are taking advantage of the situation in the American real estate market and are buying properties in the US.

Although there are many benefits of investing in the US real estate market, the real estate agents are warning about several pitfalls potential investors could fall in. They do not discourage Australians from investing in the US housing market; they just point out the importance of the professional help. Buying a residential property in the US offers many benefits for the investors. According to real estate agents, the most important reasons why Australians decide to invest in the US housing market are:

  • The unbeatable fact that, despite the economic turbulence in 2008, the US is the richest country in the world, and the country with the strongest economy.
  • USA is economically and politically stable country, and more important, USA is friendly to foreign investors.
  • American real estate investment strategy can bring you up to 20% annual return. This means that you can earn $20,000 on a residential property worth $100,000.
  • The real estate market in the US will continue to grow all through 2018, which is a great opportunity to make profit. Put in simple words, the residential property you buy at lower price today will increase in value by 2018.
  • The Australian dollar is stronger than the American dollar.

There are residential properties on the American real estate market that are sold for only $30,000. Also, properties that are worth over 300,000 dollars in Australia, in America can be bought for $150,000 and even less.

If you want to invest in the US, and if you are not familiar with the procedure of investing overseas, you need to do a lot of homework beforehand. Given this, you either need to research a lot about the opportunities and the potential risks, or to ask for professional help. According to the experts, it’s always better to ask for help from professionals who know their work and have experience in the field.