Securing property is historically the perfect investment. Just before the 1990’s folks felt that is was almost unheard-of to waste money in property. The chorus many folks pursued was “Buy investment property.” In case you have been watching the global real estate markets you already recognize there have been property bubbles in a number of countries including Ireland, Spain, the UK, Hong Kong, Japan, and recently the United States.
The dilemma remains in the new millennium as to where to invest. Alas, if you were thinking about Australia, there are now global investment signs on investing in Australian property. Certainly, major investment banks are not only lowering their exposure to Australian real estate, but also will not support investment funds and trusts wanting to buy investment property in Australia.
Glum that the process to buy investment property is now not the golden ticket to great profit that it used to be, sagacious investors are in search of other global opportunities to buy investment property. Where are the leading property investment areas? When an investment bubble collapses, the market normally over corrects. Astute folks have observed this happening in a number of instances including the 1990’s the Hong Kong property market, or in the early 2000’s with the technology bubble in the United States with stocks like Apple, Yahoo, Amazon, and other Silicon Valley companies etc. It is now occurring with US property, exactly in oversold markets like Las Vegas, Nevada and Phoenix, Arizona.
Knowledgeable investors don’t spend money on pre-bubble property markets like Australia. Alternatively perceptive investors are investing in post-bubble markets where there are anticipated capital gains in excess of 10- 20% per annum over the medium term.
Remarkable opportunities are available in oversold markets like Las Vegas, Nevada and Phoenix, Arizona, as well as in upstate New York, Florida, and certain areas of California. Certainly, Las Vegas is the very best opportunity right now to acquire investment property that has tumbled in value by 80%, along with establishing rental yields (after expenses) of 8-18% per annum. A great number of these properties are well beneath replacement value. Surmising if the distressed Las Vegas properties can grow in value to 50% of their 2006 value, it would assume a 100% capital gain for an investor over 5 years. Concurrently, investors would get a rental yield of approximately 10% pa.
Happily, Australians have an extra advantage. Any Australian with a Self-managed Super fund can now receive superannuation property investments. Self-Managed Superannuation Funds can make a positive return investment in overseas property, in particular in United States foreclosures. For a judicious Australian, superannuation investments in medium term investment instruments that purchase USA property make sense in the current economic climate.
Interestingly, there are several strategies to buy investment property in the USA. Adventurous investors may obtain property directly. This can be a time consuming challenge. Nevertheless, investors can buy through a stock market listed and regulated property investment fund. Property investment funds have the tools and contacts to purchase at 20% below current market price in volume, to deal with hundreds of properties, and when the time comes efficiently to settle up. You are able to profit from regulated property investment funds if you want to purchase investment property. Swiftly take advantage of the proper storm in the USA property market for Australian investors via a regulated, ASIC compliant fund that will expand your returns. Don’t hesitate. The opportunity is now!
Discouraged that the current technique to buy investment property is not the golden ticket to success that it used to be, shrewd investors are looking for other global opportunities. In the present everyone can make use of their superannuation investments in medium term investment instruments that purchase property to raise their returns.