Throughout 2009, due to the recent global recession, we saw a record level of US property repossessions and bank foreclosures resulting in a dramatic drop in US house prices. This has created some excellent below market value (BMV) US property investment opportunities, at unbelievable discounts (up to 70% off peak pricing) - see figure 1.

Figure 1 - Average US house prices (1970-2009)

Investment Properties

In some areas of the USA the HUD^* has a list of over 9,000 people waiting to find suitable accommodation. These waiting lists are part of the Section 8 HCV^** programme which allows tenants to claim vouchers from the HUD who will essentially pay a percentage (usually 100%) of the tenants’ rent to you.  This government-backed scheme helps add security to your investment and ensures that you’re paid promptly and in full, month after month. 

With gross yields on many of these properties already at as much as 21%, these investment properties are simply incomparable with opportunities currently available in the UK and European property markets.

This window of opportunity will not be around forever.  Property prices are stabilising and in some areas increasing, showing sure signs that now is the best time to invest. The number of foreclosures is also reducing across the US helping to increase property values.  These sentiments are echoed by a statement on the HUD website:

We are beginning to see negative equity and foreclosures on the decline, as well as massive investment into areas from US government grants exceeding $4 billion with a view to stabilising the market within 3 years of its conception a year ago. We are beginning to understand that now is the time to take advantage of a market that will disappear as corrections to the recession are achieved.

Summary

Investment

• Signs that the USA market has hit its lowest point
• Reductions in the number of property foreclosures and repossessions
• Long-term, secure investment opportunities
• High rental demand - government-backed rental scheme with thousands of people on the waiting list in most areas
• Huge future capital growth potential
• Fully-managed, completely refurbished properties - annual inspections ensure your property will be looked after

Personal Use Properties - Holiday & Retirement Properties

The property discounts in the US have also created the perfect opportunity to make a US lifestyle investment, either with a holiday or retirement home. With prime locations throughout the US, including Florida, you can now own a piece of the American dream for less than you thought!

A Summary of Lifestyle Opportunities

• Prime US locations - including Orlando, Florida
• Luxury properties available from $140,000 (approx. £89,000)
• Luxury lifestyle investments which can be let out when you’re not using it yourself
• Lease and rental options available

Now is the time to take advantage of the US market! Stuart Law, CEO of Assetz Plc says : If you can get net yields up to 10%-15%, don’t look a gift horse in the mouth.  That is the soundest advice you’ll receive in 2010.

^* HUD - US Department of Housing and Urban Development
^** HCV - Housing Choice Voucher program