US Property Market Tops the Charts for Second Successive Month
The US is still a great draw for Brits looking to invest in property overseas, according to overseas property investment portal www.themovechannel.com. The site releases a ‘Top of the Props’ poll monthly based on the number of enquiries on the website for different countries and it was found that in October 2008 the US held the top spot, ahead of popular destinations including Portugal and Italy, and this for a second successive month.
As themovechannel.com have shown, the US continues to be a popular choice with Britons looking to buy both holiday homes and investment properties overseas and this was confirmed further still by the release of the National Association of Realtors’ (NAR) Profile of International Home Buying Activity 2008. From surveying 4,000 US realtors, this report showed that buyers from the UK accounted for 12.5% of foreign buyers in the country, ranking in second place only to bordering Canada.
The run-up to the new presidency and the optimism generated in response to Obama’s election campaign could have been one reason for this popularity but the high rental potential of certain areas of the US is also a great appeal to those looking to buy overseas, especially for investment. And according to Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), the US’ popularity with foreign buyers is set to continue for the foreseeable future. He estimates that within the next 10 years the number of foreign purchasers buying on American shores may well double to make up 6% of all US property purchases.
One region of the US that offers excellent investment potential is the ‘Go Zone’ or Gulf Opportunity Zone, along the Mississippi Gulf Coast – the region that was hit hard by Hurricanes Katrina and Rita in 2005 and is now making real headway with rebuilding and regeneration with the emphasis on stronger and more environmentally sound homes for the displaced families. Not only a much-needed ongoing project being actively encouraged by the US government, these developments are also attractive as excellent rental opportunities for shrewd investors. Danny Silver, Principal of Property Direct America, which promotes real estate opportunities in the area explains,
“This is an excellent time to invest in property in the US. With increasing numbers of people looking Stateside for their real estate purchase, this is the time to snap up the bargains that exist in a deflated market. The Go Zone is an excellent area for investment, with firm rental returns on offer and high quality homes being built for the local people, there is real money to be made for foreign investors.”
One such project is Bayside Park in Biloxi, where steel framed, energy-efficient homes are available from as little as £88,000 / $159,900 with attractive rental returns. Excellent 90% loan to value mortgages are also available (subject to status) and for more information on joining the growing number of Britons investing in the US property market, contact Property Direct America on 0207 043 0792 or visit www.propertydirectamerica.com.