It's relatively straightforward to understand the basic concepts of property investment, but finding a lucrative investment property and maintaining a positive cash flow can be rather complex, especially if you've decided to invest in the USA, but don't know your chosen area that well. Choosing the right location, the right property type and the most lucrative investment strategy will all be crucial for your success. Our guide to property investment in the USA will give an overview of some essential points to be aware of.
Is now a good time to invest in the USA?
While no clear-cut answer can exist to this question, the current USA property market offers some unique opportunities. As house prices dropped by as much as 30-40% after the recent housing bubble, there are still a large number of BMV (below market value) and foreclosure property bargains available in the USA. The housing market is already showing signs of recovery, and as the real estate market is cyclical, house prices will again increase, which means that if you choose the right BMV investment, Buy landyou can realistically expect property appreciation.
Learn more about the political and economic circumstances in the USA
Before buying an investment property, it is crucial to get to know more about the economy of the USA, and any incentives or opportunities that can help you make your investment a success.
Choose your location with foresight
The USA is the third largest country in the world, and it has a variety of regions and areas you could focus on. Some states, like Michigan or Georgia can boast a large number of BMV investment opportunities, while properties in New York or Washington are more suitable for those who are on a bigger budget. Once you've chosen your preferred location, take your time to research the local property market and the neighbourhood. Taxes can also vary between different states, so make sure that you are aware of the correct rates in your chosen area.
Make sure to suit your investment strategy to the property type
Your chosen property type will have a direct influence on your investment strategy. You can choose from a variety of properties, such as single family residential homes, apartments, or commercial properties, but always make sure to tailor your investment strategy to the property type. Buy to let investments can bring you long term yields and regular income, Buy land while house flipping is suitable if you are looking for short term financial gains. Most opportunities in the USA property market nowadays require medium term to long term investments.
Effective Risk Management
If you are based in the UK but are investing in USA properties, you should pay particular attention to effective risk mitigation. Finding out as much as you can about the area, the property and the investment company you are dealing with can be as important as efficient management of your investment. You should also try to spread risks and achieve a positive cash flow at all times.
If you need more information about property in USA, read about Belgrave Group's high-yielding Atlanta property and Detroit property investment opportunities.