With the pounds value increasing to a 5 month high against the US Dollar and the amount of people looking for property to rent increasing due to continuing foreclosures, it looks like the opportunist time to invest in American properties remains very much open.
Over the past 1 and a half years a constant wave of foreign investors have snapped up BMV properties at very low prices with the states of Florida and Michigan receiving the lions share of interest however now, as these markets stabilise in line with national economic recovery, clever investors are seeking the next buy-to-let destination.
And it is the Heartland of America that is attracting attention. The mid-western states of Ohio and Missouri, home to the growing cities of St Louis, Kansas City, Toledo and Columbus, present a highly appealing investment destination with sustained demand for rental property generated by the large employment base and detached family homes available at as low as half the cost to replacement build.
Steven Worboys, MD of USA property investment experts, Experience International, comments,
“There is a large demand for rental property from working families in the mid-western cities such as St Louis and Toledo. Up to half of the residents in St Louis rent their homes with most of them seeking detached family homes. Property prices in these cities are well below the national average of $182,600 (Zillow.com) and investors can anticipate rental incomes of up to 12.5% in addition to capital gain.”
Combined these cities hold a population in excess of 6 million and have faired the economic storm better than a lot of other higher profile cities. According to the U.S. Department of Labor, Kansas City has held a lower unemployment rate than the national rate with the healthcare and service industries replacing most jobs lost in the manufacturing sector and Columbus has been ranked the nation’s 6th most stable market by Standard & Poor’s as well as one of the 10 safest real estate markets in the US by the P.M.I. Institute.
National Association of Realtors statistic’s showed that property prices in St Louis for the first quarter of 2010 were higher than the previous 12 months with appreciation at 15.1%, Toledo showed 13.3% appreciation, Columbus 6.3% and Kansas City 3.2% over the same period.
Worboys continues,
“Many believe that the entire US was affected to the same extent by the recession but this is just not the case. Yes some states experienced considerable unemployment and as a result thousands of foreclosed properties but a lot of states such as those in the Heartland due to diverse employment sectors avoided worst case scenarios and now as the economy shows continued albeit slow growth these cities are the first to recover.”
It is this recovery that savvy foreign investors are keen to take advantage from. this attractive USA property investment market. With 3 bedroom detached family homes available from as little as $24,500 with 50% Loan to value.Fully refurb’drefurbished properties in sought after locations can expect to generate up to $860 per month in rental revenue and are sold with tenants already in place on long-term leases. 1 year’s home maintenance is also included and investors canbenefit from exclusive finance packages at the moment.
To find out more about investing in real estate in the Heartland of the USA then contact the experts at Experience International on + 44 (0) 207 321 5858 or visit Experience-International.co.uk.
Tags: Finance, investment, property, Real Estate, usa investment property