Home values in the US more than doubled in many areas. Loans were given to anyone with a pulse and the bidding wars began. I witnessed properties that were listed for 10% above market value then offers came in at 20K even 50K above asking price. Property values soared and the market did not support these astronomical prices. The bust was inevitable and now in many markets we have hit bottom. What do we do now? Do we run? Or is this the opportunity of a lifetime? You better believe it is the opportunity of a lifetime.
A lot of factors impact property values, some of the key factors are foreclosures, unemployment, population, vacancy, etc. Basically it comes down to supply and demand. More demand and property values rise. Right now however there is significantly more supply than demand and there is a ton of supply that still needs to hit the market. Values dropped off the side of a cliff and now in many places we have hit bottom. FACT: The supply created from the real estate bust has created the opportunity of a lifetime! Opportunities like this have not occurred since the Great Depression. Additionally, the most self made millionaires made it by investing in real estate. Savvy investors realize this and are running to the US from all over the work.
That is not everything though. The fallout has crippled the value of the US dollar. Currencies exchange rates from other countries are significantly higher than historical averages. So not only can you buy low with tremendous returns, but foreign investors have a much much higher buying power due to the strength of their currency compared to the US dollar.
This is almost too good to be true for foreign investors. They are running to the US to invest in real estate at record pace. There is still an absolute ton of supply that needs to work its way through the system ensuring opportunities for the next 3 maybe even 5 more years. Is everything a good deal in the US? Absolutely not!
There are good deals and bad deals everywhere. I’ve heard good stories and horror stories in every market and every strategy. Savvy investors will crush it, if they invest right. Stay away from warzones, stick to your criteria, do your due diligence and make the best informed business decisions. For many, the best way to invest in the US is to seek local experts who often offer full service, turnkey, hassle free solutions. So find these experts with a solid track record and ethical business practices. Then continue to do your due diligence. Every decision must be justified by facts and due diligence. Feel free to contact us with any questions regarding the US market, we are here to help!
Also, Learn what is a great cash flow deal and read our guide on foreign and out of state investing in the US.