Securing property is historically the best investment. Shortly before the 1990s, people thought that spending money on real estate was almost unheard of. The choir that many people pursued was “Buy Investment Property.” If you’ve looked at global property markets, you’ve already seen property bubbles in a number of countries, including Ireland, Spain, the UK, Hong Kong, Japan and, more recently, the United States. ,
The dilemma remains in the new millennium as to where to invest. Alas, if you think about Australia, now there are global indices for investing in Australian real estate. It should be recognized that large investment banks not only reduce their exposure to Australian real estate, but also will not support investment funds and trusts wishing to purchase investment property in Australia.
Depressed by the fact that the process of buying investment property is no longer the ideal way to make big profits, experienced investors are looking for other global opportunities to buy investment property. Where are the main areas of investment in real estate? When the investment bubble collapses, the market corrects normally. Smart people have seen it happen in a number of cases, especially in the 1990s in the Hong Kong real estate market or in the early 2000s, when the United States experienced a tech bubble with stocks such as Apple, Yahoo, Amazon, and other companies in Silicon Valley et al. Is currently happening with American properties, precisely in oversold markets such as Las Vegas, Nevada and Phoenix, Arizona.
Experienced investors do not spend money on real estate markets before the bubble, like in Australia. More astute investors also invest in markets after the appearance of bubbles, where in the medium term, the expected capital gains of more than 10–20% per year are expected.
Remarkable opportunities are available in oversold markets such as Las Vegas, Nevada and Phoenix in Arizona, as well as in upstate New York, Florida and parts of California. Of course, Las Vegas is currently the best opportunity to purchase investment property, the cost of which has fallen by 80%, while rental income (after deducting fees) ranges from 8 to 18% per annum. Many of these properties are well below replacement cost. Assuming that the problematic properties of Las Vegas can reach 50% of their value in 2006, this will mean a 100% increase in capital for a 5-year-old investor. At the same time, investors will receive a rental yield of about 10% per year.
Fortunately, Australians have an added advantage. Any Australian with a super-independent fund can now receive investments in pension funds. Self-managed pension funds can provide a positive return on investment in real estate abroad, especially in the event of foreclosure in the United States. For a wise Australian, retirement investments in medium-term investment instruments that buy real estate in the United States make sense in the current economic environment.
It is interesting to note that there are several strategies for buying investment property in the United States. Adventurous investors can buy property directly. This can take a long time. However, investors can buy real estate through a registered and regulated investment fund. Real estate investment funds have the tools and contacts to buy at a price 20% lower than the current market prices, to manage hundreds of properties and, when the time comes, you can use regulated real estate investment funds if you want to buy investment real estate. Take advantage of a storm in the US real estate market for Australian investors through a regulated ASIC-compatible fund that will increase your earnings. Do not be shy. Opportunity now!