Find out what’s happening in the property investment arena both in the UK and internationally
At the Frontier: New way to invest in the USA, voted top destination for real estate investors
February 22, 2012Article by Ray Withers
The United States remains the best option for real estate investments this year according to the 2012 annual survey of the members of the Association of Foreign Investors in Real Estate (AFIRE).
The survey, carried out in Q4 2011 discovered that around 60% of respondents, which together hold around $338 billion of real estate in the USA alone, plan to increase their investment in US real estate in 2012, highlighting that investors still regard the ‘land of the free’ as one of the most stable and secure global markets.
Ray Withers, Chief Executive of leading property investment agency, Property Frontiers comments, “We are firm believers in the current value that can be achieved by investing in the US property market, we at Property Frontiers carried out our own annual Investor Survey and we were not surprised to discover that there still exists an appetite for investment in the USA with investors choosing it as the location they wanted to invest in after the UK.
“In real terms, property prices in the USA today are back to where they were around the turn of the millennium, with prices in some states up to 70% below their 2006 peak and around 50% of current rebuild cost.
“Indeed, property prices have crashed and because of the credit freeze, the rental market is booming. Properties even in good areas can be acquired at huge discounts if you have the right contacts but this window of opportunity will not remain open forever. Increasing investor activity within the foreclosure market is already starting to stabilise prices and in some instances, even rise.”
Based on this high level of interest Property Frontiers have been working hard to find a pioneering new way for investors to enter the lucrative US market.
“While we remain firm believers in the value that exists in certain states in the USA, the problem for investors up until now has been how they can capitalise and act quickly enough to take advantage of opportunities in the very fast moving US property market however we are very excited to announce that we have found a new solution.
“Using the trustees that administer our hugely successful bamboo bond, our structured US property bond allows people to benefit from the excellent yields in the US property market without the risk or hassle of managing individual buy-to-let properties.”
The US property bond will allow investors to enjoy fixed returns as well as a completely hassle free investment as experts on the ground continuously assess the best properties to invest in across all 50 states. These properties are then acquired, refurbished and subsequently tenanted allowing investors to sit back and enjoy double digit rental yields.