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US house price rises leave Gaffney property investors peachy keen
July 31, 2015Article by Charlotte Ashton
The US is enjoying a sustained period of house price growth, with prices in June 2015 finally surpassing their July 2006 peak, according to figures from the National Association of Realtors. The figures are a good sign of the recovery gripping the US and giving confidence to property investors from around the world.
Investor love for the US
According to the CIA World Factbook, the USA attracted more foreign direct investment (FDI) in 2014 than any other country in the world, with a total stock of FDI of $3,258,000,000,000. It is a clear-cut sign of the world’s confidence in the US recovery, with investors ranging from giant corporates to individual property investors seeing the country as the top global location for growing their funds.
“The US is on a roll right now,” comments Ray Withers, Chief Executive of leading property investment specialists Property Frontiers, “and the residential property market is the place to be. A long-term, sustained rise in prices has seen home values surpass their previous peak and all indicators are that the positive news is set to continue.”
The ideal example
The South Carolina city of Gaffney offers an ideal example of the buoyant market that is giving investors such confidence. Famous for its Peachoid – a 135 feet tall, 1 million gallon water tower visible for miles around and featured in House of Cards – Gaffney is a thriving community known as the Peach Capital of South Carolina.
According to data from Zillow, Gaffney house prices have risen from their May 2006 rate of $55,200 to a current (May 2015) value of $71,700. Investment properties are much in demand, with investors looking particularly for buy-to-let opportunities, according to Ray Withers,
“With sales rising at their strongest pace in more than eight years, investors are looking to pick up properties that provide them with the potential for capital growth, but also with a solid income. Buy-to-let is the obvious solution and developments like Chandler Oaks are selling extremely well.”
Chandler Oaks is a collection of newly refurbished one and two bedroom apartments, offering a minimum of 11.4% gross yield. All apartments are fully tenanted and already 70% of them are sold. Prices start at $48,671 for a one bedroom apartment. Contracted income of 8% NET is underwritten to 2020.
Passive, hands-off investments such as this are leaving investors feeling peachy keen and confident in enjoying the growth and recovery gripping the US.