Whether or not to Invest in US Real Estate?

In a word, Yes! Now is probably the perfect time for foreign investors to invest in US real estate and diversify their portfolio. Ever since 2008’s historic US housing market crash, from critics to economists to real estate investors all have been skeptical about the recovery of the US real estate market virtually because not only did it this collapse negatively impacted the real estate market but it also shook the country’s economy to the core.

The US Economy is Making a Comeback

The US government has been struggling against the headwinds strategically to make a comeback. Though the last 6 years have not been a smooth ride for the state but from the US economic outlook reports for, it can be said that the US economy has made a strong breakthrough from the crisis if at least not 100%.

Furthermore, according to the long-term economic forecast published by the economist analysts in the Wall Street Journal it has been suggested the economy will significantly thrive by 2020. The state is working hard towards repairing the economy and getting household incomes soar. 

The Government is Taking All Measures to Propel the Home Values

The US government is focused to strengthening the economy through propelling home values by stabilizing neighborhoods and through major economic developments. The first step to stabilize the home market across the country is to auction off vacant homes that were seized previously in tax foreclosures. Literally thousands of homes were seized as home owners did not have the ability to payback.

Now what truly makes the US real estate attractive for foreign investors in that these distressed properties are high in value but the sellers willing to sell the foreclosure homes at low prices. Cash buyers are preferred over mortgage financing. From the statistics revealed by Realty Trac, in the first quarter of 2014 all cash deals hit a record 43% of home sales, showing approximately 19% surge in home sales cash deals as compared to the last year.

In addition to this, according to various surveys conducted in the US, currently majority of the cash buyers acquiring homes and investing in US real estate market are foreign investors not the locals. Where the locals don’t have enough finances to invest and US mortgage financing has also become stricter than ever and difficult for locals to qualify for, this is a good time for foreign real estate investors such as Canadian investors to invest in the US real estate market.

Foreign investors can easily acquire high value homes on the US soil at low market price. And as we stated above the US economy is on the road to recovery and is expected to thrive by the end of 2020, investing today means you’ll be enjoying massive returns tomorrow.

To strengthen the US housing market, the government is also introducing new housing construction and renovation projects and focusing on economic developments in different sectors like entrepreneurship, medical, education and industrial which is expected to generate more job opportunities, attract job seekers across the US and increase in the demand of rental homes offering high returns to real estate investors.