Many people have asked me the question why I am recommending to people to invest in the US; well there are two main reasons for this:
1. The state of the UK property market
2. The state of the US property market
Let me explain further so you can see there is a method to my madness.
The UK Property Market
The UK property market, previously always thought of as quite reliable, is actually not reliable any more. Property investing in the UK has become an over-saturated breeding ground for would-be investors looking to build a 'nest-egg' or simply buy a couple of properties to get a bit more income each month. This is, and always will be a great thing to do - after all, passive income is the key to becoming financially free.
When I started investing in property some 4 years ago, it was nearing the end of a cycle. The good times were now just 'OK' but I could still make a respectable living doing it, and since the hours I kept were less than two days work a week it was a great lifestyle.
Over the last 2 years or so, and more recently we've all watched as the property market has weakened, prices are falling, mortgage companies are squeezing and although interest rates are low finance is still generally very difficult to get. In a nutshell the whole market has lost its confidence. I have personally witnessed investors like myself dropping like flies over the last year.
About a year ago I started looking at other possibilities. I have connections in the USA so it was only natural I was going to investigate there.
The US Property Market
There's been a media circus surrounding the state of the US economy of late, but the undeniable truth is that there is a lot of sorting out to do. The new Obama administration has its work cut out to fix the economy, put Americans back to work, reduce the number of foreclosures and put money in pockets.
The US property market got my attention as there's been a lot of commotion around foreclosed properties. If you're unsure what that means, basically we're talking about repossessed homes.
It seems that home owners no longer feel the stigma associated with losing their home or bankruptcy and walking away from your debt is the easy thing to do. Bad for the lenders, great for us! My latest trip to the states, I found a regular supply of properties not one of them over $15000 (US.) I was literally drooling as I was driving from house to house!
My Conclusion
I've been in the thick of property investing for a good while now with a decent amount of success. In my opinion, investing in the US offers some of the best opportunities around; where else in the western world can you buy property for less than the price of a second hand car! And that can only mean one thing, property prices WILL rise.
The UK market has got some 'correcting' to do, and I'll definitely be keeping a close eye on it. But for now I'll be converting my pounds to dollars.