Prestige Group International
Prestige Group International
It's been all through the media of late, like it or loathe it USA Property Investment is a hot topic and one well worth investing your time into understanding.
After the crash of 2008 which consequently established what is now referred to as the GFC, the American Property Market suffered severe and sudden drops in value of up to 60%-70% of pre GFC values.
After cowboy lending policies were released inviting non income earning, unemployed American citizens to obtain finance with schemes such as a 12 month repayment free term, a massive number of home buyers entered the market not knowing that they would soon regret the decision.
After their repayment free period was up, reality set in and so did buyer's remorse!
Thanks to a non recourse loan structure that is standard in the States, Owners of a property who can no longer afford their repayments need simply hand in the keys of their property to their lending institution, and walk away from the property with no further action taken against the customer.
This led to an oversupply of properties being listed on the real estate foreclosure market, consequently resulting in plummeting property values.
Many of our clients ask us how the rental market can remain so strong in the midst of a property crisis. Although people are walking out on their own homes, they still need somewhere to live. Where else can they turn than to the rental market. This increases demand for rental properties which has seen the gross rental return remain strong despite a falling property market.
When you couple together a property market at rock bottom values, and relatively strong rental returns, we are faced with the prospect of Net Returns of between 10% and 20% per annum (that's after taking into consideration your holding costs).
Add to this our strongest Aussie Dollar in history, this reduced even further your initial investment and has the potential to increase your Return on Investment if the Aussie Dollar reduces back to standard levels, historically around 75c to 80c.
Whilst it may be hard to believe at first, once you do your research, you will understand that this opportunity is very real, and is a once in a lifetime opportunity to create great returns.
Dont be fooled though into thinking there are no risks. The risks involved with entering a foreign market are very real, and can have devastating effects on your financial circustances.
Prestige Group International has specialists in this Investment strategy that source properties directly from Bank Foreclosure, undertake in depth and high quality property renovations on the interior and exterior of the property and also take care of the property management including sourcing tenants, collecting rent, paying expenses and general maintenance of the property.
We provide our clients a complete investors package earning an income from day one. Our aim is to create an investment that is as streamlined as possible, whilst minimising and hedging against the possible risks involved with the investment scenario.
To find out more, visit our website www.prestigegrp.com.au or call us to arrange a complimentary consultation on 1300 732 595.