Property investment in the USA is becoming more and more popular, and many British investors now prefer to purchase properties outside the UK or Europe. There are a number of economic reasons why the USA property market is working well, and investors can thus make large profits from relatively small investments. As the USA is becoming one of the number one property investment locations, it is crucial to understand why it can offer unparalleled opportunities.
1. Economic Factors - Even despite the recent economic recession, the USA is the world's largest national economy and is one of the largest countries in the Alternative energy world by area and population as well. The USA also has an estimated GDP of over $14 trillion, and relatively low living costs. The country is a developed market with a modern infrastructure and has large finance, and property sectors.
2. Favourable Business Atmosphere - A very positive approach to business and entrepreneurism is inherent in US economy and culture. This means lower business taxes, and a more transparent legal system which makes investments, buying, and selling easier and faster. The entrepreneurial atmosphere also means more support for your investment and a larger base of investors and buyers once you want to sell your property.
3. Diversity - The USA is an extremely diverse country, with a multicultural society a variety of climate zones, terrains and lifestyles. The USA has something to offer for everybody, from those who want live in huge metropolitan areas to those looking for a more relaxed pace of life near the beach or the desert. This cultural and social diversity also means tolerance and acceptance and makes the USA a uniquely open culture, which definitely creates a favourable atmosphere for your property investment, and means that there are a wide range of options when it comes to investment properties.
4. Lack of language barriers - The USA is an English-speaking country with a culture and society that doesn't differ significantly from that of the UK. This makes communication and transactions clear and simple and means that you won't have to worry about major cultural differences when you visit the USA to arrange your property investment.
5. Large BMV Property Market and Foreclosures - The USA property crash, the sub-prime mortgage crisis in other words, meant a significant increase in the number of foreclosures. Sub-prime borrowers weren't able to pay their mortgages, which led to repossessions. This huge number of foreclosures enabled the growth of the below market value property market, which offers unparalleled opportunities for property investors nowadays. Due to bank repossessions, properties are available much below the market price, and as the purchase price is a crucial factor in property investments, the BMV property market is a very attractive one nowadays.
6. Potentially High Yields - Below market value prices will also mean that your potential net yields are really high and that the risks are much lower. While in the UK, Alternative energy you could expect a gross rental yield of 4-5%, net yields in the USA can be up to 12-15% per year. The combination of a large number of BMV rental properties, favourable business and investment conditions, and low risks make the USA property market really attractive.