It is no secret that London is hail as the “safe haven” for investments. With foreign investors continuing to purchase properties in London as a means of investment or a second home, the London property market has and still is experiencing a boost in it’s sector.
Though it is believed that London will continue to thrive ,what more with the Olympics around the corner, one must always look to alternative resources.Of late, a survey conducted has shown that while London may be receiving foreign
investments,the Brits on the other hand have been shifting their attention to the US real estate market.
With an easier access to mortgage loans and a knock-out price on properties due to the economic and fore-closure, many more Brits are choosing to invest into the US market rather than one back home. And why wouldn’t they? With properties in US being sold for merely $50,000, it wont be long before more investors, local and abroad, will follow suit.
According to Annette Reeves, director at Mayfair International Realty, she believes that due to the fact that the American housing market has improved and gaining access to a mortgage is easier than it was previously makes it appealing to potential investors.
She describes how there are a number of bargains to be had in the US, with areas such as Florida offering foreclosure properties for around £32,000. She goes on to state that there seems to be an increase in the number of people looking to find somewhere overseas, somewhere nice with a place to put their money in.
Even if it proves difficult to sell the property once it has been refurbished, Ms Reeve claimed purchasing a property in the US can prove fruitful, as it can be used as a family holiday destination.
Her comments follow a recent report from the National Association of Realtors, which revealed the sale of existing homes declined by 8.8% in February compared to the same month a year earlier.
The organisation also noted distressed properties accounted for 34 per cent of the transactions completed last month, with NAR president Moe Veissi pointing out there is competition between investors and first-time buyers for these “bargain-priced” assets.