Foreclosures

The USA has seen some pretty difficult times throughout the last few years and this has meant that large numbers of home owners have been unable to continue making payments on their mortgages, or have negotiated a short sale with the bank.

What this means for investors is that a considerable number or properties are coming on to the market with discounts that most could only dream of just a few years ago.

There are billions of pounds of foreign investment going into the US right now which is stabilising the housing market and enabling investors from all over the globe to build their portfolios quickly with relatively small amounts of capital.

This also means that as the market recovers, the values of these highly discounted properties are set to rise considerably. Furthermore, as many of these former home owners haven’t left the area, they are now renting, which has increased the rental market and means that you can obtain a substantial income right from the beginning.

As the future of the mortgage sector is still uncertain, foreign investors rarely obtain financing for properties of this type, so will need to purchase here for cash. This has kept the prices low for the mean time, but when financing comes back, we predict quick recovery in property values, which should mean excellent capital growth in a relatively short time.