United States Property Market – Sale Now On!

Night on the Mississippi

Mansion in the Garden District of New
Orleans, Louisiana

St. Louis Cathedral, New Orleans,
Louisiana

Alabama Gulf Coast Sand Dunes

Sunset at Lake Martin near Breaux Bridge,
Louisiana

Alabama State Capitol Building

Louisiana State Capitol Building

"For the property investor seeking favourable market conditions in a historically robust marketplace where there is opportunity for short, medium and long-term gains, the United States currently epitomises these conditions and quite possibly represents the ultimate in immediate investment opportunities," explains Danny Silver, the managing partner of Property Direct America and an expert on the region.

According to present attitudes and expert opinion in the real estate and investment industry, the property market in America is potentially at the most attractive point in its cycle and now could very well be the right time to buy-in.

The main facts supporting this attitude are:

• The property market across much of America is stagnating and in certain states it is in or approaching recession, which means prices are falling, making a buy-in more cost and profit effective
• Even in spite of dollar gains made recently, the pound and euro remain stronger buying currencies in the US
• Record numbers of foreclosures have created a situation where an abundance of relatively cheap property is available for sale in the United States
• Demand for housing in the US is not abating with rental demand in states such as Louisiana, Alabama and Mississippi - which were severely affected by Hurricane Katrina - massively outstripping currently limited supply

"You can add to all of these already well-known and greatly discussed truths some additional factors that also point to the reality that the United States is currently an incredibly attractive market for property investors looking for a familiar market built on extremely strong fundamentals," says Mr. Silver.

"For a start, leading research spanning almost fifty years highlights the fact that historically speaking, investors who have committed to market entry during presidential election years have made substantial gains – and 2008 is a presidential election year."

Additionally, leading US investment strategist and author Michael J. Mauboussin has pointed out that those who were ‘brave’ enough to buy stocks and shares in property development companies in the US in the 1990’s - during and immediately following the last real estate crash - were in a position to enjoy exceptional returns over the short, medium and long term.

"However, before investors rush out and begin buying property anywhere in America it is incredibly important to note that the housing market and overall real estate economy in the US has to be broken down. Each state in America has its own underlying factors affecting it, each state can and should be viewed separately; furthermore, specific due diligence relating to the fundamentals driving and affecting the market have to be carried out on a state-by-state basis," explains Mr. Silver.

"As mentioned earlier, some of the states in America where there is currently an attractive set of market conditions for investors to buy into are within the Mississippi Gulf Coast area. This is an area of the nation that was devastated by Hurricane Katrina in 2005 and where there is also a high-density population demanding new rental accommodation."

In December 2005, the US Government enacted the ‘Gulf Opportunity Zone Act’, (known as the ‘GoZone’), to cover the surrounding areas affected by the hurricanes.

"Covering several counties, this act includes subsidised land for developers. Individual investors get guaranteed low prices; subsidised guaranteed rental income and high tax benefits which removes the burden of both income and capital gains taxation – even for non-US citizens," says Mr. Silver.

"Governmental and taxation incentives have been created to encourage corporate investment resulting in leading companies bringing high employment to the region in a bid to attract new people to the area and to improve the lives of those affected by the hurricane. The Government is also actioning huge expansions of the Military Installations of Keesler Air Force Base, Stennis Space Center, and the Atlantic Fleet Seabee Base."

In addition, 22 Vegas-style casinos are being built in a new resort area along with hotel and entertainment centres. 11 casinos are already open and employees are being ‘bussed in’ from over 100 miles away simply because there is said to be no suitable accommodation nearby.

"Clearly in a location with a housing shortage, an ever-increasing demand for accommodation, increased employment opportunities, slowly growing local affluence and where house prices are particularly affordable, and where developers are starting to construct new real estate, there is a perfectly ripe market for immediate property investor entry. Entry into the market is as low as £68,000 with a 70% LTV mortgage available for a 3 bedroom, 2 bathroom house," adds Mr. Silver.

For more information on the GoZone and how real estate specialists Property Direct America can help you invest in American property, visit www.propertydirectamerica.com

To contact Property Direct America, call 0207 043 0792.

Click here to read more about international real estate expert, Danny Silver.

Information courtesy of Property Direct America and Ashton Billige Property Marketing Ltd.

© PropertyIndex.com 2008 | Last Updated: 05 March 2008