The opportunity to buy good Real Estate properties in the USA is historical, and the prices in good cities are recovering (fast in properly chosen areas).
American, Foreign investors, and Funds managers are now aggressively buying single family homes in well-established cities. It is well known that Real Estate prices in many good areas of the US are well below their replacement costs, offering very good cash flow and appreciation.
The USA Real Estate market went trough a dramatic decline in 2008-2009 due to the Sub-Prime Lending Crisis; properties dropped in price very significantly.
Today the Real Estate market in several US cities offers excellent opportunities as prices are recovering but have not reached replacement values and/or pre-crisis prices. Good rent to price ratios and appreciation can be found in good locations.
Why are so many additional Americans now renters?
After the Sub-Prime crisis, American banks became conservative with their lending practices, making it harder for
- Americans to qualify for a mortgage.
- Also, some Americans lost their homes to foreclosure, unfortunately affecting their credit rating.
- A third component is that many home prices dropped at a level where traditional lenders lose interest; a good rule of thumb is a loan below $50,000.
There are very good cash opportunities available. Canadians can utilize their Lines of Credit, Equity Loans or cash.
Lending opportunities for Canadians and other foreign Nationals are available, although good sources can be challenging to find. Rates are typically higher than for Americans, yet the cash flow and appreciation of many of these properties make them very attractive (as a cash deal or even with financing). This is the reason why many Canadians, other foreign nationals, and US Fund managers are actively buying properties in the USA
