Time and again I am approached by clients who are convinced that property in the USA the the path to instant wealth. Breathlessly they tell me of examples (always second hand) of people who have been taken on tours of various USA states where houses are virtually given away, are cash flow positive, loans are easy, rents are great and so on and so forth. Yet when you get up close and analyse the facts it’s always the same.
There are no free lunches. Buying nasty cheap properties anywhere in the USA is a shortcut to financial oblivion. If you stand back and take a deep breath the answer is patently obvious. If these are such good deals why aren’t the locals buying them up furiously? Why is it that “foreigners” can see these bargains but the people who live there cannot?
Regrettably there are con-artists in Australia (either with or through their contacts in NZ) who do not hesitate to try convince Kiwis that it’s far more glamorous to invest in the USA and untold riches are there just for the taking.
It’s timely to read again what Neil Jenman, an Australian property expert and critic of all things unethical has to say… and apply it
A deadly trap for Aussie investors.
by Neil Jenman
Here’s a confident prediction: Hundreds (probably thousands) of Australian investors are going to lose millions of dollars in the American property market.
Right now, it seems to be all the rage, the latest fad. Buy real estate in the United States. It’s easy. Prices for American homes are so low and our dollar is so high that an investment in ‘the home of the brave and the land of the free’ seems like a really good idea. …
Read on at www.jenman.com.au …