This timely warning applies to Kiwi investors too. – Olly
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.
Unfortunately, it’s not a good idea. For the average mum-and-dad Australian investor, buying real estate in America is a very bad idea. Never mind what the Aussie spruikers tell you, never mind how good it sounds, it really is too good to be true.
These days, a number of Australian spruikers have set up companies and are selling real estate in America to Aussies. Some of the men ‘behind’ these companies are the same villains who were once ripping off investors with over-priced property deals in Australia. As any police officer will tell you, once a crook, always a crook.
Yes, I know it sounds wonderful. The numbers are enticing. You’ll be told that you can buy a house for as little as $50,000 and rent it out for about $200 a week. That’s a twenty per cent return. It seems like a no-brainer. In reality, it’s an investment for people who don’t have the brains to spot a scam. And while I don’t mean to be rude, I do mean to protect you from getting stung.
If you really want to check out the American real estate market, do it properly. Buy a ticket to the United States and check out the market for yourself. Under no circumstances should you buy property on the advice of an Australian company alone. Do the real research. …
Read the full article at Jenman.com.au.