INVESTMENT PROPERTY NEWS - OCTOBER 2007 - NEW YORK PROPERTY
12:57 pm
MARKET TIPS UPDATE - OCTOBER 2007
NEW YORK, NEW YORK!
Article by:
http://www.brightbuy.co.uk
With the pound still very strong over the dollar and property prices at rock bottom in the US at the moment it is the perfect time to invest in a number of carefully chosen investment locations in New York. The only place for your money to go is upwards and if you choose a location like Buffalo or Rochester where the rental demand is increasingly high, your cashflow and net profit will offer returns that are nowhere near the likes of the UK & Europe right now.
It is natural when someone mentions the likes of the US to react in a negative fashion because we know that one of the biggest economies in the world is struggling at the moment with high oil prices and the credit crunch being top of the list of current problems. However, this is why buying in the US right now would be such a shrewd investment move. Despite the majority of US real estate suffering, projections for growth are currently 4% per annum in Buffalo and Rochester. A true test of investment strength and desirability is when local markets can hold their own in the current global economic turbulence. You will not be dissatisfied with the rich cashflow or yields of 20 - 30%! For £25k you can buy a five bedroom spacious family home in a good location close to local amenities!! That amount of cash won't even buy you a garage in some UK locations!
In the CNN Money investment guide for 2007, Rochester listed in the top ten best places in the US to own property and one of the best places to live in 2006. Rochester is the third largest city in NY State. It lies an hour by car to the east of Buffalo, and is considered a sister city. It is also not far from Niagra Falls which is a massive tourist attraction and sets the image of the idilyic surroundings. It was America’s first boomtown, largely due to it being the biggest flower producing city in the world in the 19th century. Median Income levels are low, making it a city of renter’s rather than home owners. It’s home to a large number of international businesses, and is the world capital of imaging technology and optical science, with the university of Rochester ranked number 1 in the country for optical science services. It has historically been a city of high tech industries, which is why is hasn’t seen the decline that other areas have in past decades. Indeed, there is a boom in highly advanced technological industries here as their economy diversifies further into the 21st Century. The main employers there are the University of Rochester, Wegman’s food markets, Eastman Kodak, Xerox and Viahealth. (source-
Wikipedia).
The strategy for UK citizens wanting to buy property in America is more popularly based on cash investment and then re-mortgaging. The cash investment comes first as the US can take their time when it comes to overseas property purchases (don’t we know this with Visa’s!). This means that prospective buyers looking for a property purchase up front on a mortgage basis often lose out on the deal. This is even more likely on some of the deals that we can get hold of with regard to the fantastic stock we get through. If you don’t mind tying up to £20k in US property then you will be looking at yields of 26% and a net cashflow of over £200 per month. Even if the property market did not move for five years your ROI would be 12% - try and get that in any UK savings account! Of course we have mentioned before that Rochester house prices are expected to rise at a rate of 4.50% per annum in 2007 and 4.20% in 2008.
For those who are patient and Remortgage, something more magical happens. Not only does your Remortgage release around £16k of your £20k investment funds (if you have chosen one of the more expensive Rochester properties) but your cashflow works out from £120 per month. This is a staggering 36% ROI and still a yield of 26% on your overall investment of £4k!! These figures are based on a current deal we have available as at 16th October 2007. There will be plenty more of these around the same ballpark figures but variations on the pound vs. dollar will impact the exact numbers. While the pound is strong and the US market is at its lowest in many years, now is the time to think about the US for your property investment portfolio.
By : Bright Buy Admin | Category: Investment Property News | Comments [0]
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