The USA Awakens

Posted on Monday, July 16 2012

On July 12, 2012 the Wall Street Journal printed a story advising that the US housing market had finally turned.

We have been seeing specific markets change over the last 6 months and whilst I think the US is a long way from a genuine recovery we are definitely seeing pressure on values and rents in some cities.
Some of this is being driven by a shift in US investment thinking as they finally get on board with the fact that income producing property one of the few asset classes with a practical use and even appreciates with use. Someone can live in it and in most markets, profit from it too.

Of course we in NZ, Australia and Asia have known this for decades but those yanks have taken a long time to get burnt enough with the share market to wake up to housing.

What this gives us as investors is a window to buying at the bottom of a market that is being set up to appreciate significantly with good cash flow in the interim.

We have proven it works for ourselves and many, many others round the world.But the perfect storm may start to die down in the next 12 months so he who hesitates will be poorer.

One of the huge things about US property is that it is not a commodity. Homes are geographically specific and affected by availability, neighborhood, the local economy and job availability. This means housing is far more finite than the general description of “the housing market.”
It also means that housing markets do not behave the same. Some markets are more popular than others and within those markets there are A, B and C neighborhoods.

We see this in our three main markets.

Phoenix prices are increasing by an average of $2000 a month as that city appears to be recovering. We now have an unprecedented turnkey system in that city but you have to get on yer bike before the market returns to “normal”.

Memphis is still our favorite son with prices strengthening slightly but rents being strong and the ability to simply buy so well with population and employment doing well. It is just a safe, boring, cash-flow machine city.

And Atlanta is still flat, almost declining in value still but we now focus solely on higher end homes which we are able to purchase for around a 1/3rd to a quarter of build cost. Those areas are going to recover very strongly but not for some time.

We used extensive research to choose those 3 markets initially and 3 years on they are doing what we thought they would and no other cities have shown themselves to be a better bet.

So what am I saying? Simply this:
There US market offers cash-flow with enormous capital growth potential long term. The GFC has hit Americans and American institutions so hard that they have finally woken up to their own housing market and the window of opportunity won’t last forever.

So do yourself a favor and look at the opportunities.

I am available for free Skype consults anytime, just email me dean@turnkeypropertyinvestment.com OR/AND you can join me on our next USA research and Buying tour September 30th.

More info on that at www.retirefromproperty.com

One Response to “The USA Awakens”

  1. ingatz21 says:

    Hi, can you please send me an information pack and a list of available properties you have. Thanks.

Expert's Bio

Dean Letfus

Dean spends his time between the USA, Fiji and New Zealand helping hedge funds and individual investors buy cash flowing real estate in the Memphis market. He works with top professionals in those cities and is considered better at finding deals than most of the locals. Turnkey has clients in 9 countries and specialises in providing end to end solutions regardless of your budget.

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