I have been asked by a lot of clients over the last 12 months whether or not it is worthwhile purchasing an investment property in America. It appears that the lure of America is because property prices seem to be a lot cheaper than what they are here in Australia. However there are some words of warning in relation to yields and a continuous flow of suitable tenants. I did some initial research post-GFC and found that most cheap properties in the US where cheap for a reason. They tended to be in low socio-economic areas, high rates of crime, high levels of vandalism, and poor tenant quality.
However, I will be heading to the United States for two weeks in June for a number of reasons. I will be visiting Detroit, Indianapolis, Austin Texas, and Los Angeles and assessing whether it is worthwhile purchasing an investment property in the US.
The other reasons for my trip are as follows:
Detroit – as you know Detroit was the first city in the States to declare bankruptcy in July 2013. I want to assess if the car capital of the United States has recovered from this and what plans they have in place to encourage business growth. I will also be looking at properties in Detroit to see if they can make worthwhile investments.
Indianapolis and Austin Texas – I am particularly attracted to Austin Texas because I am doing research into the most livable cities in the United States. I want to find out where the best cities are to live for the following reasons:
- For encouraging business start-ups and growing small businesses;
- The best infrastructure and recreational facilities for families;
- The best local and state government incentives to encourage business investment;
- Value for money in terms of investment property and cost of living.
I have also identified other cities including Atlanta, Salt Lake City, Denver Colorado, Phoenix Arizona and Oklahoma City from my initial research as being the most livable cities in the States that encourage new businesses to relocate or start up from their location and have high levels of infrastructure and a stable strong workforce.
I am also conducting research in the States for the third book. My second book will be out late 2014 and my third book will be out late 2015, depending on my publisher’s deadlines. I am very excited about the research I am undertaking for my third book however I am equally excited for my second book which hopefully will be released by Christmas 2014 or early 2015. My second book is quite controversial and will affect approximately 1 million Australians. I will reveal more in the coming months.
I will be blogging regularly from my travels in the States towards the end of June and I encourage you to subscribe to my blog for regular updates on my research.