US Property Investment: Strike while the iron is hot

Let’s be honest: the stakes are too high for any real estate investor looking to enter the Australian property market. With the prices nowhere near affordable, you’re better off investing your money elsewhere.

Like in the U.S.

U.S. property investment has been the cheaper option for real estate investors for a long time, given the price bubble in Australia that we’ve all been experiencing in the past few decades.

But that’s not all. What makes the U.S. market better than others is the size of opportunity and how the market is booming despite the 2020 recession.

Last year, the US housing market’s combined value hit $43.4 trillion AUD, which is almost as much as the combined GDP of the two largest global economies: the US and China. And, unaffected by the current economic conditions caused by the global pandemic, the U.S. residential property market is seeing some of the fastest price appreciation in recent years.

These will lead to significant returns on investment for any property seller. 

Not convinced yet? We have the numbers from some US property investors after working with Star Dynamic:

  • Since expanding their renovation business into the US market, Anne and Catherine have gained an overall return of 39% in just three months.
  • After Bernadette received an ROI of more than 17% on her investment in the US, she purchased two more properties and an apartment block, making her total income per year over US $55,600.
  • Paul and his wife Anne secured a townhouse in Florida, which earned them a yearly return of 12.5%. The couple are now looking to own five US properties in the next three years.

There’s a lot of opportunities waiting for anyone who wants to get into real estate in the U.S. However, no one really knows when the tide will change. That’s why it’s important to make your move now.

So, are you ready to strike while the iron is hot?

How to ready yourself to invest in the US residential property market

Knowing that the current booming market might not last very long, you need to be fully prepared as soon as you can be.

Here are four tips to ensure that you’re ready to take the leap to grow your wealth and invest in U.S. property:

1. Address what’s holding you back

Despite the overwhelming evidence suggesting how U.S. property investment can be a one-way ticket to building your wealth, many aspiring investors still think twice and end up shelving their real estate plans indefinitely.

That’s a big opportunity wasted.

If you’re in the same boat, you need to address what’s holding you back from making that big decision. The first step towards that is to develop the right mindset.

Mindset is a collection of beliefs affecting how you shape your thoughts, attitude, and habits. There are two types of mindsets: the fixed mindset and the growth mindset.

A person with a fixed mindset believes that qualities like intelligence, talent, and skill are unchangeable. So for instance, if you’re bad at maths and you have a fixed mindset, you’ll convince yourself that there’s no way for you to get better.

On the other hand, someone with a growth mindset believes that these qualities can be developed and improved through perseverance, training, and commitment.

Having a growth mindset will help you think more positively and push you to make a move towards progress in reaching your goals.

To improve your mindset, here are five helpful tips, which we explained in detail in a previous blog

  1. Train yourself to be better.
  2. Set goals and be accountable to them.
  3. Learn from your mistakes.
  4. Have a positive support network.
  5. Take action. 

Following these steps will give you more confidence in making big decisions (like investing in U.S. property) that will propel you towards success.

2. Success is a process: Learn what’s required and take action

Success doesn’t just happen, and it certainly can’t be achieved overnight. It’s a continuous process of learning, improving, and refining, which takes a lot of time and effort.

Succeeding in U.S. property investment is no exception. If you really want to succeed in your investment in the long term, it’s important that you set and follow a strategy that works and learn about the mistakes you should avoid making.

There’s so much to learn, so don’t expect that you’ll master it overnight – it doesn’t work that way. In fact, some of the most successful people in our world faced their own doses of failure before they achieved greatness.

Stephen King’s popular book “Carrie” was rejected by 30 publishers before it finally got published.

Oprah, who genuinely went from rags to riches, was told that she was “unfit for television” in one of her first jobs.

And Colonel Sanders, founder of the world-famous food empire KFC, was rejected over a thousand times before his recipe became a success. He was in his 60s by then.

We’re not implying that your investment has to fail hundreds or even thousands of times before you can succeed. You just need to learn to be patient, to trust the process, and to keep learning more about the process behind investing in US property in order for you to ensure that you’re on the right track to success.

3. Have confidence in yourself and have faith in the opportunity

When people tell you that “confidence is key”, believe them, because it’s the truth.

Having confidence that an opportunity will lead you closer to your goals allows you to firmly decide on pursuing it, and having confidence in yourself helps you gain courage to actually take action.

You can grow your faith in the opportunities by learning more about the advantages of investing in the US as opposed to investing in Australia. Things like how:

  1. The U.S. property market is booming despite the economic downturn. Prices for houses across the US demonstrated the fifth-largest gain in nearly 25 years, and is the strongest in 15 years.
  2. U.S. interest rates are currently at a record low – almost near zero.
  3. The value of the U.S. dollar has plunged in 2020, and according to forecasts, there will be a bigger decline in the coming year.
  4. Stimulus packages in both the U.S. and Australia will give you and potential buyers of your future US property a headstart in funding.

Building confidence in yourself is a different thing you’ll have to work on. Believing in the opportunity doesn’t automatically mean that you already believe in yourself. So you need to make sure that you have the confidence to make a move and face any obstacles that come your way.

Here are some strategies in improving self-confidence from Tony Robbins:

  1. Know your values. 
  2. Accept your emotions.
  3. Practice positive thinking.
  4. Change your physiology.
  5. Practice your communication skills.
  6. Reevaluate your blueprint.

Having faith and confidence in both yourself and the opportunity before you will take you a long way.

4. Get help from people who know better

We’re all social beings. Humans never evolved to be “lone wolves”, and that means there’s nothing wrong with getting help.

In fact, we all need help. From the moment we were born and helped by our parents to now being adults who have friends, teams, and networks – help from others is an essential part of life, and of success.

So when it comes to investing in U.S. property, it’s also important that you find the right team to help you take the right steps and make the right decisions.

Star Dynamic wants to help you achieve your financial goals by giving the most effective advice (STARR approach), having our team handle the complicated and tedious processes for you, and supporting you in your investment journey from start to finish.

Through our STARR approach, we can help you create the best investment strategy, build an amazing on-ground team, help you with property acquisition and renovation, and realise impressive ROIs. 

The way that the U.S. property market is booming now is just too hard to ignore. If you’re looking to invest in property, you’ll be missing a massive opportunity if you don’t take the leap and invest in the U.S.

Making that decision and taking action can be daunting, but it doesn’t have to be. You simply need to prepare yourself by developing the right mindset, learning about what to do (and what not to do) of U.S. property investment, believing in yourself and the opportunities in front of you, and getting help from the right people.

Then, the rest will follow.

To find out how U.S. property can secure your financial future, watch our masterclass video.