Why Investing in U.S. Property Makes Sense (and Dollars too)

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Are you looking for a way to make money and get your income working for you? You work hard to earn an income, and you’ve been saving to get a deposit for a house, but buying property in Australia or New Zealand seems so hard these days. Have you considered the benefits of investing in property in the United States of America? There are many reasons why investing in U.S. property makes sense, and of course, dollars for your bank account. Here are just a few reasons to get you thinking.

 

  1. Stable Market

The U.S. property market is far more stable than the Australian market, as there is always a need for more housing. If you are concerned about the effect of interest rate spikes in Australia, borrowing from a U.S. lender will mean you avoid the changes in interest rates locally. The U.S. has many major large business hubs, giving stability to the economy. People in America are used to travelling from home in the suburbs to work, health care facilities, and educational facilities, with sound public transport systems, meaning that wherever you choose to buy a house in the U.S., it will be a good investment. Housing is always needed, and it is easy to lease the property.

 

  1. Exchange Rate

Currently, one U.S. dollar equals 1.58 Australian dollars and 1.76 New Zealand dollars. While the exchange rate means a higher cost in the initial purchase, when you sell the property in the U.S., you’ll receive far more when you convert it back to Australian or New Zealand dollars.

 

The exchange rate between AUD/NZD and USD will increase the profits when you sell U.S. property. For example: If you purchase a property worth USD$100,000  today, you’ll pay AUD$158,028 or NZD$176,521, cheap compared to here. However, if you sell the property in one year for $150,000 in U.S. dollars, you’ll receive AUD$236,950 or NZD$264,600. That’s a profit of AUD$78,922 or NZD$88,115 if the exchange rate stays at a similar rate.

 

Another benefit of the exchange rate is that your property rental income will give you more money when converted into your home currency. Monthly rental payment of USD$1500 equals approximately AUD$2378 or NZD$2659.

 

  1. Cheaper Buy-In Rate

Did you know that in some areas of the U.S., you can buy a three-bedroom house for less than $100,000 Australian Dollars? There are properties listed on real.estate.com.au for less than AUD$95,000 as on 14 October 2022. While there are other more expensive properties, the value for money for property size is often far cheaper than Australian property. This more affordable buy-in rate means you need a lower deposit saved, and you could be investing in U.S. property, earning rental income far quicker than waiting to buy a house in Australia or New Zealand. While there are other more expensive properties, you’ll find the buy-in rate relatively cheaper for the size of the property.

 

  1. Ability to Flip Property Quickly

You’ve probably seen television shows where Americans buy a property, make some simple and cost-effective cosmetic changes, and then quickly sell the property, making a considerable profit. Flipping a property can work for investors too. You can purchase an older property in a good location, and investing a few thousand dollars on top of the purchase price in renovations can increase the property value, allowing you to sell it faster.
This is exactly what we teach you in the Fix&Flip Academy!

 

Even if you don’t want to invest in renovations, you can flip a property quickly by changing how you market and list it for sale. Finding a cheap property, paying a local to make the necessary renovations, and flipping the property can increase your wealth, especially considering the favourable exchange rate between New Zealand, Australia, and the U.S.

 

Investing in U.S. property makes sense, but it is a big financial decision to make, and you will need to investigate more to ensure this is the right decision for you. One of the best things you can do now is to invest a short amount of time learning more about investing in U.S. property. Star Dynamic offers an online course for Australian and New Zealand investors to learn about the U.S. property market. The training provides all the details you’ll need to know, including tax requirements as a foreign investor. Click here to find out more.

 

You know you are ready to make your hard-earned money work harder for you. Investing in U.S. property makes genuine sense. You can invest in a stable market, take advantage of the exchange rate, and buy property cheaper and sooner than you could in Australia or New Zealand. The ability to flip property means you can turn over your investment sooner, making a genuine profit in a short period.