Property investment in the USA: A robust diversification strategy

Why is property investment in the USA such a potent option?

Property investment in the USA has been a staple of strong international real estate portfolios for decades. As one of the world’s strongest economies, the US boasts a housing market that offers significant returns in comparison to real estate in other countries. Average returns can vary between 12 and 14 percent, an incredible return in comparison to other locations such as Australia and Britain. This disparity has made property investment in the USA from abroad an industry in itself. While the market has seen its ups and downs (most recently in the 2007 financial crisis and housing market collapse), it has consistently recovered and reclaimed its position as a central component of international investment strategies.

The durability of property investment in the USA

US property investment saw its biggest setback in recent history during the financial crisis with prices dropping a whopping 30%. However, since then there has been a steady rise in value, with the last six years, in particular, seeing a steady increase. Besides, the last couple of years have seen new markets open up within the country itself, with areas like Nashville, Columbus, and Atlanta seeing large upswings in home values and rental yield. And savvy foreign investors are taking note. A total of 78 billion U.S dollars was invested from abroad into the U.S property market in 2019 alone.

The developing state of property investment in the USA

There are many key areas that have become the focus of both foreign and domestic investment strategies. The phenomenon of an increasingly aging population has turned housing suitable for seniors into a reliable growth market that along looks like increasing in strength. Also, a cultural shift towards renting as a long-term option has turned multi-family rental properties into an investment with consistent returns and low volatility. That said, US property investment from abroad is not a straightforward process. Aside from the difficulty of sourcing suitable investments, there is also the challenge of purchasing as a foreign citizen. This process is bureaucratically complex. This is why having a real estate asset management team you can trust can make all the difference when it comes to both securing the right assets and maximizing ROI.