Individuals who seek financial freedom know that wise investment decision can bring them closer toward their goals. Political turmoil and economic conditions, however, often serve as a roadblock. Take the Brexit, for example, which has weakened the British Pound over the past year. UK investors are eager to park their money in safe investment vehicles. And if there’s one place you’d want to invest your money in, it’s in real estate. Particularly, you may want to look into the US real estate market, which has been enjoying one of its best rides in decades.
1) Low-Interest Rates
When interest rates are low, the housing industry flourishes. The reason for this is simple: low-interest rates mean it’s cheaper for investors to borrow money. The US Federal Reserve increased the benchmark interest rate by only .25% since December 2016, and there have been no rate hikes as of yet in 2017. Mortgage interest rates are still low, prompting more investors to enter the real estate industry.
2) Hot Housing Markets
In the past year, international buyers have shown a lot of interest in US real estate. Most of them, however, do not focus on luxury properties. Instead, they put their money in less-pricey homes. These properties can still reap excellent returns, as proven by the booming housing market in Vallejo. According to Kappel Gateway, a real estate company with the biggest market share in Northern Solano County, low inventory and more affordable homes are the keys to Vallejo’s rise in the housing industry.
3) Easy To Borrow From Banks
The US housing crisis of 2007-2008 resulted in strict lending policies. For years, banks have implemented stringent rules to ensure that only those who could afford the high-interest rates could borrow money from them. Thankfully, all this has come to an end. A healthier housing market has prompted banks to tone down their lending policies.
4) Reasonable Prices
Home values in the US have been at their lowest from 2011-2012, but you can still find great deals if you invest time and effort. One area to focus on is bank foreclosures. In the middle of 2016, more than 100,000 foreclosures have been filed. You can leverage this opportunity to find the perfect home or investment property, especially considering that you can now borrow money easily from banks.
5) Invest Early
Some hysteria still surrounds the US housing market, but experts believe that it’s still a fantastic time to enter the industry. UK investors who are waiting to see the long-term impact of Brexit can place their money on US real estate properties. Choosing the right market can generate a good return without taking a lot of risks. Several years from now, you wouldn’t want to look back to this day and regret not investing earlier.
Summing It Up
There’s always some level of risk involved when investing your money, be it in real estate or another investment vehicle. Considering the volatility in other financial markets, however, you can see why the US housing market is now one of the most attractive options right now. With low-interest rates, affordable home values, and relaxed lending policies, the stars seem to have lined up in favor of foreign investors.