This is because it falls into the top 3 rank for each of the following: foreclosures, short sales and bank owned homes. This has created a unique investment opportunity that Canadian investors are taking advantage of.
The most important thing to remember in U.S. real estate investing is to buy low and sell high, and that is just what these investors are doing.
The best way to achieve this is to buy property when it is in a depressed state and when the market recovers sell it for maximum profit. This is exactly what is going on right now in Arizona. This is a prime opportunity that foreign investors looking to buy U.S. real estate should not pass up.
While many of these investors are “flipping” these houses, just as many are choosing a more long term investment. These are people who have decided to use the home for a vacation spot and consist mainly of retirees. This is because the warm winters Arizona has offer a refreshing respite from harsh Canadian winters.
In order to get the best deal when purchasing U.S. real estate, it is important to carefully consider the price of the house being considered.
Most investors seek a price that is around 20% lower than the current market value of the home. This usually requires a little looking around to find but is worth it in the long run. One of the best ways to locate property for investment is to contract a real estate agent. They have access to a variety of networks and can let you know the best deals as they enter the market.
Always remember that homes such as these often require some sort of work or maintenance. Be sure to do a thorough evaluation before you buy to assess the estimated cost of the repairs or upgrades. Even if you don’t find exactly what you are looking for at first, banks usually have several other foreclosed homes that they haven’t placed on the market. This is to ensure that the market is not flooded, further depreciating home prices. If you want to find out about these homes you can contact the local bank. Often times they will provide a list of homes that they have acquired. Otherwise, the bank will slowly release these into the market.
Be sure to consider pre-foreclosures as well. There are many homes that are in danger of being foreclosed and the owners are looking to sell them to avoid the negative impact on their credit. These are a great way to find homes selling far below current market value.
The US economy is starting to turn around, so the great prices on real estate won’t last for long. This is partially due to economic stimulus packages that have been passed. If you are looking to invest in US real estate, it is important to start looking now. There are many different Realtor’s available who can help you find just the right property for what you are looking for in your U.S. real estate purchase.