Why Invest in the USA / Atlanta?
Why invest in the USA? Because it is one of the greatest investment opportunities in our lifetime, truly. Consider the following facts:
- Incredible Timing: Times like these are called generational buying opportunities since the Great Depression. It will not last forever, and the window is closing with every day that passes.
- Great Returns: Investors can expect positive yearly cash flow up to 15% net ROI as well as substantial capital gains!
- Affordability: Properties are priced at a massive discount. For instance, for the cost of a new car in Australia, you could own a property in the USA.
Price Still Undervalued
|Recovering after GFC||Booming in big cities such as Sydney, Melbourne|
|Great Returns|| Target > 10% net ROI
Positive cash flow for sure!
|Negative gearing – You’re lucky if you get 5%|
|Affordability||Properties available for $30,000-$100,000||What can you buy for less than $300,000?|
What Led to This Unique Investment Opportunity?
“The U.S. Subprime Meltdown”
After the tech bubble and terrorist attacks on the U.S. on September 11, 2001, the U.S. went into a time of recession. To stimulate the struggling U.S. economy, the Federal Reserve cut interest rates to historically low levels, so it was very easy to borrow money, especially if you wanted to buy a home. As a result, the housing market soared for several years. In order to capitalize on this rapidly expanding housing market, some banks started lending money to prospective homebuyers who would not typically qualify for loans, with their poor credit and a weak financial history. These transactions are known as “subprime” mortgage loans. Their interest rates are generally above “prime” interest rates that are available to borrowers with good credit. Meanwhile, global investors filled with cash from the economic boom of the 1990s and ‘00s, were also looking to take advantage to this booming U.S. economy to even make more money. So investment firms were eager to buy these subprime loans and repackage them as mortgage-backed securities, which made it easier to move the investors’ funds into the housing market.
This unsustainable situation did not last long and finally collapsed. Many subprime mortgages were adjustable-rate loans, and reset to a dramatically higher interest rate after a given period of time. This sudden spike in payments led to loans defaulting in record numbers, starting in 2007 and peaking in 2009. Banks foreclosed on delinquent loans so millions of people were forced out of their homes. Financial institutions went bankrupt, and if they survived, it would only be due to massive taxpayer funded bailouts. as As a direct result, property prices plunged setting in motion the downward cycle that the world now knows as the Global Financial Crisis.
The Opportunity of a Lifetime!
How can we benefit from this “perfect investment storm”?
While it is true that the Global Financial crisis has drastically trimmed down house prices, there are many other factors than just price that make the U.S. property market the most attractive generational buying opportunity.
- Stable and Secure Market
Despite the recent economic setbacks, the 2014 survey of members of the Association of Foreign Investors in Real Estate said the U.S. remains the most “stable and secure” country for global real-estate investment “by a wide margin.” The U.S. is also the top market when it comes to capital appreciation and for future real-estate purchases.
U.S. millionaires see real estate as the top alternative-asset class to own this year , according to Morgan Stanley.
- Attractive Market for Foreign Investors
The United States is politically stable and friendly to global investors.
We are seeing an increase in both direct and indirect foreign investment in U.S. real estate as many foreign investors see this unique opportunity. All the more, some financial indicators have pointed to real estate bubbles and substantial credit in the Asian markets, which could lead to some sort of financial crisis in China or in regional neighbors such as Australia and Singapore. This is another reason why more foreign investors are strategically pulling capital out of their home countries to place them in U.S. real estate.
Moreover, did you know that owning a U.S. investment property will allow you to legally expense all or part of any trips to America as a business expense?
- Lucrative Investments
Prices considerably went undervalued after the Global Financial Crisis, which created a huge opportunity for real estate investors to purchase heavily discounted U.S. properties, up to 70% off previous sale prices, with great returns. Prices are indeed so low that often the replacement cost of the structures significantly exceeds the purchase price. In some cases, the purchase price represents as low as 50% of the replacement cost.
Properties are producing positive cash flow returns as high as 15%. For example, a $50,000 property with a 10% net yield will return $5,000 dollars every year after collecting rent and paying all expenses.
In addition, appreciation and capital gain potential are very high. In the period of May 2012 to May 2013 the US market appreciated at an average of 10.9%. It is also affordable to buy: purchase price ranges from 30,000 USD to 100,000 USD.
- Upward Trend
According to a study from the Urban Land Institute and PwC, expectations on profitability from the U.S. real estate sector are on the upside going forward. “In 2010, only 18% of respondents felt the prospects for profitability were at a good or better level,” the ULI reports. “This has improved steadily each year, with 68% of respondents now feeling that profitability will be at least good in 2014.”
“The anticipated interest in secondary markets is indicative of how the U.S. real estate recovery is expanding beyond the traditional investment hubs,” says Patrick L. Phillips, chief executive officer at the ULI.
The 2014 August National Housing Trend Report from Realtor.com shows the housing market slowly improving with strong prices, limited inventory and steady demand. In August 2014, homes were listed at prices 7.50 percent higher than the previous year. The total number of homes on the market in August decreased slightly when compared to the previous year and previous month.
- Time is running out!
The U.S. real estate is now a very hot market with investors’ enthusiasm gathering steam seemingly each passing month. Therefore, the perfect time to take advantage of this opportunity is NOW, while property prices are still 30-50% below what they were in 2006.
Atlanta, the #6 Best City to Invest in America in 2014
In the “Best Buy Cities: Where to Invest in Housing in 2014” study by Forbes, Atlanta, Georgia was listed #6 out of 40 cities on the list. The study was done to track cities with high population, job growth, relatively low prices, and under-valued houses.
Atlanta offers many great low-risk investment opportunities with a lot of growth potential.
- Pop.: 5,475,213
- Actual Home Price: $ 170,701
- Equilibrium Home Price: $ 230,994
- Difference: -26%
- 3-year Growth Forecast: 26%
Source: Article Dec 2013: http://www.forbes.com/sites/erincarlyle/2013/12/26/best-buy-cities-where-to-invest-in-2014/
Being the business hub of the Southeastern U.S., Atlanta is one of the fastest growing, metropolitan areas in the country. It is at the center of the 9th largest metro region with over 5 million citizens that is projected to grow to almost 10 million within 10 years.
Atlanta is the world headquarters of companies such as Coca-Cola, CNN, Delta Airlines, Home Depot, UPS, Airtran, Turner Broadcasting, AT&T, and SunTrust Bank. It is one of the most well connected cities by sea, land and air.
With the world’s busiest passenger airport, abundant greenspace, 66 colleges and universities, and one of the lowest costs of doing business among major U.S. metro areas, Atlanta adds up to a great place to do business where more than one dozen Fortune 500 companies call it their home.
We believe our investors deserve to receive the highest quality and solid investment with a top-notch customer service. This is why we specialize in finding properties in the Metro Atlanta, Georgia, and have a strong local market knowledge and network to locate a high-yielding property with great potential, and negotiate the best purchase price at current market conditions for you.
The Experts Also Agree on Atlanta…
- #1 Best Place to Start a Business
Nerd Wallet, April 22, 2013
- #1 Top Cities for Young Entrepreneurs
Under 30 CEO, March 2013
- #1 Best Cities for New College Grads in 2013
Forbes/Rent.com, March 19, 2013
- #1 Top Metros by Number of 2012 Projects in the South Atlantic Region
Site Selection Magazine, March 2013
- #1 Top Moving Destinations in the U.S.
Penske, January 13, 2013
For more in-depth information on why Atlanta is the right place to invest, check out these booklets from the Metro Atlanta Chamber:
“Why Atlanta for Business”: Click here to download
“Metro Atlanta: An Executive Profile” to learn more about metro Atlanta’s demographics, history, business and industry, education, and transportation, to name a few: Click here to download
Are you ready to get started? Click here.