US housing market offers an easy entry point
The US housing market has affordable interest rates for financing purchases and property prices may fall to lowest levels since 2000, making it a prime attraction for investors both nationally and internationally.
The US housing market has seen a lot of talk about being too risky, but for investors it may become one of the most affordable options available.
Fixed rate mortgages fell to the lowest level since 2004 this week, after the Federal Reserve dropped rates. This makes home buying for investors more affordable. Now, investors can get into mortgages with low 30 year and 15 year rates.
Additionally, some economists are talking about some shocking news. Some believe that if the US enters a recession and consumer here cannot keep up the spending and investing (and banks are unwilling to lend) then the housing market may see a sharp drop in values. Some believe home values could lose up to 25 per cent, which would take it down to values seen not seen 2000.
Investors are looking towards US for opportunities even from foreign countries. For example, the commercial market in the US has some investors from around the globe interested. Properties in both commercial and residential sectors of cities like Washington DC, New York City and San Francisco look good as investments.
While current homeowners may be facing a double edge sword of foreclosure mixed with dropping home values, investors are able to turn those factors to their own benefits and save money while investing in some of the most secure and in demand cities in the world.