America has always been considered the land of opportunity, and courtesy of the weakened real estate market Australians are invading the country. Citizens concerned about the activity should stop worrying as foreign investors are helping stimulate the economy by buying foreclosed properties.
Vacant and foreclosed properties that earn the real estate owned (REO) label tend to drag down the values of neighboring properties. It is this trend that has forced home prices and values to be slashed across the nation, and that fact is contributing to a continued downward spiral of the housing market. The investments made by Australians are working directly to counterbalance this trend.
Australia's Role In U.S. Real Estate Market
America is currently experiencing its deepest recession in history. Not only have home values retracted from their high point circa 2006 and 2007, the national unemployment rate is an astonishing high 9.6 percent. Thanks to historically low mortgage rates combined with a surplus of discounted inventory, the nation is experiencing the best buyers market in decades. However, due to economic woes, many Americans are unable to tap into the market and that is where foreign investors from Australia are coming into play.
Unlike America, Australia has a booming economy thanks to commodity-driven export boon fueled by coal, iron ore and gold (CNNMoney.com). Additionally, the country has a low unemployment rate of 5.1 percent and many Australians have the liquid assets for down payments. Finally, the exchange rate is currently providing for an even exchange dollar for dollar. With all the factors tipping the scales in favor of the Australian market, natives of that land are buying homes in destinations such as Phoenix, AZ, Memphis, TN and Orlando, FL. The properties are then renovated and rented to qualified tenants and homes that are lived in, will do wonders for stabilizing local communities.
Global Economy Connects to Local Real Estate Markets
Even during its infancy, America was always part of a global economy. The country established trade agreements with exotic locations such as England, China and Singapore and those behaviors laid the foundation for the world economy as it is today. Nearly every country in the world has vested interests in other nations courtesy of commodities, science, labor and any other economic nuance, and although America is suffering, the local turmoil is not negatively impacting all of the world.
Although CNNMoney.com has reported on dozens of properties being scooped up by Australian investors they are not the only individuals to do so. Reports of Canada, New Zealand, Singapore and wealthy Europeans taking advantage of the state of the nation's real estate market are common as well. According to the source, individuals from countries featuring a commodity driven economy are the ones most prone to take advantage of the nation's real estate market.
How to Find Foreclosed Properties
Americans who have the means to invest in the local real estate market should know that there are plenty of reliable and trustworthy sources for buying foreclosed properties. However the safest bets are buying from good old Uncle Sam (the nation's largest real estate holder) or buying a REO property directly from the bank. These types of foreclosed properties tend to come with a clean title and no tenants to evict. Once a consumer finds the property of their dreams, the next step is to become a borrower and Mortgage Marvel has the technology to expedite that process.
