Australian property buyers have been given a bit more time to get into the US market on favourable foreign exchange terms. The Aussie currency - which historically buys around US70c - has been above parity for some time but looked like slipping below $US1 this week on renewed worries in Europe. However a surprise fall in the unemployment rate to 4.9 per cent has reinflated the Aussie currency and given those interested in exchanging $A for $US to buy property in the USA a bit more time to get organised. As always, we think the best and safest way for anyone to start is to grab a copy of Buying Property in the USA: A Foreign Investor's Guide.
Australian broadcaster calls out US property investment frauds; reminder on due diligence methods in Buying Property in the USA
"American real estate at rock bottom prices, available now to cashed-up Australian investors. Sound too good to be true? That's because, unless you're very lucky, it is. "
And so begins the story run on Australia's national broadcaster (the ABC) about the risks of investing in the US property market unprepared.
The story covers several apparent fly-by-night operators who made promises of big returns to Australian investors who handed over their cash for very little in return.
It's tragic for those involved and a salutory lesson about doing due diligence on every transaction and every individual involved in your US property purchase.
However, we've noticed these stories are pretty common in the Australian media which tends to heavily spruik investment in the overheated Australian property market as that's a key source of classified advertising revenue (not in the case of the state-funded ABC though in this case).
And of course, the thousands of success stories are the ones that are going to make headlines. Rest assured, there are plenty of ways to make safe investments in the US that are relatively low risk.
Learn more about grabbing those eye catching returns that the US market offers without getting your fingers burnt in Buying Property in the USA: a Foreigner Investor's Guide.
Keep up to date with all the news on buying US property on the Buying Property in the USA blog