Seven most commonly made mistakes investors make when buying property in the USA
We’ve compiled a quick snapshot of the 7 biggest mistakes Investors make when buying property overseas in the USA.
1. Purchase Price
I have seen properties for sale for less than 2,000 pounds! On paper these seem like amazing investments. Of course they do! Yields over 90%! Beware – these are not good investments. Most of these properties are in war zones. Yes, in theory you could find a tenant, chances are you would have problems getting any rent at all from them.
These housing areas have the lowest amount of unemployment and the highest crime rate.
Capital appreciation is 0% per year and most of these have experienced an historic 0% appreciation in the last 10 years! If you spent money on improvements the value would hardly increase to cover your costs.
There is almost no chance of getting a mortgage in the future. Stay away and don’t get enchanted by the price tag.
Part 2 to follow…until next time, Happy Investing!