Should Australians Still Invest Properties in the United States?

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For several years now, people have been trying to call me to ask if it is still a good idea to invest in property in the United States? I have been buying properties in the United States for more than 20 years already.

Buying a real estate in the United States started in the late 80s, when I got myself involved in the loan debacle and savings. This was when the banking system in the tnr grand long khánh southern states was failing and we even had to make transactions of the property buying and selling without any banking system, since there were virtually no banks around.

Now it’s as if there are bank crisis every 20 years in America. Prices significantly dropped, sometimes 95 cents on the dollar, when I was buying properties. We can even buy properties 5 cents on the dollar! There were even home units that we could buy for as low as $600 and a couple of thousand dollars per house.

The fact that the Americans are currently going through a major bank crisis, a lot of Australians are apprehensive to take advantage of the US market. Perhaps you don’t have to worry about this issue if you are not going to live in the United States.

In the late 80s, I did spend a lot of time with some Australians who were trying to save what’s left from their capital, the capital that they have invested in the U.S. And after 20 years, I’m doing it again – helping Australians who lost a lot of money, to get out of the United States and will still be able to keep the remaining capital that they have invested.

The American and Australian Culture Differences

Why do you think this happened? Why do some Australians invest in the United States and end up being disappointed? Even if we read about 15% returns – 25% returns. I will examine that fact for you in a little while. But before that, I’d like to go back to analyzing the differences between the way Australians do business from the way the Americans do business. Most of this is outlined in the book, written in the 1970’s called, “American and Australian Cultural Differences”.

In the book that Donald Trump wrote, “The Art of the Deal”, he simply mentioned there is no such thing as a win-win in business. It has always been ‘I win and you lose’. Here’s the first major difference, in Australia, people come first, then the money comes second. While in the United States, it is the other way around, big business and the big bucks comes first before the people. This doesn’t mean that Americans are bad and we are good, we simply have a different culture. Also, our governing laws lean that way.

Our Australian culture and mentality is reflected in our legal system, a system that is shared with both legal and equitable law. Once a judge sees a contract that he doesn’t like, he can overturn the contract since under the equitable law, which means fair play law. Unfortunately, this is not how it works in the American playing field. The real deal is always on the piece of paper.

On the lighter side of playing in the US market is, we both can sit down and talk work out a contract. I can even trade a portion of a property in the US for only $7. As long as we both sign a one page General Warranty Deed or Warranty Deed, that property is bought for $7. And it costs that much because that is what cost me to record this at the local court house and make the purchase. That is the deal whether we had a creative lease option or an installment contract. Unfortunately, if you get into some bad terms, you have no government body to come in and looks after you. The deal is, the dollar comes first.

Whether you dream of a romantic holiday retreat or look to invest in property in a safe and stable country close to home, property in France and especially property on the French Riviera and the south of France can be a good long term and secure option.

With a chic, sophisticated lifestyle and a warm climate, the south of France remains a firm favourite amongst foreign property purchasers, especially the British and Scandinavians – this has indeed been the case for many years now.

In particular properties for sale in the south of France have always been a popular choice amongst overseas property investors – quaint villages, award-winning beaches glamorous cities such as Cannes and Nice continue to draw property investors to the south of France, as do the top ski-resorts and more inland destinations such as Valbonne and Mougins, not to mention that prevailing sense of natural chic and sophistication that foreign visitors always find so alluring.

The value of property in the south of France continues to remain stable and is now moving in a positive direction. Villas and apartments in the south of France boast a strong rental market due to the fact that the vast majority of French citizens rent their homes for fixed terms of 3 years, and this creates a healthy demand for rental property in most major cities and indeed villages further inland such as villas in Valbonne and Mougins. Meanwhile many holiday destinations such as Cannes, Nice, Antibes and these inland villages are still in need of tourist accommodation to satisfy an increasing number of annual tourist arrivals to the French Riviera and the south of France.

With flying time of less than 2 hours from the UK and most European cities, the south of France offers property investors easy access via budget airlines plus, an excellent road and rail infrastructure. This naturally has an incredible appeal amongst those looking for a 2nd home or relocation in the south of France and not too far away from the rest of the family back home.

France’s proximity to the UK and the rest of Europe is a major factor influencing the success of the property market on the French Riviera allowing homebuyers to visit regularly and cost-effectively, while taking advantage of the slower pace of life, lower crime rates and that certain ‘Jene sais pas’. These have been main ingredients to France’s recipe for success in the eyes of many investors. Property for sale on the French Riviera as an investment continues to be highly popular option amongst many worldwide investors and this remains so in 2011 – the French Riviera can offer you a safe investment within a well tested market.

For investors who snap up French Riviera property for sale within its newly developing property markets, good returns can be expected over the medium to long term. The steady progress of France’s general property market and its booming tourist industry in the south of France, prices should continue to rise. Shrewd investors are acting now while prices remain relatively low but rising, and the best French Riviera property investment opportunities are still available.

In fact, over the past number of years the quantity of British registered home owners who have taken up residence in France has risen sharply. A large percentage of these properties have been purchased as holiday homes by the British and Scandinavians, reflecting an undying interest in French property as a sought after property location.

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