ad

Investing in the US

D

Deanb7823

New Member
First member post newbie**

From what I’ve read house prices in the US seem a small fraction compared to the UK with high yields. Does anyone know anything about investment in the US and what basic criteria you need if you were first time buying over there? Thanks for reading
 
D

diyhelp

Active Member
There are a number of factors to take into consideration.

- The depth and variation of the US market is huge - it is difficult to pigeon hole the housing sector under on house price performance index.
- Many of the high end luxury markets offer small yields but potential for capital growth, while others offer limited capital growth potential but significant yields.
- When investing in a foreign market you need to appreciate the currency risk.
- Do not assume that costs and regs in the US housing market are the same as the UK for example - a common error.

Finally, do your research - follow the property moguls, read up on the markets and do not jump in with both feet. It may also be sensible to assume an investment in US collective investment property funds where you buy a share in an overall portfolio managed by a third party.
 
N

nmb

Well-Known Member
I agree with every comment so far, currency exchange rates and local regulations are just two important areas to consider. There is also the fact that US markets do not necessarily perform in the same manner as their UK counterparts. Research local trends, potential for the future and consider what kind of spread of exposure this would add to your portfolio. If you are unsure, there are always collective property investments where you effectively ibuy a stake in a larger fund which is managed by a property management company.
 
D

diyhelp

Active Member
The idea of using collective investment vehicles would seem to make sense when looking at foreign property markets. Not only would they manage the assets but there would likely to be some form of currency hedging which might not be applicable to private investors because of cost.
 
R

Ryan Mollison

New Member
Hey, one of my friends was also searching for some investment options, So he was recommended to invest in funds as investing in funds is a safer way than investing in property.
 
D

diyhelp

Active Member
Hi @Ryan Mollison

Good call - investing property funds is a useful way to gain overseas exposure in markets where perhaps you have little or no experience. You will pay a management fee to the fund managers but assuming they are able to deliver, it should be money well spent. Do you have exposure to property funds yourself?
 
N

nmb

Well-Known Member
The beauty of the US is that it is so large and has a massive spread of wealth that there will be a market to suit your finances. However, finding a property market which can deliver on rental income/capital gains or both is the tricky part!
 
Top