Now's the Time to Buy Property in the US

According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index, affordability in the United States is now at a 20 year high, with an incredible 75% of homes in the country being affordable to families earning the national median income of $64,200.

Even though homes are affordable to the majority of the population, and interest rates are at an all-time low, and the housing market is still being held back by constraints on credit and worries over the economy. In spite of this some housing markets in the country are beginning to stabilise and there are some signs of green shoots.

The most affordable area in the US is the Youngstown-Warren-Boardman area which is on the Ohio and Pennsylvania border. An amazing 94% of homes here are within reach of those earning a median income. Other areas showing high affordability include Lakeland-Winter Haven in Florida and Syracuse in New York.

All these factors make the US extremely attractive to investors, especially as the number of renters is rising.

There are signs that increasing numbers of first-time investors are choosing to dip a toe into the market, and while it is a good time to buy, those new to the property investing game should be aware of the potential pitfalls and should make sure they only invest in an area that they know reasonably well, and that they investigate the local rental market thoroughly before committing to their purchase.

While the market is good for investors, those who are unable to pay in cash are also facing problems finding funding. According to the National Association of Realtors, 19% of homes sold during May and June were sold to investors, up from 13% on the previous year.

Increased Interest from Wealthy Europeans Looking for Holiday Homes

Apparently more wealthy Europeans are looking for property overseas, especially those from the Netherlands, Norway and Germany. This is quite a change as previously the market has been dominated by Asian and Middle Eastern investors.

An international real estate search agency, Quintessentially Estates has seen an increase of 50% on searches compared to the same time last year. They feel that this increase in interest could be due to the low interest rates throughout the Eurozone, and the current turmoil on the stock markets which is causing many to turn to property as it has traditionally been seen as a safe haven, and is always good for the long-term investor.

One of the most popular countries for investors is France, which is always popular for second home buyers. However beleaguered Portugal, Greece and Italy are also proving popular, with investors hoping for a real bargain in spite of the risk that property prices here could fall in the near future. Brazil is also becoming more popular as its economy continues to thrive, and the Caribbean and Indian Ocean are also top of many people’s wish lists.

Although European buyers are increasing, American and British buyers are holding back, and this is probably due in no small part to their economic troubles and the weakness of their currency. British buyers are intending to look at property outside the Eurozone, while Americans are more likely to concentrate on their home markets where prices have declined by up to 50% in some states.

Foreign Investors Buy $82 Billion Worth of US Property Year-On-Year

In the 12 months to March, foreign purchasers bought $82 billion worth of US property, which is an increase of 24% on the previous year, according to figures from the National Association of Realtors. Canadian buyers accounted for 23% of these sales, with China accounting for 9%, while the UK, Mexico and India all accounted for 7% each. Brazilian and Argentinian buyers, if counted collectively accounted for 5% of all sales, up from just 2% in 2010.

The attractions of America property are easy to see as the weak dollar and falling prices make it easy for overseas buyers, who frequently paying cash to pick up a real bargain. According to property website Zillow, and prices fell by 8.2% during the first quarter, while Standard & Poor's/Case Shiller index shows prices are down by around 33% since their peak in July 2006.

Apparently overseas buyers accounted for 8% of the American housing market which was worth $1.07 trillion to the year ending in March 2011, and half of the sales which were worth $41 billion were to immigrants who have moved to the country in the last couple of years, while the other half of sales were to international investors. A notable proportion of high-end properties are now sold to Russian buyers who see it as a status symbol to have a luxury property in the US, and the number of billionaires in Russia is increasing as out of the 214 newcomers to Forbes magazine list, 31 were from Russia, and Moscow now has 79 billionaires compared to New York's 58.

EasyJet Gives Boost to Holiday Homeowners in Spain

Low-cost airline easyJet has just announced a new programme of 20 new flights to Europe from Southend International airport in Essex, with five of those flights going to the Spanish Costas. The new flight schedule is due to take effect in April 2012, and fares could cost as little as £26.

These flights are bound to be hugely popular as the routes include Malaga, Majorca and Alicante, and should be a great boost to anyone who owns a holiday home in these areas.

Having cheap and easy access to holiday property is essential, and the estimated 800,000 people who will fly into Spain from Southend will be looking for somewhere to stay which is great news for anyone choosing to rent out their property, as well as those looking for somewhere to buy.

Sales of property in Murcia have already started to increase, albeit slowly due to the Paramount branded theme park which is due to be built in the region. It's certainly a great time to buy as property is at its cheapest for a decade, and local estate agents are hopeful that prices have finally bottomed out.

The new theme park is due to open in 2014, and has been predicted to attract up to 3,000,000 tourists annually. Although this may have a positive impact on property prices closer to the time of opening, as yet property prices are not rising. It looks as if some people are waiting for construction work to begin before taking the plunge to buy a holiday home here.

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