Investment Properties

Types of US Real Estate Investment Properties

The current economic climate in the US has increased the types of homes in the USA that will be attractive to foreign investors. The value of the dollar is historically low, while an oversupply of homes has led to prices crashing. If you are a foreign investors, the conditions are ripe for investment.

Below are 3 types of homes in the USA you can currently find on sale:

Residential Single Family Homes

This has always been the most popular choice with foreign buyers, as well as domestic purchasers. A recent survey done by the National Association of Realtors showed that 69% of international buyers bought detached, single family homes in the United States.

This is partially due to the draw of the suburbs, with 45% of international investors buying there. The main reason is that these types of properties have enabled most investors to get good healthy returns on their investments.

Residential homes have been at the forefront of the housing crisis, especially in areas like California, Nevada and Arizona. These are the markets that experienced double digit home price appreciation during the housing bubble. When it burst, these are the areas where prices dropped most dramatically.

This segment is also expected to be the leading factor in the recovery of the housing market. It is considered the place where investors will find the best prices as well as realize their best returns.

Condominiums/Apartments

These are the second most popular types of homes for international buyers, accounting for 18% of all foreign real estate purchases.

Many builders are desperate to sell off inventory, especially condominium buildings in resort areas, and as a result, you can find some great deals. A story out of Florida recently highlighted this problem very well. A 32 story condominium unit had just one tenant in the whole building.

Many international buyers also prefer condominiums due to the lack of upkeep, and the amenities that are usually offered within the complex.

Townhouses

Townhomes come in third popular for foreign investors. Only 8.About 9 percent of foreign buyers buy these. One reason for this is that there simply aren?t as many of them as compared to single family homes or apartments and condominiums in the United States.

Another reason is that many of them have been built in places that have kept their value fairly well during the recession, so they?re not really the best deal for buyers.

Perhaps more important than the types of homes available, is the enormous amount of them currently for sale. Investors are able to be very discerning in their choice, as sellers compete in an extremely competitive buyer?s market. Given the types of homes on sale in the USA, as well as predictions of a recovery in the near future, there arguably has not been a better time for foreign investors to enter the US real estate market.