The latest podcast in the Nubricks Property Podcast series tackles the US property market and the property investment hotspots that many real estate investors may have overlooked. In edition 29, Adam Samuel is joined by Robert Shemin
, a real estate investor and best selling Business Book author of "How Come That Idiot's Rich and I'm Not?" and Danny Silver, partner in Property Direct America
, agents who specialise in US Go Zone Areas.
In the last year, the US property has been headline news with doom and gloom and the sub prime market being the feature of many a news story. The US has a diverse property market and should really be treated as 51 different countries with many sub markets within those. The real estate bashing has led to many property investors being put off this real estate giant, but as many savvy investors know when a market is in a downturn its often the right time to buy. It is going to be hard (not impossible) to make significant short term returns in the much talked about areas of California, Las Vegas, New York and Florida. Many investors buy in these areas because they are safe have been marketed well by many organisations, but if everyone buys in these places then supply will outstrip demand. Robert Shemin, an experienced investor who has made his fortune buying and selling real estate tells us that you have to find properties that cash flow and have a market where demand is high. Speculators have been burnt as the properties they buy do not cash flow and they rely solely on capital appreciation.
Both Robert and Danny discussed the following:The US Gulf Opportunity Zone "Go Zone"
The Go Zone was originally setup after Hurricane Katrina and Rita wiped out entire communities in 2005. It was set to encompass New Orleans primarily, but was extended to the worst affected parishes in the following states: Alabama, Mississippi, Louisiana and Florida. As there is now a shortage of property to rent for key workers the Gulf Opportunity Zone is well worth looking into.US government incentives
The US government is offering subsidised land for sale, 50% tax depreciation and a rental program, which will help subsidise any shortfalls in workers wage packets.Local Demand
Danny uses the example of the local Biloxi property market in Mississippi. Biloxi has grown its casino total from 11 before 2005 to 24 today. As the casinos employ many workers this is creating a strong demand for housing in the area and therefore buying a buy-to-let property in this area seems to have great potential. Many other industries have reinvested in the area including the plant for the airbus military planes.Eco friendly homes to boot
For those of you who are environmentally aware many of the new houses going up in this area are steel framed (75% recycled steel) with eco-friendly and energy efficient systems.Strong Pound and Euro
Many UK and European investors are being lured across the pond to get more real estate for their money. The weaker dollar means that investors are now looking at the Go Zone and other areas, as potential long term investments.What are your thoughts on the US property market?
Have you visited recently and what did you think?
Do you live there and have a grasp of the local market we discuss?
Why not have your say by adding your 'Comment
' below this post.
If you want to listen to the full interview, please use one of the link below:
The podcast has been removed as it is now out of date.