Investing in properties overseas seems to be a world-wide trend, especially here in Australia. At the moment, the US real estate market seems to be favourable choice. More and more Australians decide to invest their money in USA properties due to low selling prices of residential properties, low interest rates and high profit opportunities.image source: SMSFWarehouse.com.au
But all that shines is not gold. Given the fact that you are not on your own territory, you may easily became a victim of USA property investment scams. In fact, majority of Australians that have decided to invest in the US real estate without the help of a professional accountant and real estate agent, got scammed. To save yourself troubles and avoid getting scammed follow the tips below and your USA investment experience will be positive.
Don’t Fall For Unrealistic Promises – Usually unrealistic promises include risk-free investments, rent guarantee, etc. First of all, not a single property investment (regardless of the strategy or knowledge) is ever risk free. Second, rental returns can never be guaranteed. So when investing in a USA property use your common sense.
Never Make A Decision Under Pressure – Many of the USA property investment scams are usually related with ‘pressure during the negotiation process’. For example, you may be pressured to invest large amounts of money into a property with a well-known excuse that the house is in perfect condition, located in perfect area, etc. Therefore, never feel pressured to committing to anything, especially if your senses tell you that something is not right.
Always Ask For An Independent Investment Advisor – Never commit to any investment without first consulting with an independent adviser. Always ask for a second opinion.
Check The Credentials of the Seller – Make sure the seller has good credentials. For this you will need the help of a reputable agency that works closely with agencies in the US. If you decide to do it all on your own, make sure you are certain the seller tells the truth about particular property. Otherwise, you are at risk of becoming a victim of the USA property investment scams.
Make Sure the Property Actually Exists – This is probably the ultimate scam foreign investors fall for. Believe it or not, many have bought a property in the US that did not exists.
Let’s go over a simple scenario. You search listed properties in the US, fall in love with one, start negotiation and finally come to an agreement with the seller. The next step is wiring the funds. Transaction is completed and all of a sudden, the seller disappears; as if the earth had swallowed him up. And you are the one that pays for it all. No money and no property. Thus to avoid these USA property investment scams, team up with reputable service provider.