“It’s going cheap! House prices to disposable income per capita are down from 40% overvalued in 2005 to 30% undervalued today. Owning a house in the USA is more affordable now than in the last 35 years. And if you look at what you get for about $100 000 you’ll be amazed. This is obviously due to the dramatic overvaluations and sales to people who just couldn’t afford them.

Usually, dramatic overvaluations and crashes result in wonderful opportunities.  The Aussie dollar is at its all time peak, rental yields from residential houses are at around 15% and there is fewer homes are being started than any time since the Second World War. IN addition, interest rates are low (you could borrow at around 3.5% variable short-term or 5% long-term) and vacancy rates fairly low with the economy making slow but steady improvements.

Looks like you can’t go wrong, right? Well maybe. My simple question at the moment is how to get in without burning your fingers. Do you try to do it yourself, but how do you find the right state, let alone city or area? How about finding a contact you know in the US and setting up some form of arrangement with them? Also tricky.

Well what about a local fund that will put it all together and manage the purchases, renovations and ongoing tenants? Maybe – costs are really high. 4% to get in, 2% per annum plus a 20% performance fee above a return of 10% p.a. Then there’s the structure and tax complexity. Looks good and worth investigating but I would be careful”