Its true that AUD sky-rocketed very quickly against USD because of various reasons like Uncle Sam is printing lots of money and US unemployment numbers are still high etc etc.

HOWEVER, US is not going to loose its power so easily. Many will surprise about this fact that declining in industrial productivity had started in USA in 1970. In other words, it took around 40 years to come on this current recession. Even this time, real estate market brought it to the knees, otherwise US could postpone it for another 10-20 years.

USA has been leading the world as economic power-house for more than century, and certainly any world power does not go so easily. If everything go wrong, (which is almost impossible), US will still take another 20-30 years to reach a stage where it will not be a worthwhile place to invest. But this duration is more than enough to make profits many times with high-return and capital growth.
World’s 3rd largest population with extremely high consumer economy (except last 3 years) will not let the property prices down to $0.

CHINA – This country is much less desirable place for investment because of extremely high inflation and lots of over building. China has lots of NEWLY BUILT GHOST CITIES where nobody lives. China is so reliant on US consumer economy when US was in recession in 2007, China offered $500 billion help to them so that they keep buying Chinese goods. US consumerism is still alive, but just paused for some time. Indeed, China could maintain their high GDP growth in recession because they kept building/spending on cities which provided jobs to millions. Now they have built, but no demand because inflation is so high average Chinese can’t afford to buy.

AUSTRALIA – Unfortunately, we are too much dependent on mining revenue which comes from China. When they were “over-building”, the main supplier of raw-material was Australia. That construction gave benefits to both countries. When China goes down, Australia will face its maximum impact. Therefore, USD/AUD will be back very quickly to its previous rates. Some experts believe that this process has already started with signs of Australian real estate market has contracted recently.

IN SHORT, now investing in US makes real sense with high dollar, not only because it buys more, but also because with high USD later the rental return will be higher than now. It may be up and down for sometime, US giant economy will recover in near future.

You may be eligible for tax deduction benefits in US, even if you borrow funds in Australia. Then balance tax (paid in US) can be shown to ATO for further deduction as tax credit. Most importantly, all types of loans (credit cards, personal loan, equity released loan from Australian property) can be considered for tax deduction in US.

I have been researching US market for a long time.

Congratulations RickH,

it is your success; and there is nothing sweeter than success. I wish, your property exceeds your expectations and gives you maximum bang of your buck.

Hi Kimberly,

You would be really excited about your dream to own a Investment property in USA. Plus, you will be thrilled with the feeling of visiting Florida which has world’s best tourist destination – The Disney Resort.

I have been also searching for long time any suitable location to invest in US; and I have already shortlisted Florida as one of the top locations for this. The main reasons are –

(1) Huge price crash of 70%
(2) Millions of tourists every year; even after downturn of world economy. If GFC couldn’t stop them to visit, what would in future!!!
(3) Attractive sub-tropical warm weather. Not a great attraction for Australians because we are already blessed with plenty sunshine here, but really great for Americans who struggle with cold weather in many states.
(4) Houses are newer in comparison to many other locations because Florida has become red hot in just last 30 years.

I will be eagerly waiting your posts about your research in Florida.

Best of Luck!!!