Obamamania and the british investor

Over recent months, much of the world has been gripped by the phenomenon of Obamamania, and British property investors are no exception...

The election of the first African-American US president saw record crowds turning up to see his inauguration, a sea of media coverage and particular enthusiasm among communities touched by his background.

For Britons, however, it is not family lineage but the excitement about the effects a Change in presidency may have that could be significant, not least in the property sector. Such a point has been made by Annette Reeve, director at property group Mayfair International Realty.

She said: "The Obama effect has been huge. It's amazing. I've never known a US election inspire as much interest in the UK as this one did."

"People see it as a great future, they are hopeful that he will make amends to the economy in the US which will benefit us all in the long run."

Brits ‘energised'

The consequences, she suggested, are that Britons have become more energised and interested in the US and in owning property in the country.

Of course, this can take different forms. Ms Reeve noted that it would be "one thing" to buy a second home and "totally different" to seek to live in the US. The second undertaking, of course, would depend on a number of factors, not least there being sufficient economic recovery to make the jobs available.

In the meantime, others may be looking for somewhere to invest in the hope that tourist lettings may improve due to extra interest in visiting the country President Obama runs.

Evidence of the surge in interest in the US has come in the form of the recent 2009 survey by Jet-To-Let Magazine of the best places to invest. In 2008 the US was in fifth place. This year it had risen to third.

Valuable assets

Of course, a number of factors may be playing a part in the trend. The wide availability of foreclosed property at cheaper prices - not least in sunny and fashionable areas with large tourism industries such as California and Florida - may be a particular element, with people seeking cheap bargains.

Mr Obama may be having an impact on this too; with his recently launched $75 billion (£52 billion) plan to try to support struggling homeowners to avoid repossession.

This could prompt Britons keen on this sector of the market to take their chance now, since if the policy works this particular source of bargains will dwindle.

But if it also helps bolster the US property market as a whole, it may be an Obama effect that could turn acquisitions made by Britons now into valuable assets in the years ahead.

Source: www.assetz.co.uk