There are millions of real estate properties worldwide. When investing in an international real estate property, where do you begin your search? Would a small apartment in the magical city of Paris be a good investment property? What about a beautiful Mediterranean home in Italy? No matter where you decide to invest in a real estate property, your ultimate goal would be to achieve a positive cash flow. Despite the real estate market collapse and the economic recession in the US a few years ago, the US real estate market is now booming. It is offering amazing opportunities for new and experienced real estate investors to make some serious money. Here are some reasons why you may want to consider investing in a rental property in the US housing market rather in an international real estate property.
Related: What to expect in the US real estate trends in the next 10 years
The US real estate market is booming
According to Zillow chief economist Svenja Gudell, “The U.S. National Case-Shiller home price index has essentially regained all losses sustained during the housing bust and is at, above or very near peak levels in many markets.” Now is an excellent time to think about investing in US real estate, over international real estate.
According to Forbes, Dallas, Texas comes in first for top US real estate investment cities. Meanwhile, the Local Market Monitor forecasts that prices of real estate in Dallas will increase by 31 % by 2020. Florida has also made the list of the best places to buy investment property, together with cities like Orlando and Jacksonville following Dallas. These cities have affordable real estate properties, giving you the most for your money. Of course, you must do your own research and real estate market analysis to see which cities in the US housing market would guarantee you the best profitability in terms of rental income, cash flow, cap rate, and CoC return for your real estate investment property.
Related: The 8 Most Overhauled Housing Markets in the US
The US real estate market is diverse
Unlike some international real estate markets, the US real estate market is very diverse with many different options for rental properties including apartments, single family homes, multi-family homes, condos, and more. In the city of Paris, for example, you may only have the option of investing in apartment style income properties. In the US real estate market, there are hundreds of cities to choose from, and of course, there are cities that have more lucrative investments than others.
In addition to the types of homes the US real estate market has to offer, there are many different cities to choose from, all of which have different landscapes and climate conditions. Whether you choose to invest in a beach house in Miami or a country cottage in a place in South Carolina, you have many more options in choosing a US real estate property than you do with international real estate.
Related: Invest in Condos or Single-Family Homes?
The US real estate market offers security
According to Lawrence Yun, chief economist of the National Association of Realtors (NAR), “Weaker economic growth throughout the world, devalued foreign currencies and financial market turbulence combined to present significant challenges for foreign buyers over the past year.”
Although the US has its share of recent political policies and international issues that may have an affect on the US real estate market, investing in US real estate provides more security than investing in international real estate. For example, Forbes shows the effects that Brexit has on the real estate market in the UK at the moment. This may affect investing in real estate in the UK for years to come.
In addition, the lack of stability in many international cities affects the international real estate market, making the US real estate market a better choice for national and international investors.
The US real estate market offers benefits for foreign investors
Many foreign real estate investors decide to buy a rental property in the US housing market rather than in the international real estate market for many reasons. If a foreign buyer is interested in obtaining a green card for permanent residency in the US, real estate may be the way to go about it. There is a federal visa program which is known as EB-5, where foreigners invest in real estate property with hopes of green cards to permanently reside in the US. These real estate investments are considered to be helpful to the US economy, while foreign investors also benefit.
Depending on the type of real estate investment property, foreign investors may receive tax breaks for their US real estate investment properties, where they wouldn’t necessarily enjoy the same benefits with international real estate. These and other benefits are why many foreign real estate investors choose to invest in an income property in the US. According to JLL research, foreign office investment surpassed $20 billion in 2016, which accounted for 16% of the overall acquisition volume. There is a reason why foreign investors prefer investing in US real estate over international real estate.
The US real estate market has many benefits over the international real estate market. These include the recent US real estate market boom, diversity, security, and benefits for foreign investors. There are thousands of US real estate listings, and you want to do your research properly and thoroughly to make sure you invest in the best real estate investment property that suits your needs. Mashvisor will narrow your search and help you find that perfect real estate property, whether it is in sunny California, rainy Seattle, or beachy Miami, Mashvisor has the real estate property you are looking for.