Real estate properties are available worldwide, and many real estate investors are now investing in offshore markets besides their local investing market. The U.S housing market is now booming despite the real estate market collapse and the devastating financial crisis in 2008. Factors such as a stronger job market, an increased consumer confidence, and mortgage credit supply improvements have all contributed to the recovery of the U.S housing market. It is now offering amazing opportunities for new and experienced, local and offshore real estate investors to make some serious returns on their investments. Here are some reasons why now is an excellent time for offshore real estate investors to consider investing in the U.S housing market rather than in other real estate markets.
Benefits Offered by the U.S Housing Market to Offshore Real Estate Investors
Many offshore real estate investors decide to buy an investment property in the U.S housing market rather than in other real estate markets for the many benefits it provides. The most appealing one is that if a foreigner wants to obtain a green card for permanent residency in the U.S, investing in the real estate market is one way to go about it. EB-5 is a federal visa program under which an offshore real estate investor is eligible to apply for a green card to permanently live in the U.S if he/she invests in commercial real estates and plans to create or preserve 10 permanent full-time jobs for U.S workers. Not only does this program benefit offshore real estate investors, but is also helpful to the U.S economy.
Furthermore, depending on the investment property type, offshore real estate investors may receive tax breaks for their U.S investment properties, which is a benefit that they wouldn’t necessarily enjoy with other real estate markets. This is another reason why an offshore real estate investor would prefer investing in the U.S real estate market.
Related: What You Need to Know About Real Estate Taxes as an Investor
The U.S Housing Market Is Booming
The U.S has essentially recovered all losses sustained during the housing crisis. It has a transparent and strong legal, financial, political and regulatory system. It is also the largest global economy, has a growing population, and provides stable capital appreciation. This is why the U.S housing market is still considered the number one global destination for offshore real estate investors.
According to Forbes, Dallas, Texas is the top real estate investment city in the U.S. Another state which has also made the list of the best places to buy investment properties in the U.S housing market is Florida, with cities like Orlando and Jacksonville.
Related: These Are the Best Real Estate Investment Locations in the US Right Now
These cities have affordable real estate properties that give both local and offshore real estate investors the most for their money. Nonetheless, you must do your own research and real estate market analysis to find which cities in the U.S housing market would guarantee the best profitability regarding rental income, cash flow, cap rate, and cash on cash return for your real estate investment property.
The Diversity of the U.S Housing Market
Unlike some real estate markets – like Paris, for example, in which you only have the option of investing in apartment-style investment properties – the U.S housing market is very diverse with many different options for real estate properties including apartments, single-family homes, multi-family homes, condos, and more.
In addition, there are different cities for offshore real estate investors to choose from, some that have more profitable investment properties than others. Whether you decide to invest in a beach house in Miami or a country cottage in South Carolina, you have many more options in choosing the best real estate investment property in the U.S real estate market than you do with other real estate markets.
[Note: Mashvisor’s Investment Property Calculator and Mashvisor’s Investment Property Finder are two investing tools that allow you to quickly search for and find investment properties in any state, city, or neighborhood within the U.S through a number of metrics. They also allow you to find investment properties of a specific type and even within a set range of cap rate.]
Related: Using Mashvisor’s Investment Property Calculator to Estimate Rate of Return
The Security of the U.S Housing Market
According to the National Association of Realtors (NAR), international real estate investors faced significant challenges over the past year due to weaker economic growth throughout the world, devalued foreign currencies, and financial market instability, in addition to the lack of stability in many international cities.
Even though the U.S has its fair share of recent political policies and issues that could affect the real estate market, investing in U.S real estate properties still provides a real estate investor with more security than investing in other markets, which is why the U.S housing market is the best choice for both U.S and offshore real estate investors.
The Bottom Line
As you can tell, the U.S housing market has many benefits over other real estate markets. But how does an offshore real estate investor considering to invest in a U.S based real estate investment property begin his/her property search? There are thousands of U.S real estate listings, and real estate investors have to do their research properly and thoroughly to make sure they invest in the best real estate properties that suit their investment needs.
Mashvisor will narrow down your property search and help you find the best real estate investment property you are looking for in the U.S housing market. Start your trial with Mashvisor to use Mashvisor’s Investment Property Finder and Mashvisor’s Investment Property Calculator to search for and analyze different real estate properties throughout the U.S and find the best one for you.
If you’re an offshore real estate investor looking to invest in the U.S housing market this year, then our advice for you would be: Do not hesitate to go ahead and do it. The current U.S real estate market looks very promising with no indicators that it will be slowing down anytime soon.
