If the stock market or other speculative endeavors can perform better, it is potentially more dangerous. Just think today of investors who have put a large percentage of their portfolio in the cryptocurrency business. On the other hand, real estate, invedting in stone, is a mcuh safer bet, even more so if you go to countries like the USA, with a very strong and stable economy.
The house will not crumble overnight
Certainly, there may be an earthquake or an insecure tenant who lets the gas on … But, let’s not talk about the exception here.
The house or apartment you buy is bound to last. There are always some fluctuations in the value of a property, but they are still small relative to the stock market. In the worst case, you never totally lose your investment. It is a part of your heritage for life.
If you manage it well, you will get regular rental income without risking this heritage. The rental investment has many qualities.
The advantages of real estate in the United States
America has recovered from the real estate crisis, but is still a bit traumatized. Property prices are not rising too fast, and you still have the opportunity to find cheap goods that have a good chance of seeing their value increase in the coming years. By well choosing the place you purchase, you can enjoy economic growth.
This is the case in Illinois where the unemployment rate is low with the presence of many large companies. Rents there are at a respectable level and you can hope for rental return of around 4 to 7%. Individual houses, lofts, townhouses, you have the choice.
For taxation, it is much lower than in Europe. If you are not a US resident, your status as a foreign investor does not change anything, as the Americans always welcome the funds from nearly any country.
How to buy US rela estate
But before you take the plunge, look for an intermediary capable of helping you invest several thousand kilometers away. Make contact with a knowledgeable investor or broker in real estate in the United States, with whom you have a good chemistry, as trust matters.
If you are considering investing in the Chicago area, local real estate broker Kale Realty is one of the top companies recommended to advise investors. Having operated in the market for over 65 years, they employ hundresd of brokers and their listings cover the entire area in all prices ranges.
We highly recommend going through a competent intermediary, ideally having himself invested on the spot. Indeed it will allow you to buy keys in hand. This will save you time and money. Below are a few additional tips
- invest in properties previously selected for their intrinsic quality
- invest in dynamic geographic areas (beware, there are large disparities between US states)
- put yourself in touch with reliable local partners: a lawyer, accountant and rental manager
- they can help you every day in your efforts, which can be a bit difficult if you are alone
- they can advise you in your tax declaration and your opening of a bank account in the United States
Going through an intermediary will allow you to secure your investment and to be guided step by step in your steps to become a real estate owner. For your first investment, you absolutely need an intermediary to advised you. For instance you can buy a house in Chicago, Illinois, which you can quickly renovate and then rented at a good price, with no surprises. Between the time of the closing and the first rent, it could be just six weeks despite a major renovation.
No big difficulties whatsoever. The most complicated part is the financing because it usually is not possible for you to borrow from your home country to invest in United States. You may have to finance the deal with your own cash.