7 Reasons to Invest in Real Estate in USA
Updated: Apr 15, 2019
There are plenty of reasons to invest in real estate in the United States. Today, we would like to show few of them to our readers.
Top 7 reasons to invest in real estate in USA:
1- It is a dynamic and growing market. Despite some ups and downs of the stock market, the economy is strong and there is a minimum of unemployment. That means that there are more people with purchasing power to buy or rent properties.
New houses built in the United States
2- The legal system. The regulatory framework is transparent and all transactions are legally fulfilled. The business and judicial processes have short times and offer protection to the investor.
3- The backing of the property. One of another very important reasons to invest in real estate is that there is a property that supports the investment and a dynamic market to sell it if it is the case or have different exit strategies. The houses and apartments are sold or rented in a few days or a few weeks depending on the city or market sector in which they are positioned.
4- The appreciation of the property. Historically, property prices have risen, although there are periods of recession such as 2008, when it is a good time to buy and convenient to wait to sell. When the properties are appraised the values of the rents also rise and in general they do not decrease even in the periods of recession. On average, properties have appreciated by 6.34% during the last 60 years.
5- It can be done completely passively. It is not like investing in a company in which the investor buys or gets a job and has to dedicate a considerable time to attend to it. Whether there are rental or construction investments, there are companies that deal with all the management, the investor receives the profits periodically or at the end of the investment cycle. The investor can be anywhere in the world, enjoying the beach and receiving his income for life.
6- Financing. Property loan rates are the lowest in the market because they are considered the lowest risk. There are loans available for the long term and with low rates that allow a favorable leverage to the investor and a greater return on the invested capital.
7- Very attractive returns. Finally an another reason to invest in real estate when we compare to stock or bonds is that the returns are much better than having the money in a fixed term cds or in different types of bonds. As the returns are higher, they beat inflation, which does not happen in general with other types of passive investments.
It has been difficult just to choose 7 advantages of investing in properties in the United States, we leave a few for future comments such as investing in dollars and not in other currencies that have large variations with government changes, the abundance of options that allow having a balanced portfolio that protects against variations in a market and others that readers want to add.