Julian Drago
September 22, 2023
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The United States is one of the most popular destinations for foreign real estate investment. There are several reasons for this, including a favorable investment climate high potential for returns, and no additional restrictions or taxes on foreign investment.
In this blog, we'll explore the top reasons why you should be investing in US real estate.
The US government does not restrict or prohibit foreign investment in real estate, so foreign buyers have the same rights as US citizens to buy and own property in the United States.
This makes the US a very attractive destination for foreign real estate investors, who have purchased more than $1 trillion worth of US real estate in the last ten years, according to the National Association of Realtors (NAR).
Foreign national mortgage lenders in the US offer long-term fixed-rate mortgages at competitive rates to non-resident foreign investors and US newcomers on visas, even if they have no US credit history.
This makes investing in US real estate ideal for foreign investors, as they can secure financing and lock in low interest rates for 15 or 30 years, depending on their needs and preferences.
The US is a great place for foreign real estate investment focused on rental properties because demand is high and tenants are easy to find.
The average annual gross rental yield is 7.7 percent, and rent prices have been rising. For example, the two-bedroom rental cost increased by 13% in 2021.
The US is a great place to invest in real estate because it is a stable country with a relatively stable housing market.
Property prices are expected to rise by 17.3% in the next year, making the US an excellent place to invest your money and take advantage of capital appreciation in USD.
US rental property owners typically have a monthly cash surplus from rent after paying their mortgage and property taxes. This, along with the stability and potential appreciation of US real estate, is why foreign investors are drawn to this market.
When thinking of investing in US real estate, one of the most beneficial and unique things is to get tax benefits on your investments. Here’s the list of such tax benefits:
1031 exchanges allow foreign investors to defer paying capital gains taxes on property sales. This is done by reinvesting the proceeds from the sale into a like-kind real estate investment property.
1031 exchange properties can also build up equity and appreciation over time. When this happens, the investor can make another 1031 exchange to defer capital gains taxes again.
There is no limit to the number of 1031 exchanges an investor can make in a lifetime. This means that investors can grow their real estate wealth tax free indefinitely.
Another tax deferral strategy for individual or business real estate investors is to invest through a qualified opportunity zone (QOZ). QOZs are economically distressed communities that have been designated by the US government as eligible for special tax incentives. Investors can defer capital gains taxes by reinvesting those gains in QOZs.
Foreign real estate investors with US rental properties are subject to a 30% withholding tax on their rental income.
However, they can deduct expenses such as mortgage interest, advertising costs, and property management costs from their net rental income. As a result, foreign owners may pay little or no tax on their US rental income.
Once you are fully aware of the benefits of investing in US real estate, you can analyze how to go through the process.
Investing in US real estate can be a great way for foreign investors to grow their wealth. By understanding the market and working with experienced professionals, foreign investors can increase their chances of success.
The US government does not restrict or prohibit foreign investment in real estate, so foreign buyers have the same rights as US citizens to buy and own property in the United States.
This makes the US a very attractive destination for foreign real estate investors, who have purchased more than $1 trillion worth of US real estate in the last ten years, according to the National Association of Realtors (NAR).
Foreign national mortgage lenders in the US offer long-term fixed-rate mortgages at competitive rates to non-resident foreign investors and US newcomers on visas, even if they have no US credit history.
This makes investing in US real estate ideal for foreign investors, as they can secure financing and lock in low interest rates for 15 or 30 years, depending on their needs and preferences.
The US is a great place for foreign real estate investment focused on rental properties because demand is high and tenants are easy to find.
The average annual gross rental yield is 7.7 percent, and rent prices have been rising. For example, the two-bedroom rental cost increased by 13% in 2021.
The US is a great place to invest in real estate because it is a stable country with a relatively stable housing market.
Property prices are expected to rise by 17.3% in the next year, making the US an excellent place to invest your money and take advantage of capital appreciation in USD.
US rental property owners typically have a monthly cash surplus from rent after paying their mortgage and property taxes. This, along with the stability and potential appreciation of US real estate, is why foreign investors are drawn to this market.
When thinking of investing in US real estate, one of the most beneficial and unique things is to get tax benefits on your investments. Here’s the list of such tax benefits:
1031 exchanges allow foreign investors to defer paying capital gains taxes on property sales. This is done by reinvesting the proceeds from the sale into a like-kind real estate investment property.
1031 exchange properties can also build up equity and appreciation over time. When this happens, the investor can make another 1031 exchange to defer capital gains taxes again.
There is no limit to the number of 1031 exchanges an investor can make in a lifetime. This means that investors can grow their real estate wealth tax free indefinitely.
Another tax deferral strategy for individual or business real estate investors is to invest through a qualified opportunity zone (QOZ). QOZs are economically distressed communities that have been designated by the US government as eligible for special tax incentives. Investors can defer capital gains taxes by reinvesting those gains in QOZs.
Foreign real estate investors with US rental properties are subject to a 30% withholding tax on their rental income.
However, they can deduct expenses such as mortgage interest, advertising costs, and property management costs from their net rental income. As a result, foreign owners may pay little or no tax on their US rental income.
Once you are fully aware of the benefits of investing in US real estate, you can analyze how to go through the process.
Investing in US real estate can be a great way for foreign investors to grow their wealth. By understanding the market and working with experienced professionals, foreign investors can increase their chances of success.
