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Three Reasons Why Real Estate is Popular
First, real estate is more stable than all other assets, that is, it has a high cost-effectiveness. After investing in real estate, we not only have rental income, that is, short-term cash income, but also income from real estate appreciation. The annual appreciation income of real estate depends on our choice of various properties and various regional locations. These two incomes are our real estate income. If we do well, the annual income will reach more than 20% or even more.
The second important point is that the US dollar is now in a very strong state, and holding US dollars is safer than holding other currencies. At the same time, I think this is a stable investment. Using US dollars and holding US dollar assets are two different things. If we can hold US dollar assets before the US dollar rises, it will play a role in protecting the appreciation of our assets.
Third, the US real estate market is a highly transparent market with a very complete protection mechanism. One thing worth mentioning is that the per capita GDP of the US population of 320 million has reached 60,000 US dollars, so the purchasing power of the US people is very strong, especially the millennials in the US, who now tend to buy houses instead of renting them. In addition, the US is the world's largest target investment destination for international buyers, so there are many international buyers. The liquidity of US real estate is very good, which is very suitable for investment.
Some Things Investors Should Pay Attention to When Buying a House in the United Statestes
Investing in real estate in the United States is a very stable investment behavior that can help you beat inflation, help you get cash income, and help you pass on some wealth. It is definitely not a way to get rich overnight. So everyone should think carefully and don't have too high expectations when investing in real estate in the United States, but it is indeed a very good investment tool.
The second thing that investors need to pay special attention to is that buying a house in the United States has nothing to do with immigration to the United States. Buying a house cannot help you immigrate. The United States is different from Europe. Buying a house is an investment behavior. It will not bring you any benefits in immigration. Immigration in the United States is gradually tightening.
The third point is about the concept of school district housing in the United States. The distribution of educational resources in the United States is relatively even. Americans are more American, and the policies are more humane. You don’t need to buy a house. As long as you have an identity in the United States, even if it is a student visa or even a tourist visa, you need to go to school for a period of time and you can go to a public school in that school district. You can go to school without buying a house, so school district housing in the United States is not as popular as in China.
Fourth, if we invest in the United States, we must conduct data analysis. Because the United States is different from China, its holding costs are quite high. In addition to the real estate tax, which will be as high as 3% from next year, there are various holding costs, such as maintenance costs, the cost of developing new areas, and some property fees that we Chinese have never been involved in.
The data is very easy to understand and can be found on several major real estate rental and sales websites in the United States. It is very transparent and has historical sales prices, official appraisal prices, website appraisal prices, and a variety of historical data for your reference on rental prices. So, under the guidance of these prices, we need to estimate what costs we have and beware of losses during the investment process.
When Investing in Real Estate in the United States, How Can You Choose Properties to Maximize Your Returns?
1. Choose a community with complete facilities You may like a quiet and private suburban town, but when choosing a house for investment purposes, you should first consider the needs of future tenants. Convenient public transportation, sufficient shopping, dining and entertainment facilities are all key points that tenants pay attention to, and also the potential for future property appreciation.
2. Choose an excellent school district. In recent years, more and more people from China have gone to the United States to study. Many international students will rent houses near schools. Moreover, among those who choose to rent houses, there are many young couples who usually pay attention to the schools their children will attend in the future or currently. Many tenants are willing to pay 20%-30% higher monthly rent for better school districts. Therefore, investing in a good school district house is a good choice.
3. Pay attention to the local employment situation. The quality of the local employment market also directly affects the rental of investment houses. The demand and rent for rental houses in areas with sufficient employment opportunities are much higher than those in areas where it is difficult to find jobs.
4. Choose a property with more rooms. Which one is more suitable as an investment property: a four-bedroom villa with an indoor area of 1,800 square feet or a property of the same size with six smaller rooms? The answer is self-evident: the six-bedroom villa. In the case of the same area, choosing a property with more rooms as an investment can earn more rent in the future.
5. Choose a garden with low maintenance costs. Few tenants will spend a lot of time and money on the garden of the rental property. Therefore, if the investment property has a large garden, you must choose a green design that generates low maintenance costs.
