Investing in Real Estate in the United States
Why Buy Real Estate in the United States
First, what is the difference between real estate investment and real estate speculation ? Investment is the act of reading economic conditions, anticipating risks and seeking returns, while speculation is the act of gambling. In hindsight, the bubble economy in both Japan and the U.S. was just a pattern of repeated speculation, in which banks took the initiative to make money by buying land. In the U.S., real estate investment is only possible if there is a good product. Otherwise, no one would live or do business there. However, Japanese real estate investment relies only on "high yield," which is different from the starting point because it is not based on the "return-seeking" cap rate ( ) of American real estate investment, which is calculated by predicting future value, while in Japan, the present value of the building does not remain.
The first prerequisite for any country's future real estate prospects is that the country's economy is steadily improving. This is because it is impossible to look around the world and find a country with a down economy but strong real estate market. Every country has its advantages and disadvantages, but there are not many countries in the developed world where economic indicators such as inflation, unemployment, and bank interest rates are showing strong barometers and are expected to remain so in the future. The United States is a prime example, and the country's dominance can be seen even as talented investors from European, Asian, and Oceania countries flock to the United States.
Why US Real Estate ?
The first reason is based on the country's strong economy and low country risk. Low is the most based. The U.S. government's inflation forecast for 2016 is 1.2%, and 1.5% is expected for 2017; the number of existing homes sold was 5.5 million in 2015 (the highest since 2007 )); and forecasts for each real estate sector, including industrial park vacancy rates, retail space vacancy rates, and apartment vacancy rates, are expected to maintain 2007 levels The forecast for each real estate sector, including industrial park vacancy rates, retail space vacancy rates, and apartment vacancy rates, is expected to maintain 2007 levels. In addition, constant population growth, the rise of the new economy with a focus on high technology, and healthy baby boomers are all contributing to the economy.
The second reason is that if you look at the history of real estate in the US over the past 50 years, asset values have certainly doubled in 10 years. Of course, during that time, it has experienced the Great Depression and recession, but it has certainly gone up and down.
The third reason is that the used home market is an extremely stable market, accounting for 75% of the US housing industry.
The fourth reason is that the US is open to foreign investors. As long as you can obtain a tourist visa, you can buy real estate in the U.S. without a social security number (called a national ID number) and enjoy its benefits. However, please note that owning real estate does not mean that you can work or live in the U.S. permanently, so please be aware that this is not the same as a visa. As mentioned at the beginning of this article, investing in U.S. real estate means acquiring income-producing real estate and managing it ( as a business ). Property management, which is called Property Management in English, is the maintenance and management of buildings and tenants based on an annual plan, and this work is the key to real estate investment. This is also from the perspective of Japanese people abroad investing in US housing, and the US is a very open place when it comes to real estate investment. However, the same tax laws apply as for U.S. residents, although taxes will be taken out of escrow so that you cannot sell your property when you sell it. For example, there is a tax deferral method called 1031exchange, which is recognized by the IRS. This allows you to defer income taxes if you sell your investment property and buy another property of equal or greater value within 180 days. Through this method, an investment that started as a one-bed condo can be converted to a house after five years.
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