The United States is the richest country and the largest economy in the world. International real estate investors are welcomed there with open arms. The potential for building wealth through real estate in the United States has never been greater for foreign investors.
The US real estate market can seem very competitive and inundated with overpriced housing, especially to first-time buyers looking to purchase a home. Be aware, however, that investing in the USA offers you many advantages, not to mention the high return on investment and the possibility of receiving financial assistance. Also, it is quite possible to find goods there at reasonable prices, provided you are accompanied by competent agents.
Real estate can be a very lucrative investment, but it takes a huge commitment, patience, and most importantly, time. To help you maximize your chances of success in your real estate investment project in the United States, follow this guide!
WHAT ARE THE BEST CITIES TO INVEST IN U.S. REAL ESTATE?
The question any real estate investor should ask is: where is the best place to invest? However, you should be aware that the best real estate market for you may not be that of another real estate investor. Where to invest will depend largely on your personal investment objectives.
The best places to invest often have three things in common: the job market, population growth, and affordability. When you find a market that has all three factors, you can probably find good investment opportunities. To narrow your choice, here are some of the best cities to invest in U.S. real estate.
Demand for single-family homes has been on the rise in the Sunshine State for some time. Yet it is possible to acquire fully renovated properties in good Florida neighborhoods for less than $193,000. What is even more interesting is that despite these incredibly low prices, many housing seekers choose to rent rather than buy. As you can see, this leads to an increase in rents (more than 6% in just one year).
With a growing population of more than 2.5 million people, Orlando’s real estate market is fueled by job seekers, retirees, and students who want to live in a “cheap and friendly” area offering a high quality of life at a reasonable cost. When it comes to investing in real estate projects in Florida that will bring the desired results, it is important to call upon a real estate agency that will be of great help in your search.
The city of Orlando in a few figures:
- Average selling price: $231,000
- Median rent per month: $1,486
- Average household income: $42,418
- One-year employment growth rate: 3.44%.
- Population growth over 8 years: 30%.
- Unemployment rate: 2.9
Located on the west coast of Florida, Tampa Bay is a densely populated metropolitan area (second only to Miami) with a population of over 3 million people. The major cities in this area are St. Petersburg, Largo, Clearwater, New Port Richey, Holiday, and Tampa.
Why is Tampa one of the best places to invest in U.S. real estate? For starters, the local economy is worth more than $130 billion. In addition, the city is ranked as one of the most dynamic in the country. The local job market is also very promising.
Statistics on the local real estate market :
- Average selling price: $225,250
- Average monthly rent: $1,485
- Average household income: $65,196
- Population growth over 8 years: 12.69%.
- Unemployment rate: 3.4
Huntsville is one of the best-known cities in the southeast. It is one of the main communities leading the economic recovery and one of the most affordable cities in the country. Huntsville’s real estate market offers great opportunities for investors. It is one of the most affordable investment markets in the country. It has a stable labor market that offers STEM workers well above average wages, and a growing population of which 38% are tenants. These are good signs for investors who want to generate a passive monthly income.
Many foreigners have prospered in this field, which tends to suggest that success in American real estate is fairly straightforward. Be aware that those who have succeeded have had to familiarize themselves with the rules that govern U.S. real estate. Indeed, the U.S. real estate market is unique compared to that of France. Aspects such as banking, logistics, foreign exchange, due diligence, taxes, legal considerations, and language barriers can suddenly become significant challenges.
So here’s what you need to do to invest in real estate in the U.S. and abroad in general.
1. GO THROUGH AN AGENCY
The agency will take in hand the search for properties that correspond to your needs and will put you in touch with local real estate agents. Know that this has a price. Count between 5,000 and 7,000 euros in agency fees in addition to your real estate investment.
If you are good in English, you can directly contact local agencies that will search the property for you. They will explain everything to you and help you through the process. However, as this is a delicate subject, it is recommended that you use a French agency.
You can also go through a French-speaking agency based in the USA. In Orlando, mentioned above, several agencies intervene. Make sure that they have the required licenses and insurances.
2. PUT YOUR FINANCES IN ORDER
It’s no secret that real estate is an expensive investment. It is, therefore, important to have enough cash for all operations concerning the purchase of the property. You must also have a reserve from which you can draw for possible repairs. It makes more sense to open a bank account in the United States. This will make it much easier to send and receive US dollars from the country.