Five advantages of purchasing US real estate
According to a report released by the National Association of Real Estate Brokers, Chinese buyers have been the group buying the most properties in the United States for ten consecutive years. Subsequently, five reasons for choosing to invest in properties in the United States were explained, including resistance to inflation, high investment returns, permanent property rights, tax deductible expenses, and sound legal protection. The aim is to provide readers with a clear understanding of the attractiveness of investing in properties in the United States.
In the United States, the real estate market has always been closely watched. According to the "2023 Overseas Buyers Report for Residential Real Estate in the United States" released by the National Association of Real Estate Brokers, Chinese buyers have become the group that purchases the most properties in the United States for the tenth consecutive year. Why is buying a house so attractive in the United States? Whether it's to ensure stable asset appreciation or to maintain control over property, the US real estate market always seems to have something captivating. Today, let's explore together the top five reasons for choosing to invest in real estate in the United States.
1、 Resist inflation
Everyone knows about inflation, which simply means that the purchasing power of money has decreased, and money is not as "valuable" as it used to be. To deal with this situation, many people choose to invest in real estate. Why is that? Compared to other investments, real estate generally has a better effect of preserving and increasing value. In the United States, it is widely believed that real estate is an effective investment method that can resist inflation. Why do you say that? Because the value of real estate and rent often increase along with the rise in prices, this allows your money to "maintain value" and even "increase in value" during inflation.
2、 High return on investment
The US real estate market has an advantage in terms of investment return compared to other types of investments. What is an advantage method? After deducting all relevant expenses, including but not limited to maintenance costs, management fees, property taxes, and insurance premiums, the net rental yield can usually reach 3.5% to 4.5% in the first year. In the second year, it may even increase to 4.5% to 6%, not to mention the additional income that the property itself may bring due to market appreciation. So considering both rental income and asset appreciation, the annual return rate is usually conservatively estimated to be between 8% and 10%. Isn't that quite good?
3、 Perpetual property rights
The great advantage of buying a house in the United States is that as long as you pay the relevant taxes and fees in accordance with the law, the ownership of the property can be considered permanent. What does this mean? As long as you consistently fulfill your financial obligations, such as paying taxes on time, there is no risk of your property being forcibly demolished or confiscated. This stability is very attractive to investors because it almost eliminates all the uncertainties that may arise from policy changes, making you feel particularly at ease.
4、 Expense tax deduction
If you have a visa, green card, or are a US citizen for more than 180 days, you will automatically be considered a US tax resident and will have to file taxes based on your income. However, there is good news here. If you have property in the United States and also register your own company to work from home, you can use some of the expenses related to the property, such as property taxes, insurance premiums, cleaning fees, utilities, etc., to make tax deductions. In this way, not only can it reduce your tax burden, but it also makes investing in real estate more attractive. Doesn't it feel quite cost-effective?
5、 Sound legal protection
The real estate legal system in the United States has undergone almost a century of development and has now become quite sophisticated. For investors, this provides a particularly safe environment. Almost all information related to real estate is open and transparent, such as transaction history, tax information, and current owners, which can ensure that the market is fair and transparent. The soundness of this law not only protects the rights and interests of homebuyers, but also provides investors with a relatively stable and predictable investment environment, giving you more confidence when investing.
So, considering these five reasons, it is not difficult to understand why the US real estate market is so attractive, and why Chinese buyers have been the group buying the most US properties for ten consecutive years. I hope that through this article, everyone can have a clearer understanding of real estate investment in the United States.