Investing in US Real Estate
In recent years, worldwide, including in Russia, an increasing interest in investing in US real estate. The political stability of the country has a positive effect on the inflow of foreign investors. It is a safe and profitable investment that can protect the investor and his family in the future. Buying property in the US, the investor can make repairs and sell the object at a higher price or lease it. If desired, the investor himself can live in the purchased house. In any case, US law provides for multiple versions of real estate income.
Moreover, the price of real estate in recent years has been growing by about 10–15% per year. Investment Property in the USA Residential Buildings and Apartments Commercial and Industrial Buildings Building Land Plots Types of Receipts from Real Estate in the US Instant profit from buying at a lower price that can be sold more expensive. Increase the price of the object due to repair. The increase in the value of the object due to the general increase in prices. Dynamics of growth of incomes of citizens, affecting the increase in real estate demand.
You can buy property in the United States without leaving your country. The transaction is conducted by a campaign or an agent representing the interests of the investor. A property order can be mailed to the owner. To manage real estate, that is, to collect rent, to carry out repairs, accounting, tax deductions and to provide utilities, you can trust the campaigns that specialize in this service. The cost of their services is 10 – 15% of the rent.
What to buy? It is more convenient to invest in an apartment than in a separate house. Apartments are more often sold and leased. Apart-complex, or at least a share in it, is preferable to a separate apartment because of the cheaper cost. Even if the investor’s share is only 10% of all investments of all owners, no decision will be made without his consent. Than buying a house in good condition, it is more profitable to buy property that requires repair.
The more expensive the repair will cost you, the higher the selling price of the building will rise. Americans value quality and are willing to pay big bucks for it. Apartment in a condominium with 3 (three) bedrooms – $ 700,000. The first installment of 35% of the cost – $ 245,000. The cost of registration of mortgages and real estate in the amount of 5% of the price – $ 35,000.
Loans for real estate in the United States
Banks are always willing to provide loans to buy real estate. Investors can take out a loan in US banks. But you need to delve into all the details of the contract. For example, if earlier it was possible to purchase real estate without making the first payment, now foreign investors have to pay up to 50% of the purchase price. The remaining amount is issued mortgage loan.
EB-5 Investment Program There is a special EB-5 Program that allows an investor and his family members to receive a Green Card in the USA. This requires a number of conditions to be fulfilled: Invest in industrial and commercial real estate in less developed or rural areas. Invest in promising objects in the hotel industry. Choose projects with a high share of profitability. Investor is a limited partner in an LLC with a monthly income.
If the investor rents out the premises, he gets a rent. In the case of selling the premises, the investor makes a profit on his capital. The investment period cannot be completed until the investor receives a permanent Green Card. The investor is not obliged to reside in the city where the investments were made. Investing in US Real Estate EB-5 Investors automatically receive permanent US resident status and can enjoy the following privileges: Obtain permanent resident status in the United States after 2 years.
The possibility of obtaining citizenship for 5 years. Receive education, medical services and other social programs at a cost to US citizens. Organization of any legal type of business. Purchase of real estate in any territory of the USA. Depreciation. The possibility of annual receipt of a portion of income, as a return on investment. Requirements for investors: The initial investment amount must be at least $ 1 million. In some cases, it may be $ 500,000. Creating at least 10 jobs.
Providing information about the legal source of capital for investment. Investments should have a share of risk, and not have a guarantee of a refund. It is necessary to obtain the qualification of an accredited investor. This means that the capital of the investor or with his wife must be in excess of $ 1 million.
In another case, the investor for the last 2 years should have a profit of at least 200 thousand dollars for each of them. With joint capital with his wife, the annual income should exceed 300 thousand dollars. There are strong guarantees that investment returns will not decline in the current year.
Direct and indirect investments in US real estate
These two ways of investing give guaranteed receipt of US Green Cards under the US EB-5 Visa Program. In the case of direct investment, the investor himself controls his property. After 2 years, he has the right to sell it and make a profit. Indirect investment involves the management of real estate through the administration of the Regional Center. Exit from the indirect money-back system lasts for several years.
Forms of real estate for foreign investors Condominium in a new building is characterized by simplicity of the transaction, ease of management, great profitability. However, it requires the largest investments, especially in large cities. Utility payments and property taxes are quite substantial. The cost of Condo is relatively small – from 80 000 dollars. It can be purchased on credit. If it is received in the amount of 70% of the price of housing, the first installment will be $ 24,000.
For the USA, these are small prices, especially since real estate prices are steadily rising. For example, in Los Angeles 5 years ago, some houses were selling for 70 – 80 thousand dollars, and now they cost about $ 250,000. Cooperatives are somewhat cheaper than condominiums in content and taxes. Even some historic cooperative property buildings are less expensive than condominiums. Townhouse. A single-family house provides tenants with privacy; a multi-family house gives a good rental income.
This is a great long term investment. Investing in US Real Estate Visas If an investor wishes to inspect the property himself, he should receive an invitation from his licensed American broker. In addition, you need to provide the embassy with a certificate of employment and cash checks. The investor must give assurances that he is not going to emigrate to the United States. Application for a visa can be submitted via the Internet. Brokers for investment in real estate USA
In each state, and sometimes in individual cities, laws may vary. A foreign investor should always have an American broker who represents and protects his interests. It happens that investors are very poorly familiar with the terrain, type and form of ownership. An experienced broker with a detailed justification will choose the most effective type of investment will prompt the most correct solution to the issue.
Investing in US real estate is gaining more and more supporters. These are – Residents of Germany, England, Australia, the Middle East. Now they were added and the citizens of Russia. This is facilitated by a stable legislation and a transparent safe market. Restrictions for foreign investors in the United States are much less than in other countries. And the investor can act as a private person, and legal.