WE OPERATE WITH EXPERIENCE AND PROFESSIONALISM IN AMERICAN REAL ESTATE
Investing is usually a difficult choice and certainly not without risk in a real estate market like the European one, which is characterized by increased taxation and, moreover, by a steady and unrelenting drop (since 2008) in prices and returns.
When you examine the risk/return trade-off, the bureaucratic obstacles, lack of property protection, ambiguous and complicated legislation governing the purchase/renovation of real estate make the decision to invest in real estate in Europe a particularly risky one.
As a result, many investors are increasingly opting to invest in real estate outside of Europe.
The American real estate market stands out among others, with many investors preferring to invest for objective and clear reasons of exceptional opportunity.
Read also: THE ROI IN A REAL ESTATE INVESTMENT
These can be summarized in the following way.
1. Administrative Simplification
The real estate market in the United States is characterized by a regulatory system that is lean, clean, and efficient.
Furthermore, the landlord is protected by legislation that is more favourable to him than to the tenant; not only is there a public database of tenants – which can be consulted even before renting out the property, avoiding chronic defaulters and serial fraudsters – but, above all, the eviction procedure usually takes about 30 days in the event of a defaulting tenant.
2. Propensity of the United State Population to Rent
Americans, as is generally known, frequently prefer to rent rather than buy a home. This mindset, which differs from cultures that view real estate investment as a one-way street, allows property owners to ensure full occupancy of their properties and, more importantly, protects them from the risk of a property price collapse: in fact, in the event of a downturn in the United States property market, historically, a decrease in prices and thus in the value of property either precedes or follows a financial crisis.
When banking institutions limit credit availability, individual citizens are unable to obtain any type of loan to purchase a house for use as their own home and are forced to rent instead. This indicates that regardless of whether the housing market in the United States rises or falls, the value of rents tends to rise, not fall.
3. Trade-off Between Purchase Price/Yield
In the United States, a $100,000 investment (enough to buy a medium-sized, medium-value home) can easily yield a gross annual return of over 10% by renting it out (and even higher with other types of investment).
By comparison, in many large European cities, a € 100,000 real estate investment will only get you a double garage! And this is why many investors choose to invest in America, either because they have limited means or because they want to make a test investment: it is just not possible in much of Europe.
4. Tax reductions
The tax advantages and taxation that can be obtained by investing in the US real estate market, particularly for non-US residents and especially if they choose to invest as companies rather than individuals, are so numerous that they are not even remotely comparable to those that can be obtained in Europe for similar investments and returns.
Read also: WHY IS BUYING PROPERTY A GOOD INVESTMENT
5. Frequent Real Estate Opportunities
The United States, and specifically North Carolina (see our article 5 Best States to Buy Investment Property in the United States 2022), has a very dynamic real estate market that allows you to evaluate many opportunities both in terms of houses to rent (to obtain a periodic income from rent, medium to long term operations) and properties on which to perform quick renovation operations and then resell (flipping operations, characterized by a duration of about 12 months).
There are hundreds of options to choose from and analyse based on one’s budget, the sort of investment desired, and, of course, the return on investment.
Protection against investment risks
Making real estate investments in the United States with the help of Luvanex Realty allows you to safeguard your money from the most prevalent hazards, overcome obstacles of all sorts (technical, bureaucratic, language, distance, etc.), and choose the property that best meets your needs.
Luvanex Realty’s team makes all of its know-how (acquired and created over nearly 15 years of full and profitable operation in the United State real estate market), qualified staff with extraordinary skills in every field, and a team of experts available to provide adequate technical, legal, and financial support to investors at all times available to investors.