THE RETURN ON INVESTMENT IN REAL ESTATE IN THE UNITED STATES OF AMERICA

    Still considered a safe bet, real estate makes it possible to better measure risk while counting on attractive profitability.

By opting for rental and residential properties located in the United States, you benefit from the privilege of any foreign investor on American soil subject to a lenient policy and reduced taxation.

REAL ESTATE INVESTMENT IN THE USA: 

THE YIELD

    To ensure a stable yield, it is strongly recommended to bet on apartments and houses for rental. Indeed, while the purchase price of houses and apartments fell sharply after the subprime crisis, rents did not, which remained stable. While it's possible to buy a home for $ 50,000, rents remain high, as it costs on average $ 1,000 to rent a two-bedroom apartment in downtown Detroit.

What's more, the country's federal system protects rental investors from the risk of default. Either way, always entrust the rental management of your real estate to confirmed experts, established in the United States, thus guaranteeing you good management of your property and better monitoring. To give you an idea of what to really expect, here's everything you need to know about profitable US real estate.

- From the first moments when you plan to invest in real estate in the USA, you must bet on a rate of return. This will be the common thread for all your future calculations, in particular to forecast operational and non-operational charges. This percentage will also guide you in choosing the location and type of property you intend to buy. Without forgetting the additional parameters which are the economic reliability of the chosen state, taxation, the dynamics of employment in this area, as well as the legislation established for foreign investors.

For example, know that residential real estate investment in the United States provides an average annual net profitability of up to 10% of the sums invested, and you can count on a great potential for capital gain on resale. This can be explained by the stability of real estate prices in the United States, a country still reeling from a recent real estate crisis and whose inhabitants do not yet have the means to acquire real estate. Real estate is therefore accessible at low prices, but you can still expect strong economic growth that will benefit you when you resell the property in question, because you will have a substantial capital gain.

INTERNAL RATE OF YIELD

    Investing in residential in the US means selecting homes that give you at least a 50% discount from the last purchase price. This rate will then be used to calculate an internal rate of return (IRR) at 20% before tax. In terms of rents, an annual increase of 1.5% is guaranteed, as well as a resale at double the purchase price after 7 years of investment.

For example, if you buy a house and renovate it for a budget of $ 70,000, the total average annual expenses will be $ 4,965, but you have an average annual net income of $ 7,035, which is a return average annual net of 10.1% before personal tax. As for the tax base, it is reduced every year, when the value of the property is depreciated.

THE COST OF RENTAL MANAGEMENT

    To know the real profitability of a rental investment in the USA, it is important to include the cost of rental management in your calculations. You will understand, you will need reliable people to manage your property, and this task is assigned to the Property Manager whose remuneration represents on average 10% of gross rents.

This professional has all the necessary resources to find you reliable tenants, to collect the rents and to transfer them to your own account. The Property Manager watches over your property and undertakes the necessary renovations, pays your local taxes and provides you with a monthly activity report.

TAXATION

    In the United States, income from property benefits from reduced taxation. On condition of creating an LLC-type real estate company that allows the foreign investor to obtain an annual allowance with an average value of $ 4,050, while the depreciation of the property is done in 27 years. However, you must have a substantial sum to pay in cash, because it is particularly difficult to find a mortgage with American banks, unless you have the option of mortgaging property with a value equal to that of the loan.

SEEK EXPERT HELP FOR A PROFITABLE REAL ESTATE INVESTMENT IN THE USA

    Investing in real estate in the USA can be done remotely, on condition of calling on experienced experts, established in the territory. On usa-immo.com, you come into contact with a competent and experienced French investor who will guide you in choosing the most profitable types of property, the most important geographical areas in terms of dynamics, local partners such as lawyers and the most reliable rental management experts. As you go through the investment process, you will have all the advice you need to better guide you, while you limit the time necessary because negotiations have been pre-established to find you a profitable property and attractive investment conditions.

THE PROCEDURE TO FOLLOW TO INVEST IN THE USA

    As part of this investment in the United States, you will have to set up an investment structure of the LLC (Limited Liability Company) type. Entrusted to a lawyer, this task is to make sure that your investments will be well managed. For tax services, you will need a federal Individual Tax Identification Number (ITIN) for all procedures with the Internal Revenue Service. You will also need a dollar account in a US bank to receive your rent, as well as a rental agency with which you will sign a contract for the management of your real estate.

As soon as you have found the house you need in the list previously provided by you, you become the owner after signing the closing day. Also plan for renovation work before your rental property is put on the market. As for the search for tenants, it is ensured by the responsible rental agency, and you can even count on candidates from "section 8", a federal subsidy program of the type housing assistance which will avoid you any risk. unpaid.

RENTAL INVESTMENT IN THE USA: WHICH CITIES TO PREFER?

    On usa-immo.com, the steps to acquire real estate in the USA are made easier. This is why the profitability of each city was previously studied. Among the cities advised by François Braine-Bonnaire, real estate licensee, founder and director of USA-Immo.com, you have among others Birmingham, Alabama, a prosperous industrial city favored by young entrepreneurs constantly looking for apartments. For rent. There's also Atlanta, Georgia, an ever-expanding city where real estate values are changing, to the benefit of sophisticated real estate investors.

PRACTICAL ADVICE FOR A PROFITABLE REAL ESTATE INVESTMENT IN THE USA

    Compared to France, the United States represents a real opportunity for foreign investors. This is explained by the establishment of a tax treaty between the two countries, as well as the repercussions of the real estate crisis in Uncle Sam's country. But to ensure the profitability of real estate, he It is important to consider certain criteria such as the climate, economic dynamism, and the rate of foreclosures.

The United States is vast and it is only normal to learn about the climates of each city to better predict natural disasters. It is also important to avoid localities at high risk of heat waves, floods or tornadoes to preserve the property in which you have just invested.

You will then have to focus on the economic dynamism of the city of your choice, because this ensures the presence of potential tenants, such as students and employees. Among the areas with high rental demand, you have among others Atlanta in Georgia, Tampa, Orlando and Miami in Florida, Memphis in Tennessee, New York.

And if we refer to the home foreclosures linked to subprime mortgages, this led to a 40% drop in the purchase price of real estate in the US. What is more, the resale of homes that have been subject to foreclosure is carried out by banks which offer prices well below the real value in the real estate market.

Either way, you can count on a stable US economic market, favorable taxes for real estate investors, and job growth. Whether you want to invest for the short or the long term, you must therefore choose the type of real estate you are targeting, making sure you learn about the dynamics of the state of your choice.