Investment in property in USA is a highly attractive option. Investors interested in the USA property market can tap into the vibrant market in popular tourist locations. Many investors are able to enjoy year-round rental income from their properties and are also able to cash in on the healthy capital growth from their investments on resale.

In terms of lifestyle and climate, the USA is a market like no other. It offers many economical and political advantages to today’s overseas property investors.

In fact, intelligent investors are making the most of today’s real estate market in USA. There are plenty of buy-to-hold investors who are buying now in the sluggish market and waiting patiently for long-term gains.

This makes USA property investment highly attractive with good returns. A big advantage of today’s sluggish market is that prices are stable and this attracts new buyers into the market.

The favorable rate of exchange of the dollar with the sterling and euro, gives property investors good value for their funds. There are plenty of new investors who wish to take advantage of this excellent investment opportunity. The best properties with maximum rental returns are the properties located in and around the main tourist attractions.

When investing in property it is best to seek professional guidance. This is because property ventures all over the world do have pitfalls and are best concluded after back ground checks and professional vetting. A properly researched property often brings returns up to 12% per annum for the property investor.

Property Market Overview

The vast expanse of USA includes almost every climate type from the frozen Alaskan region to the desert climate of Las Vegas and the tropical paradise of Florida. Owing to the high standards of living, and the stable economic and political conditions, the USA has remained a favorite with property investors.

A recent trend in the property market has been the popularity of USA properties amongst British buyers who have traditionally bought vacation homes in France and Spain. This is because the American property market is stable, and the favorable sterling and dollar exchange rate allows great value for British buyers.

Why is USA property investment an attractive option?

Though presently there is some amount of misgiving among property investors because of increased interest rates and sluggish property prices, the real estate market is booming in certain key tourist locations of the USA like Las Vegas and Florida.

The overall investment climate favors property investors who get the benefit of a solid economic and political climate, a transparent and easy buying process, and to top it all the excellent quality of life that is part of the American dream.

Here is a brief list of why you should invest in USA property:

Natural & Socio Economic Factors -

1) The USA has a great range in climate options from freezing winters to mild year round sunshine elsewhere. In fact, everyone from golfers to skiers to athletes will feel at home here.

2) The USA offers a great lifestyle and a famous consumerist culture which is also known as “The American Dream”.

3) There is a great emphasis on keeping fit and physical activity with facilities for every type of outdoor sport.

4) Today you will find a good representation of almost every country in the world all chasing the great American dream. Most American cities have a cosmopolitan culture with all colors and creeds finding a place.

5) All American cities have well developed modern infrastructure including transport, education, and health and medical facilities.

Economic Factors favoring property investment -

1) The general standard of living is high. The average cost of living is low. There are plenty of choices too which makes the USA an ideal retail paradise. The political and economic climate of the country too is stable.

2) The annual tourist footfalls in USA touch nearly 40 million per year. This in turn fuels a healthy rental market especially in cities like Las Vegas with tourists all the year round.

3) The legal process for investing and buying property is transparent. All legal formalities and paper work is done in English which gives the English speaking the buyer added confidence.

4) For property investors looking for mortgages there are plenty of choices and schemes including interest only options. These are easily available for property investors.

5) There are still certain areas which have not been properly exploited yet and USA property investors can tap into the emerging market. However it is best to make the enquiries and satisfy yourself before investing.

6) As far as homes are concerned, the market has a variety of building types from stand-alone homes to condominiums units for the property investor. There are off plan schemes too which promise good capital growth.

7) Almost all American cities have easy direct flights to major European cities and capitals worldwide.

Why is buying rental property such a great investment -

There are many investors in the buy-to–let category in locations with year round tourist traffic like Las Vegas and Florida. There are many advantages of investing in rental property in USA.

1. Rental income gives you a tidy surplus after you have paid the mortgages, the taxes, and the insurance have been paid.

2. There are tax benefits of buying rental property. Every time you buy a rental property, the IRS allows you to “depreciate” the property over 27.5 years. Therefore the property investor can deduct this depreciation expense against active income from his/her job.

Here is an example. Say you buy a $300,000 rental property. The IRS allows you to depreciate the building. 85% of the purchase price is used to determine the physical value of the house. In this example, the IRS lets you depreciate $ 255 000 over 27.5 years. This is equal to $ 9272 per year which you can take as a depreciation expense against your active income. In other words, you can make a deduction of $ 9272 from your annual income.

You can significantly reduce your taxable income by investing in more rental properties. In fact many USA property investors do not pay federal or state income taxes because they have earned a significant depreciation expense from their investment in rental properties.

3. Another benefit of owning rental property is appreciation in value of the property. If you buy property and hold on it, your home may appreciate significantly every year.

This is how most property investors build up their long-term wealth. Even a 5% appreciation over 10 years will add up to a tidy sum. In fact most USA property investors say that it even beats what they make at their regular jobs.

Best USA Property Options

Presently the USA property scene offers properties to suit all budgets, right from luxurious houses for the well heeled to more modest pockets. Florida and Las Vegas properties are in high demand especially for the buy-to-let category. In addition, there is a good market in the counties around New York, although properties within New York remains highly priced and beyond the reach of people with modest budgets.

Another favorite option for most property investors are the coastal properties and locations near lakes and rivers. Many property investors who have recently immigrated chose locations where they will find the best job opportunities, climate and education facilities for their needs. Florida and California are good examples of states preferred by such buyers.

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