Why invest in real estate in the United States?

Whether you are considering a first purchase abroad or looking to increase your wealth thanks to a foreign real estate investment, these are the reasons why you should focus your attention and your capital in the United States.

The US real estate market is a profitable market so a real estate investment very often generates a fast return on investment.

Sales of real estate properties in the US are generally very rapid. According to Zillow, one of the most visited real estate ad websites in the US, real estate properties stay on the market for an average of 68 days, including about 30 days between consent of both parties and delivery of the keys to the buyer. This means that a seller receives and accepts an offer after only 38 days on average.

This is fostered by the significantly lower and competitive purchase fees in the US (about 2%) compared to France (about 8%). According to altitude-realty website, the purchasing fees are approximately 2% of the purchase price in the US, and 8% of the purchase price in France. The main reason being that notaires are not in charge of the purchase/sale of real estate properties in the US, unlike the French practice which also requires the seller to pay notaires a fee of approx. 1.33% of the purchase price. Real estate lawyers handle real estate transactions, U.S. real estate law being much less complicated than French real estate law and closing documents being less detailed. In addition, in France it is also necessary to add the fees applicable to registration and transfer taxes. The altitude-realty website thus calculates, for a property purchased 150,000 euros in France, a fee of 11,264 euros whereas it is only 1,530 dollar fee for a property purchased 50,000 dollars in the U.S.

American taxation is also more favorable than in Europe, and in particular than in France. The French real estate tax (50% of the rental value of the property), the rental tax and the administrative constraints of the French real estate market make it less competitive and rather disadvantageous, particularly when compared to the U.S. where the real estate market keeps growing.

Finally, investing in real estate in the U.S. promises great opportunities for returns on investment because the value of real estate in the United States keeps increasing : according to zillow.com, home values have gone up 4.9% over the past year and Zillow predicts they will rise 2.2% within the next year.

   Source: Zillow home value index - https://www.zillow.com/home-values/

The American real estate market is therefore doing very well. For all these reasons, BaltimoRealEstate LLC has chosen to invest in real estate in the United States.

Sources :

https://www.zillow.com/sellers-guide/average-time-to-sell-a-house/

https://www.cairn.info/revue-etudes-economiques-de-l-ocde-2007-4-page-119.htm#

https://altitude-realty.com/comparatif-frais-acquisition-france-usa

https://www.objectifusaimmobilier.com/investissement-immobilier-usa/