Why Invest In Property In The USA?

Choosing to invest in property internationally is challenging. How to separate fact from hype? How to determine profitability? There are different taxes, laws, business processes to uncover and evaluate. To answer these questions and explain why Axis believes strongly in property investment in the USA we have written this introduction.

It's not the end of the story... rather the beginning. There's more to discover and learn and Axis has further resources and information available. However, this article should serve as a helpful starting point to decide if investing in US property is for you.

Why Is The USA Attractive To Property Investors?

For many years the USA has been a major investment destination for British people. The majority of purchases have been holiday homes in familiar areas such as Florida. Now the investment possibilities have expanded, for reasons we explain.

Here are eight important reasons why the US should be high on your list of potential investment destinations:

Mature, First World market

Investment risks in emerging markets like China or India are frankly enormous. In the US we have a mature, highly developed country with world class communications, finance and property sectors and a wonderfully entrepreneurial approach to business. Risks are minimised and opportunities are easier to see and benefit from.

Common language

As an English speaking nation there is great comfort in easily understanding and communicating with everyone involved in property purchase and sales. This is an important benefit for investors.

Well developed property laws

The laws are clear and the rule of law is fully accepted. This is not necessarily true in less well developed countries where laws may not be enforced, or foreigners are disadvantaged. Registration of property is also effective and you can insure against defects in title.

Enormous size

The USA is an enormous country. Ten million square kilometres with 307 million people, the third largest country in the world. It generates a GDP of $14 trillion, the highest in the world, representing 23% of the world's wealth creation. It is also geographically diverse, from the tropical southern states to the frozen wastes of Alaska. The huge diversity of people and geography throws up a wide range of investment opportunities from inner city condo's to holiday property to ranches in rural areas.

Easy to buy and sell property

The laws and customs in place for property transactions make it easy to buy or sell quickly, often in one day. This opens up opportunities for profit in short timescales which are simply not possible in the UK and many other countries.

Easy to visit, either for holiday or business

Many of us visit the US for business or holiday. It's easy. You don't have to worry about the language, sanitation, quality of food or accommodation. Own US property and charge travelling expenses to visit your investment against your rental income!

Low taxes, with generous allowable expenses

The tax regime in the US is generous to business owners. Tax rates are lower and allowable expenses greater than the UK.

Perfect investment profile: Low risk, high reward

Consider the points we've made and our conclusion is clear; the USA is a low risk country for property investors. Factor in the significant profit potential and you end up with the best kind of investment destination - low risk and high reward! That's a rare combination and underlies our view that today the USA represents a rare opportunity for smart investors.

Where to Next?

Questions? Call us on 01273 447 300 or email questions@axiscontact.com