The USA is attracting more and more Europeans, including British people who consider this country as the new Eldorado for real estate investments. Indeed, market conditions are more favourable there than in France. Due to its geographic location and climate, Florida is a state with a constant flow of migrants and the French community has found its place there. The point.
Why invest in real estate in the United States?
The United States recorded several sales at attractive prices from 2008 to 2015 due to the unprecedented financial crisis. Many homes were seized by banks and then resold at below market prices. For 8 years, selling prices were 60% cheaper than buying. In 2020, they have still not returned to their initial level and real estate investment is still timely.
Favourable areas for real estate investment
The American territory is favourable for renting, especially in northern Florida, as this area is particularly dynamic. Although Americans have recovered from the economic crisis, they still prefer renting to buying. However, property values tend to increase over the years. It is therefore important to choose the right investment location. For example, it is quite possible to buy a house in Florida because the unemployment rate is low. In addition, several French companies have a strong presence in Florida.
The advantages of investing in the USA
Of all investments, real estate is the most profitable. This is especially true in the United States, where the tax system favours fund investments. Indeed, the unemployment rate is low and foreign investors are welcome. The tax rate is also lower than in France. The American real estate market still offers many properties to acquire at affordable prices.
In addition, the value of the most affordable housing is growing strongly. Despite the decrease in the number of new buildings, demand is still growing. Even more reassuringly, the reliability of the country’s economy ensures that the population is able to pay the charges inherent in renting a home.
Florida Real Estate Investment Update
Real estate investment in Florida is promising because of the expansion of the sector, but also because of the booming U.S. economy. Florida is also a tax haven where the state does not recover taxes. Moreover, there is no wealth tax there either. The only tax you will have to pay is the “property tax”, which is equivalent to the property tax in France. The estimated value of the building is the basis for its calculation.
The type of property to invest your money in
To find out what type of property you should ideally invest your money in, ask yourself what you intend to do with it. If you want to buy a holiday home, budget is the criterion that will guide your choice. It should be noted that the purchase of a condominium apartment involves management and maintenance costs which, once accumulated annually, weigh heavily on your budget.
In order to guarantee the rental of a property, buy preferably a detached house with a surface area of more than 100 m² with a garden where families can barbecue. If you wish to invest in rental property, I recommend that you opt for a house ideally located on the outskirts of a large city. Families looking for pleasant and secure areas are attracted by these properties. Moreover, they generally settle there for the long term, thus facilitating the management of the accommodation.
The type of promising investment in Florida
The real estate rental market is particularly flourishing in Florida.
- Nearly 40 percent of Americans also choose to rent, and the number of people looking for housing is constant.
- Since the 2000s, the price of real estate has been revised downwards (-50%) and remains relatively low to this day.
The conditions for buying property are therefore ideal. In addition, the demand for rental accommodation is continuously increasing, while rents are still quite high.
Investment friendly cities in Florida
In order to benefit from these particularly favourable conditions, I advise you to invest in areas where growth seems particularly sustainable in the medium and long term. The assessment is made by taking into account employment, population growth rates as well as the prices of goods in one year. The two most promising cities are Orlando and Miami. Other cities that are conducive to real estate investment include Tampa, Fort Lauderdale, Sarasota and Jacksonville.
Real estate investment in Orlando
Orlando is a city known for its important tourist flow, but also for its amusement park. It also attracts large companies that come here because of the lower tax system and the pleasant atmosphere. Most of the time, newcomers come to find work or to join their company, especially in the context of a transfer. Investment in properties close to amenities and schools is highly recommended, as families are often looking for quiet neighbourhoods to raise their children.
Investing in real estate in Miami
Miami is a first choice destination if you want to invest in the rental or resale market. The market is particularly flourishing here, which is why more and more investors are investing their money and moving here.
The Magic City is one of the most popular cities, as it is one of the safest cities in the United States. The tax system is also favourable because there is no wealth tax.
You only have to pay a 2% property purchase fee and a 15% capital gains tax on any resale after one year’s ownership of the property. Miami is also a dynamic and young city where tourists and businessmen meet throughout the year in a relaxed and pleasant atmosphere.