4 reasons to invest in real estate in the United States
The US real estate market is on the rise and will continue to be so for years to come. Therefore, if you have capital and are thinking of investing in real estate, now is a great time to do it in the United States for several reasons. Here we tell you.
Economic growth is a key driver of real estate investment, and America knows that. It is undoubtedly a good sign for the future of the country’s economy, since the increase in wages and jobs can translate into higher income for the inhabitants, which allows them to spend more on housing and other goods and services.
With economic growth comes greater stability in markets across the country, which means you’re less likely to lose money buying property inside the US than if you invested elsewhere.
That is why it is important to know the local economic climate of each place in which you are thinking of investing. If you can see how it has changed over time, you can predict whether or not it will continue to move in a positive direction.
United States: a safe haven for the economy and investment
The United States is a favorite place for investment because it is the largest economy in the world. Its economic system is one of the most stable globally, with generally controlled inflation and a very strong dollar against other currencies.
In addition, the US enjoys one of the most advanced financial markets, with a robust system of laws, rules and regulations that protect investors from fraud and abuse. The Securities and Exchange Commission, for example, is an independent body that regulates the US securities industry to ensure fair practices for all investors.
Increase in interest rate and return on investment
Before investing in real estate, it is important to understand how rising interest rates affect the market. The Federal Reserve (the Fed) has raised interest rates twice so far this year and it is expected to continue rising throughout 2023. In fact, Reserve Chairman Jerome Powell told the media that “there is still a lot of work to be done.”
The last time you saw that many rate hikes was during and after the 2008-09 financial crisis, when they were raised nine times in two years; but even then, the economy was contracting instead of growing like it is now.
It is undoubtedly a favorable scenario to invest in a booming industry, such as real estate in the United States.
Steady improvement in home prices
The housing market has been on an upward trajectory in recent years, and experts say that is likely to continue. Home prices are expected to rise faster than inflation, which means your money will grow even if you don’t invest more in the property. In fact, according to MarketWatch, some analysts have predicted that “the average American home could be worth a million dollars by 2025.”
This is especially true for those who live in cities like San Francisco or New York, where even people who do not have excess money can afford comfortable housing today. Therefore, if what you are looking for is an investment strategy with little risk but great rewards, real estate investment can be an excellent alternative.
Real estate is a sound investment, but it is important to understand the risks that come with this type of investment. For example, if you invest all your money in a property and it doesn’t turn out as well as you hoped, you could lose everything. Also, some areas are more expensive than others, which means prices can fluctuate based on location.
High demand for housing and low supply in most markets
The demand for housing is high, but the supply is low in most markets. This means that prices will go up, which makes it a good time to invest in real estate.
The market is also favorable for buyers because mortgage interest rates are low. If you want to buy a house, now is probably a good time.
The market is not favorable for sellers because there are too many homes on the market and buyers have too many options. In some markets, it may take longer to sell your home. In this context, if what you have in mind is selling, it is better to wait until next year, when the supply-demand relationship is less unequal.
Investing in BAI Capital is investing in the United States
With a presence in the real estate sector in the states of Florida, Texas and New York, BAI Capital specializes in generating value from the acquisition of land to the development of mixed-use projects, such as residences for the elderly, student residences, multifamily buildings. for rentals and mixed use, including condos and retail.
Our mission is to safeguard the capital of the partners and the own capital under the minimum risk exposure. With a safe development and going through all the stages: Land purchase, adjustment of urban zoning, commercial vision in architectural development and management of building permits. Then, we take charge of the capitalization, construction and exit with return of the capital and profits to the partners.
In this way, we guarantee fixed and stable returns for your client portfolio. In addition to having a confidential work protocol with encrypted web forms. Use of protected personal data and private meetings with our agents throughout Latin America.