What is the best way to invest money in the US? 2024 Update
To invest money abroad safely, we must first ensure that we know the best way to do so. If we aim to invest in the U.S., the real estate market has stood out as a stable industry with high returns. Here are the details.
The real estate market in the United States is emerging as an attractive option in 2024, as it has proven to be a type of investment less affected by phenomena such as inflation or the decline of global stock markets.
We can see this with what is happening currently, where stock markets have experienced global declines, while real estate assets continue to generate profitability under increasing demand in various sectors.
Even during previous economic crises, such as the 2008 recession, the real estate market showed remarkable resilience. This is partly due to the growing demand for housing in a country that is constantly expanding.
And in 2024, the U.S. population continues to increase, ensuring that there will always be a constant need for housing and contributing to market stability. To explain it better, here are 8 reasons to invest in the U.S. real estate market.
1. Effective diversification of the investment portfolio
Diversification is a fundamental strategy to protect the investment against specific market risks. While stock investments can be volatile and interest rates can affect bonds, the real estate market often behaves independently.
This means that when financial markets can fluctuate, your real estate investment could continue to generate income and increase in value. This diversification can be a solid foundation for your investment portfolio.
2. Positive cash flow with rental payments
Positive cash flow is a critical component of real estate investing. As tenants pay rent, you can generate regular income that can cover the expenses of the property and provide you with an additional profit.
With interest rates at record lows in 2023, financing costs are low, meaning you’re more likely to be able to achieve positive cash flow from the start. This cash flow can serve as a source of passive income that you can use to reinvest in more properties or finance other projects.
3. Capital appreciation potential
The potential for capital appreciation is another attractive aspect of real estate investing. Over time, properties tend to increase in value due to various factors, such as inflation, improving local infrastructure, and growing demand for housing. In the US market, where demand exceeds supply in many areas, it is plausible to expect a steady increase in property value over the long term.
4. Fiscal benefits for investors
Tax benefits are a significant advantage for real estate investors in the United States. The tax deductions available to investment property owners can help reduce their tax burden and increase their net profits.
For example, mortgage interest is usually deductible, which reduces your tax bill. Additionally, the ability to defer capital gains taxes by using real estate exchanges, such as the 1031 Exchange, can be a valuable tool to maximize your gains and delay tax obligations.
5. Access to affordable financing
In 2023, interest rates in the United States remained at historically low levels. And it’s expected that they won’t vary much in 2024. This means that investors can access more affordable financing to purchase investment properties.
Low financing costs not only reduce your monthly expenses but also increase your profit margin. This makes the real estate market even more attractive as an investment with a favorable risk-reward ratio.
6. Real estate market diversity
The United States is a diverse country with a wide range of real estate markets. You can choose from metropolitan cities, suburban areas or rural markets depending on your investment objectives.
Some markets may be experiencing rapid growth, while others may offer long-term stability. The diversity of markets allows you to customize your investment strategy to fit your specific needs and goals.
7. Research and technology tools
Technology has transformed the way investors access and evaluate real estate investment opportunities. Online platforms like Zillow and Trulia, mobile apps and data analysis services allow you to conduct a comprehensive market analysis, identify trends and compare properties across the country.
This information helps you make more informed decisions and find investment opportunities with higher return potential.
8. Sustained demand for housing
Demand for housing in the United States remains robust and sustained. Population growth, urbanization and internal migration are factors driving housing demand across the country. This means that there will always be a constant need for residential properties, providing stability to the real estate market and ensuring a continuous flow of tenants for investment properties.
In summary, investing in the U.S. real estate market in 2024 offers several advantages, from historical stability and portfolio diversification to positive cash flow and capital appreciation potential. Additionally, tax benefits, access to affordable financing, and the diversity of markets make this option even more attractive.
However, as with any investment, it is essential to conduct thorough research, consider your financial goals, and, if necessary, seek the guidance of a financial or real estate professional before making significant investment decisions.
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 land acquisition to the development of mixed-use projects, such as student housing and multifamily rental buildings with mixed-use spaces, including apartment buildings and retail (commerce-restaurant).
Our mission is to safeguard the capital of our partners and our own capital with minimal risk exposure. We ensure secure development by going through all the stages: land acquisition, urban zoning adjustments, commercial vision in architectural development, and management of building permits. We then take charge of the capitalization, construction, and exit strategy, with the return of capital and profits to our partners, guaranteeing better returns than those offered by the market.
In this way, we ensure fixed and stable returns for our client portfolio. Additionally, we operate under a confidential work protocol with encrypted web forms, protected personal data, and private meetings with our agents in the United States, Latin America, Europe (Italy), and Asia (Vietnam).
You already knew types of real estate available in the US. If you are looking for investment opportunities with high returns in real estate, or to invest in projects that qualify for the EB-5 Investor Visa and thus obtain a Green Card, please complete our form and an agent will contact you.
