Many people ask me why I chose to invest specifically the US real estate market. What makes this market the most attractive? My answer is in the search for a market with the highest potential for investment that will generate maximum income at minimum risk. My objective is to continue creating income and to put my cash flow to the best possible use. While prices are climbing steadily in Israel and this dream is growing more and more distant, the search for good investment options in real estate led me straight to the land of endless opportunity – the US. Why?
1. Real estate prices in the US are low. Due to the housing crisis in the US, prices in many real estate markets are relatively inexpensive. The markets where it is now worthwhile purchasing real estate include Florida, Georgia, Texas and Arizona.
2. The interest on mortgages is again low. The supply of real estate is high compared to the relatively low demand for purchases. Therefore, with the aim of encouraging real estate purchases, the banks are offering relatively low interest rates for mortgage borrowers wishing to purchase a property in the US.
3. Investment in real estate is a way to diversify your portfolio. Many financial consultants talk about the importance of diversifying the investment portfolio in order to provide long-term security. Adding real estate to your portfolio will allow you to create a source of accessible cash for when you need it, and to increase your income for retirement. Moreover, it is always possible to sell the property when you need to. Purchasing in the American market will provide you with a property at a cost lower than its true price, and allow you to take advantage of future increases in value.
4. Real estate is an excellent long-term investment. Crisis or no crisis, in the long term, investment in real estate is still a good investment. If we look over the past 30 years, the value of real estate is still significantly higher than it was back then. And if you have tenants who will cover the cost of your mortgage, then the investment is even more worthwhile, and in the current US real estate market, demand for homes among tenants is high.
5. Equity. One of the most important things in purchasing properties is the fact that we are creating equity for ourselves. The equity will allow us to benefit from a housing loan, thereby giving us economic freedom. The loan we obtain will give us breathing space and the ability to maneuver economically for additional investments.