You will find many German investors buying US real estate. Some people are surprised to find how common this is for German investors. But why do they like US real estate? Read this post to learn about why Germans invest in US real estate.
Why are German Investors Buying US Real Estate?
Consistent Returns
US properties offer reliable returns compared to real estate in many other parts of the world. US real estate tends to appreciate well over time. If you hold it long enough, you should be able to sell it for a profit. You also have great potential for rental income. Rental properties can offer a reliable source of income, whether the economy is good or bad.
Safe and Stable
The US offers economic stability for investment. It is one of the reasons why the US is one of the most popular countries for foreign investors. While you can find cheaper real estate in some other countries, it won’t come with the same level of stability. It is also home to the world’s reserve currency, which offers an additional layer of stability.
Immigration Opportunities
Investing in US real estate can also offer easier ways to immigrate and live in the US. With enough investment, you can be eligible for the EB-5 visa program. This visa program allows foreign nationals to obtain residency by investing in the US. As long as you meet the requirements, it can offer a path to immigration for you and your spouse. It can also open immigration opportunities for your unmarried children under the age of 21.
Favorable Tax Rates
The US tax code tends to favor investors more than Germany or many other countries. Just like Germany, the US uses a progressive tax system. However, if you look at the highest rates, they are higher in Germany. At the time of writing, the highest rate in Germany is 45%. In the US, the current highest rate is 37%. While rates may change, the US tends to impose a lighter tax burden than Germany.
Market Diversity
Another factor that makes the US so attractive is the market diversity. You have so many investment opportunities in one country. Of course, you have options like single and multifamily properties for renting. You could also consider investing in commercial real estate. There is also a growing market for short-term rentals. Beyond that, you also have the diversity of the US as a country. You have many different states with varying market conditions. Even within each state, there are different markets for investing.
Invest in Miami Real Estate
Do you want to know more about investing in the Miami area? Click here to contact Marion Ott. She is a local expert with experience helping international investors. Marion would be happy to help you achieve your investment goals.
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