Investing in U.S. real estate is a financial management method favored by many new immigrants. How can one invest in U.S. real estate to make money? This is a question that many people are concerned about. WorldWay will launch a series of articles on how to make money by investing in U.S. real estate. In this issue, we first introduce the following types of U.S. real estate suitable for investment for investors' reference:
1. Single Family House
A single-family house is a detached residential building with no shared walls with surrounding houses, and it usually occupies a relatively large area of land. The major advantage of a single-family house is that the owner has independent ownership of both the house and the land, as well as maximum privacy and disposal rights. Sales of single-family houses account for more than 80% of non-condominium residential sales in the United States.
2. Townhouse
The house and land of a townhouse are still independently owned by the owner. Unlike a single-family house, a townhouse shares common walls with the houses of one or more neighbors, so privacy and disposal rights are affected to a certain extent. The most common townhouses are row houses.
3. Condominium
The original meaning of condominium is joint ownership, which refers to the fact that the owner only has independent ownership of the interior of their apartment unit, while the roof, exterior walls, common areas, and the land occupied by the apartment building are all jointly owned by all owners. Owners usually form an owners' committee and select a professional property management company to manage the common areas, with costs shared by the owners. In addition to the geographical location and the conditions of the apartment itself, the owners' convention and the management status of the apartment are also important contents that investors need to consider when choosing a condominium.
4. Office Building
In the United States, office buildings are generally bought and sold as entire buildings, and their value is greatly affected by the geographical location, the economic prosperity of the area, and the conditions of the building itself. Office buildings generally require professional company management, so they belong to active investment, and compared with other commercial real estate categories, their liquidity is relatively high. The return on investment in office buildings includes rental income and property appreciation, which is suitable for investors with high income and ample initial capital. Since the book value depreciation and loan interest of office buildings can reduce taxable income, they can provide investors with certain tax avoidance conditions.
5. Multi-family/ Apartments
Unlike condominiums, apartment buildings are only used for rent and cannot be sold by unit; buying and selling must be done for the entire building. In terms of real estate classification, they belong to commercial real estate, not residential, and loans are also operated as commercial real estate loans. Apartment buildings require daily rental management, and large apartment complexes generally must hire professional property management companies for management, so they belong to active investment, and the liquidity is relatively high. Similar to office buildings, the return on investment in apartment buildings includes rental income and property appreciation, which is suitable for investors with high income and ample initial capital, and can also provide certain tax avoidance conditions.
6. Shopping Center
Large shopping malls in the United States are generally developed and managed by professional financial groups. What is referred to here are mainly small and medium-sized community shopping centers, which can accommodate several to more than a dozen merchants. The value of a shopping center largely depends on the number and income level of surrounding residents. In addition, the convenience of the location and the number of parking spaces also have a great impact on the value of the shopping center. At the same time, whether the resident merchants meet the needs of surrounding consumers is also an important consideration. Shopping centers also require active management and high initial investment.
7. Industrial Property/ Warehouse
Most warehouse properties are located near airports/piers/transportation hubs, or close to major highways. Their value mainly depends on the geographical location, and the economic environment, especially the prosperity of the industry, has a great impact on the demand for warehouse space. Warehouse space usually does not require active management and is suitable for investors who prefer high cash flow but have no intention of investing too much energy in management.
8. Land
In the United States, most land is privately owned and can be transferred at will. However, land prices vary greatly in different regions and locations. Land does not require careful management, but it does not generate cash income, and its liquidity is relatively poor, making it more suitable for developers or speculators to invest in.
As a leading institution in U.S. investment immigration, WorldWay provides professional and thoughtful services that permeate every small detail of the process for investors immigrating to the United States. When clients land in the United States for the first time, the WorldWay Customer Service Center will provide clients with comprehensive landing and settlement assistance services, including assisting in arranging airport pick-up for the first entry; assisting in handling bank account opening procedures; assisting in applying for a Social Security card; assisting in booking hotels; assisting in booking air tickets to the United States; assisting in contacting driving schools and introducing driver's license test information; assisting in contacting moving services; assisting in contacting real estate agents, and assisting in handling related matters such as renting or buying a house. For details, please call: 400-138-2929.
