There are two aspects to consider when investing in U.S. real estate: rental yield and potential for appreciation. The latter is more important than the rental yield.
Generally, the more expensive the property, the lower the rental yield. For example, New York, San Francisco, and Los Angeles are all areas with relatively high property prices. Because property prices in these regions often climb rapidly and the corresponding rental growth cannot keep pace with the rise in property prices, their rental yields are relatively low.
However, in the long term, the potential for property appreciation in these areas is greater than in other places with higher rental yields, because there is a larger number of people who want to purchase such properties, and the higher the number of buyers, the higher the property prices—this is the balance of supply and demand. Therefore, when investing, it is not necessarily better to buy low-priced, high-yield properties; rather, one must consider both aspects simultaneously.
How to make an offer on U.S. real estate
Information on U.S. real estate is very transparent. Once you have identified a property, your agent will assist you in conducting a price assessment to estimate the current value of the house based on recent market transactions.
If the seller's asking price is too high, the agent will help the buyer negotiate a lower price. If the asking price is below market value, the agent will help the buyer secure it quickly. Sometimes, multiple buyers are interested in the same residence, and to secure the property, one might need to offer a price several times higher than the asking price.
Therefore, it is not necessary to negotiate on every property; it depends on the level of the asking price. The key is for the buyer to be able to accurately assess the value of the property, which, of course, requires the assistance of a good agent.
Purchasing U.S. real estate has no direct relationship with U.S. visas or immigration applications
This is a very common question, but there is no relationship between buying a house and immigration or visas. Buying a house in the U.S., immigration, and U.S. visas are all handled by different departments and personnel. The immigration authorities are not concerned with whether an applicant owns property in the U.S., and certainly, they will not treat an applicant differently based on whether they own property. Therefore, please do not conflate immigration or visas with buying a house.
U.S. real estate rental issues
Many buyers worry about the issue of being unable to rent out their property. In fact, this is an over-worry; there is no house that cannot be rented out. In reality, whether a house can be rented out depends on whether the owner's rent aligns with the rental market price. The key lies in whether the pricing is market-appropriate.
Not every foreigner can obtain a loan
Overseas buyers can obtain loans to purchase property in the U.S., and it is quite common and easy. However, not every bank can provide loans to overseas buyers.
There are differences between loans for foreigners and loans for U.S. citizens:
Loan conditions for U.S. citizens: credit, income, and stability of employment.
Loan conditions for foreigners: a larger down payment is required, usually around 40%-50%. Generally, one can obtain a loan for about 50%-60% of the value.
Since loan interest rates vary by bank, the requirements for applicants also differ. For example, some banks only lend to foreigners for 3 to 7 years, while others can provide loans for up to 30 years. Some banks have higher interest rates but simpler procedures and lower requirements; others have lower interest rates but more conditions, which not everyone can meet.