One of the ongoing real estate trends which many Australians seem to welcome with open arms, is investing overseas, or more specifically, buying a property in the US. The reasons why so many Australians decide to do property investment in USA are many, from attractive house prices, good income streams, or just having a second home to spend the summer days. Owning a property in the USA is at the moment a very favorable investment decision. It is in fact cheaper to buy a 4-bedroom house in the US than it is to buy a 2-bedroom apartment in Melbourne and Sidney for example.
Of course, as is the case with any type of purchase, before making any final decisions, you need to go over pros and cons and see how you can benefit from USA property investment. The first thing to do is find an experienced agent who will guide you through the whole process. You also need to calculate your mortgage, learn more about the house prices in different regions of the US and compare them to see what your final cost will be. Remember, benefits that can be gained from USA property investment and owing a home are huge. In order to help you make a smart decision, we’ve listed below some of the unique benefits of owning a USA property.
Building Equity – One benefit that can be gained if you decide to make a USA property investment is building your home equity. In the first years, the majority of your monthly payments will be paying off the interest rate. Later, the majority of payment amount will go towards lowering the mortgage balance. Paying the loan over a certain period is a process known as ‘amortization’. As you make payments, you are lowering your total debt. This means that you are building equity in the value of your home. To many this has helped pay for college, plan for retirement and achieve other goals in their life.
Gaining Tax Advantages – You probably know that owning a second home can lower property taxes and mortgage interest from your federal and some state income taxes. The same applies to property investment USA. These deductions result in tax savings, specifically in the first years of your mortgage. After doing the math, you’ll see that it is much cheaper for you to buy a house instead of renting one, even if it overseas.
Stabilizing Your Payments – If you choose a mortgage with fixed rate, you will pay the same interest every month for the whole term of your loan. Unlike renting, this monthly payment will stay fixed, even when inflation leads to higher prices.
Having A Plan B – With property investment USA, you’ll have an alternative (a great one) or a backup plan. Even though overseas, owning a second home gives an assurance that your family will have another place to live if something unexpected happens.
