WHY INVEST IN THE USA?
The United States as a place to do business offers a predictable and transparent legal system, an outstanding infrastructure, low taxes and access to the most lucrative consumer market in the world.
No country attracts more foreign investment than the United States. The amount of money pouring into the USA has increased by 37% since 2010 reaching $31.1 trillion dollars. A large chunk of that is derived from the United Kingdom.
UK $449B, Japan $373B, Netherlands $305B, Canada $261B, Luxembourg $243B, Germany $224B, Switzerland $224B, France $223B, Belgium $100B and British Virgin Islands $100B.
Schemes have been set up to encourage investment such as Select USA a U. S. government-wide program which is housed in the International Trade Administration at the United States Department of Commerce, since inception facilitating more than US$ 22.5 billion in investment. The EB 5 visa created by Congress in 1990 to stimulate the economy through job creation and capital investment by foreign investors. All EB-5 investors must invest in a new commercial enterprise. The U.S. Commercial Service which is the trade promotion department within the U.S. Department of Commerce’s International Trade Administration. Their trade professionals act in over 100 U.S. cities and in more than 75 different counties to help companies get started in exporting or to increase their sales to new global markets.
The contributing factors that make the USA stand out from the crowd are undoubtedly the following factors.
World’s Largest Market
With a Gross Domestic Product (GDP) spend of $18 trillion and 325 million people the USA is the largest consumer market on the planet. Household spending is the highest in the world by far and accounts for a quarter of global household consumption. The U.S. free trade agreements with 20 other countries https://ustr.gov/trade-agreements/free-trade-agreements provides further access to hundreds of millions of consumers.
The Nexus of Innovation
A recognised leader in research and development (R&D) the USA registers more international patents than any other country. Innovators and entrepreneurs are safeguarded by a robust intellectual property protection framework. The USA also have leading universities and incubators across the nation.
Ease of Business Activities
Consistently ranked among the best in the world for its ease of doing business and its overall competiveness. Supported by a regulatory environment that is particularly conductive to starting up a business. The U.S. business culture encourages competition and free enterprise. All companies regardless of national origin compete on an even keel protected by a stable democracy with a predictable and transparent legal system.
The workers within the U.S. are among the most productive in the world, offering a highly skilled, diverse, innovative and mobile workforce. The U.S. have just prioritised collaborative mechanisms within the public and private-sector to ensure their workforce can meet the 21st centuries economy demands.
Why Invest in USA Property?
The low cost of living and its broad range of choice makes the U.S. a paradise for consumers. Recently there has been a sudden market halt making now an even better time for savvy investors to purchase property at a greatly reduced price. The rental market is fuelled by 40 million visitors per year from tourism due to its diverse climate from freezing winter temperatures in the North to its mild year around sunshine elsewhere. Internal migration from North to South adds to its rental demand particularly in Las Vegas and Florida. There are chances to tap into its expanding emerging markets, selected off-plan schemes for capital growth, world famous areas for the rental market, a variety of building types, stand-alone homes to condo-hotel unit investments, the U.S. has it all. Adding confidence to investment is the ease in which to buy as the legal and buying process is highly developed and transparent.
Foreign investors cannot buy property in some countries including the USA and unless you know the market it is an area you should avoid unless it’s an absolute necessity. Buying through a UK registered development/investment company is the safest route to market and an ideal chance to diverse your property portfolio.
What are some important & key points to know before investing abroad/ investing in property in the USA?
It is worth pointing out that regulations with regards to investing abroad differ considerably from country to country and the necessity to exchange currency could affect your purchase. If the foreign investment opportunity is being offered by a UK registered company, then you will still be protected by any applicable English Laws. You should however check that this is the case prior to any investment.
To invest in property in the USA you should have a good understanding of that country including their rules and regulations, more importantly their laws and tax implications. The risk potential abroad is hampered by the lack of most people’s knowledge and if you are considering buying U.S. property you should seek professional help first. We cannot recommend any company or service as we do not have expertise in this area and are legally not permitted.
How can Wise Investments help with someone’s USA property investments?
We can provide you with opportunities that are property related and are offered by known UK registered businesses. We can arrange finance, currency exchange, provide due diligence and research the opportunity prior to investment. We can help with the application process and be a point of contact for reassurance. We can also provide you with opportunities ordinarily you would struggle to find yourself.
What are the risks of property investing in the USA and how can Wise Investment help reduce those risks?
There are many risks involved in property purchase. Location, purchase price, condition, repayment ability, restrictions attached and economic changes to name just a few. Wise Investment Properties only offer investments by known developers/investment companies. The full investment details are explained comprehensively and normally come with assurances of investment growth potential and known yield returns and any applicable terms. The risks have been minimised to attract investors to see it as a viable opportunity and encourage investors to return prior to the offering.
What are the different types of property investment in the U.S.?
Commercial and Residential property, including buy-to let, off-plan, hotels and condominiums. Consideration for investments offering greater levels of security targeting specific tourism or business activities with known demand for commercial development or key areas for improvement should be a priority. Lone leafy suburbs are attractive but have greater associated risks unless you know that market place particularly well. Many companies offer the ability to purchase this type of investment after the initial cost to renovate has been drawn from government incentives however you should proceed with caution and avoid this type of investment unless its location is within easy access to you as you become a landlord with all its associated costs.
What is the most popular property investment?
Tourism related property purchases especially Hotel and Designed Complexes.
Why should you invest in the USA rather than Europe or the UK as an example?
As a spread to your property portfolio in the most commonly placed second investment location after the investors own country. You also have a currency spread if purchasing in dollars and you may be able to take advantage of attractive rates at specific times to receive your yield or capital growth after the point of sale.