Investing in a rental property in the United States right now can not only offer high returns, but great capital gain opportunities. The US market is currently at an all time low, allowing investors the opportunity to purchase quality property at great prices and achieve solid returns of between 15 and 20 percent. There are several reasons to invest in the US property market, from a self managed superannuation fund to passive income.
There are two main reasons why investing in rental property is so successful. Firstly, there will always be a continued demand for quality property in good neighborhoods, as according to the US Census Bureau, around 33 percent of the US population currently lives in rented housing. Secondly, many investment analysts and commentators agree that the long term growth in the value of residential property has been more successful than shares, bonds or commercial property. Finding a profitable rental property takes time, connections and a lot of research.
There are factors that need to be considered when buying a rental property, such as the process of actually making the purchase. These include establishing an LLC, or a Limited Liability Company, which will be the legal entity that purchases the property. You will also need to establish a trust account with a Property Management Company, source the property, arrange an inspection, arrange for a possible refurbishment and source tenants. Finding a locally run company that helps you with these things is essential, as many investors just don’t have the experience or know how to seek out and manage a property overseas.