In part 1, we discussed many reasons U.S. real estate ownership can be beneficial to foreign buyers. In part 2, also consider the following additional reasons below:
- Transference of Wealth: An ideal legacy strategy involves sheltering an individual’s net worth in the United States. Investing in U.S. real estate affords affluent individuals the opportunity to transfer wealth to their children.
- Insurance policy: Investing in US real estate is a solid “plan B” that addresses the instability of the global economy and allows wealthy individuals to “sleep at night”.As the United States, Asia, and Europe continue to carry out policies of printing more money to spur economic growth, it’s important to recognize the benefits of owning US real estate as a hedge against inflation. Generally speaking, when inflation occurs, the price of real estate will also rise.
- Immigration: Programs such as the EB-5 Green Card program give high-net worth individuals the opportunity to accelerate permanent residency in the U.S. by investing in U.S. businesses that create jobs. Additionally, it’s far easier to take advantage of maternity care and options in large hospitals that guarantee American citizenship for every child born in the United States.
- Storing wealth in tangible assets: U.S. real estate is one of the few investment classes that allow ownership of a hard asset with meaningful intrinsic value. The property’s land has value, as does the structure itself. By choosing the location and asset quality wisely, investors can benefit from the security of knowing that they own an asset with potential to earn income regardless outside factors. This benefit is in addition to personal use of the property by an investor.
- Use & Enjoyment: Having a luxury vacation home in the U.S. can significantly improve quality of life. Unique amenities available in the U.S. such as our food, shopping, entertainment, historical sights, sporting events, arts and culture, national parks, theme parks and beaches draw visitors and buyers here from all over the world.
- Tax Benefits: A well-defined and stable U.S. Tax code can make investing in the U.S. far more appealing to international buyers, than higher tax rates on investment properties in their home countries.
- Healthcare: Despite recent issues relating to The Affordable Care Act, healthcare in the United States is considered to be amongst the finest in the world.