Ownership of US real estate is the centrepiece of what is known as the American Dream. There is no other place on the planet where you can find the best places to own property and start a home than in the US. If you have saved up enough money waiting for the next big thing to come along, why not cash in on a tried and true investment venture that is US real estate.
Capital Appreciation
When you purchase American real estate you will actually own something that has a fixed limited quantity. The amount of available land in the US or anywhere else for that matter is limited and only so many can be traded and sold. Once the population of a certain area or region begins to increase, the value of the land area also begins to appreciate which translates into tremendous profit potential for anyone who happens to be the owner of that land. A perfect example of this was the California gold rush of the 1850s. Land in California at the time was so cheap that the government was practically giving it away to entice people to populate and settle. When the gold rush exploded in the state, thousands of eager individuals from all over the country and even as far as Europe came to California to try and find their luck. This resulted to the price of land in certain areas to skyrocket.
US Real Estate – Tangible Asset
Another benefit of owning US real estate property is the fact that you would have in your hand something that you can hold and manipulate. If you own a piece of land, you can build a building or a house on top of it. You can be a landlord and rent it out so that you would have a monthly stable means of passive income. The same could not be said to other investments like stocks because unlike land that persists even in the worst economic conditions; stocks can lose their value and become worthless just by the mere suggestion of impropriety or scandal. Owning US real estate is assurance that you will have something of value that would not be totally worthless.
Numerous Tax Benefits and Opportunities
Owning US real estate properties comes with amazing perks like tax deductions if you play your cards right. One way to get this is to apply environmentally friendly amenities to the property you own. If you own property that is rented, you can depreciate it over the duration of its usefulness and even deduct any operational costs that were incurred in order to maintain it in optimum working condition.
If you want you can also utilize what is called a 1031 exchange. This is a method wherein you gain the opportunity of not having to pay capital gains taxes on a piece of property that you own. Utilizing this method you would be able to sell a piece of real estate and then instantly use the money earned to purchase another piece of property without incurring capital gains taxes. Doing this allows you to be able to trade bigger pieces of property efficiently.