There are numerous benefits to owning a house, yet some go unnoticed. So now, when you are buying a house in the USA the question might strike in your head time and again. It’s not enough to buy a property in the U.S. to qualify for a green card. As a matter of fact, owning a home does not usually entitle you to a residency permit or any other residence benefits. The E-2 Investor Visa, which allows you to actually live in the U.S. whilst starting a business, is available to those who are willing to take part in running a new business that has at least an investment of 1Million USD. It’s also possible to apply for EB-5 Foreign Investor residency. Some of these benefits, such as those, which people might not be aware of:
There are tax advantages
Owners can exclude both investment income and real estate taxes from their taxable income. For new homeowners, the savings are considerably greater because the majority of your mortgage payment goes toward interest. From these tax breaks, the wealthiest individuals stand to benefit the most You may save 39.6 cents on federal taxes with every dollar people pay in investment income, for example, assuming your tax rate is the highest. As a bonus, you also save on state taxes
Increase in the price
Over time, the value of houses tends to increase. By way of illustration, as per the price-Shiller average, the average yearly rise in home prices between 1987 and 2009 was 3.4 percent. If you compare it to the popular S&P index of 500 companies, which soared by nearly 30% in 2013, that yearly percentage rate may not appear Even yet, an average yearly growth rate of 3.4% over the course of 30. A 200K USD home becomes a $545,313 apartment in approximately 30 years. In other words, the number has increased by 172.7 percent An investment property worth $500,000 now will be worth $1,363,283 in 2044 if the yearly increase rate is 3.4 percent.
An inflation-hedging strategy
As a general rule, housing expenses and rents tend to exceed inflation. Even though Federal Reserve has deliberately lowered loan rates in the United States, inflation will eventually take hold, increasing the cost of all sorts of investments, particularly homes. If you’re curious about why so many international investors are buying properties in the USA. In the long term, housing is a valuable physical asset that preserves investment funds.
Expensive up-front fees
Real estate investment may be expensive, as it involves more than just the purchase price and mortgage balance. To begin, closing expenses might range between 2 percent and 5 percent of the purchase price. An application charge, appraisal fee, lawyer’s fees, and real estate taxes are among the most typical closing expenses, as are title search, service charges, points (prepaid interests), origination fees, settlement costs, and survey fees, to name a few of the most popular.