Tuesday, August 12, 2014

Top 5 USA cities to invest in real estate 2014

Investing in real estate is always a good decision for long-term profits. Usually buying real estate means having capital gain and also it doesn’t carry big risks. In the USA, after the economic crisis of 2008, there are several options to purchase real estate bargain prices with high growth opportunity. It's important to note than American laws allow foreigners to obtain loans from banks to finance their investments. Between March 2010 and March 2011, foreigners in the USA purchased 82 billion dollars in real estate, according to the National Realtors Association. 2014 could be the year to purchase real estate in USA. Forbes made a list of the best places to invest in the next year: 1. Forth Worth – Arlington, Texas. Upstate is a good option to buy home. Fort Worth has a population of 2.2 million. The average price of a residence is $168,386 dollars and it is estimated that value will increase 25% in three years. 2. Dallas- Plano- Irving, Texas. These counties have a population of 4.3 million and the current average home price is of $180,645 dollars. It's expected that the value will increase 29% in three years. 3. Charlotte-Gastonia-Concorde, Carolina. This area of east-central United States has a population of 1.7 million and the average price of the homes is of $201,855 dollars. It's expected that the value will increase 24% in the next years. 4. Nashville-Davidson, Tennessee. The average home price in this area, with a population of 1.5 million, is $ 199, 506 dollars. It is estimated that the gain in the are will be 23% over the next three years. 5. Houston- Sugar Land – Baytown, Texas. In total, the area has a population of 5.8 million and the average home price is $ 191, 279. Price growth in the next three years is expected to be 24%.


Real estate in New York is so hot right now that developers can´t build fast enough, those available for sale are being purchased before you can say “trust”! The average number of days a property is on the market is 96, which is 46 percent lower than a year ago. However, the number of properties available for sale increased by 18 percent year over year. In other words the demand is much higher than supply at the moment, thus pushing property valuations higher and higher. And buyers are principally foreigners, especially Chinese, thanks to the affordability, increasing wealth and favorable exchange rates. Currently, there are measures in the United States to raise additional taxes to on foreigners who invest in real estate in the United States. The Foreign Investment Law of Property Tax, or FIRPTA, also known as Section 897, specifically says any gain recognized by a foreign person will be treated as if such gain is effectively connected with a trade or business. That means the IRS would levy an additional 10 percent of the purchase price. But guess what? There is a loophole!! The IRS determined that a foreign investor who enters into a total return swap that is tied to an index US of broad-based real estate shall be exempt from FIRPTA. And this explains why so many shell companies, such as New York Magazine recently published in its article “Stash Pads”, are in the public record as the purchaser, and not an individual's name. So what do you think will happen when this gap is closed, as expressed in whispered conversation by some on Capitol Hill? A real estate bargain!!! Like no other in what New Yorkers like to call, “the greatest city in the world”.