Buying real estate in the USA, high profitability is possible in Cleveland.
When buying real estate in the U.S., the most fashionable cities such as Los Angeles or New York have become very expensive. Investors who want a real return on investment have “put down the numbers.” Today, among the few cities where profitability is above 15% gross is the city of Cleveland. Indeed Cleveland remains on the highest step of the Podium, ahead of Detroit or Chicago. Let us remember that taxation is very much in favour of investors and therefore owners.
From 2008 to 2012.
After the subprime crisis of 2008, many Americans who were seduced by mortgages were forced and forced to abandon their homes to lending banks. This has led to an unprecedented drop in the history of real estate in the United States. In addition, prices no longer vary until the first half of 2012. the moment when the U.S. economy begins its recovery. Recovery widely supported by investors from around the world sniffing out good real estate deals and seduced mainly by 2 things:
On the one hand:
Some of the most affordable purchase prices in the global real estate market allow for previously unexpected returns. Always well above the 10% net return.
On the other hand:
The U.S. authorities and the country’s taxation favor donors. No double taxation between the United States and France. Very efficient and fast eviction procedures. LLC’s facility of creation.
The market has sanitized. No bank loans for foreigners. This means that the rebound in the real estate market is immediate. The increase is still under control, but it is constant. Prices are gradually returning to their level. Big cities like Los Angeles. New York, or parts of Florida appeal more to second home enthusiasts than to pure investors. Profitability is lower, and admissions are higher.
Other markets are getting their cards out of the game. This is the case for the state of Ohio and the city of Cleveland. As the state’s economy was heavily affected by subprimes, as the city of Cleveland did not have the notoriety of New York, so prices remained very affordable. Today we can offer fully renovated family homes at more than reasonable entry prices. Still under 100 thousand dollars. Obviously the profitability is exceptional. Low purchase price, high rental demand, strong profitability, between 13% and 16%.
Taxation is another advantage.
The registration fee for buying real estate in Cleveland is an average of 2%. In addition, in the USA a lawyer registers the transaction and the time limit is shorter than in France. Often less than a month. The buyer does not pay agency fees. They are included in the purchase amount. It’s the seller who bears the burden. In addition, many expenses are deductible from the rental income generated. As a result, the profitability of a rental investment in Cleveland is significantly higher than the profitability of a purchase in France. Nevertheless, these rental incomes remain to be declared in the French tax base. They will be subject to a tax credit. This means that there is no double taxation. In addition, rental income collected in Cleveland remains exempt from tax burden in France.