The best cities to invest in real estate in the United States

[Article partenaire] The United States is a prime destination for foreign investors looking to diversify their wealth. With economic growth higher than that of European countries and attractive housing prices, a rental property investment in the USA is a real godsend to be seized. The opportunities are not the same in the 50 states, the choice of the city is essential. Whether in terms of taxation or the cost of real estate, some American cities like Cleveland or Birmingham are more advantageous. In this article, we will focus on the city of Cleveland, which is currently experiencing a boom important real estate.

Cleveland, a prime destination for rental property investment in the USA

Nicknamed The Forest City, Cleveland is undoubtedly THE city to be favored to enjoy high double-digit profitability with low entry capital. Renowned for its economic renewal, its exceptional cultural sites and its verdant landscape, the second largest city in Ohio, as an investor, provides access to one of the most lucrative rental property markets in the United States. .

Cleveland attracts families, students, workers and tourists alike because the city meets all the criteria for promising rental property investment in the USA:

– the economy (billions of dollars invested each year, 11 Fortune 500 companies)
– culture (many museums, theaters, etc.)
– sport (NBA, NFL, MBL)
– education (in the top 50 of the best universities in the country)
– health (Cleveland Clinic is one of the best hospitals in the world)

By opting for a rental investment in Cleveland, you put all the chances on your side for a very rapid return on investment (less than 5 years) and to realize a capital gain in the event of resale.

A rental investment in Cleveland allows you to complete your home purchase in the United States with an entry ticket of between $ 55,000 and $ 65,000. In addition to this very affordable price, investors who decide to invest in Cleveland can be delighted to benefit from a return ranging from 10.2% to 13%, or even more. With a population of two million, this city located on the shores of Lake Erie is characterized by population growth of around 1.2% and employment growth of 1%. To this must be added a rate of increase in the value of real estate of 7.5% per year. Cleveland meets the essential criteria for a high rental profitability. A bargain that must be seized if you want to invest in the USA.

Its economy is driven by a booming healthcare market and known as the largest in the United States with Cleveland Clinic. In terms of economic dynamism, this city of Ohio has a dozen Fortune 500 companies on its territory that have their headquarters there. These include companies such as Amazon, Eaton Corporation, Sherwin Williams, First energy and Goodyear Tire. In addition, Cleveland is a metropolis focused on sports. It is home to three major sports teams with the famous Cleveland Cavaliers. These clubs alone constitute a significant source of billions of dollars in revenue for the region as a whole. By choosing your real estate purchase in Cleveland in the United States, you can count on a reliable pool of solvent tenants (97% of houses are occupied by tenants).

Cleveland, a young and dynamic city

A real estate investment in Cleveland is a real boon for international investors thanks to its status as a young city. Ranked eighth in the United States in terms of young generation jobs, this Ohio destination has worked in recent years to create more than 85,000 jobs. At the same time, the number of its residents who have a bachelor degree increased by 91%. For a rental investment in Cleveland, tenants are typically families who work in the biotechnology, healthcare, or manufacturing industries.

Cleveland is a young city with almost 63% of the population between the ages of 18 and 34. Young graduates settle there en masse after having completed their studies (in the Top 50 of the best universities in the country).

Real estate has grown steadily by 12% in recent years, with tenants staying in the rented accommodation for four to eight years. It is therefore all of these favorable indicators that allow the 12th largest economic region in the USA to stand out from other American metropolises with an exceptional rate of profitability of more than 16% (the national average being 4% to 7%).

Acquire real estate in Cleveland to take advantage of its attractive taxation

Tax attractiveness is one of the main factors that allows Cleveland to rank among the best cities for a property investment interesting in the United States. Those who choose a US rental property investment in this Midwestern metropolis will appreciate its generosity on tax policy. Indeed, the real estate market in Cleveland is characterized by a particularly advantageous taxation for investors.

Like many cities in Ohio, Cleveland has since 2005 initiated a policy of gradually lowering its income tax rate. It was over the period from 2004 to 2008 that this city experienced one of the most significant reductions in income tax, approaching 16.8%. This decrease continued in the following years, and even more steadily to the delight of individual investors. Thus, the latter have been totally exempt from income tax for those of them with less than $ 10,850 in income.

Investing in Cleveland is therefore a very advantageous choice from a tax standpoint, for several reasons:

– the city occupies 28th place out of the 35,946 most attractive American metropolises in terms of property taxes
– housing taxes are on average $ 1,271
– the property tax rate is 1.60% of the value of the home (9th lowest in the United States)

In addition, by opting to purchase a home in the USA through an American company (LLC), it is possible to significantly reduce the taxation applicable to real estate in the United States. This tax advantage, comparable to that of the LMNP status in France for example, is obtained through the interplay of depreciation and charges.

The best places to invest in Cleveland

To be successful with your investment, the location of the property within the city is one of the factors that should not be overlooked. In this city located 250km from Detroit and 550km from Chicago, some areas offer more potential than others, due to the quality of their infrastructure.

This is the case for the Slavic Village district. Located to the south-east of Cleveland, it enjoys a privileged location, particularly near the main axes of the city.

A true artistic heart of the city, Collinwood is undoubtedly one of the best places to invest in real estate in Cleveland. Very popular with musicians and artists, this district is home to many cultural facilities. Along with Buckeye Shaker and Mount Pleasant, Collinwood is one of the areas of the city that has experienced an exponential increase in value in recent years, mainly to millennials. This interest in these different neighborhoods is undoubtedly due to their proximity to restaurants, museums, institutions and public establishments as well as various other places of recreation of the city of Cleveland.

Located on the shores of Lake Erie, St-Clair is known to be one of the greenest neighborhoods in Cleveland. Close to the university area, it is in full development and remains one of the areas particularly popular with young people. Several shops are installed there in addition to the presence of amenities.

A variety of properties to invest in

The diversity of its offer remains another reason why a rental investment in Cleveland represents a good opportunity. With highly paying jobs, family homes are popular with people residing in this city. This is excellent news for investors who are sure to find a tenant within 15 days by calling on the real estate agency INVEST US.

The use of a professional is an absolute necessity to invest in Cleveland safely.

Professionals based on site like INVEST US guarantee you an investment made in all security thanks to a turnkey service which includes a 12-month rental and work guarantee.

Book a free telephone consultation with Thibaut Guéant, founder of INVEST US

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