Buying a house in the USA as an investment property can be financially interesting! This completely renovated family home with 3 bedrooms and 2 bathrooms is for sale as a high yielding investment property.
As a foreign investor, you can count on complete guidance tailored to your needs.
This rental property comes with a contractually guaranteed rental guarantee. It follows that you, as an investor, can enjoy a contractually guaranteed return in a completely passive manner.
Table of Contents
- 1 Summary of this investment property in Baltimore
- 2 Features of this family home for rent
- 3 Financial details of this investment property
- 4 Why Baltimore as a location for an investment property?
- 5 Interested in buying a house in the USA as an investment property?
Summary of this investment property in Baltimore
- Purchase price: +/- EUR 146,000 (fluctuates with the exchange rate)
- For sale in full ownership
- 50% financing possible through local lender (from +/- 73,000 euro own contribution you can become owner of this investment property)
- Contractually guaranteed return by the promoter
- Located in a growing city (also in terms of employment) in the United States, Baltimore
- Complete passive investment in real estate is possible with this property. As a foreign investor, you enjoy an all-inclusive service:
- Management and rental
- Insurance included (the property can be insured up to its full value)
- 10-year warranty on the roof
- Local letting agent assumes all responsibilities and the cost of this is already included in the return simulations
Features of this family home for rent
- Type of house: Family house
- Implantation: Townhouse
- State: Recently completely renovated and refurbished
- Application: Buy-to-let
- Bedrooms: 3 (interesting for families)
- Bathrooms: 2
- Kitchen: Fully equipped:
- Combi fridge and freezer
- Car parking space: Yes
- Garage box: Yes (added value for tenants)!
- Surface area: 146,8 m²
- Garden: Yes (small front garden)
- Floor covering ground floor: Wood
- Floor covering first floor: Carpet
Buying a house in the USA as an investment property? This gem is waiting for you…
Financial details of this investment property
Contractually guaranteed return
Your rental income is contractually guaranteed by the promoter who knows the neighbourhood very well.
In concrete terms, this rental guarantee translates into a contractually guaranteed return on your invested equity:
- 6% fixed + variable component (1 to 2% extra), calculated on the purchase price
- If you invest with the help of local financing, the guaranteed return on your invested equity rises to between 11.5 and 13.5% net per year (depending on your own contribution and the negotiated interest rate). Read more about the financial leverage of (partly) borrowing for a buy-to-let property.
- A return simulation tailored to your budget and requirements is also possible at any time without obligation
Two additional built-in certainties – Buying a house in the USA
- Bank guarantee in favour of you as owner – Promoter blocks a sum at the bank with you as owner as beneficiary (this amount is an extra built-in security for you as owner)
- Insurance against non-payment – Promoter takes out insurance against non-payment directly himself. This means that the risk of non-payment does not lie with you, the owner, nor with the promoter (steward). The insurance company covers the risk of non-payment.
Why Baltimore as a location for an investment property?
What is a good location for an investment property?
Once you have dealt with the issue of investing or not investing in real estate, the next issue comes up:
What is a good location (country, province, city) to buy an investment property?
Well, it depends on what your goal is…
- Are you investing for cash flow and additional passive income with real estate?
- Or would you rather build up your assets, with the tenants paying off your property and you being able to enjoy the long-term appreciation potential of the property in question?
Certain regions are also suitable for pursuing both objectives together. Baltimore is such a place!
Buying a house in the USA? Why Baltimore is a good investment location
High demand for rental properties
Baltimore is the largest city in Maryland (a state in the USA). It is home to many large employers, making it a hotspot for families whose mothers and/or fathers earn a living.
In terms of location, Baltimore functions as a satellite city for Washington DC. The cities are less than 45 kilometres apart. This means that for many with a job in Washington DC, it is more interesting to live in Baltimore (cheaper rent and housing).
For a European example, you can compare this phenomenon with the countless Parisians who have fled to Bordeaux in France. Every day, they commute by high-speed train to work in the capital.
The same phenomenon occurs on the east coast of the USA. Many professionals choose to settle in the B cities around Washington DC (such as Baltimore).
As a result, there is a stable and increasing demand for high-quality rental housing.
The phenomenon described above also means that the housing market is in an upward trend.
Just as the housing prices of Bordeaux are soaring due to the rising influx of professionals from Paris, the house prices in the cities around Washington DC are rising because many professionals with a job in Washington are choosing to settle in the B cities around Washington DC.
This puts upward pressure on the demand for quality housing (not everyone wants to rent). In the medium and long term, this can only be positive for you as an owner.
If you were to sell the investment property again in the future, there is certainly a chance that you would make a profit.
Interested in buying a house in the USA as an investment property?
Are you interested in this investment property? Then ask for more information without obligation.
The representative will be happy to answer all your questions.
It is also possible to have return simulations tailored to your situation and budget.