This is an interesting question, and one which requires a reasonably detailed answer for certain. The short answer is – it depends. Several factors must be considered before we decide to place our money into any investment, and real estate is no different. I will start by suggesting that you put into place a system. The system should be geared around the following questions and considerations:
1 Why do you want to move your assets into the US real estate market? Consider this carefully. Is it because your friends are doing it, business associates, or a family member? If so, talk to them. Ask them what their experiences have been and where they have invested. Have they realized a strong rate of return on their investments or have they actually depreciated?
2 While we’re on depreciation – in most cases, a real estate investment should be viewed in terms of your long-term investment strategy. Real estate investments were never meant to be short-term. Yes you can flip properties, and many people do, however, there is additional risk associated with these types of short-term real estate investment practices. Having said that, you may continue to see some depreciation in your investment over the next few years, but the length of time, amount of depreciation, and relative appreciation over time is dependent upong the market you choose to invest in. You should not let this be an overwhelming concern if you’re in this for the long-term.
3 One way that you can decrease your level of depreciation is through market research. What do you want to buy? Are you considering commercial, multi-family, resort, single family, or condo? Where do you want to buy? Some markets are less expensive, but they have much more volatility. You must consider the inventory for the area you are looking to purchase, as well as the price. Markets with fewer inventories may be a bit more expensive, but their recovery time will be less and appreciation could be realized sooner.
4 EB-5 investments may also be something to consider. There are regional centers, such as ones in Sarasota, which can provide real estate investment options that will enable you to benefit from this great program, while making a modest profit.
I strongly suggest that my clients invest in declining inventory, coastal communities like Sarasota or Manatee County, Florida. The reason for this is simple – these areas are desirable vacation and relocation destinations. Sarasota was rated as the Number One place to buy real estate recently on MSNBC.