If you follow our weekly newsletter, you’re well aware that investing in real estate is a great way to build wealth and generate passive income, and there are many great markets in the U.S. for both U.S. expats and foreign national investors. One city that has been gaining a lot of attention in recent years is Dallas, Texas, and the surrounding areas, and for a good reason.
According to a recent report from Norada Real Estate Investments, Dallas is considered to be among the most affordable real estate markets in the United States, where renting is more cost-effective than buying for many residents. The city’s growth over the years has been largely driven by the influx of young people settling in the area, and many of them have opted to rent rather than purchase their own homes. As a result, the demand for rental units in the surrounding areas of Dallas has increased by 14% over the past year, making it an excellent time for investors to enter the housing market. This indicates a thriving housing market and a great opportunity for investors looking to capitalise on the city’s growth.
Here are some reasons why non-resident investors should consider investing in Dallas real estate:
1. Affordable Real Estate Market
Dallas is among the most affordable real estate markets in the U.S., making it an attractive option for investors looking for high returns without breaking the bank. Dallas’s median home sale price is around $388,995, which, with leverage, is less than a $100,000 cash investment. Additionally, home values in Dallas have appreciated by an average of 4.3% per year over the past 10 years, which proves pre and post-covid, there is strong demand.
2. Growing Population and Strong Job Market
Over the past few years, Texas has become a top destination for companies looking to relocate or expand, with several high-profile companies already having made the move. In particular, Tesla, Oracle, and Hewlett-Packard have relocated to Texas, and this trend is expected to continue in 2023. Texas is considered the top state for business in the U.S. due to its favourable tax laws, pro-business regulatory climate, and skilled workforce, making it an attractive destination for companies to relocate or expand.
Current projections show that as companies expand and hire, the demand will stress the already limited inventory of available rentals. Increasing demand for rental units makes it easier for investors to find tenants and keep their properties occupied, leading to stable and predictable cash flow.
3. High Rental Demand
Rental demand is high in the Dallas surrounding areas due to a growing population and strong job market, making it a good market for buy-and-hold investors. Dallas has a diverse range of neighbourhoods and property types, from high-end luxury homes to more affordable multi-family properties, providing options for investors with different investment strategies and goals.
4. Low Property Taxes
Dallas has a relatively low property tax rate and no state tax compared to many other major U.S. cities, which can help to improve an investor’s return on investment. This is particularly important to note for foreign national and U.S. expat investors who may not be as familiar with the local tax laws and regulations.
In conclusion, the Dallas real estate market offers many benefits for both domestic and foreign investors. Its affordability, growing population, strong job market, high rental demand, low property taxes, and experienced real estate market make it an ideal location for those looking to invest in U.S. real estate.
All signs indicate that the Dallas real estate market is expected to experience an increase in demand for rental, and with higher interest rates bidding wars are something of the past. This is an excellent opportunity for savvy investors to negotiate deals, concessions, and discounts which haven’t been seen in a while in these markets.
You can never time the market, and America Mortgages always preaches “date the rate and marry the property.” Our loan officers are with you from the start through your entire journey and will advise when rates dip and refinancing makes sense. America Mortgages only offers mortgage solutions to non-resident investors and expats looking to invest in U.S. real estate. With our expertise and connections in the U.S. real estate market, no other company compares. We understand the unique needs of international investors and can help navigate the often-complicated process of obtaining a mortgage in the U.S. from application to signing.
America Mortgages provides expertise in finding the best financing options and valuable insights into the local market to help investors make informed decisions and maximise their returns. Contact us at [email protected] to find out more.
Speak with a U.S. mortgage expert now by scheduling a call at www.calendly.com/u-s-mortgages. Start your journey today!
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