U.S. Real Estate Investment Support
Muso & Co.
Muso & Co. provides consultation regarding investment in commercial properties in the United States. We can introduce the advantages and disadvantages of various properties such as offices, commercial buildings, houses, apartments, etc. while assisting with the paperwork for purchase and sale, and introducing real estate companies (brokers). As we are an accounting firm, we can also help you with fixed asset tax returns and capital gains tax returns (income from investments such as land and stocks). We can also provide property management expertise to increase the value of your property.
About Real Estate Investment in the U.S.
Why is real estate investment in the United States so attractive? Two major points are worth mentioning. One is that the United States is the world’s leading and growing economic powerhouse. The other is the stability and clarity of the U.S. real estate market. Unlike in Japan, used properties are traded more frequently in the U.S. than new properties, and the value of used properties increases if they are repaired or reconstructed. In fact, the average price of residential property in the U.S. has increased by 49% (and in some cities and states over 80%) in the last 10 years. Most of these are used properties, not new construction. In addition, the rise in residential properties is thought to be due to an increase in overall demand for land in the area. This means (with some exceptions) that in areas where the demand for residential properties is rising, investments in commercial, apartments, and office buildings are also attractive.
Advantages and Disadvantages of Investing in U.S. real estate
In recent years, real estate investment in Japan (mainly in the Tokyo metropolitan area) became a hot topic before the Tokyo Olympics were held. Unfortunately, however, due to Covid-19, the Olympics were not held as scheduled, and property prices did not soar as initially predicted. Japan can also be viewed as an economic powerhouse, but the biggest difference from the U.S. is that its population is on the rise. As the population increases, demand for residential properties grows, and companies can expand their operations without having to worry about employment. In addition, in recent years, the “America First” policy has become a strong foundation, and there is a trend to move production back to the United States. This “national policy” is one of the reasons why towns and states that were previously not investment targets are experiencing significant growth. However, this information has already spread to many people, and properties are already soaring. At the same time, the loan ratio in the U.S. is lower than in Japan, so a certain amount of capital is required for investment. We can provide more detailed information on the advantages and disadvantages of each region and property, so please contact us for more information.
Carefully Plan Real Estate Investment
As was the case with the Lehman Brothers collapse in 2008, even if the market is attractive in the long term, a detailed analysis reveals that it is affected in the short term by “Interest Rate Hike,” “Economic Recession,” “Inflation,” and other factors. We believe that you should clarify your investment objectives and budget for 3, 5, or 10 years before investing. We also offer “investment planning” consultation to help beginners consider investments with ease.
What to Consider When Investing in U.S. Real Estate
Real estate literally means “immovable property. In other words, once purchased, it is impossible to move from one location or city to another. Therefore, when investing in real estate, it is important to know the community (region) of the property well, not only the target property. You need to do thorough market research on the local crime rate, schools, employer’s business conditions, development plans of the town, and so on. In the case of apartments, careful checks of residents’ income and criminal backgrounds must be conducted, otherwise, non-payment of rent, violent incidents in the building, and unusual repair costs may occur. It is important that you either do your own research or find a reliable real estate agent. We have the know-how of market research and a network of reliable real estate agents.
Management of investment properties increases their value.
Investing in real estate in the United States is certainly attractive. However, when you sell, you cannot make a profit unless your investment property is more attractive than when you purchased it. While it is important to invest in the right property, we believe that the most important thing is to manage your investment property well.
The objectives of real estate investment would be as follows:.
- Achieve annual rental income profit or cash flow targets.
- Maximize capital gains on the sale.
- To establish a foundation for future real estate business expansion.
However, as in any business, achieving the above goals requires building relationships of trust with tenants, employees, subcontractors, and all other parties involved, and managing the property so that the client can feel the “benefit” of their investment. Muso & Co. has experience in selling off used properties such as office buildings, hotels, and apartments as prime properties by “managing” them well. We can also provide consulting services on the management of investment properties.
“Meticulous property management is the key to successful real estate investment.”