Foreign buyers can purchase property anywhere in the United States (U.S.) While this limitless opportunity is exciting, the U.S. is massive, presenting a challenge when identifying the best place to invest in real estate. Ultimately, California is one of the best locations. While real estate is significantly more expensive in California, the returns make it worth it.
Using Long Beach foreign national loans to purchase property may be a considerable initial expense, but the unimaginable ROI will render this expense a mere afterthought. Explore the benefits of using a foreign national mortgage to invest in California real estate:
Long Beach Foreign National Loans: Why to Buy in California
An essential advantage of pursuing Long Beach foreign national loans is that California boasts unrivaled rental demand.
California is one of the most densely populated states in the U.S., accounting for over 12% of U.S. residents. As a result, leveraging a foreign national mortgage yields constant cash flow, which translates to a significant, consistent ROI.
An unending rental demand means an unparalleled year-over-year increase in rental rates. In 2022 alone, rental rates in California experienced a whopping 22.04% year-over-year increase, which offers essential security for investors.
Rising Home Values
Because of its paradisiacal weather, diverse geography, and world-famous culture, California is experiencing rising home values.
In 2023, experts project property values in California will appreciate by a staggering 5.2%. Consequently, capitalizing on Long Beach foreign national loans pays dividends through future reselling or increasing rent prices that remain well above the national average.
Also, consider past trends: each year, property in California experiences a significant increase in market value, which means you can expect year-over-year appreciation.
A Strong, Diverse Economy
As a foreign buyer, you don’t need us to tell you: investing can feel like a gamble. One essential benefit of Long Beach foreign national loans is minimized risk due to California having the nation’s largest state economy.
Several factors contribute to the Golden State’s gilded economy. Firstly, California is host to a wide array of industries, like entertainment, agriculture, finance, health, manufacturing, and technology, and it is home to many of the nation’s largest companies, like:
- Wells Fargo
- And many more
Secondly, California’s population ensures economic stability, opportunity, and growth. This workforce serves as the foundation for constant business expansion. This expanding employment market means amplified demand.
Lastly, strategic investing requires considering market conditions that can impact your ROI and taxes significantly cut into your profits.
While California has a reputation for high taxes, this is not entirely true. One of the reasons Long Beach foreign national loans are such a prudent investment is that California offers some of the lowest property taxes in any given year.
California has a law called Proposition 13 that limits property taxes to 1% of a property’s total market value and puts a 2% cap on yearly tax increases. Controlled property taxes mean more predictability and a higher return when using a foreign national mortgage.
Learn How mbanc Can Help You Carve Out Your Piece of the Golden State with a Foreign National Mortgage
California is, for many, a place where dreams come true, which makes it the prime location to actualize your American Dream. Long Beach foreign national loans offer an unrivaled opportunity for investors to mine gold from the Golden State.
At mbanc, we are the premier lender for foreign investors interested in investing in U.S. real estate, and we provide financing with minimal documentation requirements. Talk with our team to learn how we can help you finance your American Dream.