Listen, I hear it all the time…
If, you live and work in Barcelona. Why on earth do you invest in multifamily properties in the United States?”Tweet
To tell you the truth, I love that question.
There are lots of reasons, some personal and others just common sense supported by logical, down-to-earth numbers. And you know what they say, right? The truth is in the numbers.
If you want those numbers quickly even before reading the rest of this article, here’s a link to a recent livestream I did on the subject. If you have questions after you watch, I hope you’ll reach out to me. I don’t bite, and you’ll walk away with the answers you seek.
If you just watched the video… great. Now you’re seeing what I’m seeing in the U.S. market vs. the European market when it comes to where to invest your hard-earned wages, money that’s sitting in your retirement account or savings account earning very little for you (not enough to retire on, that’s for sure) or money you have stuffed in a shoe box. (If you don’t know that reference, CLICK HERE AND YOU”LL BE TAKE TO AN ARTICLE YOU’LL WANT TO READ.)
Now for the numbers…
As a leadership professional in a corporate job for many years, I learned that if I want to make the best decisions I rely on research and analytics. In short, I rely on the numbers.
When it comes to great reasons to invest in the U.S. property market, I didn’t just jump blindly into it. Quite the contrary. I decided based on lots of statistical information… numbers. Following are my top 10 reasons to invest in the U.S. (And, yes, you’ll see a whole bunch of numbers.)
- Within one single country there are 50 states, but there is a common language (English) and a common currency. Further, the whole of the United States abides by federal law across all states. While there are a few exceptions to the rule, such as that the Indian Nations do not adhere to all federal mandates, pretty much everyone across the 50 states have to follow the same rules and regulations.When it comes to real estate investing, having the commonalities makes things easier. It means that with a population of about 350M people (and growing), they share a common language, use the same currency for everything and they follow the same basic set of rules when it comes to buying, selling and renting properties. Sure, there are minor differences in some states, but overall it is the same.Compare that with Europe where there are 38 different countries, different currencies and exchange rates, different laws governing the population and what they can do inside real estate, and over 738M in population… well, that can get pretty complicated if you’re trying to do business in Europe.Once I did the calculations, it came to me that there are about 15M people per country. In Russia there are 142M; in Germany there are 86M; in France there are 64M; in the UK there are 63M; in Italy there are 61M; and in Spain there are 47M.
These people tend to be born, live and die in their countries of origin. But that’s a point I’ll address forthcoming.
- In the U.S. there are 51 different metropolitan areas with more than 1M people. In Europe there are about 18 cities with over 1M people. Which do you think offers more opportunities to investors who want to do the smart thing with their money that will give them the greatest, steadiest returns month after month by investing in real estate?
- The U.S. has the largest GDP of $18 TRILLION, which is concentrated across one country with the 50 states. Conversely, Europe touts a little higher with a GDP of $18.5 TRILLION, but the huge difference is that it is spread across all those many countries. To me, the GDP in the U.S. trumps that of Europe. By far.
- An astounding 33% of the top 50 Fortune 500 companies are located in the U.S., which means more higher-paying jobs for those who reside near those companies. People will travel and move from city to city, state to state for those jobs. I’ll get to that point in a minute.
- At 4.7%, the unemployment rate in the U.S. remains below 5%. There is massive job creation happening in the States, too, right now. Large companies have decided not to move to other countries because they are being incentivized to stay in the U.S. That in turn will bring thousands upon thousands of new jobs. All of the workers need a place to live. The statistics point out that 95% of the population is able to work in the U.S. Compare that with the people in Europe where unemployment is at approximately 9%. If you live in Europe, you know what I’m talking about. If you don’t, do your research. You’ll see why I choose to invest in the U.S. housing market.
- A lot of people rent vs. purchase properties in which to live. That is especially true in the U.S. where people aren’t known to put down roots like they do in Europe. The culture in the U.S. is one of change; people move for their jobs. Maybe that’s why there are 110M registered renters in the U.S. That’s a third of the population! That is a great reason to invest in multifamily properties in the U.S., wouldn’t you say?
- If the last point left you wondering, here’s another renter-centric data point. Did you know that 60% of renters in the U.S. live in multifamily properties… like apartment buildings with 2 bedrooms? Because I know that fact, this is the exact type of property I look for when investing.
- In the U.S. you have more freedom to do what you want, for example, when it comes to your job choices. I say “choices” because people in the U.S. don’t tend to stick with one path. The culture of the nation is to seek out that which makes one happiest in their work.On average, people in the U.S. change jobs 11 times over their lifetime. They move themselves and their entire families to new cities and states to follow the best jobs for them or to move up the corporate ladder. It happens every day of the week.As well, there are a lot of entrepreneurs and business owners in the U.S., which fosters growth and change. These business provide jobs for the population. I dare say that the United States was founded on the backs of small business.In Europe, there tend to be certain job types for each geographic area. For example, the reason I do what I do in my corporate life is dictated greatly by where I live.
If you want to talk to me about this point further, I’d be happy to have that conversation with you. There’s simply too much to go into here in this article. Just hit the CONTACT ME button at the top of the page and complete the form. I promise to get back with you quickly.
- The average annual household income of those people living and working in the U.S. is $60K. That means these individuals have money to cover rent and provide a good life for their families. That’s the average; there are many, many people who earn $150K annually… or more than $300K. There are lots and lots of millionaires, too. But the average citizen is who I have chosen to serve, and if they earn $60K a year, they won’t have any problem keeping up with rent payments. But then I choose to rent to stable families in a stable family-centric market in North Carolina and the east coast. If you want to read an article on why I choose that area, CLICK HERE NOW.
- The average apartment building in the U.S. costs about $200K to purchase on average. For this price you get a lot for your money. According to where the building is located, you can get a building with lots of units. For example, in North Carolina. Do you KNOW what I can purchase in that state, especially in Charlotte where I’ve chosen to focus? The short answer is A LOT. That’s one of the main attractions. Well, there are several, and you can find an article on it here in this blog. CLICK HERE TO READ IT NOW.
Ready to learn more?
If you like information like this, you’ll find more here on this blog. I’ve tried hard to give you information you can use as an investor. If I share my big WHY’s with you, maybe you’ll share your goals with me in building something that will carry you well into retirement and beyond.
You’ll also find a lot of excellent information that gives you my full story and a lot of guidance on how to participate in multifamily property investments. The book is about my journey in long-distance investing. What that means is that while I live in Barcelona I invest in properties in the U.S., where the returns are amazing. Of course, if you just read this article to the end you already know WHY I choose to do things this way.
But I don’t want to be a spoiler. You can purchase the eBook on Amazon where you’ll see it’s a bestseller or you can simply download the eBook for FREE here: