If you are a global (non-US) investor, the dream of owning a home in the US may seem just out of reach. The path to buying a home in the US is fraught with challenges – saving for a down payment, finding an affordable property, and handling the tax implications of owning US real estate as a foreigner.
Home Equity Investment (HEI) funds, especially those leveraging blockchain technology, can offer you a foot in the door however. They let you start getting the financial benefits of owning in the US today and set you up for buying your own US home in the future. Let’s explore why this route could be a golden ticket to US housing wealth.
The Challenge
While affordability and finding a property are significant challenges you will face buying in the US, its US tax policy that places a lock on the door to US homeownership. In particular, the Foreign Investment Real Property Tax Act of 1980 (FIRPTA) imposes US income tax on foreign persons disposing of US real property interests. For non-US individuals dreaming of owning a home in the US, FIRPTA means any gains from the sale of that property could be subject to significant taxation; further, sales are subject to withholding, which forces the owner to file US taxes to receive their full proceeds from a property sale. While the act aims to ensure that everyone pays their fair share of tax when it comes to real estate transactions, it complicates the investment process for international buyers, adding layers of bureaucracy and financial strain.
However, as most commentators will tell you, the best time to buy a house in the US is five years ago. US housing prices are continuously rising and if you aren’t in the US housing market, every year it gets harder to save enough to join. How are you supposed to save to buy a US home if you can’t easily buy a home in the US?
The Villcaso HEI Fund: A Strategic Investment Vehicle
The Villcaso HEI Fund is the answer. The fund invests in home equity investments (HEIs) with U.S. homeowners, allowing investors to gain exposure to the U.S. real estate market’s growth potential without the burdens of direct property ownership. For non-U.S. individuals saving to buy a home in the US, investing in the Villcaso HEI Fund can be a strategic move for several reasons:
- Bypassing FIRPTA: By investing in the Villcaso HEI Fund, you’re not directly purchasing real estate but rather investments in a fund that holds these investments. This structure mitigates the direct impact of FIRPTA, making your investment journey smoother and potentially more profitable.
- Accessibility: Villcaso’s HEI fund offers a lower-cost entry point into the US real estate market. You don’t need to have the full down payment upfront to start benefiting from the US housing market’s appreciation – Villcaso lets you invest with small amounts, and get liquidity instantly by selling your tokens. It’s an excellent way for aspiring homeowners to get started in the US housing market while they save for their dream home.
- Diversification: Investing in a public HEI fund allows you to spread your risk across multiple properties and regions within the US, offering a more stable investment compared to putting all your savings into a single property.
The Blockchain Advantage
Using Blockchain for Villcaso’s HEI Fund further amplifies these advantages, particularly in terms of global access and liquidity:
- Global Access: Blockchain technology knows no borders, enabling seamless, global access to U.S. real estate investments. Regardless of where you are in the world, you can invest in Villcaso’s HEI Fund, moving you one step closer to your goal of buying a home in the US.
- Enhanced Liquidity: Traditional real estate investments are notoriously illiquid, but blockchain changes the game. By tokenizing shares of the HEI fund, blockchain allows for easy buying and selling of these tokens on various exchanges, providing much-needed liquidity to investors. This means you can convert your investment back into cash more readily, giving you flexibility as you save for your US home.
- Transparency and Security: Blockchain’s inherent transparency and security features ensure that your investment is traceable and protected against fraud. You can monitor the performance of your investment in real-time, with peace of mind knowing your assets are secure.
- Reduced Transaction Costs: The efficiency of blockchain transactions can significantly reduce the costs associated with buying and selling shares in HEI funds. Lower transaction costs mean more of your money goes towards your investment, not fees.
Conclusion
It’s always the right time to start buying US real estate. If you are a foreign (non-US) investor, Villcaso’s HEI fund is the quick, easy way to start buying US real estate and saving for your dream property.
THIS IS NOT AN OFFER TO SELL SECURITIES. Information contained in this post is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
