How to buy real estate in the US
If you are new to the US real estate market, buying US real estate will not be an easy process at first. While you can find some great deals on the US market today, there is still a chance to make some costly mistakes.
However, that shouldn’t stop you from investing. It should just make you more aware of the importance of due diligence. Below are the two most important things to consider.
How to buy real estate in the US:
1. Be aware of the tax implications for foreign investors: Your choice to invest in US real estate will likely depend on the amount of taxes you must pay when purchasing the property. This includes property, capital gains, and transfer tax.
As a non-citizen of the US, there are certain tax implications that will be involved when buying real estate in the US, and additional ramifications when a foreigner sells property in the US.
It’s not all bad news though. Actually, there may also be tax breaks available to you. The United States is doing everything it can to encourage foreign investment right now, especially given the difficult economic climate.
The main thing you need to know about buying US real estate is exactly what its tax implications will be, good or bad. This will help you make an informed offer and keep your purchase in line with your budget.
2. Look at the local economy: When it comes to investing in real estate in the US, the local situation is more important than the general one. Almost every city in the US has been hit by the recession these days, so your goal is to find one that bucks the trend.
That means a decent economy, low crime, and good schools. What is even more important than the actual numbers is whether there has been an increase or decrease in positive economic news compared to previous years. Basically, when looking at how to buy real estate in the US, look for a city that is poised for recovery, that is not sinking further into depression.
A good indicator of this is if there is a healthy migration of new citizens moving into the city. According to the National Association of Realtors, some of the most attractive US markets for foreign investors are found in Florida, Texas, Arizona and California.
By keeping these 2 things in mind when considering how to buy US real estate, you can avoid costly mistakes and make an informed and profitable long-term investment.