Have you
ever dreamt of buying real estate property in US? If yes then it’s a good news
for you. You have ample opportunities,
as a foreign investor in US. It really
does not matter which currency you are using in buying the property. You can
invest mainly in two ways in real estate of US, the first one is commercial
estate investment, second is residential investment. If you are interested in
buying a residential property in US then you have to refine your search to
single family house, Apartments or condominiums or a recreational property. Before
finalizing any property you want to buy in US, you need to take care about tax
ramifications, financing options and legal requirements.
Foreign
investment in real estate is the safest way to invest your money. You can make
pretty attractive profit from it in future. US real estate market is safe to
invest as it has low risk attached to it. Before buying a foreign property, you
must check the property value, if it fits well with in your requirement then go
ahead and purchase the property.
There are
different rules and regulations in different states of US so it is advisable to
hire a professional real estate agent and an experienced tax accountant.
More than 70%
of U.S. homes are mortgaged which means you have to do plenty of documentation
to obtain mortgage from the U.S. bank. Mortgage rates are low in U.S. and the
interest disbursed on the loan is tax deductible on your U.S. taxes, if you
have at all taxable income, or if you
should choose to rent. There are extra benefits to mortgaging property with a
U.S. bank: most banks need the appropriate transfer of title, property
insurance, and escrow accounts that give property taxes and insurance. This prevents
you the hassle of dealing with these individually. Moreover, your mortgage
provider will give you with an annual statement for tax purposes describing all
aspects of your transactions.
Next is the
property tax, which is different from the U.S. tax. Property tax is different
in all states of U.S. for non-residents. Your tax rate will be separate from
the residents of U.S.
Purchasing
property in the U.S. can be a wonderful experience, and give you the best of
both worlds -- breathing abroad while keeping a property in your home country.
It simply holds the proper planning, understanding and consideration for all
factors to ensure it's the right financial choice for you.
James D Kuhn is the leading expert in real
estate market of U.S. and the principal of Newmark Grubb Knight Frank.
