James D. Kuhn | How to do foreign investment in Real Estate of U.S

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.