As a follow up to our recent blog telling you that almost ANYONE can invest in the USA property market we thought it would only be fair to mention a few tips for doing so.
Before I personally made the plunge I spent several hours listening to podcasts on the subject.
I feel this was like a really valuable crash course on property investing in the USA.
It gave me great perspective on areas to consider and returns by area as well as the importance of proximity factors to these areas (big businesses and transport links). Continue reading A few tips for Property Investing in the USA
When it comes to think about Capital Gains tax on your US property there are a few things to consider. The first nice point is that if your profit from the sale is less than $250,000 then you can exclude it from taxable income (if married this is $500,000).
In order for this exclusion to apply there are some terms and conditions attached (as one would expect from the IRS).
The principle one is the two out of five rule.
This states you must have been resident in your home for a minimum of 2 of the last 5 years before the sale was completed. Continue reading How to (legally) avoid Capital Gains tax on your US property
I recently read an article which indicated that transaction costs for US property average between 9 and 10%. This seems staggeringly high to someone like me who is more used to costs around 2%.
The seller has to pay the majority of the US transaction costs and the largest part by far is the Real Estate Broker fee which is typically 6%.
Similar costs in Northern Europe are between 1.5 and 3%. Other overall costs are pretty comparable and consist mostly of taxes and legal fees.
Here is an interesting thing I realized recently as a result of living in the US. In the US property depreciates. As a result you can write off the cost of the depreciation against rental income (typically over 27.5 years).
This deduction is not possible for those living in Europe. Why the difference?
Is it because of differing building standards. Generally more buildings are timber frame in the US verses block build in Europe thereby affecting their lifespan? Continue reading Property Depreciation and why Europeans have never heard much about it!
Buying a house in the USA could be the first step toward the American dream.
Buying real estate abroad is now common practice for more and more investors and the USA is definitely one of the most sought after places to buy investment properties. Continue reading Buying a house in the USA – A step by step guide
The short answer to whether a foreigner can buy a property in the US is “yes”. Whilst some countries restrict the sale of land and property to natives the US does not. Further to this the conditions associated with foreigners buying a property in the US are generally very similar or identical to a native buying property.
Continue reading Can a foreigner buy a Property in the US and what are the considerations?