Have you had the dream of visiting foreign lands and not having to worry about overspending during your trip or counting the days? The ideal solution for this is to invest your money in property overseas. It may not be easy to imagine spending your savings like that on something that is not in your proximity but this is exactly what makes this investment the best one you can make to secure your future. To make sure you can use this as a retirement plan later on, you have to choose a place that you really like and can envision yourself living there. Depending on the type of property you are interested in, whether it is for residential (house, apartment) or commercial (land, hotel, factory) purposes, you can double the money you invest through rentals. It is not surprising the number of Australians investing in US properties keeps on increasing. Here are a few tips to have in mind and traps to stay away from to guarantee your safety with this kind of financial step.
When buying American real estate, it is important to act prudently (same as you would be required to act with any investment in general) and find the reliable real estate agency. Considering the fact it is a foreign country you are investing in you may not be sufficiently aware of all the laws and regulations so it is crucial to have a contact of trust (a trustworthy property manager). You must also know your limit when it comes to prices you are willing to pay. On the plus side, it is more affordable for Australians to buy properties in the US than it is in Australia.
You are advised to make your own list of set of questions and save yourself the bother of many sleepless nights. You cannot expect this to be entirely risk-free though, all kinds of offers with immensely low levels of risk and high chances of financial gain alert to some imbalance. Your first thought when you set your mind on a certain property should be to ask the reason it is being sold and take good notice of the surrounding neighbourhood. Do your own research and try to get some more information about it. Low price can be too good to be true (maybe the neighbourhood is violent, or owners want to sell the property in a short period). You will find those who had their share of investing in a property in the US despite all the worries of risks end up unexpectedly gaining more than they could ever hope for.
The price of the American real estate you choose can largely depend on the amount of annual taxes. Taxes in different American states and regions can vary. Regardless of the amount, as a foreigner you are susceptible to additional taxes. If you decide to rent your property, you will be obliged to pay a tax on capital gains (based on the sum of rental income you acquire).
When you get all the information you need, you can rest assured you have made the right decision as you realise it is the wisest one you could take to secure your future days. Always think on the long run.