There is a whole host of reasons that make the US an attractive proposition when it comes to investing in overseas real estate. The markets have not only recovered; they are starting to boom again. The choice is almost unrivalled and the chance to make a buck or two is definitely possible. To top it all of, you have a guy that is desperate to make Uncle Sam great again, whether you like him or not.
However, pitfalls pave the way to most successes, which is why you need to know what mistakes are out there and how you can best avoid them.
Don’t Ignore The Taxes
If you have a backlog of property investments to your name then you’re going to know this hard truth; the profitability of your investment depends upon taxes. The more you are aware of the more profit you can hope to make. That’s why we suggest you do your homework. Know what legal tax breaks you can be afforded, or what write-offs you can use, as well as any deductions you could be awarded. Terms such as section 1031 aren’t used outside the US, but they are a fantastic way of growing your portfolio while avoiding capital gains tax.
Make Sure You ‘Get’ The Process
Buying a property overseas always comes with its nuances, but the USA is packed full of them. The terminology, the legal requirements, the insurances, and even variables that change from state to state. It makes sense to have these protections in place, though, especially considering this is a fast-track way for many to get a green card. For that reason, always get the guidance of EB-5 lawyers and specialists, people in the know that can talk you through a process and help make sure you don’t become one of the many that see their application denied simply because they didn’t understand the process.
Don’t Fall For The Trends
Never make a permanent decision based on a temporary opinion or temporary emotion. That is one of the golden rules of life and certainly American real estate. As such, don’t base your decision to invest somewhere solely on a ‘best place to invest today’ article; do your own due diligence. If you fancy the idea of Miami, then check it out first because you’ll suddenly realize how high the poverty rate is. These kind of facts are not going to be highlighted in marketing documents or sales pitches. So make sure you are doing as much legwork as possible and, if you can, go with a transparent real estate advisor; someone you can trust or someone who has been recommended by someone you trust. But always check out what they are saying.
Avoid Rush Hour
Rushing into a real estate investment is a pretty bad idea, especially with the US. We know there are dangers in dragging your feet for too long, but there is little worse than buying a place because it was a nice off-plan development in a city you have actually heard of and the rental yields are okay. It is just not the way to successful gain a nice long-term financial reward.In fact, it aligns itself closer with ways to ruin your investment than to improve it. By all means be proactive and set a loose deadline so you don’t miss out, but look at the numbers, crunch them as hard as possible, and have a contingency plan just in case.