How to manage your property overseas

May 2, 2019 | Article, Blog, Foreign, Location, Opportunities, Property, Real Estate, Tips, US

Buying a property overseas has become a profitable venture. People from 3rd world countries like India can afford a better house in America compared to their own country. Add the fact that buying and selling as well as renting properties in US is also seemed as highly profitable investment. But after you buy a property abroad, you would have questions like:-

· What should I do to prepare my property for rental?

· What questions should I ask of a property manager?

· What are the specific regional legalities that I should know?

· What are the tax implications of owning rental property?

Buying any type of real estate property requires managing the same later especially in case you are not moving abroad to reside there. Owning a rental in another country can be complicated and in America each state has different rules and regulations. A rental property overseas requires dual management, 1 is rental management managing tenants and other is the property management itself meaning repairs and maintenance as well as adding new amenities. You real estate agent as well as private money lender can manage the rental property for you including finding tenants for the same. Rental management companies can also offer their services with their own charges.

Understanding the foreign ownership laws is also essential when it comes to buying a property abroad. Real estate agents and law attorneys can great help you out before you finalize the deal. If you are planning to move abroad to your new home, you should be aware of the cost of living and different culture as well. If you research, plan and budget ahead and accordingly, things will be easy.

In case you are buying a vacation home, in which case you will need to plan your exit properly as well as in many countries, home can stay on the market for months or years. Understanding local market situation is essential. Mortgage lenders can help you out in not just buying a property abroad, but also manage it. Without proper research and guidance, you can save time and money.

Regarding the taxes, US expat taxes will have its impact during the sale of your foreign property. But if you have owned and lived in the home for at least 2 or 5 years, you would be eligible to exclude a gain of around $250,000 to $500,000. Otherwise the gain will be taxed at capital gain rates. Although even in case the gain does not qualify or not wholly excluded, it will be considered as foreign tax credit but not as foreign earned income and that is why it shall not be excludable under the foreign earned income exclusion. It will also wise that you discuss your options with your host country’s US embassy when it comes to investing in real estate properties in America.

Note that IRS has special reporting requirements for foreign legal entities when it comes to owning a property in US. We encourage you to contact us in case you are considering buying a property in US.

Have More Questions About This Article? Feel Free to Contact Us.

11 + 9 =

Basics you need to know about fix and flip loans

  So, what are Fix and flip loans?   Let’s go through the things you should know if you want to start flipping or if you are just interested in learning more. Fix and flip is a real estate investment strategy and it consists in purchasing a property in need of…

Covid-19 and Commercial Loans Trends 2021

What is the biggest challenge you anticipate in 2021 as a direct lender or financial intermediary in commercial real estate? In 2021 it will be challenging to meet the business needs of Borrowers using hotel/restaurant properties as collateral to secure their loan. In…

Small is Beautiful: The Revival of US Rural Areas

Year of 2020 was no like other. It looks like the Covid-19 pandemic sent the crowded urban life style preferred by many bohemians and younger professionals in the past as new migration trends are identified by moving companies. BTW: Moving industry is the one sector…

Construction Loan Programs: The 3 Key Benefits to Consider

The purpose of a construction loan is to finance the building of a new residential real estate property. The projected market value of the subject property is used to secure the lending and the loan proceeds are distributed by the Lender via separate “draws”….

10 Common Pitfalls to Avoid in the Fix-and-Flip Process

Fix-and-Flip projects are generally seen as promising business opportunities that can generate quick cash profit and good return-on-investment (ROI). An entrepreneur may need to completely transform a property or simply do some tender renovations before the building…

Real Estate Investment Strategies: Fix-and-Flip or Buy-and-Hold

Many real estate entrepreneurs are purchasing properties with the idea of receiving good return on investment for their cash and increasing their wealth. A business person can choose to implement both the Fix-and-Flip or Buy-and-Hold strategy and the decision depends…

Our Success Story: 130 Coolwater Lane, Barstow, CA 92311

Universal Commercial Capital (UCC) focus is on finding the right financial solutions for customers that may experience issues with obtaining a business purpose loan from lending institutions as banks. Our team is dedicated on assisting each and every Borrower receives…