If you’re not from the United States, but you want property here, you’re not alone! Many people can see the value in investing in land and businesses in this country and turning it around for profit. If you’re interested but aren’t sure what the laws and rules are for American property ownership, here’s a quick guide on what buying land in the USA means for you and what you have to know before taking this journey.
Anyone Can Buy Property In the USA
Although many assume that you need citizenship or a green card to buy land in the United States, that’s not true! There are some complications on funding when it comes to purchasing property, which we’ll discuss in a moment, but regardless of what country you’re from: you can buy land here. This refers to residential and industrial property and buildings, so you can feel free to purchase either.
Mortgages Can Complicate Things
Although you can buy land in the USA: it’s far easier if you’re paying in cash. If you have no credit history in America, it will be nearly impossible for you to purchase land or buildings based on a mortgage. Unfortunately, the credit scores from most countries don’t transfer over, so you would have to figure out another way to be able to afford land here.
It Doesn’t Grant Citizenship or Extend Visas.
Buying property in the USA for foreigners doesn’t automatically grant citizenship, nor does it extend visas or offer you a green card. It would be the same as buying any other item in the USA, except that you’ll owe property taxes on this piece of land. You can stay at the land you purchased while your visas allow it, but owning the property doesn’t automatically grant you the right to be in America.
If You Rent It Out, You’ll Owe the USA Government.
You’ll automatically owe property taxes as long as you own land in the USA, but did you know if you rent it, you’ll also have to pay taxes on income gained? The average amount landlords pay in taxes ranges between ten to thirty percent of their revenue from the property.
If you think that’s steep, you’ll more than likely also have to hire a management company to take care of the property between clients and aid you in closing a sale. If you don’t, you may face issues like property damage or squatters. Following the law, you are paying taxes on your income from the properties, and maintaining it well will protect you from this problem.
Property Isn’t As Expensive As Some Think.
Although the housing market in America has been wild for the last year, it’s not as expensive as some fear. The housing market in the USA isn’t even in the top five most expensive countries to own property in. There are several states where you can buy an acre of land for less than $20,000, and you can turn that around and build a home and sell it for over five hundred thousand dollars. So you can make a profit here if you’re smart about it.
Ensure You Have A Property Manager You Can Trust
If you aren’t in the states most of the time, you must hire a property manager you can trust. This can either be a singular or smaller property or a full company for those who have multiple properties or are willing to pay more. A property manager will check on the property or you, ensure it’s well maintained, and will help you if you ever decide to sell. Although they can be expensive: they’re worth it.
Buying Land In the USA Is Possible for Anyone!
Don’t allow your citizenship status to stop you from buying a piece of the American dream! Buying land in the USA is possible for anyone, as long as you can pay for it in full or have a funding source that isn’t a mortgage. Take care of your property, and within five to ten years, this land could be turning a profit.