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Some UK residents buy a property in the USA, but use it as a vacation home or as a plan for the future. If you’re looking to buy a property in the USA and you are from the UK, the good news is you can still purchase a property.
However, there are certain tax obligations associated with your property. Researching and asking real estate agents will help you understand the tax rules to make the most out of your investment.
Currently, the USA has no requirement for real estate purchases. Foreign nationals can even qualify for a mortgage. It is easy to buy a house upfront, but if you go for the mortgage, you need to have a good credit score, and you have legally lived and worked in the country for at least two years.
To help you decide on buying, here are the things that you need to consider.
Are You Eligible?
Though the US is encouraging foreign nationals to purchase property in the country, some real estate companies depend on how long you can stay in the US since you are not a US citizen.
If you are a British citizen, you can start in the US for ninety days without applying for a visa because of the US Visa Waiver program. However, if you plan to stay for more than that, you need to apply for a non-immigrant visa before you can stay for longer in the US.
The non-immigrant visa will allow you to have a temporary residency in the US from three years up to ten years, depending on the visa you applied for.
Do You Really Need to Buy a Property in the US?
If you are planning to buy a home as your residence after retirement, it can be a good investment as long as you have plans to stay in the country permanently.
If you are planning to buy a property as a rental home or temporary accommodation for travelers, you need to research the market and trends first.
There are neighborhoods in the US that have been performing consistently well. If you are after a return on investment, look for properties in this area. Homes that are near the venues for big festivals, major leagues, and tourist hotspots tend to have a larger market.
If you’re looking for a quiet and serene residence, you may look for homes that are a drive away from major districts. Properties that have local amenities or natural wonders nearby can be a good spot for a retirement residence.
Can You Apply for A Visa for Longer Stays?
The USA is one of the locations where British citizens are eyeing to buy a property. This happens especially for those who hold a visa with multiple entries or will eventually be on their way to permanent residency.
It will allow you to stay longer in the country, which can be a good reason to buy an American property.
You may also apply for a permanent residency, but this is subject to immigration laws, which can be complex and may take longer than applying for a visa. Its process can be strict, especially if you do not have a good travel history.
You can ask for options regarding permanent residency or appropriate visas from a Birmingham Immigration Lawyer. These immigration professionals are always updated with the current immigration policies, which may affect your decision to purchase a property.
Is Your Budget Enough for The Expenses?
Even with a mortgage plan, knowing how much your property will cost will give you an idea of how long you should pay for it.
By knowing how much and how long you will pay for the property, you will be able to have an idea of how much you need to prepare upfront or how long you will need to have a permanent job to pay for the mortgage.
And because you are living in the UK, you will need to regularly check the exchange rates to know if you are still paying the right amount in USD since your payments may be affected by fluctuations in the foreign exchange industry.
Aside from the actual cost of the property, you should also have set a budget for unexpected charges.
Typically, taxes are already included in the purchase amount. However, certain types of properties often have additional tax charges. Also, you need to remember that if you opt to sell your property in the future, you are responsible for paying other costs.