For many people moving to the United States is a dream. But not many are able to accomplish these dreams. Once you have the open opportunity for this, you need to take it properly. You have to prepare yourself for plenty of obstacles that you may run into. Buying a property in Memphis as an expat is very challenging. And it is not simple at all. There are plenty of things you will have to do and many documents that you have to prepare and have ready. Be aware of the fact that you will have to get an expat’s guide to buying a property in the US as a foreigner because you can’t do this on your own and without help. The important thing is not to give up because, with a little patience, it will be worth it in the end.
Before buying a property in Memphis as an expat determine if you are eligible for it
Getting to the United States is a challenging process on its own. And many people seem to give up on getting there when they encounter this first obstacle. However, if you proceed with that and you manage to find a way and get approval to relocate to the United States, you are already halfway through the property-buying process. Now, you want to know if you are eligible as a non-US citizen to buy it. And the answer is yes! Here, foreign investments in properties have always been encouraged by the government. In fact, there are just a few differences when it comes to foreigners and US citizens who are about to invest in real estate.
First, you should know that without a visa, you are allowed to stay ninety days in the States. For sure, it depends on the citizenship that you own, but still, this is the most common allowance. So, to be able to buy a property, you need to be allowed to stay for a longer period. Without that approval, you won’t manage to do anything. The best thing about this entire situation is that you can also apply for a mortgage even though you are a non-citizen. So with all this good news, you know that you can relocate and, with it, leave heavy lifting to pros since this purchase is about to happen. There’s no need to handle the literal tough part of the relocation on your own; there are companies providing labor that can make this whole process a lot simpler. Hire them for the upcoming relocation, and it will be a breeze!
The important thing you need to do is find out everything about the taxes
The most important thing that will help you with buying a property in the US is knowing and understanding the tax rules. Here, taxes are the priority for everything. And when you know these important things helps you to make the most out of the investment that you are planning to make. For non-resident aliens, IRS Publication 151 summarizes the rules. And that will help to understand how this law applies to you. Income from a property in the US for foreigners and ex-pats is taxed at a 30% rate. Unless it has a direct connection with a US business or a trade, in that case, it is different.
You should also know that you can choose how your want to treat your property income. There is a fact that if a non-US citizen is a holder of a property in the US that brings income to the United States, they can treat all income from that property as it is connected to a US business. Also, it is very important to know that the US entered into tax treaties with many countries. They are here to reduce the risk of double taxation. If you are from one of these countries, your tax will be reduced immediately. One of the reasons why European companies are expanding to the US is exactly because of the tax benefits and opportunities.
You will also have to set up your budget and apply for a loan
Now that you are more or less informed about how things are working for buying a property as an ex-pat, it is time for the important and practical part. The first step that you need to take in order to make a purchase is to apply for a loan. But, to be able to do that, you need to have a satisfying credit score. If you are not aware of this and you are unfamiliar with these things, you should go to your bank and let them explain how this works. In general, a good credit score is important because, without one, a bank won’t approve your loan and mortgage. So better work on that and see what it takes to do in addition to getting it.
Once you finish getting your loan approvals, you need to limit your budget. Calculating a budget is very important when buying a property or when making any other big purchase. And this is not only a budget for the property we are talking about. You need to consider other expenses that you have in your life. Don’t forget that you will have to pay Spyder Moving company or other movers that you hire for the overseas relocation as well.
Now you need to find the right location for your new home
After the part with documentation is done, at least the difficult one, it is time for something that is more interesting and fun. You need to find the right location for the property you want to purchase. Memphis is a city in Tennessee located in Shelby County. There are 634,139 inhabitants, and most of them are families and young professionals that tend to be liberal. There are plenty of parks, and whatever you need, you will be able to find them. Some of the top-rated neighborhoods you should check out are:
- Midtown East
- Memphis South
- Memphis Downtown
- Memphis Orange
- Mound Central Gardens
Buying a property in Memphis as an expat is easier with realtors
Even though it is more expensive, considering hiring realtors is the best option you could choose to do. They are professionals, and they can find you the best deal in no time. And the best thing about it is that you won’t have stress on your shoulders. While they find you your property, you can worry about other things.
The only thing left to do is relocation
Once the entire process of buying a property in Memphis as an expat is done, the only thing left to do would be to relocate. Include everyone in this process so it is simpler and you can do it faster. Make a plan and do each step of the process properly.