Taking Out Mortgages in Foreign Countries
Numerous Americans are taking out their money from the country and investing in real estate properties in Europe, Asia and Australia. Some say they are over reacting to the economic crisis, others say they are making good investment decisions.
Many countries outside of the United States felt the impact of the recession there and their real estate industries were also affected in the backlash. Fortunately for the Americans, the value of the dollar is still stronger than others and this means that they can purchase properties based on the current exchange rates. So if they were purchasing properties in the Philippines, for instance, a property there worth Php 2Million, then converted to dollars that would be roughly around $48,000.00.
Sound exciting? The properties would be good sized properties that could be used as second homes; however, it would have to be in the Philippines. But what kind of property could be bought with that amount in the US?
Those who purchase properties from these countries would have to deal with the laws of the countries, however. This means that some of the documents may not even be in English. This should mean having to hire a lawyer to translate the documents so they are understandable. Then they also have to pay all of the taxes in those countries as well.
Remember, simply because the purchases are in another country does not mean that you would be spared the tax laws. The investment is a sound one, but it is always best to deal with the right people so the investment does not turn out to be a scam.
Just remember, when dealing with purchases in other countries, hire a real estate agent there and a lawyer versed in the country’s real estate laws. After all, it will be a second home or a main residence for those who wish to avoid the cold of winter.