Owning a home overseas can be a good investment, but it can also be a gamble.
According to the National Association of Realtors, Americans own 500,000 to 600,000 foreign properties. Jack Walker, a Boulder real estate investor and owner of homes in several countries, says that "99% of transactions when you buy overseas are fine…you just don’t want to be the person who is the 1%."
Walker recommends the following steps if you’re thinking about buying overseas:
1. Talk to a qualified lawyer. Jack says, "A lot of people don’t want to go to a lawyer because it’s expensive, but believe me, the investment in the legal fees is absolutely going to be the best investment that they make."
2. Understand the difference between land-lease agreements and out-right land sales.
3. Be clear on lingering U.S. tax responsibilities.
Have a great week,