- \n
- Available airline travel makes frequent use and even cross-border commuting a feasible option.<\/li>\n
- Luxury properties<\/a>, purchased correctly, often provide opportunities for significant appreciation.<\/li>\n
- If the luxury home becomes your primary residence for two years, substantial tax savings upon the profits from sale are available, even for non-U.S. citizens. We recommend that a qualified tax professional become a part of the purchase team.<\/li>\n
- Purchase money loans are available for qualified individuals, our banking industry colleagues say. If needed, they can also be a part of the purchase team.<\/li>\n
- Texas is third in the nation for number of vacation homes[1], and cities like Houston, San Antonio, Dallas\/Ft. Worth and Brownsville\/South Padre Island have wide-ranging activities for family members of all ages.<\/li>\n<\/ul>\n
<\/p>\n
Warning Shots<\/h2>\n
- \n
- The individual or entity (you personally, your company or a new Texas entity) is a legal matter you should carefully address as part of your plan of action. Non-attorney realtors cannot help you with this\u2014we can.<\/li>\n
- Incorporate a flexible exit strategy (time period for holding a luxury home) into the plan of action.<\/li>\n<\/ul>\n
Air-travel Availability Always Advised<\/h3>\n
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No matter the country of origin, vacation home buyers typically purchase a more expensive, larger property farther away from home (compared to investment buyers).[2] One in five travel more than 1,000 miles to their vacation home.\u00a0 Non-US buyers tend to favor suburban\/urban resort areas that can be reached by direct flights from international hub cities.[3]<\/p>\nA whopping 87% of vacation home buyers plan to use their property for vacations OR as a family retreat. Another 31% plan to convert their vacation home into their primary residence in the future.[4]\u00a0Thus, available air-travel and air taxi travel is a must<\/em> for\u00a0convenient commuting from suburban Texas areas via Houston Intercontinental Airport (IAH) to the home country.<\/p>\n
According to the Bureau of Transportation Statistics<\/a>, eight of the top 15 busiest international routes to and from IAH were between Houston and destinations in Mexico and other Central- and South American countries.\u00a0 Three of the top 11 were Mexico City (#1), Monterrey (#7) and Guadalajara (#11), accounting for over 1.3 million passengers in 2015.<\/p>\n
The Houston Airport System reports<\/a> that for 2016, the total number of international passengers (many obviously repeat travelers) exceeded 11.5 million.\u00a0Based upon FAA Tower Counts, 158,672 air taxi operations originated from IAH in the same year.<\/p>\n
Here\u2019s a contact for wholesale international air travel:\u00a0 Brandon Kreitner, +1 888-832-2270, brandon@businessclassguru.com<\/a>.<\/p>\n
Plan Prudently, Precious Posterity<\/h3>\n
Generally speaking, there are no legal restrictions on purchases by non-US owners.\u00a0 You can buy what is referred to as \u201cfee simple\u201d title, and own it for the duration of your lifetime.\u00a0 Afterwards, you can pass it on by inheritance.\u00a0 One of our jobs is to make sure you are getting the title you pay for, something non-attorney realtors are unable to do.<\/p>\n
At this time, residences don’t require any licensing or registration.[5] However, a non-US buyer who doesn\u2019t already have one must apply for an Individual Taxpayer Identification Number (ITIN) with Form W-7.\u00a0 But there is no state or federal government interference with your lawful possession, use, sale or inheritance.<\/p>\n
Such a purchase can be part of an overall portfolio strategy. An upper-tier buyer of a second, luxury home receives personal enjoyment plus a means to create, preserve and enhance wealth.<\/p>\n
Tax Tips, Too Terrific<\/h3>\n
So far as we know, no other country in the world allows the tax benefits that are available to sellers of US realty.\u00a0 The rules can get complicated quickly, so the planning team should include a tax professional.<\/p>\n
Example:\u00a0 For qualified investment properties, US tax law allows<\/a> you to use the sales proceeds and, with the assistance of a qualified intermediary, timely purchase another like-kind property of equal or greater value without paying tax upon the gain from the property just sold.<\/em><\/p>\n
Example:\u00a0 If your property is not an investment property, but is your primary residence for any 2 years out of 5 years, you can sell that residence and have non-taxable gain up to $250,000 ($500,000 for you and your spouse).\u00a0 The gain does not<\/em> have to be re-invested in a new property.<\/p>\n
Example:\u00a0 FIRPTA Withholding requirements are unchanged under the new law<\/a> for properties whose sale price is between $300,000 and $1 million; for properties over $1 million, the withholding requirement is now 15%.<\/p>\n
Money, Money, Money: The Real Estate Market During a Downturn<\/h3>\n
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When the \u201cdollar dump\u201d begins, we believe the US property market as a whole will become a seller\u2019s market.\u00a0 As with any property \u201cbubble\u201d, repatriated dollars will flood into the market; good deals will become scarce.\u00a0 However, inflation is the property owner\u2019s friend, if you buy at the right time.<\/p>\nWhen it comes to establishing bank accounts, there are currently no U.S. restrictions on lawfully obtained amounts that can be transferred to the U.S.\u00a0 It usually takes fewer than 30 days for the bank to perform due diligence in establishing your bank account.\u00a0 Our banking colleagues tell us that short-term \u201cbridge\u201d loans are available, as well as longer-term loans, when the property is given as collateral.<\/p>\n
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