[earlyretirement]

I don’t know about the LC Oakes area. But as you mentioned, the main market for the furnished rentals are corporate market or if it’s a desirable area then vacation rentals.

I own many properties and I furnish all of them. I don’t go for the long-term rental rather the short-term market (both tourists and corporate business travelers).

Generally your properties have to be in super desirable areas for both of those types I mentioned above. You can use websites like VRBO.com, Homeaway.com, Flipkey.com, AirBnB.com and many others.

On longer term rentals, people mostly want to use their own furniture I’ve found unless you have REALLY nice stuff. I’ve done a few longer term rentals with my properties. Even though they weren’t geared towards the long term market, they really liked it as the furniture was all really high end, LCD/LED TVs in each room, etc.

There is a segment of the population out there that will be more interested in renting a furnished rental as long as the furniture is high end and not funky. Comfortable, high end mattresses are also a big plus, especially with the corporate executive type.

In my rentals, even in the properties outside of the USA, I put in VoIP phone lines (via Vonage.com) so business executives can stay in contact with their family/business associates/friends. It’s more professional and convenient vs. Skype or other things. I also include a GSM local cellphone that they can use to have a local #. They pay for any airtime via refillable credits so it doesn’t cost me a dime other than the expense to buy the cellphone. I also put in a local phone line and have a block on it so they can only call local #’s.

Obviously I include free wi-fi high speed access and put in the extensive cable package or DirecTV so they have all the essential channels. This really helps attract the high $$ crowd. It’s so much more convenient vs. a hotel. The ROI is MUCH higher than renting it out on a long-term tenant.

[earlyretirement]

I don’t know about the LC Oakes area. But as you mentioned, the main market for the furnished rentals are corporate market or if it’s a desirable area then vacation rentals.

I own many properties and I furnish all of them. I don’t go for the long-term rental rather the short-term market (both tourists and corporate business travelers).

Generally your properties have to be in super desirable areas for both of those types I mentioned above. You can use websites like VRBO.com, Homeaway.com, Flipkey.com, AirBnB.com and many others.

On longer term rentals, people mostly want to use their own furniture I’ve found unless you have REALLY nice stuff. I’ve done a few longer term rentals with my properties. Even though they weren’t geared towards the long term market, they really liked it as the furniture was all really high end, LCD/LED TVs in each room, etc.

There is a segment of the population out there that will be more interested in renting a furnished rental as long as the furniture is high end and not funky. Comfortable, high end mattresses are also a big plus, especially with the corporate executive type.

In my rentals, even in the properties outside of the USA, I put in VoIP phone lines (via Vonage.com) so business executives can stay in contact with their family/business associates/friends. It’s more professional and convenient vs. Skype or other things. I also include a GSM local cellphone that they can use to have a local #. They pay for any airtime via refillable credits so it doesn’t cost me a dime other than the expense to buy the cellphone. I also put in a local phone line and have a block on it so they can only call local #’s.

Obviously I include free wi-fi high speed access and put in the extensive cable package or DirecTV so they have all the essential channels. This really helps attract the high $$ crowd. It’s so much more convenient vs. a hotel. The ROI is MUCH higher than renting it out on a long-term tenant.

[earlyretirement]

I don’t know about the LC Oakes area. But as you mentioned, the main market for the furnished rentals are corporate market or if it’s a desirable area then vacation rentals.

I own many properties and I furnish all of them. I don’t go for the long-term rental rather the short-term market (both tourists and corporate business travelers).

Generally your properties have to be in super desirable areas for both of those types I mentioned above. You can use websites like VRBO.com, Homeaway.com, Flipkey.com, AirBnB.com and many others.

On longer term rentals, people mostly want to use their own furniture I’ve found unless you have REALLY nice stuff. I’ve done a few longer term rentals with my properties. Even though they weren’t geared towards the long term market, they really liked it as the furniture was all really high end, LCD/LED TVs in each room, etc.

There is a segment of the population out there that will be more interested in renting a furnished rental as long as the furniture is high end and not funky. Comfortable, high end mattresses are also a big plus, especially with the corporate executive type.

In my rentals, even in the properties outside of the USA, I put in VoIP phone lines (via Vonage.com) so business executives can stay in contact with their family/business associates/friends. It’s more professional and convenient vs. Skype or other things. I also include a GSM local cellphone that they can use to have a local #. They pay for any airtime via refillable credits so it doesn’t cost me a dime other than the expense to buy the cellphone. I also put in a local phone line and have a block on it so they can only call local #’s.

Obviously I include free wi-fi high speed access and put in the extensive cable package or DirecTV so they have all the essential channels. This really helps attract the high $$ crowd. It’s so much more convenient vs. a hotel. The ROI is MUCH higher than renting it out on a long-term tenant.

[earlyretirement]

I don’t know about the LC Oakes area. But as you mentioned, the main market for the furnished rentals are corporate market or if it’s a desirable area then vacation rentals.

I own many properties and I furnish all of them. I don’t go for the long-term rental rather the short-term market (both tourists and corporate business travelers).

Generally your properties have to be in super desirable areas for both of those types I mentioned above. You can use websites like VRBO.com, Homeaway.com, Flipkey.com, AirBnB.com and many others.

On longer term rentals, people mostly want to use their own furniture I’ve found unless you have REALLY nice stuff. I’ve done a few longer term rentals with my properties. Even though they weren’t geared towards the long term market, they really liked it as the furniture was all really high end, LCD/LED TVs in each room, etc.

There is a segment of the population out there that will be more interested in renting a furnished rental as long as the furniture is high end and not funky. Comfortable, high end mattresses are also a big plus, especially with the corporate executive type.

In my rentals, even in the properties outside of the USA, I put in VoIP phone lines (via Vonage.com) so business executives can stay in contact with their family/business associates/friends. It’s more professional and convenient vs. Skype or other things. I also include a GSM local cellphone that they can use to have a local #. They pay for any airtime via refillable credits so it doesn’t cost me a dime other than the expense to buy the cellphone. I also put in a local phone line and have a block on it so they can only call local #’s.

Obviously I include free wi-fi high speed access and put in the extensive cable package or DirecTV so they have all the essential channels. This really helps attract the high $$ crowd. It’s so much more convenient vs. a hotel. The ROI is MUCH higher than renting it out on a long-term tenant.

[earlyretirement]

I don’t know about the LC Oakes area. But as you mentioned, the main market for the furnished rentals are corporate market or if it’s a desirable area then vacation rentals.

I own many properties and I furnish all of them. I don’t go for the long-term rental rather the short-term market (both tourists and corporate business travelers).

Generally your properties have to be in super desirable areas for both of those types I mentioned above. You can use websites like VRBO.com, Homeaway.com, Flipkey.com, AirBnB.com and many others.

On longer term rentals, people mostly want to use their own furniture I’ve found unless you have REALLY nice stuff. I’ve done a few longer term rentals with my properties. Even though they weren’t geared towards the long term market, they really liked it as the furniture was all really high end, LCD/LED TVs in each room, etc.

There is a segment of the population out there that will be more interested in renting a furnished rental as long as the furniture is high end and not funky. Comfortable, high end mattresses are also a big plus, especially with the corporate executive type.

In my rentals, even in the properties outside of the USA, I put in VoIP phone lines (via Vonage.com) so business executives can stay in contact with their family/business associates/friends. It’s more professional and convenient vs. Skype or other things. I also include a GSM local cellphone that they can use to have a local #. They pay for any airtime via refillable credits so it doesn’t cost me a dime other than the expense to buy the cellphone. I also put in a local phone line and have a block on it so they can only call local #’s.

Obviously I include free wi-fi high speed access and put in the extensive cable package or DirecTV so they have all the essential channels. This really helps attract the high $$ crowd. It’s so much more convenient vs. a hotel. The ROI is MUCH higher than renting it out on a long-term tenant.

[earlyretirement]

You’re certainly welcome masayako. That’s GREAT news that you have relatives/family in town. I can tell you from personal experience, that makes things MUCH MUCH easier.

In my experiences, it’s been like night and day owning in cities where I have family. For example, in one area I have my mother and father in law going to check my properties every 2 weeks. Even though it’s managed by a really reputable company, you’ll find that family is always more reliable. Even with reputable companies, if they are managing hundreds of properties, you just become another # to them….not so with family.

A good idea if you end up buying is to also get a separate power of attorney done for your family/relatives that will be there in that city/country. That way in case there are any emergencies, you also have them legally available to act on your behalf.

Let us know how it turns out. Good luck.

[earlyretirement]

You’re certainly welcome masayako. That’s GREAT news that you have relatives/family in town. I can tell you from personal experience, that makes things MUCH MUCH easier.

In my experiences, it’s been like night and day owning in cities where I have family. For example, in one area I have my mother and father in law going to check my properties every 2 weeks. Even though it’s managed by a really reputable company, you’ll find that family is always more reliable. Even with reputable companies, if they are managing hundreds of properties, you just become another # to them….not so with family.

A good idea if you end up buying is to also get a separate power of attorney done for your family/relatives that will be there in that city/country. That way in case there are any emergencies, you also have them legally available to act on your behalf.

Let us know how it turns out. Good luck.

[earlyretirement]

You’re certainly welcome masayako. That’s GREAT news that you have relatives/family in town. I can tell you from personal experience, that makes things MUCH MUCH easier.

In my experiences, it’s been like night and day owning in cities where I have family. For example, in one area I have my mother and father in law going to check my properties every 2 weeks. Even though it’s managed by a really reputable company, you’ll find that family is always more reliable. Even with reputable companies, if they are managing hundreds of properties, you just become another # to them….not so with family.

A good idea if you end up buying is to also get a separate power of attorney done for your family/relatives that will be there in that city/country. That way in case there are any emergencies, you also have them legally available to act on your behalf.

Let us know how it turns out. Good luck.

[earlyretirement]

You’re certainly welcome masayako. That’s GREAT news that you have relatives/family in town. I can tell you from personal experience, that makes things MUCH MUCH easier.

In my experiences, it’s been like night and day owning in cities where I have family. For example, in one area I have my mother and father in law going to check my properties every 2 weeks. Even though it’s managed by a really reputable company, you’ll find that family is always more reliable. Even with reputable companies, if they are managing hundreds of properties, you just become another # to them….not so with family.

A good idea if you end up buying is to also get a separate power of attorney done for your family/relatives that will be there in that city/country. That way in case there are any emergencies, you also have them legally available to act on your behalf.

Let us know how it turns out. Good luck.

[earlyretirement]

You’re certainly welcome masayako. That’s GREAT news that you have relatives/family in town. I can tell you from personal experience, that makes things MUCH MUCH easier.

In my experiences, it’s been like night and day owning in cities where I have family. For example, in one area I have my mother and father in law going to check my properties every 2 weeks. Even though it’s managed by a really reputable company, you’ll find that family is always more reliable. Even with reputable companies, if they are managing hundreds of properties, you just become another # to them….not so with family.

A good idea if you end up buying is to also get a separate power of attorney done for your family/relatives that will be there in that city/country. That way in case there are any emergencies, you also have them legally available to act on your behalf.

Let us know how it turns out. Good luck.

[earlyretirement]

[quote=sdduuuude]ER – what an awesome post. One of those Piggington gems. I feel like an expert now and I’m not even considering this.[/quote]

Thanks sdduuuude!

I really feel that knowledge is power and truly believe in the sharing of information with other people. That’s what these online message boards are all about. Sharing information.

Of course there are other factors with buying property overseas but I tried to list all of the most important things I’ve learned through the years. I’ve purchased hundreds of properties outside of the USA for myself and my clients and always avoided problems following these things above and doing lots of due diligence as well as always following the laws in that foreign country and paying any taxes that might be due on the property and the rental income.

One thing I also forgot to list is to see on the front end what all is involved in selling your property as a foreigner/non-resident. Even though you don’t plan to sell in the immediate future, it’s still wise to understand what is involved with selling your property and exiting your investment.

Buying a property to live in as a home and buying as an investment are totally different things so you always need to be aware of your exit plan and strategy.

Some countries I’ve purchased in, for example, they have one set of laws for locals selling and another set of laws for non-residents (Americans) selling. It sounds totally crazy but true. Some countries you have to apply for a permit to sell which can take months, you have to hire an accountant and they pour over your tax history to make sure you’ve been paying income tax on the rental income as well as the property taxes each year you owned the property.

So be VERY careful with taxes as you might not be able to sell even if you/your accountant made a mistake. That’s why it’s essential to use accountants and lawyers that specialize with non-resident foreigners.

Also, something I forgot to mention is to take the time to investigate whether it makes sense to buy as an individual or set up a corporation in the purchase. Sometimes it makes sense to set up a corporation but many other times it simply doesn’t due to additional taxes and expenses.

Some countries you have 0% capital gains tax when you sell if you buy as an individual but as high as 35% capital gains tax if you buy as a corporation.

Also, it’s a good idea if you can to open up a local bank account in the country you are going to own property. Sometimes it’s not easy to pay bills/utilities unless you are doing automatic debits. Sure, your property manager will pay bills but it’s always a good idea to have a bank account where you can have your rental income deposited.

Because most property managers will charge you a fee to wire an international wire which can add up. But if you have a local account, you can simply ask them to deposit funds into your local bank account as you get rentals. It won’t cost you anything..

If you do, stick with larger banks like HSBC, which has branches just about everywhere in the world I’ve been. If you’re an HSBC Premier member, you can transfer funds between your accounts and not pay any fees at all which is convenient. Plus you can monitor your accounts in that country online.

As I mentioned above, multiple international wire transfers into your USA bank accounts will cause red flags.

If you do open a bank account abroad, just keep in mind it’s a good idea to keep less than $10,000 US in it. Once you go above $10,000 , you are obligated by law to fill out a special form ( TD F 90-22.1) with the Department of the Treasury. If you stay under $10,000 you don’t have to report it so keep this in mind. Having overseas offshore accounts also causes red flags for audits.

If you open an account at a larger bank like HSBC, they will issue you a Visa debit card so you can use it to shop or withdraw cash to keep your balance under $10,000 at all times.

Remember it’s perfectly LEGAL to have offshore bank accounts. The US government can’t do anything about that. But you have to play within their rules. If you have over $10,000 you MUST report it.

So look into all of those things. Buying real estate overseas is serious business and ALL of these things should be investigated on the front end before you buy in a particular country.

Best.

[earlyretirement]

[quote=sdduuuude]ER – what an awesome post. One of those Piggington gems. I feel like an expert now and I’m not even considering this.[/quote]

Thanks sdduuuude!

I really feel that knowledge is power and truly believe in the sharing of information with other people. That’s what these online message boards are all about. Sharing information.

Of course there are other factors with buying property overseas but I tried to list all of the most important things I’ve learned through the years. I’ve purchased hundreds of properties outside of the USA for myself and my clients and always avoided problems following these things above and doing lots of due diligence as well as always following the laws in that foreign country and paying any taxes that might be due on the property and the rental income.

One thing I also forgot to list is to see on the front end what all is involved in selling your property as a foreigner/non-resident. Even though you don’t plan to sell in the immediate future, it’s still wise to understand what is involved with selling your property and exiting your investment.

Buying a property to live in as a home and buying as an investment are totally different things so you always need to be aware of your exit plan and strategy.

Some countries I’ve purchased in, for example, they have one set of laws for locals selling and another set of laws for non-residents (Americans) selling. It sounds totally crazy but true. Some countries you have to apply for a permit to sell which can take months, you have to hire an accountant and they pour over your tax history to make sure you’ve been paying income tax on the rental income as well as the property taxes each year you owned the property.

So be VERY careful with taxes as you might not be able to sell even if you/your accountant made a mistake. That’s why it’s essential to use accountants and lawyers that specialize with non-resident foreigners.

Also, something I forgot to mention is to take the time to investigate whether it makes sense to buy as an individual or set up a corporation in the purchase. Sometimes it makes sense to set up a corporation but many other times it simply doesn’t due to additional taxes and expenses.

Some countries you have 0% capital gains tax when you sell if you buy as an individual but as high as 35% capital gains tax if you buy as a corporation.

Also, it’s a good idea if you can to open up a local bank account in the country you are going to own property. Sometimes it’s not easy to pay bills/utilities unless you are doing automatic debits. Sure, your property manager will pay bills but it’s always a good idea to have a bank account where you can have your rental income deposited.

Because most property managers will charge you a fee to wire an international wire which can add up. But if you have a local account, you can simply ask them to deposit funds into your local bank account as you get rentals. It won’t cost you anything..

If you do, stick with larger banks like HSBC, which has branches just about everywhere in the world I’ve been. If you’re an HSBC Premier member, you can transfer funds between your accounts and not pay any fees at all which is convenient. Plus you can monitor your accounts in that country online.

As I mentioned above, multiple international wire transfers into your USA bank accounts will cause red flags.

If you do open a bank account abroad, just keep in mind it’s a good idea to keep less than $10,000 US in it. Once you go above $10,000 , you are obligated by law to fill out a special form ( TD F 90-22.1) with the Department of the Treasury. If you stay under $10,000 you don’t have to report it so keep this in mind. Having overseas offshore accounts also causes red flags for audits.

If you open an account at a larger bank like HSBC, they will issue you a Visa debit card so you can use it to shop or withdraw cash to keep your balance under $10,000 at all times.

Remember it’s perfectly LEGAL to have offshore bank accounts. The US government can’t do anything about that. But you have to play within their rules. If you have over $10,000 you MUST report it.

So look into all of those things. Buying real estate overseas is serious business and ALL of these things should be investigated on the front end before you buy in a particular country.

Best.

[earlyretirement]

[quote=sdduuuude]ER – what an awesome post. One of those Piggington gems. I feel like an expert now and I’m not even considering this.[/quote]

Thanks sdduuuude!

I really feel that knowledge is power and truly believe in the sharing of information with other people. That’s what these online message boards are all about. Sharing information.

Of course there are other factors with buying property overseas but I tried to list all of the most important things I’ve learned through the years. I’ve purchased hundreds of properties outside of the USA for myself and my clients and always avoided problems following these things above and doing lots of due diligence as well as always following the laws in that foreign country and paying any taxes that might be due on the property and the rental income.

One thing I also forgot to list is to see on the front end what all is involved in selling your property as a foreigner/non-resident. Even though you don’t plan to sell in the immediate future, it’s still wise to understand what is involved with selling your property and exiting your investment.

Buying a property to live in as a home and buying as an investment are totally different things so you always need to be aware of your exit plan and strategy.

Some countries I’ve purchased in, for example, they have one set of laws for locals selling and another set of laws for non-residents (Americans) selling. It sounds totally crazy but true. Some countries you have to apply for a permit to sell which can take months, you have to hire an accountant and they pour over your tax history to make sure you’ve been paying income tax on the rental income as well as the property taxes each year you owned the property.

So be VERY careful with taxes as you might not be able to sell even if you/your accountant made a mistake. That’s why it’s essential to use accountants and lawyers that specialize with non-resident foreigners.

Also, something I forgot to mention is to take the time to investigate whether it makes sense to buy as an individual or set up a corporation in the purchase. Sometimes it makes sense to set up a corporation but many other times it simply doesn’t due to additional taxes and expenses.

Some countries you have 0% capital gains tax when you sell if you buy as an individual but as high as 35% capital gains tax if you buy as a corporation.

Also, it’s a good idea if you can to open up a local bank account in the country you are going to own property. Sometimes it’s not easy to pay bills/utilities unless you are doing automatic debits. Sure, your property manager will pay bills but it’s always a good idea to have a bank account where you can have your rental income deposited.

Because most property managers will charge you a fee to wire an international wire which can add up. But if you have a local account, you can simply ask them to deposit funds into your local bank account as you get rentals. It won’t cost you anything..

If you do, stick with larger banks like HSBC, which has branches just about everywhere in the world I’ve been. If you’re an HSBC Premier member, you can transfer funds between your accounts and not pay any fees at all which is convenient. Plus you can monitor your accounts in that country online.

As I mentioned above, multiple international wire transfers into your USA bank accounts will cause red flags.

If you do open a bank account abroad, just keep in mind it’s a good idea to keep less than $10,000 US in it. Once you go above $10,000 , you are obligated by law to fill out a special form ( TD F 90-22.1) with the Department of the Treasury. If you stay under $10,000 you don’t have to report it so keep this in mind. Having overseas offshore accounts also causes red flags for audits.

If you open an account at a larger bank like HSBC, they will issue you a Visa debit card so you can use it to shop or withdraw cash to keep your balance under $10,000 at all times.

Remember it’s perfectly LEGAL to have offshore bank accounts. The US government can’t do anything about that. But you have to play within their rules. If you have over $10,000 you MUST report it.

So look into all of those things. Buying real estate overseas is serious business and ALL of these things should be investigated on the front end before you buy in a particular country.

Best.

[earlyretirement]

[quote=sdduuuude]ER – what an awesome post. One of those Piggington gems. I feel like an expert now and I’m not even considering this.[/quote]

Thanks sdduuuude!

I really feel that knowledge is power and truly believe in the sharing of information with other people. That’s what these online message boards are all about. Sharing information.

Of course there are other factors with buying property overseas but I tried to list all of the most important things I’ve learned through the years. I’ve purchased hundreds of properties outside of the USA for myself and my clients and always avoided problems following these things above and doing lots of due diligence as well as always following the laws in that foreign country and paying any taxes that might be due on the property and the rental income.

One thing I also forgot to list is to see on the front end what all is involved in selling your property as a foreigner/non-resident. Even though you don’t plan to sell in the immediate future, it’s still wise to understand what is involved with selling your property and exiting your investment.

Buying a property to live in as a home and buying as an investment are totally different things so you always need to be aware of your exit plan and strategy.

Some countries I’ve purchased in, for example, they have one set of laws for locals selling and another set of laws for non-residents (Americans) selling. It sounds totally crazy but true. Some countries you have to apply for a permit to sell which can take months, you have to hire an accountant and they pour over your tax history to make sure you’ve been paying income tax on the rental income as well as the property taxes each year you owned the property.

So be VERY careful with taxes as you might not be able to sell even if you/your accountant made a mistake. That’s why it’s essential to use accountants and lawyers that specialize with non-resident foreigners.

Also, something I forgot to mention is to take the time to investigate whether it makes sense to buy as an individual or set up a corporation in the purchase. Sometimes it makes sense to set up a corporation but many other times it simply doesn’t due to additional taxes and expenses.

Some countries you have 0% capital gains tax when you sell if you buy as an individual but as high as 35% capital gains tax if you buy as a corporation.

Also, it’s a good idea if you can to open up a local bank account in the country you are going to own property. Sometimes it’s not easy to pay bills/utilities unless you are doing automatic debits. Sure, your property manager will pay bills but it’s always a good idea to have a bank account where you can have your rental income deposited.

Because most property managers will charge you a fee to wire an international wire which can add up. But if you have a local account, you can simply ask them to deposit funds into your local bank account as you get rentals. It won’t cost you anything..

If you do, stick with larger banks like HSBC, which has branches just about everywhere in the world I’ve been. If you’re an HSBC Premier member, you can transfer funds between your accounts and not pay any fees at all which is convenient. Plus you can monitor your accounts in that country online.

As I mentioned above, multiple international wire transfers into your USA bank accounts will cause red flags.

If you do open a bank account abroad, just keep in mind it’s a good idea to keep less than $10,000 US in it. Once you go above $10,000 , you are obligated by law to fill out a special form ( TD F 90-22.1) with the Department of the Treasury. If you stay under $10,000 you don’t have to report it so keep this in mind. Having overseas offshore accounts also causes red flags for audits.

If you open an account at a larger bank like HSBC, they will issue you a Visa debit card so you can use it to shop or withdraw cash to keep your balance under $10,000 at all times.

Remember it’s perfectly LEGAL to have offshore bank accounts. The US government can’t do anything about that. But you have to play within their rules. If you have over $10,000 you MUST report it.

So look into all of those things. Buying real estate overseas is serious business and ALL of these things should be investigated on the front end before you buy in a particular country.

Best.

[earlyretirement]

[quote=sdduuuude]ER – what an awesome post. One of those Piggington gems. I feel like an expert now and I’m not even considering this.[/quote]

Thanks sdduuuude!

I really feel that knowledge is power and truly believe in the sharing of information with other people. That’s what these online message boards are all about. Sharing information.

Of course there are other factors with buying property overseas but I tried to list all of the most important things I’ve learned through the years. I’ve purchased hundreds of properties outside of the USA for myself and my clients and always avoided problems following these things above and doing lots of due diligence as well as always following the laws in that foreign country and paying any taxes that might be due on the property and the rental income.

One thing I also forgot to list is to see on the front end what all is involved in selling your property as a foreigner/non-resident. Even though you don’t plan to sell in the immediate future, it’s still wise to understand what is involved with selling your property and exiting your investment.

Buying a property to live in as a home and buying as an investment are totally different things so you always need to be aware of your exit plan and strategy.

Some countries I’ve purchased in, for example, they have one set of laws for locals selling and another set of laws for non-residents (Americans) selling. It sounds totally crazy but true. Some countries you have to apply for a permit to sell which can take months, you have to hire an accountant and they pour over your tax history to make sure you’ve been paying income tax on the rental income as well as the property taxes each year you owned the property.

So be VERY careful with taxes as you might not be able to sell even if you/your accountant made a mistake. That’s why it’s essential to use accountants and lawyers that specialize with non-resident foreigners.

Also, something I forgot to mention is to take the time to investigate whether it makes sense to buy as an individual or set up a corporation in the purchase. Sometimes it makes sense to set up a corporation but many other times it simply doesn’t due to additional taxes and expenses.

Some countries you have 0% capital gains tax when you sell if you buy as an individual but as high as 35% capital gains tax if you buy as a corporation.

Also, it’s a good idea if you can to open up a local bank account in the country you are going to own property. Sometimes it’s not easy to pay bills/utilities unless you are doing automatic debits. Sure, your property manager will pay bills but it’s always a good idea to have a bank account where you can have your rental income deposited.

Because most property managers will charge you a fee to wire an international wire which can add up. But if you have a local account, you can simply ask them to deposit funds into your local bank account as you get rentals. It won’t cost you anything..

If you do, stick with larger banks like HSBC, which has branches just about everywhere in the world I’ve been. If you’re an HSBC Premier member, you can transfer funds between your accounts and not pay any fees at all which is convenient. Plus you can monitor your accounts in that country online.

As I mentioned above, multiple international wire transfers into your USA bank accounts will cause red flags.

If you do open a bank account abroad, just keep in mind it’s a good idea to keep less than $10,000 US in it. Once you go above $10,000 , you are obligated by law to fill out a special form ( TD F 90-22.1) with the Department of the Treasury. If you stay under $10,000 you don’t have to report it so keep this in mind. Having overseas offshore accounts also causes red flags for audits.

If you open an account at a larger bank like HSBC, they will issue you a Visa debit card so you can use it to shop or withdraw cash to keep your balance under $10,000 at all times.

Remember it’s perfectly LEGAL to have offshore bank accounts. The US government can’t do anything about that. But you have to play within their rules. If you have over $10,000 you MUST report it.

So look into all of those things. Buying real estate overseas is serious business and ALL of these things should be investigated on the front end before you buy in a particular country.

Best.

[Author]

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