Tips for International Buyers Investing in U.S. Real Estate

The U.S. real estate market is open to international buyers who wish to invest in vacation homes or investment property in the states.  And to many foreign nationals, the convergence of the weakened dollar, falling home prices and the vast selection of homes for sale makes it a great time for real estate investment in the U.S.

What International Buyers Need to Know About Investing in U.S. Real Estate

While foreign nationals are not restricted from investing in U.S. real estate, there are some practical issues international investors need to know about before they begin buying or selling property here.

“The best advice I can give international buyers,” says Brian Meyerowitz, a buyer’s agent for Florida New Homes Realty, “is to go into it with your eyes wide open and seek expert help from the start.  Proper planning will help ensure your interests are served now - and down the line should you wish to sell the property.” Meyerowitz helps international buyers navigate through the process of buying real estate in the U.S. 

As a buyer’s agent, Meyerowitz exclusively represents the buyer in real estate transactions, first finding the best property to suit the buyer’s needs, then negotiating the best price and terms, assisting with financing, and managing the closing transaction.  Meyerowitz holds two special designations - Certified International Property Specialist (CIPS) and Transnational Referral Certification (TRC) - to help him handle the special needs and circumstances of international buyers. 

Here are some common issues he says international buyers must often address when they purchase real estate in the U.S.

Home Buying Process

The home buying process may be different from that in your resident country.  “International buyers sometimes have a preconceived notion of what they expect to happen when they buy a home, and often that’s not how it is here,” Meyerowitz says.  Enlisting the help of international real estate professionals is a critical first step when you’re planning to buy property in a foreign country.

Meyerowitz explains that international buyers from many countries are unfamiliar with how our Multiple Listing Service (MLS) and cooperative compensation work (which means agents involved in a real estate transaction split the commission).  “They may contact all the listing agents for every property they’re interested in,” he says.

Meyerowitz advises international buyers to find one buyer’s agent they trust and establish a good rapport; that agent can then coordinate your search for a second home or investment property based on your needs and budget and provide whatever support and resources you need to handle the transaction.

As experts in their local markets, buyer’s agents can identify which areas and properties will make the best real estate investment opportunities for international buyers, based on their individual needs.  And, buyer’s agents experienced in working with international clientele are well-connected with attorneys, tax professionals, title agents and mortgage brokers who understand the special needs of international buyers and the intricacies of global real estate transactions.

Immigration Law

Travel and Length of Stay

Home ownership does not in itself give foreign nationals the right to travel in and out of the country at will, or to stay indefinitely in their second home.   Permanent residents (green card holders) can buy and sell real estate without limitation. Non immigrants in the U.S. on work visas should not encounter any major hurdles if they wish to purchase a new home in this country.  But foreign nationals who come as students or visitors may face a different situation and need to consider how their status will impact the frequency and length of time they can stay in their vacation home or investment property in the U.S.  That’s why working with an attorney who has expertise dealing with immigration issues, visas and real estate transactions is critical, Meyerowitz notes.

E-2 Visas

One option available to foreign nationals that your attorney may suggest is to invest in a U.S. business. Investing in a U.S. business can qualify a foreign national and his family for a visa that will allow them to live and work in the U.S. on a long-term basis.  With strategic planning, an international buyer may meet the requirements to qualify for an E-2 visa by investing funds to manage a group of rental properties. 

To qualify, an international buyer must:

• be a citizen of a treaty country
• make a substantial investment (at least $200,000)
• invest in an active business
• employ U.S. citizens in the business within a maximum of five years time

“An immigration/real estate attorney will ensure the property qualifies and the transaction is handled properly to apply for an E-2 visa.  It’s something that must be planned out and carefully executed,” stresses Meyerowitz.

Financing a real estate purchase can pose a challenge for international buyers.  Foreign nationals can also face tax implications when they decide to sell property in the U.S.

Check back for our next post with more great tips and valuable info for international buyers who invest in U.S. real estate.

For direct assistance and support, international buyers can contact:

Brian Meyerowitz, MBA, ABR, C-CREC, CIPS, E-PRO, GRI, RFC, TRC
Buyer’s Agent - Broker Associate
Florida New Homes Realty, Inc.
1-800-251-9595
brian.meyerowitz@newhomes.com

Amy Stier, ABR, RSPS, CIPS Candidate
Florida Managing Broker
Florida New Homes Realty, Inc.
1-800-251-9595
astier@newhomes.com

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