Over the past 15 years, Texas has done everything to attract foreign buyers, and the entire project was a success. We see a substantial increase in foreigners looking to purchase a property in Houston, Dallas, Austin, and San Antonio. The main reason why Texas is number one in this area is that it offers an opportunity to diversify business for foreign companies. The added benefit of connected flights throughout the US and the world and the access via the developed highway only make Texas even more enticing not only to investors but to people with families as well. With that in mind, let’s see what foreign real estate buyers should know when buying in Texas!
Everything foreign real estate buyers should know when buying in Texas
If you are a foreigner who wants to purchase a Texas property, the first thing you need to understand is how the real estate industry works in the USA.
The types of real estate properties fall into different groups:
- residential properties;
- commercial properties;
- industrial properties.
While you can buy directly from sellers, real estate agents should be your point of contact. They know everything about the business, legal processes, and they can save you a precious amount of time and money.
How to establish credit in the United States?
When it comes to everything foreign real estate buyers should know when buying in Texas, the most important thing is to figure out is how to establish credit.
First, contact the IRS to obtain a tax identification number. Next, if possible, open a bank account with trade lines. You can open a certificate of deposit and essentially borrow your own money. That is, in fact, an installment loan, which will help you build your credit faster. It is a much better option than waiting for a credit card. Remember that a credit card is a revolving credit, which is not always suitable for purchasing a property.
How does lending work?
New banking regulations have made the lending process to foreigners a bit more complicated. It is not impossible, but it does take a lot of time, and it is a more tedious process. As a foreigner, you can also resort to investment funds and institutional lenders. They operate under different regulations, so it will be easier to borrow money if needed.
This is good to know because you will have a lot of expenses with planning a relocation and all additional things that can pop up. By understanding how to get enough money for the purchase, you don’t have to worry about potential financial issues or how to future proof your moving plan and avoid money problems.
Is it a requirement to purchase a property as an LLC?
You don’t need to set up an LLC to purchase a property in Texas; it can be in your own name. Furthermore, know that Texas is considered a common property state. That means if you buy a property with your spouse, the ownership automatically becomes 50\50. It is not important whose name is on the contract.
It is a piece of good advice to create a will when purchasing property in the US
This is not a mandatory procedure, but the best thing to do after purchasing a property is to create a will. This process will make the transfer of the property a lot easier. It is pretty common for people in the US to have a will as soon as they purchase a property.
If you do decide on this step, always hire an attorney or a certified public accountant. They will help out with all the legal processes and tax implications.
How does selling a property work?
In case you decide to sell your property at one point, it is good to know that the IRS will retain a portion of the price until they verify that all taxes are covered. You can also hire a company to help you out in this process. They can withhold the required amount instead of IRS as an escrow. It usually takes about 90 days for all of the paperwork to be approved.
Moving to Texas
While the purchase is still in the process, you can start planning your relocation. Moving to Texas is made easy thanks to the quality long-distance moving companies you can rely on. Houston offers great solutions for long-distance relocations. The entire business is well developed, and it is pretty easy to hire qualified and licensed movers to help you relocate your belongings in no time.
Aside from the standard moving services, one of the best pieces of advice is to get a storage unit.
Why storage units play an important part in purchasing a property in Texas?
It may often happen that you have to move before you finalize your purchase. In this case, renting a storage unit is the smartest way to store your items until you are ready to move in. In fact, you may even ship your belongings in advance, arrange for someone to pick them up, and move them to storage. When the relocation time comes, you will freely move without having to worry about your belongings.
Keep yourself informed, get the right help, and the entire purchase process will be quick and simple
Learning about everything foreign real estate buyers should know when buying in Texas is an excellent way to make the entire process easy and simple. Always do your research and find the right type of help. Real estate agents and attorneys are your best friends when buying real estate. Without them, the entire process might become expensive, complicated, and hard to understand. Lots of luck with purchasing your first property in Texas!