Many friends who are immigrating to the United States or pursuing US investment immigration have plans to purchase property in the US for investment purposes. So, what are the most basic regulations that Chinese citizens should be aware of when investing in and purchasing property in the United States? WorldWay's US immigration experts provide a detailed analysis below:
In fact, the US government does not impose many restrictions on foreigners purchasing local real estate. Even without a Green Card, Chinese citizens can purchase US property. State governments in the US also rarely set any quotas or limits on home purchases, making the housing market relatively free and open.
Generally, buyers only need to prepare the relevant legal documents for the purchase and then entrust a professional local US real estate agency to handle the transaction. However, it is recommended that investors thoroughly understand the following basic regulations before purchasing:
Simple property purchase does not qualify for investment immigration
Generally speaking, while foreigners can invest in and purchase property in the US, this act alone does not grant US residency status. However, investors can apply for real estate projects under the US EB-5 investment immigration program to achieve their immigration goals.
How to distinguish between ownership rights and residential rights
In the US, one can purchase properties with full ownership rights or those with only residential rights. Properties with ownership rights can be freely sold or rented out by the owner, whereas properties with only residential rights typically have a limited tenure of a few decades, and renting or selling can only be done through the property management committee; these are significantly cheaper than properties with full ownership rights.
Regulations regarding property inspections
Buyers can spend $300 to hire a professional company to inspect the quality of the prospective property. However, this $300 inspection fee is non-refundable. The broker's commission is paid by the seller, and for pre-owned homes, this fee is generally between 2.5% and 3%.
Property tax must be paid annually after acquiring the property
Although a house in the US is yours forever once purchased, you must pay taxes on it every year until you sell it. The US government levies an annual tax of 1% to 2%. If you fail to pay property taxes on time, the US government has the authority to seize your property and auction it off to cover the unpaid taxes.
Taxes must also be paid on rental income and property sales
If an investor rents out their property in the US, they are required to honestly report their income for tax purposes in the US annually. However, depreciation of the property can be deducted. The IRS definition of a "foreigner" is not a foreign citizen in the traditional sense, but rather a foreigner who has spent fewer than 183 days in the United States during the year.
Capital gains tax must be paid upon the sale of the property
Investors must also pay certain taxes on any profits earned from the sale of the property in accordance with requirements and regulations.
As a leading institution in investment immigration, WorldWay provides professional and attentive services that permeate every small detail of the investor's journey to the United States. When clients first arrive in the US, the WorldWay Customer Service Center provides comprehensive landing and settlement assistance, including: arranging airport pick-up for the first entry; assisting with bank account opening procedures; assisting with Social Security card applications; assisting with hotel reservations; assisting with booking flights to the US; assisting with contacting driving schools and providing information on driver's license exams; assisting with moving services; and assisting with contacting real estate agents for renting or purchasing property, among other related matters. Currently, WorldWay has launched a high-quality real estate project approved by the US Citizenship and Immigration Services (USCIS)—the Liberty Garden luxury apartment project in New York—for investors to choose from. For more details, please call: 400-138-2929.
