Want to buy a second homeYou want to buy a second home?
Reasonable real estate values, a stronger US dollar and multiple fiscal advantages for buying a second home make the concept of buying a piece of land in Europe more and more appealing. Mainland Europe is recovering more slowly than the US from the impact of the global economic downturn, which has compelled many Europeans to resell holiday cottages.
Increasingly lower fares from the U.S., powerful transportation throughout the entire U.S. as well as a mixture of world-class towns and stunning landscapes make Europe the ideal place for a second home. Besides offering relief for first residences, the US also provides a range of relief for second residences and real estate investments.
In addition to deductible tax, interest payable on a second home mortgages, even outside the United States, is a deductible item. When you deduct interest on mortgages on a principal and secondary home, you can charge interest on a $1.1 million aggregate amount of debts against the two houses.
They can also use the saving on old-age pension plans to finance the acquisition of a holiday home. Federal Revenue Authorities allow the use of funds deposited in certain kinds of personal pension plans (IRAs) to buy a holiday home or commercial real estate without penalty. That means you can maximize the input VAT to finance your dreams residence abroad.
A further peculiarity of the US Fiscal Act with regard to equity gain can also make overseas real estate more appealing. US legislation allows a real estate proprietor to postpone investment income taxes on the disposal of an established real estate by re-investing the proceeds in a future real estate acquisition, says Miranda Bothe, creator and chairwoman of the Paris property group, a company that assists overseas purchasers in securing real estate in France.
Described as a 1031 stock market, this means that more money from the disposal of a principal place of abode, an existent holiday home or an asset home can be contributed directly to the acquisition of a non-resident home, thereby restricting the amount of taxation on the profits of the home that is being disposed of. "Many of our customers consider the value of their properties to be their long-term value rather than the current rent yield.
When' s the best when to buy a new house? Relatively bad prospects for the economy in the surrounding regions are squeezing real estate valuations and providing an excellent opportunity for US shoppers to get a good deal. Housing in Spain continues to fall, although the pace of contraction seems to be decelerating.
Tinsa, a real estate consultant, reported a 3.03 per cent decline in Spain's home price year to August. Italy's home price index, which reflects all residential sales, was 0.6 per cent lower in the second trimester of the year than in the first and 4 per cent lower.
According to the Italian National Statistics Institute, the figure was 8 per cent lower than in the same period of the previous year. Sites such as the Global Property Guide and the Association of Relocation Professionals can help purchasers find real estate and control the purchasing proces. But if you are on the café-lined avenues, the excellent food and the stunning cultural life of Paris, you may also be lucky.
Real estate in Paris has fallen 1. 22 per cent a year until the second trimester, according to the French National Institute for Statistical and Economic Studies, the 9th successive trimester of decline, making this mobile festival of a Paris resort more accessible to aliens who are chasing a cake terrary. He says that the three most important factors for Americans who want to buy an apartment in Paris are the situation, the state of the house and its historic characteristics.
"But the more centrally located, the more solid the investment," she states. But it warns that prospective purchasers must be aware of the condition of the home or structure as renovation may be restricted. "Whilst purchasers are free to fully refurbish their own homes, co-ownership coordination is needed to improve the communal areas of the building," she says.
"Genuine wooden flooring, high ceiling, fireplace and batten or beam ceiling are features of French constructions that will appeal to both domestic and international investment and make the real estate more valued for resale," she states. Mr Bothe added that there are a number of areas in the main city of France that provide good value for money for US shoppers, according to their budgets and tastes for adventures.
"Refurbished districts of the 9th district have attracted a number of our global customers who are looking for the picturesque stores and delicious boules that make Paris special," she says.