When foreigners go on a tour to America, many of them would be fascinated with the beauty of ranches. If you want to own farmland and have saved some million dollars, you can purchase a ranch in the US.
Ranches are perfect for relaxation, entertainment, recreation activities, and even when you want to sell them, you can be sure to get good profits. Some foreigners tend to hesitate about buying a ranch in the US because they do not know the entire process. Due to that, we thought of creating this post which will show you the best tips for acquiring a US property.
Top 7 Tips For Purchasing A Ranch In The US For Foreigners
As of now, there are many ranches in the US that are up for sale. So, you have plenty of choices to choose from. If you would like to take a look at the best ranches and other types of premier properties, you must check out Harrigan Land.
1. Specify Your Objectives
Before acquiring a ranch, it is better to identify your objectives. For example, are you buying it as a safe, long-term investment? Do you want to make it a farmhouse and enjoy trips? Is the land for herding livestock to get additional income? Do you want to create fish ponds and sheds for animals? Specifying your goals will make it easy to discover which type of ranch is ideal for you.
2. Hire A Land Broker
Hiring a local broker is quite beneficial because you will get assistance in every step while buying a ranch. Make sure to find the best broker who is familiar with this field and is quite knowledgeable. You can find numerous brokers online and contact them for further information. In addition to that, make sure to check previous clients’ experience, online reviews, and hiring fees.
3. Considering The Location And Accessibility
When it comes to buying ranches, many of them are spread on acres and acres of land in different states of the US. If you want to buy remote land, you may need to travel miles away. Besides that, you can tell the details to the broker about the location and the kind of remote area you would like to buy.
Another factor that you have to consider while finalizing the location is privacy. Some foreigners show interest in buying isolated ranches that are far from human settlements, while others want to acquire the property where there are some neighbors.
In general, ranches are typically real property for various things such as livestock rearing, fishing, and plenty of other activities. However, some people want to build a house or add other things which can make the ranch a perfect outing place for them. Hence, you have to make sure to buy the ranch which is suitable to construct something. If you determine what kind of construction you want to build on the ranch, the broker can help you choose the perfect property.
5. Land Survey
Another thing you have to test is checking whether the ranch you want to buy is surveyed or not. It is because many acres of land and property were surveyed in the US. However, some of them have not gone under land survey because of a few problems with the legal description. The ranch broker or the land professional will assist you to know more about the Public Land Survey System (PLSS).
6. Withholding Tax
Foreigners have to pay 15% non-resident withholding tax on the total sales profit of the agreement. However, some individuals get privileges that exempt them from this withholding tax. If you also want to get an exemption, you have to file a petition with the IRS before the sale duration to receive the exemption certificate.
Only 10% tax is applicable if people acquire a ranch worth $1 million or below in the form of personal property. As for state tax, it is completely based on the state where you plan to buy the ranch. It is because some states have a tax liability, while others can retain tax withholding.
7. Make The Deal
After finding the best suitable ranch, you can visit the location for inspection. If everything is good and you seem to like it, it is better to start negotiation on the price. After that, sign the documents related to a land purchase in the US. Sometimes you have to sign additional documents related to taxes because you are a foreigner. Later, seal the deal and acquire your property.
How Many Acres Of Land Is Acquired By Foreigners In The US?
As per the information given by NPR in 2019, foreigners own a total of approximately 30 million acres of farmland in the US. From 2014 to 2015, foreign investors bought land and real estate in the US, which is almost worth $104 billion. Because of that, a new record of 8% of all current home sales is set.
Coming into the in-depth details, Indians alone purchased land worth $7.9 billion, Canadians possess $11 billion worth of land, and people from China, Hong Kong, and Taiwan bought land whose value is about $28.6 billion. The remaining land is under the possession of foreigners who come from various other countries.
Investors from Canada possess the majority of the farmland in the US. A USDA report from 2000 reveals that foreign investors and businesses have 16 million acres. At that time, there were only 1.3 billion acres of privately owned agricultural property, which means that foreigners own about 1.2%.
There are many great ranches in the USA, and they are not only permitted to the locals. If you are a foreigner, you can also buy the ranches easily with the help of professionals. Plus, even before visiting the site, it is easy to check the property’s details online from anywhere in the world. We hope that our post can be a primary guide for all your queries.