Nak kongsi rumah azizi ali forex artikel yg ditulis oleh Azizi Ali tentang pelaburan hartanah khususnya di US. I wrote about the advertisements in the media about investing in properties in the US in the July issue of Malaysian Business. In it, I shared seven points as to why all of us should be careful before doing so.
While there is no doubt that property prices there are lower than two years ago, there are still a lot of risks for us to take the plunge. One of it is that prices still have some way to go before stabilising. While the seven points that I mentioned in the article are already a lot, it turned out that there is at least one more point that we should consider. My good friend and fellow columnist of this magazine, Bill Wermine, sent me an e-mail about his thoughts on the matter. Being an American himself, Bill knows a lot more about the country than most of us. I read your article about the pitfalls in investing in US property.
All over America local and state governments are facing budget shortfalls. A way they are raising money is to go after property owners by raising property taxes and fees related to property. If you do not pay the property tax, in some states the government can seize the house. Each of the 50 states has different tax laws, and property is taxed by the state unlike federal taxes where taxes rates are uniform.
Property taxes are much higher than Malaysia. Your home would incur a tax of at least USD50,000 a year if in New York, New Jersey or Massachusetts. I am sure you only pay a fraction of this. A comparable house in an area close to a city in Maryland would be at least USD800 per month. The 50 different state property tax laws are a minefield of confusion and penalties.
Any Malaysian investor buying a property in America is a sheep waiting to be slaughtered by the tax collector vultures who wait for their prey. Even me as an American would never venture in a US property unless I lived there and needed a roof over my head. Were you aware of the tax situation regarding property in the US? My answer to Bill is that I wasn’t aware of the high property taxes myself. Now this only adds to the already long list of complications that awaits anyone who wants to invest there.