Thinking about Real Estate Investing from another country

[Dennis P.]

Hello everyone,

First of all, thanks to fatwallet I've earned thousands of dollars and have a great credit history. As I am thinking about retirement, I am looking at real estate. Currently I am in <a href="/profile/basics">an Eastern Europen country</a> with ever-devaluing local currency.

My first question is, how do people decide whether to invest in real estate or buy RE bonds? I do not trust markets so I am naturally inclined to buying real estate.

Further, suppose I live overseas but have a friend-realtor who can find a property for me and, hopefully manage it for me. How does one find promising neighborhoods? Of course, I am going to ask for his advice but I also need to educate myself.

What bothers me is taxes. Right now I do not pay taxes in the States. Buying property makes me tax-obliged, isn't it? Why do loan companies ask whether it is first or investment property? I am planning to go with PenFed (kudos to SIS). Also, I am not planning to evade taxes but would like to circumvent them wherever it is lawful. Where can I learn more about tax-related questions for non-residents buying investment property in the U.S.?

Any help and guidance will be greatly appreciated!