Buying or Selling a Home/Home/Land

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Question
I have a question that I'm not quite sure if I h ae the right person for this question. I heard somewhere that if I was to buy home with gold payments that the home would be free and clear of every being taken by anyone.  Do you know if there is a difference when buying a home with US currency vs gold payments? Or is there a benefit one over the other? I am looking to buy land and home on the east coast without a mortgage, but wondered if there is something to what I heard.  Thanks for any help you may give!!!

Answer
Hi-

I'm making a couple of assumptions when I answer this, so note these first.

1) By Gold Payments, you mean purchase a home with Gold. I'm not clear what else gold payments could be (some kind of annuity? shares in the GLD?). So I'm going with just plain old gold.
2) You haven't asked about selling, but selling can be more difficult for foreign nationals. You should think through the lifecycle of any purchase.


The problem with buying a home with gold, is you have to find someone willing to take gold. Because gold is a commodity, and not a currency, transactions in precious metals are non-standard.  You probably could do it of course, but it would be far simpler to exchange the gold for US $, and then purchase the property with US cash.  

That pretty much answers the question is there a benefit to one or the other?  No, there is no benefit.  However you pay for the house, be it Gold, $, or chickens, as long as the seller agrees to except such payment, the house is yours.  There are no significant taxes paid in Massachusetts at time of purchase (I can't speak for the other states), but there are other fees which would need to be paid in US currency (they are small though - maybe $2000?)  

Now the big question: Would it be free and clear of ever being taken by anyone?
The answer is "no".

Houses and land are subject to the laws of the cities, states, and country that we live in, and as such, these would be (some) of the following exceptions.
1) Taxes.  Paying for land or other property in cash (or any other means) does not exempt you from the taxes on this property.  Most taxes are due the town/city that the land belongs to, and if you do not pay your taxes, the town/city can take your land/house as payment.
2) Eminent Domain.  Far less common, and quite rare, but the town/state/country all have the right to take the land for governmental reasons.  They must pay you a fair price (in practice they overpay by about 10-20%), but they can take it without cause.  


I suspect that you have similar laws on the books in Germany.

Should you choose to make a purchase and pay your taxes, you can probably hold on to the land for a very long time without issue.

Auf Wiedersehen-

Matt Heisler  

Buying or Selling a Home

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Matt Heisler

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I can answer questions about buying or selling your home, and questions about the market in Massachusetts, with detailed answers if you ask about my specific area in Mass, Metrowest. I can help with Investment property and the basics of financing. How to construct deals and how to find bargains and how to protect capital. Land, home sales, rehabs, fix and flips, income property are places where I could be able to assist you. I can also answer basic questions about foreclosure, short-sales, 1031 exchanges, and basic questions about how the economy and credit markets are functioning and how that affects you.

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My company sells residential real estate in Metrowest, and we have had a been selling real estate in the area for 20 years. My Blog can be read at Real Estate Sales in Massachusetts

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Southborogh Rotary

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Vanderbilt University BA

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My client list is private.

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