Are you considering buying somes homes in the US for investment purposes?
Buying a real estate property in the US is always a good business decision as the return on investment always guarranted within the shortest possible time.
Due to the US housing laws and regulations just like there are laws guiding real estate in the US ( just like there are laws in other countries of the world that governs housing, sale and purchase of houses)
Anybody who wants to buy a house in the US must fellow the outlined procedure.
Making the right investment decision has always been the major reason some people succeed while some other people fail.
Ability of foreigners to buy housing in America and Its advantages
It has become common all over the world for non-American citizens to purchase housing in the United States. The most preferred states for residential investment in the USA; Florida, California, New York, Arizona, Texas and Georgia stand out. It is possible to turn these real estate purchases into a profitable real estate investment by reselling or renting. Buying a home in the United States yields around 10% per year in dollars, after all taxes and expenses are deducted.
Citizens residing in other countries of the world are investing in real estate in the USA as purchasing houses in the USA provides an advantage against the exchange rate risk. It can also be considered as a good alternative to protect itself from fluctuations caused by excessive activity in the real estate market in different countries.
Along with the high real estate (especially housing) prices in some countries the length of the return on investment makes the alternative of buying a house in the USA more preferable. In general, the payback period of a house in some places takes many months but it all depend on the rental income. However, it is seen that the return period of housing investment in the USA is around 120 months. The constant appreciation of the American dollar against the currency of other countries in the exchange market makes it economically advantageous for individuals to spend in other countries what they earn by investing in real estate in the United States.
Investors who can prove their financial adequacy can obtain a long-term mortgage loan from American financial institutions for the purchase of houses in the United States. However, this loan amount is not more than half of the value of the house to be purchased, which is determined in the appraisal report to be prepared by licensed appraisers.
It is worth remembering that there is a possibility of paying some kind of finance tax in addition to the mortgage loan you use here. Investors who are determined to buy a home in America should not forget about tax rates. Because tax rates vary from state to state, but average around 1.5%:
If you buy an apartment in Manhattan for $ 1,000,000, you can become a New Yorker and earn approximately $ 80,000 annual rental income from this apartment. This is one of the things that should not be forgotten when it comes to buying a house in America.
Expenses in the process of buying a house in the USA
While property tax may differ from state to those who own a home in the United States must pay property tax regardless of which country they are a citizen of. If you want the tax issue not to be a source of stress for you in the process of buying a house in the USA, it is a great benefit to get expert support.
Another issue that comes to mind when it comes to buying a house in America is repair costs. Although the repair and renovation expenses of the house vary according to the user, it can amount to approximately 10% of the annual rental income. The frequency of change of the tenant is also one of the factors that may negatively affect the expected rental income. Natural factors such as the climate of the region where the residence is located and the humidity level can also determine the possible expenses.
It is important for the stability of cash flows to foresee that there will be administrative expenses for the follow-up of different issues such as the follow-up of rents, the performance of maintenance-repair services, the timely and complete payment of taxes, the prevention of physical conditions that may occur against the landlord in the change of tenants. Do not forget to note in your agenda that you will have to deal with unforeseen expenses when it comes to buying a house in America. Although it is an advantage when the building is for sale or renting, the fact that the building where the housing investment is made is fronted to places such as lakes, streams and forests, there may be extra taxes due to such privileges.
Housing purchase process and consulting in America
Although there is no obligation to work with a real estate agent for the purchase of a house in the USA, working with a real estate agent is of vital importance in terms of making things easier and preventing wrong choices. There are important advantages in using the alternative of working with a real estate agent, which does not cost any money for the buyer. When you decide to buy a home in the USA, if you choose to work with a real estate agent, you do not have to pay them. It will be sufficient for the real estate office with which you have a contract to apply to the agency that makes the sale. The seller pays a commission of approximately 5% of the sale price at the time of closing to the real estate agency that undertakes the sale of the property. Subsequently, the real estate agent who makes the sale shares this amount with the buyer’s agent.
Your real estate agent will send you a list of possible homes that meet your requirements and is updated daily. The buyer, who wants to buy a house in the USA, chooses the houses that he likes from this list or that he wants to see on the internet with his own means and notifies the real estate agent. The realtor makes the necessary appointments and shows all of the houses on the list to the buyer as soon as possible.
How can I notify a house seller my intensions to buy in the US?
The buyer sends a written offer for the houses he sees and likes from the list submitted by the real estate agency. Since every stage of the housing purchase in the USA is recorded, it is of great importance to make these matters in writing. Oral offers are not valid in the USA, every purchase offer must be made in writing. If the seller accepts the purchase offer as it is or asks for an increase, it must also give a written answer. Uncertainties about fixtures in the house should also be eliminated in the proposal.
Should I consult professionals when buying a house in the US ?
Consultancy services regarding the purchase of housing in the USA are important in terms of minimizing the investment risk. In order to eliminate the uncertainty about the future of the region where the purchase will be made, and to accurately predict the expected current expenses and expected return rates, accurate analysis is required together with the provision of correct information. If you intend to buy a house in the USA using a loan, the stages after the required appraisal report are completed by your lawyer/consultant.
Professional assistance of firm in purchasing houses in the United States
When an offer is made for a residence for the purpose of purchase or the offer is accepted by the seller, the review process of the contract by the lawyer begins. Attorney review period; The three-day period, which includes the options to revise, counter-offer, or reject the contract. In order to minimize this period, which is very important for the buyer, the uncertainties and risks, and to include favorable provisions in the contract, it is necessary to act quickly and take the right steps. In this vital three-day process; Your consulting law firm or solicitor must work quickly and efficiently to forward desired revisions to the seller’s consultants and to protect the buyer’s interests.
After the attorney review period expires, the buyer is obliged to deposit the amount agreed in the contract to the designated trustee. In many states, the security deposit is held by the seller’s attorney in an attorney’s trust account until the sale is complete. This amount is kept in escrow until the completion of the sale, and is released upon the conclusion of the sale.