Australia is one of the eight countries where there’s high interest for investing in a real estate on the US housing market. This means that lured by the bargain prices and the stable economy, more and more Australians are considering this option.
If you are considering the option of investing in a property for sale in the USA, but you have little or no experience as a foreign real estate investor, the first thing that you need to do is to hire a professional adviser. There are specialized agencies that will take you through all the legal procedures included in the process of investing in a property in the US housing market. However, before you make your final decision, take a look at the most important things that you as a foreign investor should know and do in order to buy a U.S real estate.
Determine the purpose of the property
First thing first, before you start your quest for a property for sale in the USA you need to determine how you will use the property. In fact, to buy a property in the USA, you don’t need a citizenship, but buying a property in the country doesn’t provide you any exclusive rights and privileges that are not included in your visa. For that reason, depending on your status, you need to determine whether the property that you’ll buy will be used as a vacation home, business residence, long-term residence or a home you can gain interest from by leasing it.
Learn how the US housing market works
When it comes to the legal regulations in respect of buying a real estate in the USA, what you need to know from the very beginning is that the rules vary from state to state. This includes the rules and methods for making a contract, the fees that you need to pay for the legal advisers, resolving potential legal issues and much more. For that reason, you need to learn more about the real estate buying regulations for foreigners in the specific state where you plan to invest in property.
As a foreigner, you can obtain the needed financing for buying a property in the USA with minimum of a 30% or 40% down payment (depending on the regulations in the specific state). Also, in most of the states foreigners have an obligation to deposit $100,000. The loan limit set by most of the banks is usually higher than $1 million. These are some of the general rules for financing when buying a property for sale in the USA. For more concrete information you should consult with your real estate agent.