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Buying a property in the USA

Why the USA?

Uploaded July 2011

There are plenty of good reasons for buying a property in the USA, but a similar culture and the lack of language barrier has to be the biggest benefit. In addition, a host of regular flights, good weather, even better shopping, good service, brilliant facilities and amenities, a warm welcome and a favourable exchange rate all amount to a popular second home destination.

Likewise, if you have an eye for a bargain, there are plenty of good deals to be had at the moment. It was the American sub-prime mortgage market that caused the credit crunch to begin and, as a result, there are plenty of bank owned properties available for a reasonable price. You will have to harden your heart if you are after one of these foreclosure homes however, as buying another person’s home when they had no intention of selling can be a difficult situation no matter what the price tag.

There is also no telling when the property market in the USA is likely to recover, and borrowing on an American home may still prove to be difficult. So, ultimately, if you are considering buying a stateside pad then ensure that it is because you want to enjoy the benefits that the country has to offer, and not because you are hoping to make a quick buck.

Popular buying locations

Without a doubt, the most popular state for British buyers is Florida. This southern state offers a wealth of entertainment from the very young to the young at heart, and it boasts a brilliant climate.

Whether you are after a holiday home, a retirement property or a long-term investment, Florida has something for everyone. The beaches and amusement parks make it ideal for families, while dedicated retirement villages attract the older visitor. Fabulous golf courses are the icing on the cake, and the combination of the above means that you should never have a problem renting your property out should you choose to do so.

There is, however, far more to the USA than the Sunshine State alone. Vibrant cities such as New York, Los Angeles and Las Vegas all have something to offer, while the well groomed ski resorts in Colorado appeal to the snow birds.

The buying process

The first major difference that you will notice when buying real estate in America is that all properties are listed on the country’s Multiple Listing Service (MLS). This means that there is plenty of transparency when looking for a home, as it’s easy to see every single property that is currently available in a particular area without having to shop around numerous agents, or realtors as they are known stateside.

Once you have found your dream property, the actual buying process isn’t unsimilar to Scotland. Once you have had your survey and agreed a price, then you have committed to buying the property in that exact condition – meaning that there is no changing your mind at a later date. This also removes the problem of gazundering.

Once the contract has been signed a closing date will be established. The same as a completion date, this is usually set 30 days from signing the contract. In the meantime it’s a good idea to secure title insurance, as this will protect you against any potential problems relating to the property’s title.

Legal issues

You don’t need a visa or residence permit to buy an American home, but you will need one in order to use it on a full-time basis. Obtaining residency in the USA is notoriously difficult, and so it may be wise to purchase with just holidays in mind. If you are planning on staying for 90 days or less at a time then you don’t need to worry about obtaining a visa as long as you have an electronic passport.

If you do wish to stay for longer however, then many people simply nip to another country for a short break and then come back in order to start another 90-day stint. This is by no means encouraged and, while not illegal, shouldn’t be something that you undertake on a regular basis.

If you have your heart set on living in the USA permanently, then you could try your luck with the Green Card Lottery. The American government issues 50,000 green cards on an annual basis via the Diversity Immigrant Visa Program but, as applicants are selected at random by a computer, this isn’t a route worth banking on.

More pages

Page 1: Why the USA?
Page 2: Finance
Page 3: Health and education

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