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For Estate Planning, Estate Administration And Disputes

5 elements to consider before buying real estate in the US

On Behalf of | Mar 11, 2024 | Real Estate Law |

The United States has a dynamic and diverse real estate market, attracting foreign investors and aspiring homeowners. While the process may be comparable to buying property in their native country, international buyers should note five factors that can make a smooth and successful transaction more likely

Financing obstacles

Securing a mortgage can be the most challenging task for foreign buyers. Traditional lenders frequently need a U.S. credit history, which most international purchasers do not have. Further, in New York, buyers must make a down payment. The amount is generally around 20 percent of the purchase price, but it can be more or less, depending on the buyer’s financial resources and the type of loan they received.

Taxation maze

Before purchasing any residential property, international buyers must understand the state’s tax laws. It is a complex topic involving potential tax liabilities on rental income, capital gains taxes when selling and other estate tax consequences.

Legal elements

Purchasing real estate is as much a legal process as it is a financial one, so professional guidance can be crucial. Professionals may thoroughly check land titles and deeds to establish clear ownership, discover any zoning restrictions affecting plans and walk buyers through the complexities of purchase agreements and closing procedures.

Market familiarity

Researching the local real estate market entails more than just prices and trends. Factors like the nuances of the neighborhood, property history and potential red flags in the area can influence buyers’ decisions and negotiation strategies.

Visa considerations

The United States offers many types of visas to international parties, and their visa must allow them to own property in the US, as certain visas may have limitations. Therefore, consultation with an immigration professional is advisable to minimize difficulties.
By carefully analyzing these variables, foreign nationals can more easily navigate the U.S. real estate market and purchase safely and legally.