- Real Estate
Guide on how to buy property inUSA
After the long volatile market condition in the US, housing market is slowly paving a way to a huge comeback. The real estate business in the US has become very lucrative since the sudden slide in US dollars. People all over the globe are eager to own their dream homes in the USA.
For Americans, buying a property may be a risky venture but foreigners are taking deep interest in the housing market. Statistics show the major reason for an increase in the buying power is the fact that unemployment has gone down from 10. 4% to 8.3% in last 12 months; there are 1.9 million new jobs, created in the American market.
Now the big question, which naturally arises in an investors mind is, how to buy property in USA? There may be many checklists, which you have to follow; here are some points, which can be of help -
If you are looking for a residential property and thinking of filing a return, calculate your substantial days of stay in the country. After calculating your presence test, you must decide whether you have to file 8840 Closer Connection Statement or 1040 Return.
Another rocky path, which you will have to face, is getting a mortgage for your property. The rules have become quite stringent US after the huge mortgage crisis. Many banks and financial institutions do not easily lend you, especially if you are a foreigner. However according to experts some good options for you are The Harris Bank owned by Bank of Montreal or TD bank and the Centura Bank owned by Royal bank. This is indeed good news but you will have to shell 30% down payment.
If you are a Canadian citizen and planning to own a lush apartment in New York, you will be required to submit mortgage statements of your Canadian property. How to buy a property in USA is not a major concern, the long process before the actual purchase takes place is the most difficult bit. Other documents, which you will require to produce in originals, are employment details, bank and asset statements and Canadian tax returns. Financial experts advise people to arrange for finance in Canada and pay hard cash in the US. This solves a major purpose; you do not have to worry about what the future exchange rate will throw at you.
If you plan to do cash down for your new house in the USA, make sure that you keep your hard earned cash for at least 90 days in one bank account as it takes at least 45 days for money to clear and sale to close at the same time. It should show that you are not involved with any kind of money laundering.
Other tips on how to buy property in USA
Decide on a location so that you are comfortable with the climatic conditions of the place.
If you are planning to rent your property, look for properties that would draw attractive rentals. You could look for a location near a university or holiday spot, so you are assured of a decent income.
Look for other attractions like stores, transport facilities, central heating and other such service.
If you are looking for a house in an urban area, ensure the neighborhood is safe and the crime rate is negligible.
After making a wise purchase, buy a good home insurance, which covers liability, theft, fire and other natural calamities. All these points are major highlights of your to-do list of "How to Purchase Property in USA".