BUY A CONDO IN THE US FOR RENT?
The demand for rental apartments in America is constantly growing. It is not surprising that many investors choose to buy and rent residential and commercial real estate in the USA as an additional source of income.
PECULIARITIES OF BUYING REAL ESTATE IN THE USA BY A FOREIGNER
Anyone can buy an apartment in the USA, regardless of where he or she is located and resides. Features of buying an apartment in the USA:
- THE TRANSACTION CAN BE DONE REMOTELY: YOU DO NOT NEED TO COME TO THE USA.
- YOU DO NOT NEED A US VISA TO BUY AN APARTMENT. The process of selecting an apartment and registering the transaction usually takes no more than 2 months.
HOW TO BUY AN APARTMENT WITH CASH?
Purchasing real estate in the United States with cash is a fairly simple procedure.
- FIRST, IT IS RECOMMENDED TO FIND A REALTOR AND A LAWYER, ESPECIALLY IF YOU ARE NOT GOING TO COME TO THE U.S. TO INSPECT THE PROPERTY AND CHECK THE DOCUMENTS. SPECIALIST WILL CONTROL THE TRANSACTION AT ALL ITS STAGES
- STUDY THE MARKET, FIND A SUITABLE OPTION IN TERMS OF PRICE, AREA AND LOCATION - THIS CAN BE DONE ON SPECIAL SITES LIKE ZILLOW, TRULIA, MLS
- AFTER YOU DECIDE ON THE CHOICE, THE TRANSACTION IS EXECUTED. IF YOU ARE NOT IN THE U.S., YOU CAN SIGN INTERMEDIATE DOCUMENTS ELECTRONICALLY, AND THE FINAL - AT THE U.S. EMBASSY OR IN SOME CASES - USING AN ONLINE NOTARY.
Payment for the purchase of real estate is made through the bank to the escrow account of a special company in America - the title company. It is also engaged in checking the purity of the title documents and guarantees that the property is not under encumbrance. After the transaction is closed, the title company transfers the money to the seller.
HOW TO BUY AN APARTMENT WITH A MORTGAGE?
For foreign nationals in the United States have their own mortgage terms with interest rates starting at 5%. However, in fact, for foreigners with no credit history, the rate will be around 7-8%
Getting a foreigner a mortgage in the US is difficult. Before going to a realtor to find a home, it's a good idea to make sure you'll be approved for a loan.
Factors that affect whether or not you will be approved for a mortgage:
- CREDIT SCORE
- OCCUPATION AND INCOME
- HOW LONG YOU WORKED AT YOUR LAST JOB
- WHAT TAXES YOU PAY AT THE END OF THE YEAR
- DOWN PAYMENT AMOUNT
- CONDITION OF THE HOUSE/APARTMENT YOU WANT TO BUY (IF YOU HAVE ALREADY DECIDED).
HOW MUCH PROFIT DOES A LANDLORD MAKE WHEN RENTING A PROPERTY TO A TENANT?
It depends on the cost of rent, which in turn depends on the state, city, and neighborhood where the apartment is located. The most profitable way to rent out a property for short-term rentals, for example, through Airbnb, is to expect a 10% net profit per year on the value of the property. However, some apartments are not allowed to be rented out for a short period of time, such restrictions are set by the building in which the apartment is located. Usually the lease is for a year, and less often for six months. The yield in this case will be from 2.3% to 7% per year.
This article is intended for informational purposes only and does not constitute legal advice. It should not be relied upon as a substitute for advice from qualified legal counsel familiar with your specific circumstances. No attorney-client relationship is created by the provision of this information.