Buying in the US

Whether you are looking to move there permanently, looking for a holiday home or investment in the US, the first thing to consider is location.

Orlando offers a vast array of visitor attractions and has a vibrant nightlife, whilst the famous beaches and the fast-action lifestyle attract many to Miami. The Atlantic east coast is becoming increasingly popular with investors, and if you are looking for a more relaxed pace of life, consider looking along the quieter Gulf Coast.

Use of the UK based US property specialists to provide you with detailed information on where you are considering buying, and comparative market data on property in that area.

Once you are ready to make an offer on a property, get hold of as much detailed market information as you can. Try to get prices of recent property transactions in your selected area. This will provide you with a firm basis upon which to make an offer.

Decide if you want to buy a pre-owned property or if you are happy buying off-plan.

A pre-owned property can often be purchased more quickly, completion usually takes between thirty and sixty days, though this varies from State to State.

A new build or off plan property can take up to a year to complete but often offers you the chance to buy at an attractive discount, and you get to select your own choice of decorations and fittings. Financing new-build can be varied too. Specialist brokers in the UK have access to deals only requiring a 5% deposit before building – with no other payment until completion; this can represent a significant saving as other routes may require substantial stage payments.

As with any property transaction, though particularly in the US, it is important to be aware of the costs and taxes involved and those that will be incurred in the subsequent running. These would typically include:

• Mortgage application fees
• Mortgage tax stamps
• Appraisal valuation fees
• House Inspection fees
• Title fees (an insurance policy that protects a lender's or owner's interest in the property from other claims of ownership)
• Insurances: property and household items
• Property tax: depends on value of property
• Homeowner Association fees: if applicable
• Pest Control
• Water bills
• Electricity bills
• Lawn and Pool care if applicable
• Phone charges
• TV cable rental

There are complex tax implications of buying and renting property depend upon your individual circumstances – you should seek advice from both a UK and US tax advisor.

When it comes to financing, The minimum Overseas Investor deposit requirement is 20%, however it can be up to 35%. Generally, the higher the deposit the lower the mortgage interest rate. A number of different mortgages are available, including those though based either in the UK or the US.

If you are looking for buy to let opportunities in the US, or plan to rent out your property for some of the year, you should be aware that there are strict ‘zoning’ requirements in most areas. Zoning regulations stipulate the length of period properties can be rented out for. Some areas allow two week rentals but others may prescribe a minimum rental period of four weeks or even six months. This can limit the type of people who will rent your property.

Fuel USA