Buying a Property in U.S.A
- Canadians are one of the largest groups of foreign buyers who invest in U.S Real Estate.
- If you decide to invest in U.S Real Estate, you must consider health care and insurance issues before taking a decision.
- It is always a good idea to consult with financial and legal professionals in the U.S who understand your needs and situation.
- One must consider long term financial plans before making a decision.
- Purchasing a vacation home or an investment / rental property can be an option.
- For an investment / rental property one must consider if property management, tenants and filing tax returns come with the property.
- One must also consider about title insurance, general insurance and maintenance of property.
- Preference of a state and city are very important. You must do your home work before deciding where to invest. Florida, Arizona, Texas and California are few of the options.
Following are some purchase plan items to consider:
1 – Objective
- To generate rental income (buy, hold and rent)?
- To realize a potential short-term gain (buy, fix and flip)?
- A vacation / lifestyle property?
2 – Location
- Which cities or states are your first and second choices, and why?
- Do you have family or friends in the areas you have identified?
- Are the choices driven by sports amenities, such as golf, sports fishing, baseball spring training, tennis, boating?
- How will you get there, What is the ease of transportation, including proximity of airports, flight availability, ticket price?
3 – Budget
- What amount can you afford and / or would you like to spend?
- Will it be cash purchase, a mortgage, or a line of credit?
- What is your financial plan for the next three to five years?
- What is your long term plan?
4 – Mortgage / Financing
- Equity takeout from Canadian asset?
- Purchase in U.S dollars?
- Mortgage arranged through a Canadian or U.S lender?
- Amount of down payment?
- Source of down payment?
5 – Timing
- When would you like to buy, and why this timeframe?
6 – Recreation and amenities
- Is there accessibility to activities you like, such as tennis, golf, swimming, cycling, country club, boating, fishing, skiing, hiking, shopping, dining, or arts and culture?
- Do you have teenage children or grand children, parents, grandparents, or siblings? What activities have you identified for them?
7 – Type and size of property
- Condo, townhouse, detached, link?
- One – storey or two – storey?
- Number of bedrooms and bathrooms?
- Gated or ungated community? Security?
8 – Ongoing maintenance
- Projected costs (maintenance, property tax, insurance, utilities, mortgage interest costs, condo fees)?
- Property manager or self – managed?
9 – Personal use
- Will you be renting the property part time?
- How often do you plan to use the property?
- Time to retirement?
- Share ownership?
10 – Health care
- Ease of access to health care?
- Proximity to state – of – art health equipment and medical professionals?
- Can you qualify for medical / health insurance? What will health / medical coverage cost?
Source: How to buy U.S Real Estate by Kimberley Marr