If you're brand new to the US real estate market, then buying real estate in USA will not be an easy process at first. While you can find some great deals in the US market today, there is still the possibility of making some costly mistakes. Eric Ca...
If you're brand new to the US real estate market, then buying real estate in USA will not be an easy process at first. While you can find some great deals in the US market today, there is still the possibility of making some costly mistakes. Eric Campion Framingham is best realtor in Framingham, USA. You can contact me for buy and sell your property.
The housing crisis has left the US property market in turmoil with dirt cheap prices on foreclosed homes all over the country, opening the door to foreign investors. People, who are used to one of the most expensive real estate markets in the world, are flocking to the US market at record numbers. The most common strategy for foreign investors is purchasing distressed properties through some kind of short sale deal from the bank. Many are enjoying returns from 10% to 15%!
Oops! This image does not follow our content guidelines. To continue publishing, please remove it or upload a different image.
Sounds easy, right? Wrong! The truth is that investing in real estate across the globe is actually very complicated.
These are the top questions that Eric Campion Framingham, Chief Investment Officer at US Invest has been asked.
Before you make the jump into the US real estate market get the answers to these important questions.
1. How do I know if it's a fair price? Understanding the market: If you are new to the US property market, you may not realize, it's not as easy as it seems on the surface! Just because a house is selling at $30k, it may not be a bargain. Home prices are determined according to the time it takes the property to sell relative to its value. A house selling at $30k, because it is in a community with low demand, may actually only be worth 20k.
2. How do I find the right property? Research: So once you understand the market, next is research. This requires access to council information, planning and development, economics information, past trends and affordability matrices. Really, there is so much research to be done that most don't have access to this sort of info, or the time and experience to conduct a thorough analysis. Here Eric Campion Framingham recommend getting professional help or at least getting access to reliable market information. Just typing addresses into a search engine is not enough.
3. What are the tax implications? Understanding Tax: Tax is a big one. No one wants to pay too much tax. But, it is literally impossible for the average person to learn a foreign state's tax codes in a short period of time. It's essential you have the right tax advice from a US professional and that can be expensive. An average accountant in the US charges anywhere from $100 to $200 dollars per hour. If you can find an alternative way to get tax advice, such as a property management company, it might save you some money.
4. What is HOA? Be Careful of HOA: This stands for Home Owner Association. Often, condos look like a wonderful investment. HOA fees incorporate the costs of maintaining a property. If it has facilities such as a pool or gardens, this can be expensive and eats into the income you see at the end of the day from your investment. Many sharp sales people out there don't properly show HOA costs in yield calculations.
5. What types of insurance do I need? There are such a broad range of insurers out there, you really need on the ground assistance to ensure firstly that you're not getting ripped off (by a broker or otherwise), also that your insurance covers what you need. Fire, theft, disaster etc. are just some of the risks that need to be covered. Foreign investors tend to invest in coastal markets such as Florida, which has a big hurricane season. Flooding insurance in these areas is a must!
6. How do I protect myself from a legal standpoint? There are 50 states and 50 different markets and laws to with them. The US is a very litigious nation and so good legal council is crucial to your success as a foreign investor. The best way to go about this is setting up an L.L.C, which stands for "Limited Liability Company." You can do this through an attorney and even some property management companies.
Oops! This image does not follow our content guidelines. To continue publishing, please remove it or upload a different image.
7. How do I get reliable tenants? Unfortunately, there is no easy answer to this question, except that you have to put yourself in the best possible situation. Rental demand in the US is booming across the board but reliability depends on the community your property is in. Areas with high unemployment and crime rates generally mean bad tenants. Ideally, you want to own a property in a nice community with a family renting. Families tend to stay in the same home for a long period of time.
There are companies that offer research, accounting, legal, and property management services. There are also many companies who claim to do so but wind up charging ten different fees! At the end of the day, you have to do your research and make educated decisions.
Eric Campion Framingham is an Investment Adviser for Framingham Invest, a company that specializes in Framingham property investment for USA People. I also help you purchase exclusive properties with the best possible returns and the lowest amount of risk.
