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Foreigners Buying Housing in America and Its Advantages

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Foreigners Buying Housing in America and Its Advantages

It has become widespread all over the world for non-American citizens to buy housing in America. The most preferred states for housing investment in the USA; It stands out as Florida, California, New York, Arizona, Texas and Georgia. It is possible to transform these real estate purchases into profitable real estate investments by reselling or leasing. Buying a house in the United States provides an annual income of around 10% in dollar terms after all taxes and expenses are removed. The fact that citizens residing in Europe invest in real estate in the USA by purchasing a house in America provides an advantage against the exchange rate risk.

With high real estate (especially housing) prices in Europe, the length of the return on investment makes the housing purchase alternative in America more preferable. For example, the rental income due to a turnaround in housing in Turkey is more than 200 per month. However, it is seen that the return period of housing investment in the USA is around 120 months. Having constantly gaining value against the US dollar, the Turkish lira has won in America for people making real estate investments in the US spending in Turkey makes it economically advantageous.

The investor, who can prove his financial competence, can get a long-term mortgage loan from American financial institutions for the housing purchase in America. However, this loan amount is not more than half of the value of the house to be purchased as determined in the appraisal report to be prepared by licensed appraisers.

It is worth remembering that you can also pay some kind of finance tax for the mortgage loan you use here. Investors who are determined to purchase housing in America should not forget the tax rates. Because the tax rates vary by state, but the average is around 1.5%:

If you buy an apartment in Manhattan for $ 1,000,000, you will be a New Yorker and you can get around $ 80,000 in annual rental income from this flat. This is one of the things that should not be forgotten when it comes to buying housing in America.

Expenses in the Housing Purchase Process in America

Although the property tax may differ from state to state, those who have a home in America have to pay real estate tax regardless of which country they are citizens of. If you want the tax issue not to be a source of stress for you in the home purchase process in the US, it would be beneficial to get expert support.

Another issue that comes to mind when it comes to buying a house in America is the repair costs. Although the repair-renovation expenses of the house vary according to the user, it can amount to approximately 10% of the annual rental income. The frequency of tenants’ changes is also one of the factors that may negatively affect the expected rental income. Natural factors such as the climate of the region where the house is located, humidity level may also determine possible expenses. It is important for the stability of cash flows to foresee that there will be management expenses for the follow-up of rents, the execution of maintenance-repair services, timely and complete payment of taxes, and the prevention of physical conditions against the landlord during tenant changes. Do not forget to note in your agenda that you will have to cope with unforeseen expenses when it comes to buying housing in the USA. Although the building where the residential investment is made has a façade to places such as lakes, streams and forests, it is an advantage when resale or leasing, extra taxes may be incurred due to such privileges

Hello, I have been working as an investment consultant and author for more than 20 years. I love what I do and I have enriched everyone around me. A lot of money is not important, the main thing is how you use the money.

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