USA Property Market

USA Mortgages

Fortunately, the US mortgage industry is reasonably advanced offering a range of different options for foreign purchasers. However, any mortgage obtained in the USA will be in US dollars, which can cause budgeting difficulties for those whose income is in sterling or some other currency.

USA Property Market

Get a Free Quote Introduction to the USA
The USA is such a diverse country that the process of buying a property can be hugely dependent on where the property is located and the laws that are applicable to a particular state. In the USA, a federal legal system governs the entire country, but there are also individual state laws that apply to each state and these vary across the country.

Useful Facts about the USA Property Market
With more than 297 million residents and the vast majority falling into the 15 to 64 age group, it is easy to see why the property market in the USA remains buoyant throughout the cycles of the economy.

The US authorities are particularly wary about issuing visas and although it is easy for visitors to stay for up to 90 days a year in their holiday home, any periods that exceed this time-frame will require a visa, which is both time consuming and often costly to obtain. For this reason, most property investors tend to visit their US property infrequently, if at all.

The Different Property Options
Those intending to purchase property in the USA should be aware that there are actually two very different approaches available to the property investor: the holiday home route (the boom that has recently hit Florida and continues to sweep across popular holiday destinations is attracting widespread outside investment) and the longer term rental option in areas that are likely to see significant appreciation in property values.

Both approaches have their merits and risks. Some holiday home regions have seen a considerable boom lately, particularly with the favourable exchange rate allowing investors to purchase luxury properties that they would not otherwise be able to afford. This has led to saturation in some markets and a lower rental income than was originally anticipated. Nevertheless, there are still some very good investments to be had in locations such as Florida; they are simply harder to find than they were a decade ago.

Buying a longer term rental property may seem like a better option, particularly as renting is more popular generally in the USA than in the UK and there is, therefore, a larger pool of available tenants keen to find suitable properties. Bear in mind, however, that following the long-term rental strategy requires a sound understanding of the US property market. For example, different regions of the USA and even neighbouring streets can offer very different propositions. Without local knowledge, this type of investment can be very risky, especially for a new investor.

Summary
Bullet Point The USA is a large and booming property market that appeals to many investors looking for long-term security;
Bullet Point many property investors in the US opt for a holiday home in one of the popular holiday destinations; this market is somewhat saturated but can still provide some superb opportunities;
Bullet Point longer term rentals may offer a better proposition, provided that you obtain local advice to ensure that you know the area and the local market very well before taking the plunge.

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Typical Interest Payments

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Discounted Rate

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2.99%

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3%

 

 

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