As the heart of the international business and commerce center, the United States of America is a hot spot for many investors. Whether stock markets, consumer services, or real estate, the US offers a large variety of options and a reliable legal framework for native and foreign investors alike. The real estate market is especially attractive to for those who seek both income and capital growth in a robust economy. The abundance of land and the large housing market provides opportunities for real estate investors to purchase affordable residential properties and receive attractive monthly rental returns.
Buying a house in the US from abroad
Investing in a property that one has never visited might sound risky; however, many foreign investors in the US real estate market purchase a property remotely. 21st century technologies allow homebuyers to do research, arrange inspections, and have virtual experiences without ever stepping into the property. To simplify the process, below is a guide with important aspects to consider in the journey to purchasing a property in the US as a foreign investor.
The American housing market is competitive, and there are multiple investment hotspots. Start your research by identifying the states, cities, and neighborhoods which forecast economic and demographic growth. In most states, major cities have active projects to gentrify suburban neighborhoods. Such areas allow investors to enter the market at competitive prices and gain substantial returns as the neighborhood transforms. Other considerations are cities chosen by large corporations to build their new factories or house their headquarters. These investments can lead to growth in population by migration of employees thereby increasing the demand for rental properties in the vicinity.
Research the market
After identifying a few possible locations, start browsing the markets to create a pool. There are numerous real estate brokers and listings websites which offer single-family homes and apartments. When buying a property in the US remotely, one will heavily rely on digital information provided by the sellers. Some of the important features to consider are the photos and videos, residential details, neighborhood ratings, and contingency status. Exclude the listings lacking this information and have a focused shortlist of potential properties.
Create a shortlist
The shortlist should include the listings with multiple photos that showcase all the rooms, front and backyards, and external views. Since the photos can be edited and enhanced, consider listings that also include videos and/or virtual 3D tours which will provides a better sense of the experience of future tenant. Once a shortlist of properties has been made, it’s time to evaluate their surroundings and zip code.
Determine your criteria
Tenants consider numerous factors about the neighborhood when choosing a rental, The more the investment satisfies the availability to these factors, the more likely one is to receive fast and profitable returns from the property. The general safety and socioeconomic status carry the utmost importance. Furthermore, accessibility to local services like public transportation, hospitals, and groceries are essential features that ease the everyday experience. Families with children put an emphasis on the quality and proximity of the schools in the vicinity. Moreover, availability of leisure locations like parks and recreation centers can make an investment more attractive to tenants that have difficulty deciding between multiple options.
Utilize human power
When purchasing a property remotely, one should know all details about the house. Hiring a real estate agent to visit the property and offering a virtual tour over a video call will make it possible to view the property from a resident’s perspective giving an opportunity to ask about small but important details like natural lighting, construction works etc. Their professional knowledge of the key matters when buying a property may prove very useful. Furthermore, enlisting a home inspector to analyze the property’s infrastructure and construction is necessary. This assessment is crucial to protect against any invisible risks before the deal is finalized. Finally, as an investor purchasing remotely or not, a home appraisal is necessary to evaluate the property’s market value.
Financing your property in the US
Although many non-Americans believe that it’s impossible to purchase a property in the US, there are no such restrictions against foreign investors. However, Non-American resident investors are unserved by American banks for the purpose of receiving a mortgage for the property They are unable to underwrite the credit of foreign investors and will often demand many documents and then often reject the application even when everything is in order. At USA Mortgages we solve this problem by providing mortgage loans to foreign investors based on their financial status and credit rating in your home country. Talk with one of our representatives and let us guide you to become a real estate investor in the United States of America.