Quiet ranch in Texas, golden youth in Beverly Hills, adventures in sinful California or the never-ending hustle and bustle of life in the "Big Apple", where even the apple has nowhere to fall - to each their own American dream. Distant states seem like the perfect place to start fresh. Technological development, abundant food supply, and many other factors make them attractive for immigration, and a growing real estate market - for investments. We have decided to help those who have the American dream in their hearts and tell them what steps need to be taken to purchase real estate in the USA.
Who and what can buy in the USA
Real estate in the USA is available for purchase to everyone who wants it. Well, almost everyone... Some restrictions apply limitations, thanks to which the country seeks to protect itself and its citizens from possible adversaries. As for Ukraine, we can safely buy residential and commercial real estate. If you are looking for a home for your family or a property for future use rental please pay attention to the following categories:
- single family house
- townhouses
- Condominiums (condos) or apartments in multi-family buildings.
- cooperatives (co-op).
You will have full control over your property only when buying a private house. In other cases, we are talking about a homeowners' association, which is similar to our typical HOA, although it has slightly more authority.
In the USA, there are no restrictions for the majority of foreign investors, so you can safely buy and register real estate as an individual or legal entity. Experts recommend the latter option, as it will help avoid taxes when gifting or transferring the property through inheritance. Additionally, legal entities carry slightly less liability in case of accidents.
How to find real estate for purchase and realize the American Dream
Property search in the USA starts with selecting a property. To do this, you can independently explore the catalogs of available options on popular portals such as:
- ZipRealty;
- Trulia;
- Redfin;
- Zillow.
On the website, you can also specify your budget, transaction deadlines, and contact information to be the first to receive information about a new suitable property. Once a house that meets the specified parameters appears, the realtor handling its sale will be automatically notified of your interest and will start negotiations. Yes, it's the realtor. Many mistakenly believe that the contacts of the owners are indicated in the advertisements, but in the USA there is an unwritten tradition - for greater convenience, all real estate transactions involve intermediaries. Of course, having a realtor is not mandatory, but it has several advantages for the buyer:
- access to a single MLS (Multiple Listing Service) database, which allows you to view listings from all platforms and save time;
- assistance with selection and inspection of options;
- Negotiating with the owner and bargaining;
- search for a technical inspector, lawyer, and other specialists whose services will be needed.
Refusing the help of a realtor is silly and pointless. He will become your indispensable consultant and do it completely for free. Of course, no one will work at a loss, it's just that in the USA it is customary for the cost of a specialist's services to be immediately indicated in the MLS and paid for by the seller, as the more interested party in the transaction.
Home buying assistant experts
In addition to the realtor themselves, you may also need their colleagues. The list of them may seem somewhat long, but don't you want to buy a really good house? Don't rush into decisions and carefully check everything to achieve the desired result. And they will help you with this:
- A technical specialist will inspect the house, evaluate the condition of the utilities and wiring so that you do not buy yourself unnecessary problems.
- The mortgage broker will find the optimal loan terms if you do not have the necessary amount on hand.
- A lawyer or attorney will competently draft the contract, ensure the legal purity of the transaction, register the real estate, and issue the certificate of ownership.
- An accountant will help with the preparation of the annual tax return if you plan to rent out real estate.
Do not overestimate yourself and do not take on all the tasks by yourself. Everyone should do what they are good at, so trust the specialists.
💡 Consultation with a lawyer may be useful if you want to obtain a residence permit. Ordinary residential real estate for personal use will not help you with this, but it is possible to apply for an EB-5 visa by investing in a property worth more than $1.05 million. This could be a hotel, shopping center, or apartment building. Obtaining a visa is possible on the condition that you provide permanent employment for at least 10 people, and the business itself is not unprofitable.
Why do Hank Moody and other investors choose California?
As of August 2024 California is one of the most popular states for real estate investment. On average, property prices have increased by 8.7% in just one year, with the current average price reaching $908,000. Demand for homes over $1 million has grown by 15.5%, while for properties priced below $500,000, it has dropped by 12.2%. Investors are focusing on luxury mansions, which is reflected in the statistics - 36.6% of total sales are homes priced at $1 million and above.
As for specific areas, here is how property prices have changed compared to 2023:
- +4.3% in San Francisco Bay;
- -8.4% in The Far North;
- -27% in Del Norte;
- -33.6% in Santa Barbara;
- -35.3% in Mendocino;
- -38.5% in Tehama.
Local real estate agents advise paying attention to areas where prices have "plummeted" the most. This decline is only a temporary phenomenon, so you have a wonderful opportunity to purchase real estate in one of the most sought-after states in America at a favorable price. In addition, sellers in these locations are more open to negotiation, so a skilled real estate agent can negotiate a good discount.