How difficult is is to purchase a place in the States? Specifically in Florida. Things are pretty cheap there and I'm thinking of buying a house there. Just for personal use not to rent.
Buying Property in the US
- Thread starter goalie000
- Start date
It's actually pretty damn easy! Just picked up a 1 bedroom condo about a mile from the gulf beach and like you said, it's dirt cheap now. There's a ton of short sales because of the markets down there, but from everything I've heard, they're pretty much a waste of time. Just take a look for properties and talk to a real estate agent. The only issue is that it's almost impossible to get mortgage financing down there so as they say, cash is king. Either that, or just fund it from a line of credit secured on your home property here. Happy hunting!
Very easy but like the others have said, very difficult if not impossible to get financing without a US credit history. Way easier just to use a Canadian line of credit. Beware the little nuances like not using a lawyer for closing and how title insurance works. Also if buying waterfront property, check out your insurance options. Some of the quotes I received had premiums as high as the property tax.
Deals are certainly to be had. But property in the nice areas (west palm, Naples, Jupiter,etc) still aren't cheap.
Deals are certainly to be had. But property in the nice areas (west palm, Naples, Jupiter,etc) still aren't cheap.
Very easy, you pay for it and it is yours. It turned out that property taxes, insurance (including hurricane), and yearly maintenance when we were not using it will cost much much more than we would have guessed. For some properties those costs over 5 years were about the same as the purchase price.
Since something like 1/3 of the properties in the area we investigated were still worth LESS than their mortgages the experts assume another correction is coming soon. So we decided to wait till the next market crash to buy one.
Since something like 1/3 of the properties in the area we investigated were still worth LESS than their mortgages the experts assume another correction is coming soon. So we decided to wait till the next market crash to buy one.
Obtaining financing in the US may be a problem. Also, look at the other costs, condo fees, maintenance, a security system for when you are not around, insurance and property taxes. Factor them in when deciding what you can afford. Research the neighborhood. The decline in housing prices means that a lot of upper middle class neighborhoods are now becoming lower class neighborhoods.
Sheesh, nothing but sunshine and butterflies in your prognostications, eh?
It also depends on where you are buying. Waterfront property holds value better (but is a bitch to insure).
Interesting point about the mortgage ratios. Keep in mind that it doesn't necessarily mean that a crash is forthcoming. Many of the wannabe players have already been washed out. Rates are so low that carrying a vacation property isn't very demanding on cash flows. Plus, mortgage interest (homestead or investment) is deductible down there. The risk becomes much more real if and when the Fed increases rates.
Thanks for all the info, some very good points made!. Definately would be a cash purchase. Looking at something close to the water but not right on it. House rather than a condo.
www.trulia.com
If you choose to dabble in short sales or foreclosures, make sure you do your homework and get to know the rules.
I found that the deals were not as great as I expected. Shortsales and foreclosures are cheaper, but I found that (especially with foreclosures) the properties tended to require so much repair that the discount was insignificant compared to a normal sale (if you shopped around and remained patient for the right deal).
If you choose to dabble in short sales or foreclosures, make sure you do your homework and get to know the rules.
I found that the deals were not as great as I expected. Shortsales and foreclosures are cheaper, but I found that (especially with foreclosures) the properties tended to require so much repair that the discount was insignificant compared to a normal sale (if you shopped around and remained patient for the right deal).
Well getting a small island in the keys is pretty much sunshine and butterflies
The only caveat is be willing to just flush the money. Make certain you will not need it.
re interest rates, "if" is an interesting comment. Obama being re-elected pretty much guarantees it within the next 6 to 7 years. 20 trillion in debt? If you use miles, you can get to another star with 20 trillion miles.
Other countries are already positioning themselves to demand higher interest rates to lend the Americans more money.
It is a time of great opportunity for some, and great loss for others.
If you die there as a Florida resident though your heirs can watch how much of your nationwide assets Florida wants a generous helping of in death taxes.
Really? Do you have a contact? I bank with TD up here but was told that Florida is a separate operation following
US rules. No deal for me.
Not true. Florida offers a substantial discount on prop taxes if you qualify for the homestead exemption. We pay the same as a local who doesn't qualify...like say for a cottage or 2nd home.
I opened an account with TD Bank USA also, and last time in there, they did ask me if I wanted a credit card or line of credit knowing I was Canadian. I didn't take them up on the offer, but it must be something new because last year I asked for one and was told they couldn't get one through so the banking regulations must have changed slightly.
And yes, you're right about the taxes. Florida residents can apply for a Homestead exemption which gets them reduced property taxes, but outside of that, we pay the same as other Floridians that have second homes.
careful which condo you buy... you get what you pay for. I saw on new that many condos used drywall made in China, which are infused with some unhealthy materials like asbestos or likes that could lead to cancer and respiratory illnesses. xP The people who bought the units have no one to help them since the developers went bankrupt etc. There is literally no one to maintain the properties, while people are afraid to even move in because they don't know if the building is safe.
