FAQ
[expand title=”Why should I buy property in the US?”]
USA is the largest real estate market in the English speaking world. It also is one of the most diverse.
Whether to investing in US$ assets is a point for which there are arguments on both sides, but events are beginning to show that the US$, being perceived as having less internal instability and a more dynamic economy, is behaving as a ‘haven’ currency, retaining and even strengthening against the British Pound and Euro. However within the country, investing successfully depends on a number of factors taken together as a whole, and different locations have been affected in very different ways throughout the USA.
‘Rustbelt’ cities in the NE area of US such as Rochester, Syracuse, Buffalo, Detroit, and Indianapolis have been in the unusual position of missing the real estate boom, and missing the downturn. As a result, a large number of attractive properties can be purchased for ‘yesterdays’ prices – relatively low cost (typically $20,000 – $40,000) and extremely strong cashflow (typical Gross yield 25-35%).
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[expand title=”What is the buying process in US and what costs are involved?”]
The buying process is very straightforward. When you reserve a property, $1000 is paid into the lawyers Escrow account, you will receive the sales contract (and mortgage contract if appropriate), and then the sale normally completes within 4 weeks.
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[expand title=”What are the risks?”]
While we take every care to minimize risks, investing with us include the normal risks associated with real estate investing – there is a risk of the house becoming vacant, although this tends to be small, especially with single family houses. There is the risk of a large repair being needed although this can often be covered by the house insurance. If there is a wish to mitigate any of these risks then please contact us as often this can be done on a case by case basis. Finally there is of course a currency risk if the investor is not US$ denominated.
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[expand title=”Are the rental yields in the property list guaranteed?”]
No. However, a rent guarantee can be arranged if required.
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[expand title=”What tax can I expect to pay on rental income?”]
The normal Corporation Tax in New York State is 15%.
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[expand title=”What rights of ownership do I have as a foreigner buying in US?”]
You or your companies have full Freehold ownership rights.
All houses are sold fully Freehold.
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[expand title=”How do I know which property to choose?”]
This depends on your risk profile, although we can help here in recommending a suitable investment.
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[expand title=”How safe are the areas?”]
The areas we are buying in are typically safe working areas. The yields can be much higher (circa 50%) in ’ghettos’ but the associated risks are also much higher.
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[expand title=”How do I get to Buffalo NY and what is the flying time?”]
From UK there are daily flights from all major Airports (for example, Heathrow, Manchester, Glasgow) to nearby Toronto which is less than two hours drive away. The flight takes around 6 hours. Flights connect from here if required and also from most major US cities.
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[expand title=”How safe is it to send money into US?”]
Setting up a US bank account is a straightforward procedure. Typically sending Money to the US Lawyers Client account is as safe as doping the same in the UK.
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[expand title=”How long will it take to sell the property?”]
There is an active resale market in these properties from both investors and owner occupiers – however if the seller wishes to sell to an owner occupier (for a higher price) then a higher specification of decoration will ensure a quicker sale.
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