Are you searching for information on how to buy property in the USA from Australia? If so, you’re not alone.
Every year, thousands of people come to the United States from Australia either or on business, or vacation, and something catches their eye, they fall in love with the United States and decide to buy a property here.
The United States is still the land of opportunity in 2020 but, the reality is that for foreign property buyers, there’s a lot to learn because you’re going to have to understand how to navigate a foreign tax system, calculate administrative costs, and learn more about an unfamiliar housing market.
Once you get started with attempting to buy a property here, it may seem a little bit overwhelming at first. This is why in this article; I’ll provide you with several tips that you can use to help you with effectively buying a property in the United States.
Tip #1 – Learn More About The Area
The first thing to do before buying a multi-family property in the United States is to take the time to learn more about the city or state that you intend on buying a property.
Doing some research could save you the time and hassle of investing in an area that’s on the decline economically or has been dealing with social strife from riots and other issues in recent months.
Some areas in the United States look great on the surface, especially if you’re just visiting, but once you take the time to research the area, you may find out that it doesn’t make an ideal location for investing in a multi-family property.
Remember when you’re choosing a city for investing in a multi-family property, your goal should be to invest in a city that also has plenty of shops, stores, and things to do. It should also be a walkable location and have easy access to public transportation so that your tenants can either drive to work, take the bus, or train daily.
Tip #2 – Hire A Local Real Estate Agent
Once you’re ready to buy a property in the United States, the first thing that you need to do is hire a local real estate agent.
Working with a realtor will save you the time, money, and hassle of having to search for a property yourself but what’s most important is that your realtor will also provide you with local information into which areas are best for purchasing multi-family properties in 2020.
Besides saving you a lot of time, working with a licensed real estate agent is also going to provide you with extensive knowledge and insight into the home buying process in the United States as well as in-depth information about the city and how you plan on buying a multi-family property.
Before choosing a real estate agent in the United States, make sure that you take the time to do your research and utilize online tools like Google, or Zillow’s agent finder, so you can find a real estate agent that has a strong reputation, lots of experience under their belt, and is very knowledgeable about the city that you plan on purchasing a multi-family property.
Tip #3 – Watch Out For Scams
Thanks to the internet, there are a wide variety of scams online today that target overseas Real Estate Investors, don’t let yourself be scammed.
Always take the time to utilize the online tools at your disposal to thoroughly research a deal because, if a deal sounds too good to be true, it most likely is a scam.
Tip #4 – Learn More About The Requirements For Buying A Property In The United States
One of the great things about buying a property in the United States is that foreign Nationals, especially citizens from Australia, are not prohibited from buying property here but there are some things that you need to know about buying a property in the United States.
As a foreigner, you may be required to sign specific disclosure requirements, if you plan on paying cash for a property. It’s best to work with a professional who can help you to navigate through all the paperwork and assist you with understanding the currency exchange rates, multinational taxation, accounting issues, or international wire transfer fees that you may have to pay before buying a multifamily property in the states.
If you don’t plan on paying cash for the property in the United States, your goal most likely is to finance a property here. Before moving forward with applying for a mortgage loan, you need to know that banks in the United States often require a higher deposit from foreign nationals than US citizens.
In some cases, you could be required to pay a hefty deposit equaling about a third (30% to 40%) of the purchase price of the multifamily property that you intend on buying so it’s important to be prepared to pay that deposit before you move forward with purchasing a multi-family property in the USA.
Let’s say that during the process of applying for a mortgage loan in the United States, a bank is requiring you to have credit in the United States before purchasing a property here.
The good news that you can establish credit in the United States by opening a U.S. bank account, along with several credit cards, but this process can take about three months to establish credit so it’s important to be prepared to play the waiting game while you get your U.S. credit history established.
Tip #5 – Hire A Property Management Company
Last of all, but most important, when the deal closes and you effectively own a multi-family property in the United States, it doesn’t matter if it’s a fourplex or a 30 unit apartment building, you should immediately hire a property management company in the United States to professionally manage that multi-family property for you.
During the process of searching for a property management company, you should ideally choose a company that specializes in working with overseas investors. This is an important part of the process because living in a different time zone, you want to have confidence that your property management company will still contact you immediately anytime that there is an important issue with your property.
Learn More About Trier Capital
In this article, I’ve offered you a bird’s-eye view approach that Australian Citizens need to know about purchasing a multi-family property in the United States.
The reality is that even though I’ve only offered you five tips in this article, there are a wide variety of other things that you must be aware of as a multi-family investor in the United States.
At Trier Capital, we are a private equity firm that makes it easy for you to passively invest in lucrative apartment building syndications.
Our simple step-by-step process allows you to accelerate your wealth creation so you can live a magnificent life on your terms, whether that means traveling the world, spending more time with family and friends, or making an impact.
To learn more about the benefits of working with my company, contact me today by calling (630) 229-2383 or click here.