Real Estate in the USA for Foreigners
New York, San Diego, Houston, and Los Angeles are symbols of a prosperous life, bright prospects, and everything called the American dream. Perhaps no person on the planet would not dream of buying a home in America. Real estate in the USA has always been a profitable investment, the American market is saturated with foreign capital more than others and is fully protected by state laws.
Today, many residents of the countries of the former CIS are striving to move to the United States, and some go there for business or high-paying jobs, others for a comfortable family vacation. Emigrants are inevitably interested in villas for sale in Florida in 2023, cozy apartments, or houses on the ocean coast. How accessible is American property to foreigners?
Rights and Obligations
A foreigner buying real estate in the United States receives the same rights as an American citizen. He can dispose of the living space at his discretion: live in it independently, rent it out, sell it, or pass it on by inheritance. Suppose a Russian or Belarusian does not have an ITIN (Individual Taxpayer Identification Number) – a taxpayer tax number, then on the subsequent sale of real estate, according to the Foreign Investment Law. In that case, he will have to pay a 10% income tax.
When a foreign owner cannot permanently reside in the States, then when renting out housing, he receives the right to transfer his property to the disposal of a real estate management company. The main thing is to make sure the trusted company is reliable. Regardless of citizenship or absence of a residence permit, any American house or apartment owner must pay taxes on real estate and reimburse utility costs for its maintenance. Debts are fraught with penalties and the inability to obtain a visa or residence permit.
Property Search
Before buying real estate in the United States, you should understand the peculiarities of the local market, study price analytics, and get acquainted with experts’ opinions. You can find ads for the sale of objects of various types, the main ones include:
- Single family house – private household.
- Townhouse – a low-rise residential building in a city or suburb.
- Сondo – an apartment in a condominium, a multi-story building.
- Co-op – cooperative ownership.
A single house in America refers to the property of one family, while other housing options assume the presence of neighbors – then the management functions are assigned to the association of co-owners. The association sets the number of payments and the list of paid items of expenditure. The tenants’ meeting determines the residence rules: is it possible to keep pets in the apartment, is it allowed to rent out rooms, and to whom. A cooperative is a slightly different concept, which concerns not so much the purchase of a separate apartment, but rather the holding of a certain number of shares (shares in common property) by the cost of housing. Buying real estate in associations is notable for its peculiarities when before purchasing, it is necessary to join the community and pay a fee. Particular difficulties may arise for a Russian with living space in a cooperative if he wants to get a loan for it. In this case, one cannot do without the approval of the members of the cooperative, and a possible sale in the future will again require universal consent.
American Property Taxes
Anyone who buys real estate in the United States, regardless of whether he is a foreigner or an American, must pay an annual property tax (Property tax). The rate is 1-2% of the cost of a house or apartment. The funds collected in this way go to the maintenance of social facilities of the municipality: schools, kindergartens, libraries, hospitals, etc. In addition, deductions are made from them for road repairs and maintenance of parks and recreation areas. Property tax rates vary between states and cities, with more developed infrastructure requiring larger contributions.
What other taxes are subject to real estate in the States:
- Property Transfer Tax – the tax paid by the seller upon the transfer of ownership;
- Capital Gains Tax is a capital gains tax that is paid upon the sale of an object, and the difference between the sale and purchase is taxed at a rate of 20%;
- Withholding Tax – withholding tax is paid by a non-resident seller at 10% of revenue;
- Rent tax – taxation of rent as income – 30%.
An investor can bypass capital gains tax if the simultaneous sale of one and the repayment of another object formalize the exchange transaction. All taxes are situational (when selling, making a profit) and periodic (monthly or annual). Recurring fees must be paid once or twice a year (depending on the state) no later than June 1 and September 1, in equal installments.
Prices
Inexpensive real estate in the USA is a vague concept, and it is impossible to specify which state or region has cheaper square meters. The average figures are as follows: 1935 $ per sq. m. m in city centers and $ 1248 – on the outskirts. At the same time, in the apartments of the most expensive American megacities, the “square” in the center costs ($):
- New York – 9800;
- San Francisco – 9100;
- Washington – 5650;
- Los Angeles – 5300;
- Seattle – 3700;
- Miami – 3600;
- Las Vegas – 1650.
If we evaluate real estate in the USA by the sea, then an apartment in Los Angeles with an area of 100 sq. m can cost the buyer 530 thousand dollars. Prices for three-level villas in Miami are already calculated in millions – $ 5-7 million, and the cost of coastal apartments here reaches 1.5 million. For comparison: a two-room apartment in Ocala (Florida) will cost a potential owner only 70-80 thousand dollars. $. The so-called golden mean is the states of Oklahoma, Tennessee, and Arkansas, where apartments cost up to 160 thousand dollars.
Property in Florida
With the help of Florida.Realestate aggregator, you can find all the information about real estate in Florida and find the best option.