Investing in US property?

Nottoobadyet

Hello there,

A long shot, but does anyone know about investing in US property while not living there?

I am a US citizen but haven't lived there since I was a teenager (so no credit history so far as I can tell). I have been living overseas, mainly in the UK and Israel and now in Uganda. I expect to be overseas for the foreseeable future, probably mostly in Africa. I have steady employment, skills which are in demand and my living expenses are a very low percentage of my income.

In a year or so I should have enough saved for a reasonable deposit on a property, and I'd like to buy some place within the NYC commuter belt where I grew up. My family live in the area, and my pipe dream is that I could get a reliable tenant through one of their friends or my sister, who could move in herself if she wanted. The rents in the area should cover the mortgage + taxes / building fees / repairs. I'd not look to make a profit on the rent but instead see the equity build up over time.

So - is this remotely possible? Is it massively unlikely that I'd secure a mortgage, even if my parents acted as guarantors? I have a more or less perfect UK credit history (all my accounts and my employer are in the UK), steady employment and good earning potential but don't know if that matters to US banks since its all off their shores.

Thoughts?

googler

The only advice I'll offer is to steer clear of anyone offering 'investment property' in the US.

I was recently mailshotted by someone offering what were described as bargain or similar properties in.... Detroit, maybe?

I know where to look to find the US equivalents of Rightmove and Findaproperty, and found that many of the properties available through these regular outlets and through the regular realtors over there could be had for far less than the investment company was offering other similar ones for......

G_M

I would steer well clear of any UK company offering property investment in the US (except perhaps a unit trust or similar that invests in property).

If you want to invest in a US property, find a US based site like this one, or get advice from someone trustworthy over there.

googler

G_M wrote: »

If you want to invest in a US property, find a US based site like this one, or get advice from someone trustworthy over there.

Seconded ....

scooterpig

I bought a house in the US after a year of living in the country. Basically, without a US credit history, you might as well not exist. We were able to get credit cards, a car loan etc as soon as we arrived in the country, but only because we moved with my OH's job and his company has a credit union with a specialist relocation deal. We had to put down a 20% deposit to get a mortgage, and this applied no matter whether we were buying a house at 100k or 1 million.

Your UK credit history counts for absolutely nothing over here. You have to start from scratch, and it can take a good couple of years to build a decent US credit history.

Fiddlestick

scooterpig wrote: »

Your UK credit history counts for absolutely nothing over here. You have to start from scratch, and it can take a good couple of years to build a decent US credit history.

I believe HSBC will lend in the US based on your UK credit history, so long as you are already a UK customer with them.

It's one of their advertising points on one of their higher grade accounts.

HAMISH_MCTAVISH

Nottoobadyet wrote: »

I am a US citizen but haven't lived there since I was a teenager (so no credit history so far as I can tell). I have been living overseas, mainly in the UK and Israel and now in Uganda. I expect to be overseas for the foreseeable future, probably mostly in Africa. I have steady employment, skills which are in demand and my living expenses are a very low percentage of my income.

A word of warning....

Have you filed US tax returns?

You'll need to, even as a US citizen living abroad.

So - is this remotely possible? Is it massively unlikely that I'd secure a mortgage, even if my parents acted as guarantors? I have a more or less perfect UK credit history (all my accounts and my employer are in the UK), steady employment and good earning potential but don't know if that matters to US banks since its all off their shores.

Thoughts?

A lot of this will depend on your current income and bank, and whether or not they operate in the USA. If so, speak to them.

As mentioned, HSBC premium accounts offer some global banking facilities, as do some other banks. Usually only for higher earners though.

If not, it's still possible, provided you have enough money for a large deposit 35% or more, can get good employer and bank references, and can show a couple of years worth of mortgage payments in the bank.

More info here as to the types of things they look for....

http://www.britishmiamirealtor.com/blog/?p=306

http://www.nycbankloans.com/Foreign_20_Investors_20_In_20_US_20_Property.html

No idea as to whether these particular websites are worth doing business with or even legit, but they do have the basic information, and similar requirements are listed in most sites I looked at.

I'd suggest you do your own research and try to deal directly with an established US mortgage broker, particularly if you have family there that can find someone in the area you wish to buy.

Nottoobadyet

HAMISH_MCTAVISH wrote: »

If not, it's still possible, provided you have enough money for a large deposit 35% or more, can get good employer and bank references, and can show a couple of years worth of mortgage payments in the bank.

More info here as to the types of things they look for....

http://www.britishmiamirealtor.com/blog/?p=306

http://www.nycbankloans.com/Foreign_20_Investors_20_In_20_US_20_Property.html

No idea as to whether these particular websites are worth doing business with or even legit, but they do have the basic information, and similar requirements are listed in most sites I looked at.

I'd suggest you do your own research and try to deal directly with an established US mortgage broker, particularly if you have family there that can find someone in the area you wish to buy.

Cheers, that's very helpful indeed.