Buying in America

stockmarket-diva

I want to buy a property in New England, a good all round rentable property because of there also being a ski season there.

How do I go about getting a mortgage to cover? Can you obtain buy to let financing for America? I look forward to some expert advice!

merlinthehappypig

I read an article yesterday in the Times which predicted that American house prices would drop a further 25-30% over the next 5 years. It varied a little by state and didn't mention New England specifically. No problem if the rents you get will cover your finance, just a small warning perhaps not to include any short-term capital gains in your budgeting.....probably a good time to buy though with the dollar being so weak as well.

stockmarket-diva

Thanks re advice....Its not purely an investment purchase so not too worried about prices, as you say so long as rent can cover the mortgage. Its in a place where I visit frequently and would like to own a piece of property there too.

Look forward to any other advice regarding where best to get the financing.

Toto

I've just bought a house in Nashville, the financing was easy to be honest. I used a broker over there, but I did have a really large deposit on the house so they didn't even credit check me. The whole thing from offer to closure usually takes just 30 days. When you make the offer you need to have somewhere between $1000 and $5000 earnest money which is given to the seller on acceptance, so they know you are serious, this money is deducted from the closing costs, or if you back out is non refundable.

I would ask anyone you know over there who they feel is good in New England to arrange the mortgage, or if you don't know anyone to ask, look a few up, ask your realtor (who is working for you not the seller) get 3 or more quotes. Some banks in the UK will lend for a US property, so you could start by asking your bank. The deal you get will depend on the size of your downpayment though.

vansboy

Just being nosey, I've looked at some of the US properties on the web & sooooooo much value for money, compared to here!

Same as everywhere, I guess - you'd need your income, but they do seem to have potential for a better standard of living, going by average earnings & the prices of day to day living, much lower than UK.

Guess it's the healthcare costs that catch them out!!

VB

Toto

The value for money in my opinion is much better over there. My house is 5 bedroom detached, 3300 sq foot. All brick, 3 full bathrooms, etc etc and it cost me $280,000 which is about £140,000. I can't get a bedsit in my area for that.

Of course we do intend to go and live in it, but we are renting it out for the next year because hubby has just confirmed a full UK/european tour. But we've moved the business to the US already.

There are good things and bad things though, healthcare sucks and I do believe the state looks after people more in this country (up to you if that's a good or bad thing). But we will certainly be spending a lot of time in the US so it made sense to buy there rather than buy here at the moment.

BobProperty

From what I've read on the US property forums I go on, I'd say wait a year or two at least. I'd also say check out the resort you are thinking of buying in because some of them have been almost started from nothing during the boom of the last few years. A downturn, like they seem to be heading for, could leave some new resorts looking like the proverbial "white elephant".

As an example, read the comments on here:
http://exurbannation.blogspot.com/2007/09/canaries-in-wrightwood-california.html

stockmarket-diva

Thank you again for this advice...no this is not a new development, it is an old New England village which is mostly inhabited by Americans but also has the ski areas for which tourists are renting property also.

I am still looking for some advice on where I could get a mortgage to buy the porperty ie should I go to an American bank or raise equity on my own property? Is there such a thing as a buy to let mortgage in America?

epz_2

one thing to remember when buying abroad is the exchange rate matters a lot since you will probably need a big deposit.

i saw on the tv (about as much financial research as i do) that some banks predict the $:£ will be back to 1.72:1 in about 18 months meaning even if prices do fall, in the cost to you may go up.

OT but if exchange rates do go that way i am going to be well unhappy, i just bought a V8 and the new tax rises plus rising cost in oil will not make me a happy bunny, guess that was why gordy boy was trying a quick poll.

BobProperty

stockmarket-diva wrote: »

Thank you again for this advice...no this is not a new development, it is an old New England village which is mostly inhabited by Americans but also has the ski areas for which tourists are renting property also.

I am still looking for some advice on where I could get a mortgage to buy the porperty ie should I go to an American bank or raise equity on my own property? Is there such a thing as a buy to let mortgage in America?

This is America we are talking about? Of course there's a mortgage available - at a price. Beware the lending isn't as regulated over there and you will pay a higher rate as it is a "holiday home" (owner occupied is considered lower risk and attracts lower rates). Be very careful what you are being offered. Years ago most mortgages were fixed rate (AFAIK) but the recent credit explosion has brought out all sorts of variable, stepped, discounted whatever products which are the ones causing all the problems now. If you have a reasonable sized deposit say 25%-33% then I'm guessing you will find something, but it might not be easy in the current environment. One suggestion may be a bank which has a presence and local decision making ability in the resort in question.

STAR_BUCK

sorry to hijack the thread but could someone post some good U.S real estate search websites similar to rightmove?
thanks