Expert: Dick Dennis - 1/4/2011

Question
QUESTION: hi there
i am looking to buy a house in america but am a british citizen.will this present me with obstacles?i am a first time buyer and have no idea of what others costs will be required.please enlighten me on all the costs of buying in america and examples of howmuch they might be.ie taxes etc.
thankyou somuch in advance!

ANSWER: Let's treat this as an ordinary first-time buyer in the U.S. situation, Amartey. You first must determine where in the U.S. you would like to live. Prices, conditions, laws, taxes, etc. vary in all 50 states. In today's economy, the same house would be vastly different in cost from, say, North Dakota and Florida, or, New York and California (where I am a licensed broker).

In my opinion, Amartey, the best thing for you to do is to dedicate as much as six months to look around and see for yourself. Plan on living in different states on a rental basis before you decide to buy. If it is your decision to permanently live here, then you would have to take the necessary steps to do so. If you decide to merely own a home here in which you would live only when you are on holiday from U.K., then you would have to have someone help you find a property that would be apropos for your requirements.

You probably should contact real estate brokers or agents in different parts of the country, advising them just what you are looking for. This way, the persons you contact will ask you the necessary questions to help you achieve your goal. Real estate laws are basic, but each state has different laws and regulations by which you would be required to abide.

So, if I was to tell you what the costs are for buying in America and examples of how much they might be, such as taxes, it would be fruitless for you at this time. Business is down in most parts of the U.S. So, you would probably find that agents and brokers would be eager to help you. You could, however, engage an agent or broker to manage the property for you while you are not occupying the property.

The weather is a big decision maker here. For example, today it is sunny and recovering from some rain we had here in southern California, while in and around New York or Montana, you would have to contend with snow and cold. In Arizona it is the hottest during the summer. Florida is also hot but very humid in the summer and pleasant in the winter (most of the time). So, you can see you should really sample which climate is best for you. I wish you well.

Dick Dennis
dixiedee13@aol.com



---------- FOLLOW-UP ----------

QUESTION: that is great info.cheers.
i want to buy in detroit an i would want to use it as a holiday home/to rent.
do you know the tax rates and the complications of my being from england there?
thankyou

Answer
You must have your own special reason for wanting to buy in Detroit, Amartey, because Detroit is not what most people would choose as a "holiday" home and expect others to rent from you to help you make some money as a rental.

In fact, Detroit has been going down in values because of people losing their jobs and therefore and values go down with that economy. However, I am sure there there are benefits in owning a property in Detroit. After all it is just across from Windsor in Ontario, Canada. Just maybe they do have properties that might be attractive to your pocketbook. But, do not expect too many "holiday" types of properties there.

I would suggest you contact a very knowledgeable real estate agent who works in the Detroit, Michigan (that's the state). That person should be able to help you, especially if you are looking for property that has lower-priced values. Be aware that if you are looking for lower-priced properties they are not going to be in areas where there are snowstorms in winter. The holiday properties you may be looking for will be in Florida, Georgia, Texas, Arizona, California and Nevada (Las Vegas).

If you want to send me your email, I will see if I can find a good agent in the Detroit area (although Detroit is about 2400 miles from me), or any area that may be preferable. Be well.

Dick Dennis
dixiedee13@aol.com