Buying a holiday home in the US
Enjoying a home in the United States? You'll find all the information about buying a home in America here!
America is an emerging destination when it comes to buying holiday homes. More and more people see the United States as the ideal destination for their second home. The popularity is partly because it is getting cheaper and cheaper to reach this destination. Florida still remains the favourite region when it comes to buying holiday homes. The pleasant climate obviously plays an important role in this.
Why buy a holiday home in the US?
The United States offers diverse opportunities for buying a second home, including:
- Accessible and diverse property market: The US property market is one of the largest and most diverse in the world. From modern flats in New York to villas on the Florida coast.
- Good potential rental income: The popularity of the United States as a holiday destination means that holiday accommodation is in high demand, especially in tourist hotspots such as Florida, California and Hawaii.
- Stable value growth and investment opportunities: The US economy and real estate market often show stable long-term value growth, especially in economically strong regions.
- Access to a diverse lifestyle and climate: The United States offers a range of environments and climates, from sunny beaches in California and Florida to snow-capped mountains in Colorado.
The buying process
The housing market in America is different from that in the Netherlands. It is highly recommended to hire a buying agent. They will be able to clearly explain the process to you, so you know what to expect. All estate agents are in most cases paid by the selling party, so take your estate agent with you!
If you are ready to buy the property :
- Sign a (preliminary) sales contract for the house. This can be done by scanning a signed document together with a copy of an identity document.
- Sign the ‘closing documents’: the official transfer papers; after signing these closing documents, you are the owner of the house.
The broker in America
The American Association of Realtors maintains a list. Because buying a house involves a lot of paperwork and often a lot of money, in America estate agents are officially qualified and this is a protected profession. Unlike in the Netherlands, the commission charged by estate agents is paid by the selling party. So seller costs!
Note: you do not need a green card or visa to buy property in the United States. At the same time, a house in America does not get you a residence permit.
Taxes and insurance
There are other things involved in buying a house. Taking out title insurance – an insurance policy that covers the cost of possible property fraud – is a one-off cost. A home inspection is also recommended for all buyers. Also, buyers take out ongoing homeowners insurance, which is insurance against damage following theft, flood, fire and hail.
Then there is the property tax, property tax: you pay a percentage of the appraised value of the house once a year. The amount varies by state and even city.
This information was made available by: Florida Solutions