About the USA

Living There 

The standard of living in the United States is one of the top 15 in the world, with a high per capita income. The country offers high class services in all aspects of living such as, education, food, health, transport, and entertainment. The climate is generally temperate, but tropical in Florida and Hawaii, arctic in Alaska, arid in the Great Basin of the Southwest, and semi-arid in the Great Plains to the west of the Mississippi. 

Economy

The United States has a capitalist mixed economy fueled by abundant natural resources, a well-developed infrastructure, and high productivity. According to the International Monetary Fund, the GDP of the United States constitutes 20 percent of the Gross World Product.

Politics

The politics of the United States takes place in a framework of a presidential republic, where the President is the head of state, head of government, and of a two-party legislative and electoral system.

Buying Guide & Process 

There very are few restrictions on foreign ownership of real estate in America  and specific procedures vary from state to state, as well as between counties and cities. 

Investment Facts and Guide 

Buying a property in the USA is an attractive proposition for many homebuyers and investors. Many purchasers are buying homes in prudently selected locations of the USA with a growing rental market to give them valuable long term profits on their investments. 

Price per Square Foot 

Florida is one of the most sought-after property investment areas in America. In 2005, Florida property rose by as much as 45%. The end of 2006 saw Florida’s property prices stand at $172 per square foot. A 4-bedroom Florida property of 1800 square foot with a private swimming pool in Orlando could be purchased for as little as $350,000 USD in 2006. 

Rental Yields 

Average yields in the US stand at 3.17%. Yields throughout the country range from 1.4 to 5.5%. The highest yields can be found in fashionable areas such as Upper East Side, Upper West Side, and Manhattan in New York. Southern California houses generate moderate gross rental income as well. 

Mortgage Information 

The maximum loan available to borrowers is usually 80 per cent of either the purchase price or a property valuation, whichever figure is the lowest. Banks in the USA have a minimum lending figure of $50,000 and mortgage costs can be quite expensive. Depending on the state in which you are buying and the purchase price of the property, mortgage costs could range from $4,000 to over $12,000.
Unless you are a US citizen you will need a USA Social Security Number, a Green Card, or a US Passport in order to borrow over 70 per cent loan to value. These documents show that the borrower is registered in the US. To borrow under 70 per cent loan to value, a UK passport will suffice. To borrow over 70 per cent LTV, borrowers will also need to prove their income. Loans under 70 per cent are typically self-certification.

Rental Income Tax 

The rental income of non-resident aliens (NRA) that are ‘not effectively connected’ is taxed at 30%, withheld by the tenant. 

Capital Gains Tax 

Capital Gains Tax for properties held for more than a year is 5%. Otherwise, the tax rate stands at 15%.