Buying Property In America
Buying Property In America
Having recently endured a nationwide housing bubble collapse in 2008 that caused home prices around America to plummet, the real estate market is gradually clawing its way back upwards. This is an ideal time to be buying a home as prices have not been this low for more than two decades. As the market naturally readjusts itself there should be excellent deals on properties for the next few years.
There are basically three kinds of properties one can buy in the US: homes, land and apartment units. Most people prefer to live in a home, except in densely packed cities like New York where apartments are more common and practical. The price of property varies widely depending on location. The most expensive cities in the US are New York City, San Francisco and even small towns like Aspen, Colorado.
For those willing to live in unpopular parts of the country like Detroit or North Dakota you can expect to find very reasonable prices on property. Most buyers use a real estate agent to help them find and process the purchase transaction. Once you have found a property you wish to buy, you must put down a small deposit known as Earnest Money. This gives you the exclusive right to buy the property for a short period of time, usually 30 days. If you change your mind before the deadline you get your deposit back, but if you go over the time the owner keeps the deposit.
Few people can afford to pay for a home or apartment outright, so they go to a bank and try to secure a mortgage. Right now, average mortgage rates for homes are at historic lows of around 3.5 per cent. Most mortgages run for 15, 20 or 30 years and can be paid off early without penalty after a certain period of time.
In order to qualify for a mortgage you will need to have had steady employment for at least a year or two and a suitable monthly income. You will also need to put down at least 20 per cent of the total property price in order to get a bank loan. The more money you can put down the more likely they will give you a loan. There is no limit to how many pieces of property you can own in the US, which is why so many people make extra income from their rental properties.
