Buying a property in Miami with a tourist visa, a good deal?

The South Florida real estate market remains one of the preferred investments of foreigners. According to the latest report of the Association of Miami of Real Estate Agents, during 2016, Venezuelans, Argentines, Brazilians, Colombians and Chileans were strongly active in the purchase of homes, with more than 50% of real estate acquisitions in the South of the United States. Florida, in the areas of Miami and Fort Lauderdale.

In the past five years, and through 2016, some 335,000 foreigners moved to Southeast Florida, according to the Miami Association of Realtors and the National Association of Realtors (NAR).

Among the possibilities of “dollarizing” your investments, a very profitable one can be to acquire a home in the south of the country. Florida, it is only required to have a passport with a valid tourist visa, check that you have the resources to make the investment and of course, the correct advice to make a successful purchase.

Be very clear about what your objective is because this will define the type of property, price and location. Although 90% of buyers start by taking a look at the internet before launching into the market, according to the National Association of Realtors, having the advice of a real estate agent will help you understand the real estate market broadly, with the advantage that the services of the agent will not be borne by the buyer but by the seller.

Here are some questions to ask yourself before considering buying property in the United States, to make your real estate investment a “good deal.”

1.-What type of property can be acquired with a tourist visa?

Foreigners can buy almost any property on U.S. soil, luxury condominiums and resorts, residential apartments, housing in gated communities, multifamily, land, farms, commercial properties, offices, with the exception of cooperatives or Co-ops, for which it is required to pay most of the salary in the country and have settled there the patrimony.

2. Can you get financing from US banks as a foreigner?

Definitely yes, being a foreigner is not an exclusive quality to obtain a mortgage loan, although US banks like any other bank in any country will require additional guarantees that cover the management expenses and guarantee the deposit of the mortgage. Conditions may change from bank to bank.

U.S. banks can finance as long as a significant percentage of the down payment is advanced. The percentage may vary from bank to bank and state to state. For example, in New York City it may be necessary to pay 30 percent, in Miami 50 and in areas of Texas between 25 and 30%.

In addition, banks require additional guarantees such as a deposit sufficient to cover all one-year mortgage payments, insurance and property expenses.

Foreigners who reside in the country legally enjoy most of the benefits that U.S. citizens have when it comes to financing and buying property. Foreign nationals who do not have legal status as residents in the country can also buy property if they meet certain requirements demanded by mortgage lenders.

3. Where are properties to buy in the United States?

According to the National Association of Realtors, 90% of buyers start by taking a look at the Internet before launching into the market, however, having the advice of a real estate agent will help you fully understand the real estate market that does not know buyer, with the advantage that the services of the agent will not be borne by you but by the seller.

4. How long can it take to close the purchase?

This type of transactions in the United States are fast and except for exceptional problems do not usually last more than a month, if you have the resources, if you go to a loan, it could take about three months, depending on the conditions of the buyer.

For the closing process it is not necessary to be present in the United States, a power of attorney can be granted to a representative.

5. Is there a limit on the amount of money you can invest in real estate as a foreigner?

There is no limit, although all amounts are investigated by the Treasury and subject to the relevant taxes in each country.

6. Can I get a green card for having acquired property on U.S. soil?

No, the purchase of a property, although very expensive, is not currently contemplated as one of the ways to obtain permanent residence (also known as Greencard or green card) because it is a passive investment that does not generate development or jobs. However, it is possible to obtain the green card with an investment through the EB-5 program.

7. Why should we contemplate the idea of creating a company that owns the property?

To avoid paying inheritance tax when the homeowner dies. This tax can be very high. But if the owner is an LLC (limited partnership) of which you are the shareholder along with a Foreign Corporation. So at your death the heirs do not have to pay anything to receive that property. It is very convenient to discuss this matter with a lawyer specialized in this type of matters.

Process of buying a property in Miami

According to the real estate group PFS Realty The process of buying a property in Miami by the hand of a real estate agent starts from the advice of the search of the property, where you will receive information according to your tastes, budget and needs to personally know the properties you choose. Once you choose the property to buy, the conditions offered are sent, which are: Price, initial fee, deposits, mode of payment, time to conclude the transaction (closing date) and date to carry out the respective inspections.

In a regular transaction, acceptance of the offer can be in one two days. When the property is in process that the bank keeps it (Short Sale or Bank Auction) the times can not be defined. Once both parties reach an agreement, a buyer-seller contract is established and the closing process begins.

Closing the transaction can take between 30 and 45 days from the time of having the contract if the property is being financed. For the closing part, a title company is usually commissioned to ensure that the property is free of problems and debts.

Step to follow is the inspection of the property, the management of financing and all the necessary steps so that the credit is satisfactorily, and then move on to carry out the appraisal of the property. As long as there is financing, the bank sends an appraiser to approve the loan amount.

On the day of closing or the day before the property is walked to check that it is the same as the moment the buyer saw it when he sent the offer.

On the day of closing, the documents are signed and the money is delivered to complete the purchase, whether it comes from the bank in the form of a loan or the purchase is in cash. From this moment you have completed your goal of owning that house or apartment.

Fountain: www.elnuevoherald.com