Buyers Guide for Realty in USA

Firstly, you need to be aware of the different zoning regulations, which determine rental periods. However, you will not always be given the necessary information. On occasions, I have been given information on developments indicating short term rentals are allowable, which, on checking with the statutory authorities turned out to be incorrect. Many British travel brochures advertising villa holidays in Florida carry adverts for properties, which are not zoned for short-term holiday rentals. If there is a complaint from neighbours or intervention by the zoning authorities, severe penalties can be levied.

Investment in the right type of American property can provide an excellent return on capital and provide your financial portfolio with dollar exposure. It is important your agent has extensive knowledge of property investment trends over a wide range of areas, as well as the relationship between foreign currencies and world wide economic trends. Can your agent analyze the merits of investing in the British housing market, as against the American one? The current position in the UK housing investment market with returns on buy-to-let properties is sinking lower and lower, and is in sharp contrast to the robust performance being achieved in parts of the USA.

Long-term rentals allow you to invest in a dollar property, at a time when the Pound is very strong, so you can buy a lot of house for your money. You then have your tenant's payments tied to a twelve month contract, so you do not necessarily have to furnish the property, or pay for all the costs associated with short-term lets. The Gulf Coast of Florida is one example of an area popular with investors, due to the robust increase in property prices over the past few years, combined with a shortage of certain types of rental accommodations. It is vital to select properties that will appeal to the American market when you decide to resell at some future date to maximize your capital gain.

There are certain developments, which have proved popular with investors where it is necessary to only put down 10% of the total building cost at the signing of the contract. This ensures the contract price cannot be increased, and therefore, when the property is completed some 6 to 8 months later there is usually a substantial financial gain. A number of investors then sell the property straight on, prior to the final payment being made, thus capitalizing on the gain.

Another popular form of investment is to purchase a builder's show home and then lease it back to the builder for a monthly rental payment. The monthly payment is usually at the level you would obtain from a tenant and at the end of the lease the builder completely redecorates the property and you are in the position of selling a model home, which often commands a significant premium. Again, it is important to be aware of all the price trends in the area you are looking at before undertaking this option and finding such properties requires extensive knowledge of the housing market.

Obviously, these are not the arrangements for you, if you wish to use the property yourself on a regular basis. But, if you wish to secure a long-term dollar investment until you are ready to holiday regularly, or live in the States, they may be of interest. A full management service package is available.