Financial plans for buying property
You will soon find that when buying property in the USA, there is more to think about than you first realised.
As soon as you make your decision, it’s important to carefully consider the financial aspects of such a purchase in great detail. Your first step should be to sit down to assess your finances, and establish how much you can realistically afford to spend on property. There are a number of methods of funding a purchase, including a mortgage, or from savings, so you just need to determine which method works best for you.
Your first step should be to sit down to assess your finances, and establish how much you can realistically afford to spend on property.
It’s worth noting that it isn’t just the purchase price you’ll need to have in your back pocket. You will also need to budget for buying costs, legal fees, on-going maintenance costs, and the amount you have will need to set aside for renovations (should that be your plan). We detail these “hidden costs” in the USA Buying Guide to ensure all readers have a firm grasp on the outgoings they will be expected to cover, including costs such as legal fees, taxes, agent commissions, and the costs associated with transferring funds internationally. As these costs can pile up, it’s important that they are factored into your initial budget – that way you won’t encounter any nasty surprises that could scupper your exciting plans.
The USA Buying Guide takes you through everything you need to consider. Download your free guide today.
Financing your property
Before you can start scanning property websites, you need to determine how you will pay for the property. Those planning on securing a mortgage in order to purchase will need to assess the different options available, i.e. whether you should seek a US or a UK re-mortgage, and what restrictions and conditions each mortgage option presents.
As there are a huge number of mortgages available, we recommend speaking to a professional advisor. Speak to our trusted mortgage provider about your options today.
If you plan on moving to the USA on a permanent basis you will need to establish your tax liabilities before you go. It’s important to determine exactly what you’ll be liable to pay for budgeting purposes. For example, are you selling your UK property? If so, what tax will you incur on this? Is inheritance tax an issue?
Your liabilities will depend entirely on your personal circumstances. In order to gain a fuller picture, we recommend speaking to an expert who will be able to get your tax affairs in order, and explain everything clearly. Speak to our trusted independent financial advisor today.
It’s of the utmost importance that you factor a currency exchange strategy into your financial planning. Should all go to plan, you’re going to need to make a series of currency transfers from the UK to the USA over the course of your journey, whether this is to cover a deposit, to pay realtor fees, additional costs, or the final balance. These transfers need to be managed sensibly to ensure you get the most from your money. Although using your usual High Street bank for these transfers might seem like the logical choice, its important to understand that these banks set their exchange rates at an amount that protects their interests in case of adverse fluctuations in the currency market. This means that the exchange rates they offer aren’t as competitive as they could be. You’ll also likely encounter transfer fees, and delays, as banks aren’t geared up primarily to facilitate international transfers.
Smart Currency Exchange can secure you live exchange rates that could potentially save you as much as 4% on the price of your property.
To avoid fees, delays and poor exchange rates, the USA Buying Guide suggest you enlist the services of a currency exchange specialist like our trusted partner, Smart Currency Exchange. Smart Currency Exchange can secure you live exchange rates that could potentially save you as much as 4% on the price of your property (for example, £10,000 on a property that costs £250,000).
Smart Currency Exchange are experts in helping people make transfers to purchase property overseas. This means they understand the process, and know how best to proceed. Perhaps one of their key services for buyers is that they can help you to lock in favourable exchange rates for up to a year. This not only protects you from currency market fluctuations, but it allows you to lock in the cost of your property, and to budget for the year ahead. Get a currency exchange quote today to find out how much you could save.
The USA Buying Guide covers every stage of the property buying process, sharing our experience and knowledge to ensure a safe and successful property purchase. The guide will help you to: