Overview

The US Property Market

The real estate market in and across the United States of America is as varied and expansive as the country itself. Although the age old adage comes off a bit trite and certainly overused, when it comes to real estate investment and other real property purchasing opportunities in the United States, there actually is something for everyone. There are many different opportunities available to the savvy shopper.

Investment Property in America

In the 21st century, an ever growing number of men and women are electing to make the purchase of investment real estate in the United States. This includes both residents of the U.S. as well as people living abroad who wish to become a part of the generally burgeoning U.S. real estate marketplace. As a general rule, people who are snatching up investment property in the United States are doing so in three different arenas:

First, investors are electing to buy into commercial real estate holdings.

Second, men and women buying investment property in the United States are also spending a goodly share of their funds on residential rental property.

Finally, people who are purchasing investment real estate in the United States are putting at least some of their money into vacation types of properties.

Residential Real Estate in America – Single Family Properties

No where is the commentary that the real estate market in the U.S. is as varied as the country itself when it comes to the matter of residential real estate. Depending on where a person is interested in residing, in making the purchase of residential property, will dictate how much money will need to be spent on such a purchase.

In some cities in the United States — many of the major cities on both the east and west coasts of the country, for example — the prices of residential properties continues to increase rather dramatically over time. On the one hand, the ever rising cost associated with the purchase of residential property in some cities in the country is keeping some people out of the housing market all together. There are some cities in the America that are experiencing a flat housing market. In other words, the appraised value of real estate is remaining level and not increasing much over time.

Residential Real Estate in America – Apartments

In addition to stand alone, single family residences, the market involving apartments, condominiums and townhouses in many communities has become more active in the past five years. This has particularly been the case as the so-called “Baby Boom” generation begins to move towards the empty nest phase of their lives (their children have left home) and even towards retirement. As a consequence, people are moving towards purchasing apartments, condominiums and townhouses because they are more convenient and generally less difficult and time consuming to maintain. In many instances, these properties are also smaller in size than the typical single family residence.

The overseas buyers are also seen buying these types of property with greater frequency over recent years. In some instances, citizens of other nations are taking to the purchase of these types of properties in order to allow them the opportunity to have a second home in the United States.

Holiday Property in America

One of the most significant trends that has developed in regard to real estate in the United States in the past twenty years revolves around vacation property. In the 21st century, a growing number of people within the United States — as well as an increasing share of property owners from abroad — are investing in vacation and holiday property.

Investment in holiday property generally has been seen to occur in two different areas. First, people both in and out of the United States are making purchases of second homes or vacation homes for their own usage. (In some instances, these people do turn around and rent or lease out their vacation or second homes to other people during those segments of the year when they are not using the property personally.)

Second, men and women residing inside and outside of the United States can also be found investing in time shares in record numbers. A time share situation is one in which a person buys “time” in a piece of real estate. In other words, they are buying an interest in a particular piece of property that interests the purchaser during a specified period of time each and every year.

Mortgage Options

When considering the options for a mortgage on your overseas property there are a couple of choices to consider;

1. Do you consider raising finance on your existing property in the UK to cover the whole cost of your purchase abroad? A good idea if the interest rate in the country in question is a lot higher than it is here in the UK as you will pay a lot less in monthly repayments.

2. Do you secure a mortgage against the property from a local bank in the country of purchase? This can be a wise option especially if the interest rate is lower than our current UK interest rate. Most overseas mortgage / bank lenders will require upto 30% deposit on mortgages. However, you will need to give some thought to how you will service your mortgage payments each month especially if you are not living or earning in that country as you may well lose out on exchanging money each time to cover monthly expenses. Check out our Foreign Currency page to see how you can save money in this example

3. Some Builders and developers may well offer their own mortgage facilities on their properties for sale. This can be beneficial to both parties depending on the logistics of the mortgage or loan facility. Always check and compare with the two options above before making your final descision.

For more details on Mortgages in America visit our Mortgage page in the American section on our website.

Specific steps to buying real estate property in America

A person interested in making the purchase of any kind of real estate in the United States needs to give serious consideration to engaging the assistance of a qualified and licensed broker or of an equally qualified real estate service that has been established to service the needs of those people seeking to purchase investment, residential or vacation property within the U.S. When shopping for real estate in the United States, a buyer needs to keep in mind that the agent or Realtor works for the seller. The real estate agent or Realtor is legally obliged to protect and further the interests of the seller.

In addition to engaging the assistance of a qualified broker or real estate service, it is also important to note that the real estate markets found across the United States vary significantly from location to location. As a consequence, a person looking to buy real estate in the United States will want to make very certain that he or she has resources that are specifically knowledgeable about the real estate market in a particular region of the U.S.

One step that a person interested in buying real estate in the United States will want to consider taking up front is obtaining a financing commitment from a bona fide lender before beginning the search for specific pieces of real estate. In recent years, in the United States, lenders will extend mortgage facilities to people interested in purchasing real estate (provided that they are credit-worthy) in advance of identifying a particular piece of property for purchase. By having such a lending commitment in hand, a person looking to buy real estate will be in a better position to more efficiently and effectively procure real property in the least amount of time.

When making the purchase of real estate in the United States, the general practice and law in most states is that a purchaser accepts the property in the actual condition it is in at the time of the contract for sale is executed. In other words, a buyer generally buys the property in the condition it is in and cannot complain about significant defects after the deal is closed between the buyer and seller. (The one caveat is if the seller willfully and intentionally withholds material information about defects or problems of a significant nature associated with the real estate.) As a result, it is imperative that a buyer makes certain that the property is closely examined for flaws and defects before a contract for sale is finalized and certainly before the closing date on the transaction.

Once a particular piece of property has been identified for purchase, a contract is then drafted. In the United States, real estate cannot be sold in the absence of a written contract. Often, when residential real estate is sold, a standard form of contract is utilized to memorialize and effect the sale. However, if a person is making the purchase of investment or commercial real estate, more often than not a specific and individualized contract is created for the transaction.

When the contract is signed by the parties, a closing date is established. In the U.S., the closing date is the date on which all of the duties and obligations under the contract need to be satisfied — including the obligation of the seller to make certain that the title to the real estate is “clean” and including the obligation of the buyer to make certain that his or her financing is in order.

Generally, a closing date is set approximately 30 days from the signing of the contract for sale. However, there is no hard and fast rule pertaining to when the closing is to be held. The closing date is established between the parties to the real estate sales contract.

One of the items that a buyer will want to make certain he or she obtains after the contract is signed and before the closing date is title insurance. Title insurance will protect the buyer of real estate should a situation arise in which the title to the underlying real estate ends up being clouded. A clouded title is one in which another person or entity ends up having an interest in real estate that may not have been found or properly disclosed during the time period between the signing of the contact and the closing of the sale itself. For example, a prior lender may have a lien on the property that for some reason was not discovered. While such an encumbrance on the property’s title should have been discovered, there are countless examples in which mistakes occur and liens and other interests in a particular piece of real estate are not discovered. Again, title insurance protects a buyer of real estate from any expenses or loss that he or she might experience as a result of a defect in or cloud on the title to real property.

In most jurisdictions in the United States (but not all) local units of government assess property taxes on real estate. If a person is making the purchase of real estate, he or she needs to understand that they are likely to be responsible for paying a pro rata share of taxes that will be due and owing for the portion of the year of the purchase during which the buyer actually assumes ownership of the real estate. Often, the taxes will be due to be paid at the time of closing to avoid any problems between the buyer and seller in the future.

Additionally, insurance on the real estate needs to be in place to benefit the buyer on the closing date. A purchaser of developed real estate will not want to assume possession of the property without making absolutely certain that proper insurance is in place.

Property Abroad always recommends using a Solicitor or Lawyer

By: Les Calvert

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Anchorage is a historical and bustling city that serves as the transportation, banking, and business center of the state. Notable structures include historic buildings such as Anchorage’s City Hall, built in 1936, as well as the 4th Avenue Theatre, an art deco style building dating from 1947 with stunning floor to ceiling bronze interior murals.

Anchorage, incorporated in 1920, is a relatively young city, and homes built in the 1950s almost enjoy historic status. Nevertheless, the city’s vibrancy has earned Anchorage the reputation as the new ‘in’ city for travelers to Alaska as well as new residents, who come for its excellent transportation system, mild weather, and central location.

Anchorage Homes

Anchorage properties pool is 94,822 residential properties including Anchorage new homes. The median age of real estate in Anchorage is 1977. The average Household size is 3.19 people. 4% are one bedroom homes, 19% are 2 bedroom homes, 46% are 3 bedroom homes, 24% are 4 bedroom homes, and 5% are 5+ bedroom homes.

Anchorage Mortgage Statistics

Homes With No Mortgage 14%

Homes With Mortgage 86%

First Mortgage Only 74%

First & Second Mortgage or HELOC 12%

Anchorage Area Real Estate Tax

Anchorage Real estate Tax: Median Real Estate Taxes (2000) were $2,523 comparing to 1999 Median Family income $ 63,682. Compare to USA median yearly Real Estate Tax $1,300 and USA median Family Income $42,000 (1999).

Anchorage School District: Children make up 29.1% of Anchorage population. Anchorage has 75,871 under 18 years old residents, or 0.58 kids per one worker, or 0.8 kids per one household.

Anchorage Real Estate & Anchorage Home Ownership

Most residents of this city have come from elsewhere in the United States. Many came to work in the oil fields. Alaskan Native peoples comprise about 8% of the population. The city also has a growing population of Asian and Hispanic residents.

There are 21809.06 or 23% one person households, 30343.04 or 32% two person households, and 17067.96 or 18% three person households in Anchorage, Alaska. Median residents age is 32.4, Senior citizens (65+) make up 14,242 or 5.5%% of Anchorage population.

There are 131,228 workers (over 16 years of age) in Anchorage. Of these, 89% drive to work. Approximately 2.02% of workers in Anchorage take public transportation. An estimated 2.66% walk to work.

Median Anchorage homeowner’s housing expenses are 20.9%

Crime in Anchorage (2003), crimes per 10,000 residents per year

Violent Crimes 67

Robberies 13.06

Aggravated Assaults 43.91

Property Crimes 449.74

Burglaries 54.48

Larceny-Thefts 349.27

Motor Vehicle Thefts 45.99

Invest in Anchorage Properties

When making a decision about buying real estate in Anchorage Alaska area, you should consider following statistical data:

Near Medium City

Near Large City Seattle, Washington

Anchorage Zip Codes 99501, 99502, 99503, 99504, 99505, 99506, 99507,
99508, 99513, 99515, 99516, 99517, 99518, 99529, 99530, 99540, 99599

Anchorage Area Codes 907

White population 72.23%

African-American population 5.84

Asian 5.55%

American Indian & Alaskan

Hispanic (of any race) 5.69%

Median Family Income (1999) – $ 63,682%

Population Below Poverty Level – 7.18%

By: Jennifer Hershey

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Home buyers:

-The typical first-home buyer is 32, and has a median income of $57,200. (Source: 2005 National Association of REALTORS? Profile of Home Buyers and Sellers.)

-According to the 2005 National Association of REALTORS? Profile of Home Buyers and Sellers, 79% of all homebuyers used the Internet as an information source. (Source: 2005 National Association of REALTORS? Profile of Home Buyers and Sellers.)

-The typical homebuyer searched for a home for 8 weeks before making a purchase. (Source: 2005 National Association of REALTORS? Profile of Home Buyers and Sellers.)

-The most popular reason for buying a home is the desire to own a home of their own, a need for more space/larger home, new job/relocation for a job, desire to be closer to a job, school, relatives or transit, need for less space, retirement, and desire for a vacation home/investment property. (Source: 2005 National Association of REALTORS? Profile of Home Buyers and Sellers.)
Home sellers.

-The typical homeseller owned their previous home for 6 years. (Source: 2005 National Association of REALTORS? Profile of Home Buyers and Sellers.)

-In the fourth quarter of 2005, the homeownership rate was 69%. (Source: U.S. Housing Market Conditions, Nov. 2005, HUD.)

-The typical home stayed on the market for 4 weeks before selling. (Source: 2005 National Association of REALTORS? Profile of Home Buyers and Sellers.)

-In 2005, when home buyers were asked where they first learned about the house they bought, 36% said real estate agents; 24% responded the Internet, 15% indicated yard signs; 5% said newspaper advertisement, 7% said friend/neighbor/relatives, 7% said the builder, 1% said home book/magazine, 3% knew the seller. (Source: 2005 National Association of REALTORS? Profile of Home Buyers and Sellers.)

-Recent home sellers lived in their previous home on average 6 years.(Source: The 2005 National Association of REALTORS? Profile of Home Buyers and Sellers.)

By: Mark Nash

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At present we are seeing the biggest investment in housing decline in 50 years and an increase in foreclosures and the outlook for real estate values is uncertain we are likely to see further declines will occur.

First let’s look at the background to the fall in real estate prices in the USA and why they will continue to fall further.

The Worst Decline for 50 Years

US pending home sales fell by 2.6% to 87.6, down from a revised 89.9 reading for October. Boston Fed President Rosengren has stated that the current decline in investment decline is the longest in 50-years. He highlighted that previous housing declines have led to economic downturns, and speculated that housing prices would fall more rapidly this year as the economy struggles. Rosengren also said that the continued housing investment decline has heightened risk of “significant” downturn in the economy as a whole.

Foreclosures Rise

The evidence of the downturn can be seen in the increasing number of foreclosures – almost 500,000 mortgages nationwide were foreclosed in the third quarter of 2007, which was double the number in the same period for the previous year. Some real estate experts estimate that as many as 2 million homes could be foreclosed in 2007 and 2008.

The economy is experiencing difficulties in terms of growth and this is being reflected in falling real estate values as the credit crunch bites.

How to Protect Your Properties Value

In these uncertain times there are solutions available to protect the value of your property by Locking in its value at current market prices – so that you are guaranteed at least the value you locked your property value in at. Let’s take a look at how these schemes work and the advantages they offer home owners.

Guaranteeing the Value of Your Home

Some companies are responding to the concerns surrounding the property market by offering an innovative option contract which provides you with a specific value for your property ( should you decide to sell) which can be exercised at your discretion after a period of two years and gives you protection for up to 10 years.

The advantage of this is – you will be able to sell your property at an agreed price, whether or not, there is a buyer for your property, as the company granting the option will buy it from you at the locked in value.

This of course gives property owners peace of mind – for a small affordable fee they have guaranteed the minimum price they will receive for their property, regardless of how far property prices decline.
While the real estate market looks weak at the moment and further declines are expected, we don’t know the future and prices will rise at some stage. An additional advantage the option provides is if the market should rise, then all the gains are yours.

An Affordable Solution for ALL Homeowners

In conclusion this service offers you a cost effective solution to volatile and falling real estate values:

If prices FALL, for a small fee, you are protected should you have to sell your property. On the other hand, if prices rise, all the gains are yours. This really is an option that all property owners should consider. The option is highly affordable and you can protect your property’s value for a period up to 10 years.

Today we protect a lot of our assets but not the value of our homes yet, it’s the biggest asset most people have. The companies offering these schemes allow people at affordable cost, to protect their home and their hard earned savings that have gone into it.

These schemes are affordable and can give homeowners peace of mind, if the property market turns down and also allows them to keep any increase in the value of their home should the market rise.

For a low affordable premium any home owner can now protect themselves and gain peace of mind.

By: Kelly Price

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