How to Purchase a Holiday Home in Reunion Resort as a Foreign Resident
By Callum Brown on 9 August 2024 Purchasing property in Reunion Resort, Florida, as a foreign resident can be a rewarding investment. Turn to Reunion Properties Florida to discover the unique requirements of purchasing property as a foreign resident, ensuring a smooth and successful property acquisition in this luxurious resort community.
Can I Purchase Property in America if I am a Foreign Resident?
Simply put – yes, foreign residents can purchase property in America. There are no citizenship or residency requirements for buying property. However, there may be some challenges that foreign residents face, that American nationals may not.
What is the Value of Property Sold to Foreign Residents in the United States?
From April 2023 to March 2024, foreign residents purchased residential properties in America worth $42 billion. This value represents 2.0% of the total $2.1 trillion in existing home sales. Such significant investments highlight the ongoing interests and impact of foreign buyers in the American real estate market.
Source: National Association of Realtors
What are the Recommendations when Purchasing a Holiday Home as a Foreign Resident in Reunion Resort?
When purchasing property in the US as a foreign resident, several key considerations must be made. Firstly, residency status can impact loans, with foreign residents often requiring DSCR or Foreign National Mortgages. To secure a conventional loan, you must have a Social Security Number or be authorised to work in America – which many foreign residents obviously do not have. Instead, foreigners tend to secure ITIN loans.
It is also vital for non-residents to have a well-established international credit history and financial stability, which can be demonstrated through low debt-to-income ratios and cash reserves.
Sources: Business Insider & Clifton Private Finance
ITIN Loans:
An ITIN loan is a mortgage designed for foreign nationals who lack a Social Security Number. An Individual Tax Identification Number is issued to an individual, which allows a non-US resident to purchase property in America. ITIN loans typically require a 15% down payment and flexible income documentation options. It can be challenging to secure a mortgage as a foreign resident, as you need to find a lender that can trust payments will be made.
Source: First National Bank of America
The Process of Buying a Holiday Home in Reunion Resort, Florida
Step 1:
Research, plan & understand the market
Before diving into the purchasing process, it’s crucial to understand the real estate market in Reunion Resort. Research current property prices, market trends and the types of properties available with Reunion Properties Florida. Our information will help you make informed decisions and set realistic expectations for a holiday home purchase in Reunion Resort.
Step Two:
Set a budget and identify the needs of your holiday home
Determine your budget, taking into account not only the purchase price but also additional costs such as property taxes, maintenance fees, insurance and closing costs. Having a clear budget will guide Reunion Properties Florida in guiding your property search and prevent financial strain. List your must-haves and nice-to-haves for your holiday home. Consider factors such as the number of bedrooms, proximity to amenities and whether you plan to rent the property when not in use. This will help Reunion Properties Florida narrow down your options and make the search more efficient. Consider things such as whether you would like a holiday home with a pool, family-friendly features such as children’s rooms or games rooms, or large kitchen and living space to accommodate for lots of guests.
Step Three:
Hire a real estate agent and understand tax implications
Engaging a local real estate agent, like Reunion Properties Florida, with experience in helping foreign buyers is invaluable. We can provide insights into the market, help you find suitable properties and navigate the complexities of the buying process. Familiarise yourself with the tax implications, both in the U.S. and your home country. Consulting with a tax advisor can clarify your obligations and help optimise your tax situation. Opening a US bank account can also help simplify the transaction process.
Step Four:
Begin the search for your holiday home in Reunion
With the expert guidance of Reunion Properties Florida’s estate agents, begin your search for the perfect holiday home in Reunion Resort. Visit the different neighbourhoods in Reunion Resort, from Carriage Point and Liberty Bluff to Heritage Crossing and Bears Den, to get a feel for what each neighbourhood promises. Once you have found a property that you wish to buy, you can place an offer for the property with Reunion Properties Florida.
Step Five:
Conduct due diligence, finalise financing and close the deal
Once an offer is accepted, Reunion Properties Florida will deal with the legal requirements of the sale. Should you require a mortgage for the property, in this stage, you must finalise the financing of the property by securing the right loans. You may also conduct things such as home inspections, title searches and homeowners association reviews before the sale is finalised.
Step Six:
Set up utilities and services, understand ongoing costs and consider rental income
Once you have purchased the property, and the sale has closed, you must set up utilities and services – such as electricity, water and internet. Additionally, there may be HOA fees to be paid for maintenance and repairs.
In addition to personally enjoying your holiday home, there may also be the opportunity for you to rent out your holiday home when you are not using it. A property management company can assist you in ensuring a steady rental income.
Contact Reunion Properties Florida to Purchase a Holiday Home in Reunion, Florida!
Buying a holiday home in Reunion Resort as a foreign resident involves careful planning, thorough research and understanding of legal and financial requirements. The whole process is made easier by enlisting the services of an established real estate agency, like Reunion Properties Florida! Our team of experts help you to seamlessly navigate the process of buying a holiday home as a foreign resident. With the benefits of owning property in this luxurious part of Florida being endless, contact Reunion Properties Florida today to begin the purchase of your perfect holiday home in Reunion Resort, Florida.
