Tips for Germans on Buying and Renting Property in America
Because we have readers on both sides of the Atlantic, this special guest post is full of Tips for Germans on Buying and Renting Property in America.
Moving to America as a German poses many new challenges. There are many American ways of doing things that take some getting used to. Differences in taxes, tipping, commuting culture, and healthcare are all things a German needs to get accustomed to as they try to integrate themselves into American life. Buying and renting property in the U.S. is another challenge. The good news is that foreigners don’t need a green card to buy property in the USA, just an Individual Taxpayer Identification Number.
Buying and Renting Property in America
This article hopes to help Germans navigate their way through America’s real estate market in order to find a residence that’s a great fit for them.
Buying Property in America
When looking for areas to buy homes in, people usually consider the median listing price and the value per square foot. However, it’s just as important to look at factors such as the wage increase and employment rate. Cities like Boston and Miami, for example, have relatively high housing prices. Because of the high wages and good employment opportunities to compensate for the high cost, these cities are considered good areas to buy homes in.
Luckily this year is seeing more homes being put up for sale. USA Today determines that the inventory rise from 10-15% will mean more homes to choose from in 2019. Mobile homes and townhouses are also on the rise, which are good, affordable options for first-time buyers.
Getting a perfect deal also depends on when you buy. Knowing the seasonality of the housing market can help you in getting value for your money. A guide by Yoreevo on when is the best time to buy an NYC apartment recommend asking for a discount in November. This is because February and March in New York are the best times to get a discount based on the average discount rate and asking price per month. Since closing takes about two to three months, the best time to ask for a discount would be in November. It is these types of small tips that can save you a lot of money.
Renting Property in America
If you don’t see yourself buying a house in the U.S. just yet, renting is another option. Keep in mind however that renting is much more common in Germany than in the U.S., and you may find big differences in the regulations. Business Insider looked at the best places to rent in the U.S. based on median rent, unemployment rate and the rent-to-income ratio. Based on these factors, Boston is also seen as one of the top players in the renting game, as well as Madison, Wisconsin; Austin, Texas; and Lincoln, Nebraska. The U.S. Midwest is proving to be a great place for renters, with four cities making Business Insider’s top ten.
Aside from rent prices, important factors that also need to be considered before renting are the average commute time, percent of housing stock dedicated to renting, eviction rate, crime rate and density of entertainment establishments. All of these should play a part in a renter’s decision-making process since these will determine your quality of life in the U.S.
Whether you choose to rent or buy in America, it’s important to take careful consideration before making your big move. It’s also best to consult with locals who can give you insider information into the city’s housing market.