SETTLING
IN
“The
Beginning”
If you are looking for a
job or business opportunity when you arrive in
the U.S.A., consider a short lease. This can
be a stressful time and even though you have family
or friends who have invited you stay with them,
it may take longer to find what you are looking
for than you expected.
The stress of
living on saved capital creates pressure to get
started in a job or business immediately. This
pressure, together with the tension of living
with family/friends, can result in your grabbing
the first opportunity which may not be suitable
for you.
Get your own place on a
short lease.
Starting
Choices:
1.
Fully furnished, linen and maid service,
telephone utilities included.
2.
Furnished, but you provide linen and organize
your own phone with the telephone company.
3.
Unfurnished space – you rent furniture
and organize your own phone/utilities.
Shipping
or Buying Furniture
Buying new furniture or
shipping your belongings to a city which you are
testing for an opportunity can be risky. If you
move to an opportunity in another city, the cost
of onward shipping will be expensive.
WHEN
TO BUY A HOME?
If you believe that the
city you have chosen is ideal for you, then buy
furniture and/or call for your belongings from
your home country.
We still recommend a short
lease in an inexpensive apartment or condominium
as a good starting point in all situations. While
you may be anxious to buy a home when you arrive,
you should give yourself a little time before
making a major commitment like buying a home.
If you decide to move to
another area or city, the real estate broker’s
commission for selling your newly-purchased house
and the costs you paid to obtain a loan and register
the property in your name can amount to approximately
7% - 10% of your purchase price. Unless the property
has escalated in value in the short period that
you have owned it, it is likely that you will
sustain a loss in the transaction. You may also
have difficulty in selling a home in the city
which you have left. You do not want to have your
capital tied up in a home hundreds of miles away.
BUYING
A HOME
When you buy a home and
seek out a loan, you will need to know the meaning
of different terms, words and abbreviations.
We have compiled a special glossary section with
the definitions of many of these terms for your
easy reference.
List of sales and loan terms used in the U.S.A. (Click
here)
TAX
AND OTHER BENEFITS TO OWNERSHIP
There
are special tax benefits to owning a home. You
are entitled to deduct the interest you pay on
your mortgage from your income tax. For the first
few years, about 80% of your house repayment is
applied to interest, and therefore deductible.
This is an extremely important consideration in
deciding whether to buy or lease accommodation.
When you consider the amount of tax you save annually,
the amount you really pay on your mortgage is
actually less than what you pay your lender.
Obviously, when you own a home you pay annual
property taxes and the maintenance for the property.
Property taxes are deductible from your income
tax. Property taxes vary from state to state.
Remember
that when closing the purchase of a property,
a portion of the closing costs is tax-deductible.
Owning
a home can provide important leverage to obtain
a Small Business Administration (SBA) loan to
purchase or refinance a business. See EasywayUSA
Business
Section.
FIND
A REAL ESTATE SALESPERSON WHO HAS EXPERIENCE WORKING
WITH NEWCOMERS
Real
Estate salespeople play an important role when
purchasing a home. They can provide you with
information about the city, housing prices, schools,
and can be very helpful insecuring a loan.
It is
important to make sure that the salesperson is
working for you exclusively and is not also representing
the seller or the developer.
Choose
a real estate broker who has experience working
with newcomers. They understand the problems of
finding financing for a buyer who does not have
an existing credit record and can refer you to
appropriate lenders. There are many lending institutions
that are willing to lend money to people who do
not have an existing credit record in the United
States and will do so on competitive terms. An
inexperienced broker, after securing the sale,
may merely turn you over to a mortgage broker
who does not have experience in securing loans
for newcomers.
MORTGAGE
BROKERS
Mortgage
brokers shop for loans for you. As a newcomer,
without a credit history, you may have to pay
more for your loan. Do not become despondent
if you are denied a loan or a lender quotes outrageous
costs (points) for a loan. If you have a reasonable
deposit, shop around for a loan. Consider approaching
a lender directly with documentation and give
reasons why you are a good credit risk.
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