Why do immigrant families need to buy a house in advance? How to buy a house in the US to achieve asset appreciation and identity security

The US has always been a hot market for global investors, especially Chinese families. With the gradual changes in immigration policies and the stable performance of the US real estate market, more and more immigrant families choose to pre-allocate US real estate during the immigration process, especially before obtaining a green card. So why has US real estate become an important investment direction for immigrant families? And how should we buy a house in the US?

Why do immigrant families choose to buy houses in advance?

For many immigrant families, buying a US property in advance is a wise decision.

Firstly, owning US real estate can help green card holders maintain a “strong connection” with the US. US immigration law requires green card holders to prove close ties with the US when leaving the US for a long time, otherwise they may face the risk of revocation of their green card. As one of the important pieces of evidence to prove a “strong connection”, real estate can ensure that the identity of immigrant families is not affected. Especially for self-occupied housing, it can prove that you have a fixed residence in the US and are part of your US life, thus meeting the identity requirements of green card holders.

In addition, purchasing a US property can provide a stable cash flow for the family. If the property is an investment, the annual rental income generated can become a considerable passive income, which is particularly important for families with children studying in the US. Rental income can not only help pay for tuition, living expenses, and other daily expenses, but also alleviate the economic pressure on immigrant families.

Buying a house can also help immigrant families establish a good credit record. In the US, credit records directly affect an individual’s economic activities, such as buying a car, renting a house, and taking out loans. By repaying on time, paying property taxes, and maintaining the property, green card holders can gradually improve their credit score, providing convenience for future investments or loans in the US.

Meanwhile, with the increasing uncertainty of the global economy, many immigrant families have begun to pay attention to asset diversification. Especially when the US dollar exchange rate fluctuates greatly, holding US real estate as a stable and appreciating asset can effectively resist the risks brought by exchange rate fluctuations. By purchasing US real estate, immigrant families can not only increase the allocation of US dollar assets, reduce the risk of exchange rate fluctuations, but also ensure the long-term appreciation of assets.

Finally, for investors who have not yet obtained a green card, tax planning for home purchases is also very important. Before becoming a US tax resident, home buyers can enjoy more flexible tax processing methods, without providing tax payment certificates, and are not subject to tax review that may be faced after holding a green card. After obtaining a green card, investors can make more reasonable plans based on their tax status, thereby maximizing tax benefits.

How to buy a house in the US?

For immigrant families planning to buy a house in the US, it is crucial to understand the purchasing process and related requirements. Here are some key steps and considerations that can help homebuyers smoothly complete the purchasing process.

Loans and financial provisions

For foreign investors, obtaining a US home loan is not always easy. US banks usually have stricter loan requirements for foreign home buyers. Firstly, banks usually require buyers to pay a higher down payment, usually more than 30% of the house price. In addition, because foreign home buyers do not have a local credit record in the US, loan interest rates are usually higher. Therefore, immigrant families should prepare sufficient funds in advance and communicate with banks to understand loan policies and conditions before purchasing a house.

In addition to home purchase loans, homebuyers also need to consider other expenses related to the property. The expenses involved in US real estate transactions include property taxes, property insurance, maintenance costs, etc. Homebuyers should ensure that they can afford these additional expenses financially to avoid financial pressure during the purchase process.

Cross-border remittances and fund management

For immigrant families planning to buy a house in the US, BiyaPay 's cross-border remittance service provides an efficient, secure, and low-cost solution for the flow of funds for buying a house. It can achieve localization remittance, low handling fees, fast arrival, and unlimited amount, providing more financial freedom for immigrant families. Combining the potential of the US real estate market and BiyaPay’s cross-border remittance advantages, investors can conduct asset allocation with more peace of mind, ensuring stable wealth appreciation.

Choose the right type of property

When choosing a property type, immigrant families need to make decisions based on their own needs. If the main purpose of buying a house is to provide a school district for their children, then choosing a residence located in a good school district is particularly important. A good school district not only helps children’s education, but may also have a positive impact on the long-term appreciation of the property.

If the purpose of buying a house is to invest in appreciation, then choosing an investment property with higher rental returns may be more suitable. When choosing an investment property, buyers need to understand the rental market in different cities and regions, and choose areas with high rental demand and good returns. For example, properties near some big cities and popular school districts usually have high rental demand and can bring sustained rental income.

Tax and legal considerations

The tax and legal requirements of the US real estate market are relatively complex. Homebuyers must fully understand relevant laws and regulations before purchasing. Firstly, homebuyers need to be familiar with the US real estate tax, including property tax, transfer tax, and capital gains tax. Tax rates vary in different states and cities, so it is crucial for homebuyers to understand local tax policies.

In addition, home buyers need to understand US real estate laws, such as property registration, contract terms, house inspection and maintenance requirements. In order to ensure their own rights and interests, immigrant families should consult professional real estate lawyers or tax advisors during the purchase process to help them understand relevant legal responsibilities and ensure the legality and smooth progress of the transaction.

Overall, the US real estate market not only has the potential for long-term stable appreciation, but also for immigrant families, buying a house in advance can help ensure identity, provide stable income, optimize tax planning and other advantages. Whether it is to lay a foundation for immigrant status or provide a stable financial support for the family, buying a US property is a wise choice worth considering. However, during the purchase process, immigrant families still need to do sufficient financial planning and market research to ensure stable investment and controllable risks.