Kaygee276

Hi guys,

My husband and I are in the very early stages of looking to buy somewhere as as holiday home in the USA.

We are looking to buy in AZ or NV.

It will be a cash purchase, so no credit would be sought.

So I am looking to the forum for any advice, known pitfalls, recommendations for good property websites, experience of 'unforeseen' expenses, stealth taxes, basically anything that we would need to be aware of as UK residents buying somewhere in the USA.

The longest we would likely be staying in the house would be maybe 6 weeks max at a time - so I can't see any problems with visas or the likes - but if I am wrong on that front please let me know.

I appreciate your help in advance

Pulaski

Well for starters, maintaining a home in the US seems to be a much more expensive and labour intensive proposition than for a home in the UK, partly because there are more parts to go wrong - AC system, roof with a projected life of 15-20 years, garage door openers, water heaters that last only 10-15 years, toilet components that only last 3-5 years because there chlorine in the water rots them, etc. Anything painted needs frequent repainting because of the sun, and the sun also damages anything made of vinyl. .... And partly because US homes are not well built and tend to sag, shift and just wear out - gaps appearing between skirting and door casings and the wall, door frames sagging, cracks and "nail pops" appearing in walls and ceilings, etc.

I enjoy doing a lot of DIY work on my home, and I used to joke that my home wasn't just a home, it was a hobby too. Now, after 14 years, with no end to the repair and maintenence projects in sight, the joke has worn a bit thin.

petitefrancaise

The visa issue could prevent you coming to your holiday home so you really do need to be careful on that one. As the immigration lawyers are quick to point out, it is up to you to prove to the border guard that you do not intend to stay.

Pulaski is spot on with the amount of work US houses need. I think it may have been him that mentioned that one should budget at least 1% of the value of the house for repairs/maintenance each year and I think that is about right.

You can look on zillow, trulia or redfin for a good idea of house prices for your chosen areas. But contact an estate agent (realtor) to send you listings as they come up.

Take a look at citydata.com for your chosen area too - you can ask about stuff on there.

Property taxes you should take a look at. They can be hefty. Insurance on a property that is empty most of the time could be a bit steep too. HOA fees and regulations if you buy on an estate.

Kaygee276

Thanks Pulaski - I'd never really given much thought to the overall maintenance regime that we will need to consider.
Like you my hubby enjoys DIY (I think it's more he likes to buy the tools) and he is really good at maintenance of our current UK home but we will need to factor this in for the USA home too.

Pulaski

I have seen 2% of the value per year, which sounds high, but taking into account a new roof and heating/AC system every 15-20 years, and if you called a licensed tradesmen for every plumbing and electrical issue, spending an average of 2% a year is easily possible.

Kaygee276

Thanks petitefrancaise, all great advice. I'll check out those sites.

As for your comment on the visa issue, could you maybe clarify some more for me please? If we are only coming over to the USA say 3 or 4 times a years, for max 4-6 weeks each time, is there a recommended process around this do you know?
We normally enter using the ESTA visa waiver when we come on our longer driving holidays, would this no longer suffice?

Is there an area on this forum I can read up on this maybe?

petitefrancaise

yes, go to the immigration section.

You are probably fine with esta but I am not an immigration attorney.

MidAtlantic

What are you trying to achieve? If it is only a holiday home then it will be unoccupied for much of the year with the consequent management issues and costs. Your maximum stay may be 6 weeks but how often do you anticipate coming? That will influence the visa question, although there are no hard and fast rules about how much and how frequently you may visit.

Why AZ or NV? That adds significantly to your travel costs from the UK when there are excellent locations in the East.

Pulaski

Which would add moisture, humidity, and potentially hurricane maintenance, repair, and preparation issues to home ownership, not to mention yard mowing and maintenance*, which I deliberately excluded from my original post in this thread.

* You have to live here (SE) to appreciate how quickly mother nature tries to take back over!

Kaygee276

Hi MidAtlantic,

AZ and NV are mainly for the climate. Knowing it is likely to be sunny (even if it gets a little cold sometimes) is what we are looking for.
I know what you mean about travel expenses, and yes, East USA would reduce them, but it isn't our first choice.

We'll probably come over maybe 3 or 4 times a year, and when we aren't over then it is highly likely that someone from my family or group of friends will be spending time there.

The homework I'm doing will help with decisions around security, and any property management that we may decide to use.

Still early days so i'm working on the premise that forewarned is forearmed.

MidAtlantic

Here's the link to the CBP on ESTA, the most significant part of which is:

When traveling to the U.S. with the approved ESTA, you may only stay for up to 90 days at a time - and there should be a reasonable amount of time between visits so that the CBP Officer does not think you are trying to live here. There is no set requirement for how long you must wait between visits.

It is deliberately vague and leaves a lot of discretion with the CBP officer. The key is s/he does not think you are trying to live here, so anything that confirms your ties to the UK is important.

Pulaski

And what I thought you (MidAtlantic ) were going with this (above quoted) post was that owning a home in the US is an indication (not conclusive of course), that someone might be trying to live in the US, or is at greater risk of overstaying.
But would they really? How often do you really think that your family and friends want to visit a house in the 'burbs in Arizona or Nevada?

SanDiegogirl

Sounds like you are retired? Not many folks can vacation for 3 to 4 times a year for 4 to 6 weeks at a time.

If so, get a B1/B2 visa which allows for frequent trips to the US - otherwise you might be regarded by the authorities as trying to live in the US while on the VWP/ESTA program.

Cook_County

US Federal and State income tax on any gain on sale. UK CGT on any gain on sale. US estate tax on the first death if valued over US$60,000.

petitefrancaise

I would be very concerned about the cost of flights changing.

Flights across the atlantic seem to be very reasonable right now with some real bargains but I definitely wouldn't bank on them staying that way.

Also, whilst it isn't too bad costwise buying a house in the USA, selling costs are high. Would you also have tax implications there if you made any money?