[Immigration & Real Estate Collection] Overview of Costs Related to Buying a Home for U.S. Immigrants

[Focus on U.S. Immigration and Life Information] New immigrants who have successfully moved to the United States often plan to purchase property there. In 2016, Worldway Group introduced the concept of the "Year of Asset Allocation," with EB-5 investment immigration and U.S. property purchases continuing to be the two major trends leading the 2016 U.S. investment sector. In this "U.S. Immigration and Real Estate Investment" column, Worldway presents the necessary costs for buying and maintaining a home in the U.S. for the reference of new immigrants interested in purchasing property:

In U.S. real estate transactions, cash buyers generally need to pay the following fees in addition to the purchase price:

1. Earnest Money Deposit - 3% - 10% of the purchase price

2. Escrow Fee - Approximately $600-$1,200 (charged as a percentage of the property price)

3. Home Inspection Fee - Approximately $300-$600 (charged based on the size of the building)

4. Notary Fee - Approximately $50-$120

5. Messenger Fee - Approximately $50-$150

6. Hazard Fire Insurance - Approximately $600-$1,000

7. Documentary Transfer Tax - $300-$600 (charged as a percentage of the property price)

8. Recording Fee - Approximately $80-$100

In addition to the fees paid by cash buyers, loan buyers must also pay bank-related loan fees, such as:

1. Title Insurance - Approximately $400-$800 (charged as a percentage of the loan amount)

2. Bank Charges - Such as bank appraisal fees, credit report fees, and loan application fees - required for loan buyers

3. Appraisal Fee - (Approximately $300-$600)

Related Taxes:

The only true holding cost for owning any home in the U.S. is property tax. Property tax varies by state and region in the U.S., generally ranging from 1% to 3%, and is 1% in California. Newly developed areas may have additional tax types. If you have U.S. resident status when selling your home, you may qualify for U.S. property tax incentives, such as a capital gains tax exemption on a primary residence of up to $250,000 for individuals or $500,000 for married couples.

According to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), when a non-resident alien sells U.S. property, 10% of the sale price must be withheld as a prepayment of capital gains tax. The withholding is submitted directly to the Internal Revenue Service (IRS) by the escrow company. California requires an additional 3.33% withholding for capital gains, totaling 13.33% for foreign nationals after selling a property. For details, please consult a professional accountant.

As a leading institution in the investment immigration industry, Worldway Group has been committed to selecting high-quality projects for high-net-worth clients for 19 years. Worldway also has a comprehensive landing and settlement customer service team. Currently, Worldway has established a customer service center in Los Angeles. If you have any needs in the U.S. regarding EB-5 investment immigration, landing and settlement, tax planning, children's education, property purchase, asset allocation, investment management, or insurance and finance, you can contact our customer service center (001-626-522-6522).

Worldway Group also regularly provides high-quality services to our clients. Based on client needs, we hold regular seminars on various topics such as U.S. real estate, education, life, financial investment, medical insurance, tax planning, and social welfare. Worldway will escort you on your immigration journey. Consultation Hotline: 400-138-2929

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