The United States, a country of freedom, vastness, and filled with passion and dreams, inspires many with longing and hope. As more and more new immigrants flock there, once they have decided to immigrate, the first thing they must consider is how to invest in and purchase U.S. real estate. In mid-May, WorldWay invited U.S. real estate expert Mr. Kelvin Chen to explain issues regarding new immigrants purchasing property in the U.S. for residential and investment purposes. Many people with immigration intentions attended the event, eager to hear the guidance and advice the expert would provide on the matter of investing in and purchasing U.S. real estate.
Mr. Kelvin Chen is of Taiwanese descent and has been studying and residing in the U.S. since 1978. He is currently an Executive Vice President at a well-known U.S. real estate company and a senior member of the Society of Industrial and Office Realtors, with 20 years of experience in providing guidance on U.S. real estate investment and purchasing.
"It is better to buy a bad house in a good neighborhood than a good house in a bad neighborhood." This is the golden rule for investing in and purchasing U.S. real estate that Mr. Kelvin Chen shared with everyone. He then went on to explain why this is the case. A "good neighborhood" means the area has prestigious schools, high-income, highly educated, and high-quality "three-high residents," as well as clean and spacious public facilities and streets, allowing children to receive a good educational and cultural environment. When the real estate market is booming, houses in good neighborhoods can lead in appreciation; conversely, when the market is sluggish, they also demonstrate better resistance to price declines.
Next, Mr. Kelvin Chen introduced the four types of U.S. real estate property rights: leasehold, life estate, defeasible estate, and fee simple. The difference is that the first three types of property rights can be reclaimed under specific conditions, while only the last one, fee simple, can be fully disposed of, transferred, and inherited, making it the highest form of property ownership. In other words, your house can be inherited by your children and descendants unconditionally and indefinitely, and it will never be reclaimed by others at any time, so there is no need to worry about the duration of property rights.
After understanding property rights, new immigrants then consider the actual transaction process during the purchase. While it may seem like a simple act of buying and selling, the matters requiring attention during the process are very important. Mr. Kelvin Chen immediately followed up with an introduction to the real estate transaction process and associated costs. First, the sharing of costs during the transaction process must be agreed upon by both parties in advance; there is no rule that the buyer or seller must pay everything. For example, stamp duties and transaction commissions incurred during the transaction are paid by the seller, while the home inspection fee during the transaction is paid by the buyer. Another important aspect of U.S. real estate transactions is that, taking California as an example, the buyer has 17 days to consider whether to finalize the purchase of the property. If they find any aspect unsatisfactory, they can unilaterally request to cancel the contract. Secondly, during the transaction process, real estate agents have the obligation to disclose the condition of the house, facilities, and the composition of paint used in renovations. The principle that buyers should adhere to is "what you see is what you buy." Any facility or furniture seen during the home inspection should be included in your purchase. Once any discrepancies are discovered after the transaction, the real estate agent will be subject to severe penalties from the U.S. government. This law fully protects the rights of the buyer and avoids potential fraudulent behavior during the transaction process.
Finally, Mr. Kelvin Chen gave new immigrants several suggestions for choosing a house: consider the convenience of the surrounding environment for you and your family, check the educational level of surrounding schools, inquire about the age of the house, lighting, materials, and understand the background and strength of the real estate agent. He also analyzed the current state of the U.S. real estate industry at the meeting: "The U.S. is currently like a patient recovering from a serious illness, and real estate prices should experience a period of stability. At this time, one should consider a strategic entry to purchase in anticipation of future appreciation."
WorldWay Group adheres to the service philosophy of being professional, efficient, honest, and fast, providing a full range of professional services to our immigrant clients, including tax planning before and after immigrating to the U.S. and guidance on real estate purchases, helping you realize your wonderful "immigration dream."
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