If you are not a resident of California but are still dreaming of getting a property or a house there then you should first know all the laws and processes of property ownership before investing your lifetime savings in doing so. Because the rules will be different for those who are citizens of the United States but are not residents and for those who are neither residents nor citizens.
Can you buy property in California without being a resident?
Yes, you can buy a property in California even if you’re not a resident of the United States. Though there are some advantages that the residents get regarding the financing as it is easier for them. But you can still get a property of your choice in CA if you can manage to pay for it without any delay.
Will I face tax problems while buying a property in California?
You have to pay tax for whichever property you buy in California but the ratio of tax will vary depending upon the purpose for which you are using that property. For example, if you are thinking of moving to California and living in that property then the tax will be very high. Similarly, if you are using it for commercial purposes then taxes will be high. But if you are using it for rental purposes then the tax will be low.
Will my estate planning be affected by purchasing a house in California?
Yes, your estate planning will be definitely affected if you don’t have a green card but you are still buying a property in California because an unexpected death can cost you thousands of dollars that you have to pay for the property that you have bought and for probate purposes. But if you have already contacted a real estate lawyer then he will guide you about what you should do to avoid losing thousands of dollars in such things.
Can I eliminate or at least reduce the tax liability?
Yes, the tax liability can be reduced if you follow the property ownership structure. For example, being a non-resident, the taxes will be high for you but if you partner with someone who has a green card then the situation will be different. Besides this, your taxes can increase or decrease depending on for which purpose you will be using the building that you are purchasing. So, it is better to buy a property through real estate companies that can not only guide you on such aspects but will also make sure that you don’t face any issues in the future.
What are the requirements to buy a house in California?
Here are a few requirements that you need to fulfill if you are thinking of buying a property in California being a non-resident. There are two situations where the requirements are different.
- If you have the funds to buy the property then you should just look for a good seller.
- But if you don’t have cash and you will be paying through a mortgage then you should have a credit score of more than 650 otherwise the lenders will not consider you. You should have funds to pay at least 3.5% of the down payment. You should contact good financial institutions to get funds from lenders.
What is the lowest down payment for a residential property in California?
Mostly you have to pay 3% as a down payment for buying a home in California but some sellers demand more than that depending on the property that you are buying. So, the down payment can be somewhere between 3% to 20%.