A multicultural, diverse, vast patchwork of a country that spans a whole world within its shores. The USA encapsulates every possible landscape from snow-capped mountains to tropical, white sand beaches. The brash cities or remote colonial settlements within the Black Hills, the ski resorts or desert dwellings, whatever your taste you will certainly find it in the mighty USA

The USA is the largest economic power in the World. In a market orientated economy, private individuals and business firms generally make all decisions. Federal and state governments predominantly buy needed goods from the private market place. This ensures that US businesses have greater flexibility then their counterparts of West Europe and Japan.

Long-term problems include inadequate investment in economic infrastructure, rapidly rising medical and pension costs of an aging population, sizeable trade and budget deficits, and stagnation of family income in the lower economic groups.

A depreciating exchange rate for the dollar against most major currencies discouraged US imports and made US exports more competitive abroad. The global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession by mid-2008.

Population: 307,212,123 (July 2009 est.)

Currency: US dollar

Capital city: Washington DC

Major cities: New York, Chicago, Texas, LA, San Francisco, Detroit, Houston

Language: English

Climate: Mostly temperate, but tropical in Hawaii and Florida, arctic in Alaska, semiarid in the great plains west of the Mississippi River, and arid in the Great Basin of the southwest; low winter temperatures in the northwest are ameliorated occasionally in January and February by warm Chinook winds from the eastern slopes of the Rocky Mountains

Location: North America, bordering both the North Atlantic Ocean and the North Pacific Ocean, between Canada and Mexico

Economy

Inflation rate (consumer prices): 4.2 percent (2008 est.)

GDP (official exchange rate): $14.33 trillion (2008 est.)

GDP (purchasing power parity): $14.29 trillion (2008 est.)

GDP (real) growth rate: 1.3 percent (2008 est.)

Property overview

Main property markets
The United States is a vast country that has something for everyone. Each state and region can provide a multitude of investment opportunity. The foreign market is largely concentrated in California, Florida and New York.

Restrictions
There are very few restrictions on foreign buyers in the US market place. The restrictions enforced rarely affect the buy to let market anyway.

Forms of ownership
It is possible in the USA to own property on both a freehold and leasehold basis.

How safe is it?
The USA is predominantly governed by the Heritage foundation. Records show that the US scored 90 percent on the heritage foundation assessments meaning that all property rights are guaranteed. Contracts are extremely secure and the courts recognise foreign arbitration and court rulings. As in most countries always be aware that agents and realtors work solely on behalf of the seller. Therefore it is always advisable to employ the services of a legal professional who solely protects the buyer’s rights and interests.

Mortgages
US banks will lend to UK buyers, however foreign buyers need to remember that if you require to borrow more then 70 percent of the total purchase you will need either a green card, a social security number or an American passport. They are generally quite forth coming in lending under this amount.

To borrow over 70 percent you will have to prove means of income, for less then 70 percent, self certification will suffice.

The buying process
The United States of America is by far an owners market with over 70 percent owning their homes rather then renting. These statistics help prove that buying over there for foreigners is extremely safe and fairly straight forward compared to other countries. Always be aware though that each state has its own set of rules and regulations. The range of homes you can buy is as vast as the country itself – so do your research thoroughly. Know why you are buying and determine a wish list from essentials.

Choosing an area
When considering an area, the question you must ask yourself is why you are buying. The answer to this question will determine where you finally settle. For example if you are looking for a holiday home with families in mind then Florida could be a good choice, if its for work or permanent relocation then other factors will come into play. Always conduct thorough research both before and when you arrive in the country. The internet can provide a very comprehensive source of information but cannot and must not be relied on completely for the whole buying process. I would always strongly advise to visit a few areas before you even start looking at properties.

Viewings
Once you have decided on a location then the house hunt can begin. Your realtor will be able to organise a week or two of viewings to utilise your time in the US.

A few factors to consider when choosing your new home is what type of ownership you are looking for.

A few examples are:

• Condominiums
• Co-ops
• Multi-family homes

Whatever you decide on, always remember that a first viewing is about falling in love, subsequent viewings are for thinking with your business cap firmly on. 

Legal representation
As with the buying of any foreign property it is advisable to employ a lawyer who works solely on your behalf. Make sure he/she is familiar with both English and American property law. The agent who will oversee the selling of the house will be looking after the vendors interests. All negotiation will be done via both parties’ attorneys.

The sale
Once you have decided on your ideal home an offer can be made. This is by no means legally binding. Your legal advisors will handle any negotiations. After a fee has been agreed, contracts can start being put together. Once a contract has been signed it will become legally binding by both parties. This contract should state clearly all matters relating to the sell.

This should include:
•Address and legal description of the property and home
•Agreed sale price
• Terms of sale, all down payments and mortgage condition
• Sellers promise to legally hand over the title of the land
•A target date for the finalisation of the sale
•Amount of down payment. This may also be known as earnest money or deposit. A contingency or ‘deal breaker’ should also be discussed. This is a ‘get out’ for either party due to exceptional circumstances

The two most common deal breakers are:

• The buyer cannot find a suitable lending agreement from a bank or other institution. Therefore it would be unreasonable to expect a purchase.
• An independent contractor completes a survey and has deemed a breach of contract, for example an agreement of the roof being fixed hasn’t been completed.

It is vital to make sure everything that has been verbally agreed gets included in the contract. Otherwise you could find yourself in lengthy and costly legal battles.

The contract will be drawn up by the vendor’s attorney. He/she will obtain all the relevant documents such as the deed, survey, title insurance policy, promissory notes or mortgages on the property, certificates of occupancy, tax bills, fuel and utility bills, leases, permits for elevator, pools, etc.

Your attorney will also be researching the financial condition of your new home to check for any discrepancies. Once both matters have been exhausted, your attorney will carefully go through the entire contract. It also a legal requirement, if you are obtaining an English mortgage, to get a survey completed.

When you are completely satisfied with the contract then you will be allowed to sign. This is then legally binding. A 10 percent deposit is also usually required. Please note that even if you (the buyer) have signed the contract and the vendor hasn’t, it is still fairly common practice for the vendor to accept better offers.

After both parties have signed a contract you will be given your closing date. This is generally several weeks after the contracts have been signed. In most states, ownership is handed over after registration at the cadastre or the office of the county recorder.

Generally the following happens during closing:

• The buyer (or his/her bank) delivers a cheque (generally in the USA, a cashier’s check or wire transfer) for the balance owed on the purchase price.
• The seller signs the deed over to the buyer, and gives him the keys.
• A title company, lawyer or civil law notary registers the new deed with the local land registry office.
• The seller receives a cheque for the proceeds of the sale, less closing costs and mortgage payouts.

Escrow – Usually occurs in Western USA. This is when a third party holds the contracts and monies, allowing both parties to not be present at the same time.

Settlement – Usually occurs in the East. All parties have to be present, supervised by a legal advisor. The transfer of funds is usually in the form of certified or wired funds.

Taxes
Sales Tax 1-5 percent of assessed value of house (NB: not all states charge this)
Stamp Duty Varies from state to state dramatically
Capital Gains Tax 8-15 percent

Local Taxes 75 percent of market value (does vary from state to state)

Tax on Rental Income all rental income is subject to USA tax. A standard withholding tax rate of 30 percent is applied to all rental income and is paid locally. In some states a double taxation agreement exists between the state and the UK.

Area guide
East Coast and New York
New York City can be anything you want it be. This is why so many people make it their home. If its culture, fine dining, boutique shopping, musicals, sports, or the bright lights of its night scene, then the Big Apple has it all. Its complexity and multitude of opportunities can intimidate even the most hardened city dweller but attack it with a little bit of organisation mixed with a spirit for the unexpected and New York quickly becomes your best friend.

The East coast isn’t just about the big NY; plenty of other cities boast having an almost equalled allure. The east coast is a wondrous mixture of the exciting history, culture and natural beauty of the eastern seaboard. The infamous cities and states instantly conjure up preconceived images spurred on by movies or songs.

Other major cities and towns
• Boston and New England - The Tea Party and autumn leaves.
• Cape Cod- lighthouses, beaches and historic beauty
• Rhode Island and Connecticut
• Newport -mansions, festivals
• New York City -shopping, Broadway, the Empire State Building, the Statue of Liberty.
• Philadelphia - The Cradle of Liberty, the Declaration of Independence.
• New Jersey
• Atlantic City - casino gaming, spas, world-class entertainment, nightlife, fine dining, ocean boardwalks.
• Baltimore- The historic “Charm City”
• Washington DC - The nation’s capital, the White House, Lincoln Memorial 

West
The West of the US is by far the largest geographic area covering almost half of the Country; it also spans a multitude of landscapes varying from the Pacific Coast, through temperate rainforests, The Rocky Mountains to the Great Plains.
The West is divided up into the Pacific states which are Alaska, California, Hawaii, Oregon, and Washington and the Mountain states which are Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming. 

When most people think of the West of America they conjure up images of the beautifully bronzed bodies of California.

It is the most populated state in the US. Therefore by investing in real estate here you can take full advantage of both the
foreign and domestic rental market. 

California also has a very unique geographic make up which stretches the entire state allowing for a variety of different climates and scenery, thus providing for a whole range of tastes. The south of California provides beautiful warm days on palm fringed beaches whereas a little further north, long walks on rugged cliff coast line to secluded beaches to get glimpse of whales and seals as the water becomes cooler is ever possible.

Nevada is another popular real estate haven. Las Vegas is increasingly becoming popular with stag and hen do’s making rental potential huge. As a real playground for adults, the bright lights, endless shows, night spots and casinos can make this city exhausting to live in but with so much to offer the tourist, Vegas should never be overlooked.

Mid West
The Mid West is made up of twelve states to include Illinois, Indiana, Kansas, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin.

Chicago is the largest city followed by Detroit and Indianapolis. Chicago, the windy city as it’s been lovingly nicknamed is the second most populated city after New York. Although it can sometimes be overshadowed by its coastal neighbours of both New York and LA it really does have so much, if not more to offer without the hectic complications. The interesting and notorious history of a gangster past taking full advantage of its reputation of limitless opportunity makes for an excellent selling point when so much of America lacks such stories.

Nowadays most visitors are bowled over by its breath taking skyline and impressive architecture. The city is somewhat cheaper than New York but certainly has all the appeal without the intimation. The mission statement of ‘anything can and will happen’ is still very apparent today in a society that is so proud of what this once little lakeside town has achieved.

The South and Florida
The Deep South of America is made up of Texas, Alabama, Georgia, Louisiana, Mississippi and Tennessee. With such a complex history this area is deeply set in its identity of being truly American. The strong influences from its past are still very apparent today and it’s nigh on impossible to travel from state to state without reminders of both the Civil war and Civil rights movement. Having said this though, the region is renowned for its Jazz and Blues culture and not to mention its mouth watering, world famous cuisine. 

Although traditionally the South isn’t a popular place for us Brits to buy, Florida on the other hand is. The sunshine state that could have been built for the all out family holiday. 

Florida boasts theme parks, beautiful beaches, shopping, lakes and forests. Everything that you could want in a holiday home, not to mention its almost year round sunshine. Florida has always been very popular with holiday homes both in the foreign and domestic markets, in the past this has driven prices up however it has now evened out and prices are reasonable again. The rental potential again, is huge and Florida is well worth considering if you are planning on renting your house out for the majority of the year.

Other major cities and towns
• New Orleans, Houston, Austin, Atlanta, Orlando, St Petersburg, Miami