Aussie newbie looking to buy a house in Texas

Buying & Selling Real Estate
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Aussie newbie looking to buy a house in Texas

Vasily Voronin
Adelaide, SA · Member since 2014 · 13 posts · 0 votes

Hi everyone.

I'm an Aussie living at the moment in Moscow, hoping to buy a house in Round Rock Texas. I have no idea how the real estate market works in the States (but collecting information). Have a few questions. I would say a Big THANKS to those people who would share a few moments to answer them.

1. How long does it take to settle a deal for buying a single family home in Round Rock Texas (after finding the right place and placing an offer and when the offer is accepted)?

2. Do I have to be present in the country myself or can my sister (who moves to Round Rock soon) with the Power of Attorney purchase a house in my name? 

3. After purchasing a property (in cash) can I go the bank and get myself a line of credit with the house as a security?

4. Do I as an alien get taxed the same amount as local folks?

5. Is Round Rock a good place to buy a house, compared to other suburbs around Austin? 

And the last one. Where can I get more information on the subject, links I can use related to these questions? 

Thank you again for your time and patience.

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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y

1. If you're paying cash it will go much quicker than with a loan.  But its still a somewhat lengthy process.  Might get it done in two weeks if you really push everyone.  A month might be more typical.  That's from an accepted offer to closing.

2. Typically no.  You can sign forms separately and remotely.  They can be sent back and forth via fax or electronically for the most part.  There will be some that will require real signatures and those can be fedex'ed.  

For both of those questions, speak to a title company.  If you're working with an agent (no reason not to) then they can point you to a title company they work with.  You're not required to use that one, though, and fees and timelines may vary, so it might be worth calling around if speed is really an issue.

3.  If you were a US citizen, yes.  Lending is much more difficult for non US citizens.  TX also has somewhat unusual rules on HELOCs, as I recall.  When I lived them (moved out in 1995) you couldn't even get them.

4.  We did look at moving there before leaving TX in 1995.  We liked the West Lake Hills area.

Again, a title company can be helpful with the procedures, as can an agent.

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  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    12y

    1. If you're paying cash it will go much quicker than with a loan.  But its still a somewhat lengthy process.  Might get it done in two weeks if you really push everyone.  A month might be more typical.  That's from an accepted offer to closing.

    2. Typically no.  You can sign forms separately and remotely.  They can be sent back and forth via fax or electronically for the most part.  There will be some that will require real signatures and those can be fedex'ed.  

    For both of those questions, speak to a title company.  If you're working with an agent (no reason not to) then they can point you to a title company they work with.  You're not required to use that one, though, and fees and timelines may vary, so it might be worth calling around if speed is really an issue.

    3.  If you were a US citizen, yes.  Lending is much more difficult for non US citizens.  TX also has somewhat unusual rules on HELOCs, as I recall.  When I lived them (moved out in 1995) you couldn't even get them.

    4.  We did look at moving there before leaving TX in 1995.  We liked the West Lake Hills area.

    Again, a title company can be helpful with the procedures, as can an agent.

    1Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    12y

    Welcome from Round Rock!

    1.  It depends largely on how picky you are and how much you have to spend.  In general the market is very tight in all of Austin right now

    2. Not sure, but provided you're a citizen I think a POA should work fine. Who would be on title?

    3.  You should be able to provided you possess the other things needed like character, credit, capacity, etc.  Collateral is only one piece of the puzzle, but a free and clear asset will likely attract a line from some lender

    4.  I am assuming you're talking about property taxes.  I am not aware of why you'd be taxed differently so I am inclined to say yes.  Taxes aren't my strength though so you may want to visit with a CPA on this type of question.  CPAs frequently don't specialize in property taxes, but they should know the rules.  I would be shocked if you're treated differently though from a property tax perspective

    5.  Yes.  In general I like Williamson County a lot better than Travis County for a number of political reasons.  The schools in the county are for the most part pretty solid too.  A lot depends on your wants/needs though

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  • Vasily Voronin
    OP
    Adelaide, SA · Member since 2014 · 13 posts · 0 votes
    12y

    Thanks Jon for your time. 

    Is there some link where I can get information on getting a HELOC (which I assume is a House Equity Line of Credit) as an alien?

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  • Vasily Voronin
    OP
    Adelaide, SA · Member since 2014 · 13 posts · 0 votes
    12y

    Hi Bryan

    2. I'm not a US citizen, I'm an Australian citizen :), but my sister is. I thought that it is better to put myself on the title, because I have some information that when you inherit real estate in the States you can loose a lot in tax, when the title is passed to relatives.

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  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    12y

    good luck

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  • Vasily Voronin
    OP
    Adelaide, SA · Member since 2014 · 13 posts · 0 votes
    12y

    Thanks mate. 

    Yeah Melbourne street rocks.

    About the inheritance. I can purchase a house in the name of my close relative who is a US citizen, but I have some info (which I still need to check) that says that If this person dies, and there is a will, I'll have to pay a big amount of tax to register that house in my name.

    Thanks for the IRS link.  

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  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    12y
    Originally posted by @Vasily Voronin:

    Thanks mate. 

    Yeah Melbourne street rocks.

    About the inheritance. I can purchase a house in the name of my close relative who is a US citizen, but I have some info (which I still need to check) that says that If this person dies, and there is a will, I'll have to pay a big amount of tax to register that house in my name.

    Thanks for the IRS link.  

    Joint tenancy may suffice in a swift transition & will avoid probate. 

    BUT your next step should be to consult a TX attorney as not all states have adopted an equitable apportionment of property & death taxes. As my AZ Brother-in-law recently discovered, community property within an estate may be subject to a double step up in basis for the purpose of federal taxes.

    good luck

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  • Peter H.
    Investor · Austin, TX · Member since 2013 · 6 posts · 0 votes
    12y

    2. I went through the process of closing a purchase in Austin recently when I was oversea without a Power of Attorney. My impression is that it depends whether the title company wants to work with you or not. The requirement was for me at that time to find a notary service accepted in US (it was the US embassy for me). It's similar to a regular closing, and you mail the docs back to the title company. One lesson I learnt was that you shouldn't sign the doc with the notary with a date before the date on the closing docs. If you are serious I can help you look up the title company I used and I believe they are in Round Rock.

    3. I recently talked to a banker regarding that, he seems open and sounded easy, not sure if it's due to my relationship with the bank. It was for my primary residence. He is a different person from the mortgage person in the bank, and it seemed a lot easier and less procedure comparing to a re-finance.

    4. Yes, at least that's how it was when I was an alien.

    5. It certainly depends on your priorities and potential predicition of the future of Round Rock and other suburbs. I lived in Round Rock for several years, and the SF I had basically stayed flat in terms of value - highly depend on the specific location/property certainly.

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  • Vasily Voronin
    OP
    Adelaide, SA · Member since 2014 · 13 posts · 0 votes
    12y

    Thanks a lot Peter for your advice.

    2. I'm serious all right, I'm just trying to prepare everything upfront and decide what is better. US market is new to me, but I'm studying.

    3. Interesting. When I was doing the same stuff in Australia, it was a lot easier to talk to a mortgage broker than the bank itself to get a HELOC.

    5. I'm sort of a passive investor. I buy and let it stay for 7-10 years then I sell, so to me it doesn't really matter how fast I see growth - property is still better than a bank deposit. I predicted market in Moscow 15 years ago correctly and had great returns since then, but now it's flat for the last 5 years, time to move on. 

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