Buying a House and Conclusion
Buying a house:
Should you plan to be in the USA for a 3 year assignment
or more, you may opt for buying a house. You need to bring a sufficient amount
of money, especially as a foreigner, but the interest rates in the US are around
7%, and you are able to subtract the interest from your tax if you're living
in the house. If your company provides you with a compensation for living, the
purchase of a house could be a nice way to invest money with a good return chance.
You need to do a thorough calculation on the pro's and con's, however, because
there are many things that can turn what looks like a nice profit into a nasty
loss.
Things to keep in mind:
These are only the main points. After having done some analysis on the subject, my conclusion was that it may be effective for an assignment of 3 or more years, or when you do not need the money when you leave the US. In the first years, the fees and market fluctuation will pose a considerable risk: probably higher than you are willing to take, even when your company compensates you for cost of housing.
Conclusion of the housing section:
Start early: some of the nicer places are usually rented
to a new tenant two months before they become available. Respond quickly to
attractive advertisements: the turnaround time for nice houses is often a few
days. Use all opportunities, and keep in mind that the Realtors and brokers
ask a fee for their work, but may be worth it over a lease period of several
years.
A diplomatic clause is required in an expatriate lease contract, stating that
there is a 90 day notice to cancel the contract in case the company decides
to move you to another place. However, when they move you back to your home
country it will be very tough for the landlord to claim 3 months rent. Costs
of the legal procedure usually are much higher than just swallowing the loss,
so the actual risk is the security deposit (about 1.5 month rent) that you have
put in the care of the landlord.
General rule: most US citizens would love to live in a house at the countryside, preferably a farmhouse or in a new housing development area, with a lot of space. Older houses are therefore less attractive. Heating is often oil/steam, cooking is electric.
Most Americans are used to commute between half an hour and an hour, so their 'range' is quite large. The closer you get to New York, the more people you will see that work in the City and prefer a place in New Jersey, so the areas around the main New York City access routes are expensive. Going South and/or West, prices will fall a bit. Going more West and/or South will result in prices going down substantially, but you really have to like the country side to live there (about 1 to 1.5 hour from New York, little or no public transportation, etc.). It's up to you to make up the balance between living near to the City (your visitors will love it!) and living in the countryside (very green and quiet indeed!).