Buying a house during 485 pending.

R

Raiden

Registered Users (C)
Hello Team,

My 485 has been pending with TSC since Sep 2001. I am currently working on EAD and changed to similar job and pay using the 6 month portability rule. We are planning on buying a small house.

Do you guys have any advice ?. Is it too risky to buy a house during AOS ?.

In case if GC gets rejected do we get enough time to sell the house and go back to India ?

Can we own property in US and rent it and leave to India if GC gets rejected?

Is is better to wait to till GC is over that I have waited till now?

thank you,

Raiden.
 
Many of us are in the same dilemma. The answer lies in your capacity to take risks. I guess even if your GC gets rejected, you should have time to file appeal and you could in the meantime sell the house. The real issue is the hit you will take. Remember selling a house in this market is not easy and not in-expensive.

I do not see how you can manage a property while sitting in a different country. You could do it theorotically, but practically sounds difficult, unless you have family or friends who can act on your behalf. However, given the rental market currently, may not be a smart thing to do...
 
Buying Home with Some Discount

Guys,
If you are planning to buy a home in DFW there is a realtor who shares 50% of his comission with his clients if you already identified a home. You might want to talk to him. I think his phone no. is 972-691-5898 Good Luck to you .
 
Originally posted by Raiden
Do you guys have any advice ?. Is it too risky to buy a house during AOS ?.
Click to expand...

If you current job is secure and you reasonably believe that your I-485 will be approved, then buying a house is the best thing you can do. Home ownership is the best way to accumulating wealth in America.

I purchased a house 2 months after I filed my I-485. Since then it has appreciated approximately $30,000, and I get an interest deduction of around $8,000 per year. Even if my I-485 is rejected, I can sell reasonably quickly because it's in a good neighbourhood.

Buy a good house in a good neighbourhood, and things will work out.
 
If you plan to buy a house in Florida, here are some considerations:

Homestead exemption is not available to people without a green card, or citizenship. Homestead would have lowered your assessed value by $25,000. This value is then used to calculate your property tax. This could save you about $500 a year depending on the area, and value of your house.

One other less known fact is that homes without homestead applied are not subject to the "Save Our Home Value" law. This law prohibits any increase in property tax of more than 3% per year. This means that all homes without homestead get reassessed every year, and thus are subject to the highest property tax increase possible for that year.

The only "good" side is that all this property tax is deductible from your taxable income when filing your income taxes. All that means is that if your in the 27% tax bracket you would essentially get back 27% of property tax you paid.
 
The sooner you buy the better - I bought mine after 18 months of h1 - since then I have gained around 70 k in appreciation and each year a 8 or 9 k tax deduction. In GA you can get the homestead exemption on an H1. The only thing to watch out for is that your mortgage processor understands your immigration status and the additional documentation you may need for closing. You do not want to have to get documentation fron abroad the day before closing (as we did).

Also figure 10% of house price per year maintenance.

It a gamble but so is BCIS.

George
 
smitgg1,

I bought a house recently (2 months back) when I am working on EAD (still I am - RD:06/01/01).

1. Risky? it is NOT as risky like the stock market.
2. In case if GC gets rejected do we get enough time to sell the house and go back to India ?
Depends on the state and location you are buying. Some houses will be sold in just a few days (in our area - the average selling time for a good house/townhouse of reasonable price is 8 days)

3. Can we own property in US and rent it and leave to India if GC gets rejected?
Yes!

4. Is is better to wait to till GC is over that I have waited till now?
Go for it..I also thought like you before 1 year and it costs me 40K more (in one year)
 
Originally posted by smitgg1
Also figure 10% of house price per year maintenance.
Click to expand...

Let me question that figure. I purchased a home in the mid 200s, and I'm certainly not paying $25,000 per year in maintenance.

I have found, however, that the money you save in taxes because of the mortage interest deduction gets swallowed up in home maintenance. :)
 
i have friends who bought houses when they r on h-1b..most of others bought houses on eads (me included)..

all u have to do is analyze ur situation..risks...if something happens all u'll lose will be the closing costs..ultimately it will boil down to money...:)

Madhav
 
Go for it.

Go for it man!

Do research and homework before you purchase. You will enjoy it and have good experience to live in a house, even in case 485 get ejected, which'll be very small chance down the road. Buying and Living in a house is a kind of releasing the anxiety of waiting for 485 arriving!

I did so when I was in H1B, now in EAD. The price goes up 10% in a year.
 
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Re

If your Job is secured, buying a house is the best option. 485 rejection is extremly rare. But if you miss this opportunity later you might not get the house you are looking for. B'cos by the time TSC approve all the 485s everybody will turn at least 40 years of old.
 
TheRealCanadian,

I share your assessment that "the money you save in taxes because of the mortage interest deduction gets swallowed up in home maintenance".

I think the benefit of home ownership versus renting is more a long-term thing. For example, when you pay-off your mortgage in say 15 or 30 years, you have a roof over your head. That is a BIG THING! If you do a careful analysis of your money, you will see that most of your earnings (25-30%) go towards paying for rent/mortgage followed by all the various types of insurance you pay for (home, auto, life, medical, etc). So when all of a sudden you don't have to pay for rent/mortgage you will need less money to make a living.

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Raiden,

As some members have already pointed out if you buy in a good neighorhood you will be able to sell the home in a reasonable time if your situation warrants that. So it is a matter of risk-taking. There is some risk but if your case is solid and you don't have any baggage, your risk is very little. Good Luck,

Cheers,

sg_rg2
 
I was an H1 when I bought my house 2 years ago. I'll say it depends on the location of your house. If you buy house in good neighborhood, it'll be easier for you to sell your house and you can also enjoy the appreciation and the later you buy, the more expensive it is going to be. Otherwise, I'd suggest you to wait. Interest rate is not going anywhere any time soon.
 
My advice as a homeowner who took the risk on just a H1B visa: buy a condo or townhouse which would be easier to sell/rent if you encounter unforeseen circumstances.
 
tax benefits

very often people miscalculate the anticipated tax savings. for a married couple, about 8000 dollars are deductable any way with or without house interest/taxes. most do not have significant other deductions to benefit from itemization.
 
True about 8000 standard deduction per couple But if you live in a state with state income tax with about 7% tax and avg income of 80,000-10000 that's usually 6,000 - 7,000 off the bat. So any mortage interest tax saving is in addition to that - it would definitely be worth itemizing
 
Re: tax benefits

Originally posted by kuversa
very often people miscalculate the anticipated tax savings. for a married couple, about 8000 dollars are deductable any way with or without house interest/taxes. most do not have significant other deductions to benefit from itemization.
Click to expand...

It's important to note that your tax savings don't occur on TOP of the standard deduction, but you underestimate the value.

If you assume $8k on interest, $4k on state taxes, $3k on property taxes and $500 on ad valorem stuff, you're now at $15k, which should save you around $5k on state/federal taxes.
 
buying house while on h1b

hi guys, i am on h1-b and applied for a labor cert in june 2002 non rir. there are no chances i will get labor approved for another 18 months.

coming to the point , i want to buy a condo on h1b status, do i need anything special in terms of documents or laon applications. quick reply appreciated
thanks:confused:
 
AFAIK (but IANAL), you should be O.K. with the proof of your H-1 visa. Of course, assuming you have sufficient credit score, credit history, available credit, income, and few other debt, etc...
 
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