Home Buying in 14850>Question Details

Steve Kim, Home Buyer in New York, NY

US expat and Ithaca rental property

Asked by Steve Kim, New York, NY Mon Dec 10, 2012

Three questions please.

(1) As a US citizen living abroad, does purchasing a multi-family home in Ithaca for a rental purpose count as a primary or "first" home if one has not owned a home in the US for over 20 years?

(2) Which mortgage - primary residence or investment property - will this be categorized?

(3) Does owning this rental property and paying NY taxes qualify one as a NY state resident?

Thanks.

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Answers

5
BEST ANSWER
It does not count as your primary residence nor could you get a residential mortgage for this property. I can't answer the third question.
0 votes Thank Flag Link Mon Dec 10, 2012
Thank you Margaret.
Flag Mon Dec 10, 2012
It all depends on the size of the multi-family home. Two family is a residential mortgage.
0 votes Thank Flag Link Fri Apr 12, 2013
Hi Steve,

The purchase of a rental home here would be viewed as an "investment property" purchase. While you would not qualify for a residential mortgage in the formal sense, you may qualify for an investor or commercial mortgage - in which case you may be expected to put at least 25-30% down and accept a slightly higher interest rate than if you were going to occupy the home.

If you are asking about this from the stand-point of a "first-time buyer", then I would have to say honestly that I am not 100% sure, but I would not imagine that an investor who could afford to own an investment property could then later qualify or benefit from any purchase incentives that might normally be offered to a true first-time buyer who will occupy the house. Once you own this investment property - you are an owner in the state of NY. I don't think you could then qualify as a "first-time" owner occupant on a subsequent purchase.

As to qualifying as a resident the answer is "NO"! You would have to pay taxes but you would file as a non-resident, per Katie Torello of KMT Books.

Thanks for a great question and please be in touch if you need further assistance. Ithaca does have a number of successful absentee owners who do rely on a network of property managers and other professionals to assist them - I'm sure you could do the same if you were so inclined.

Kind regards,

Linda Santos
0 votes Thank Flag Link Mon Dec 10, 2012
Consider consulting with an attorney who specializes in real estate, he/she can better advise including any tax issues....
0 votes Thank Flag Link Mon Dec 10, 2012
A US citizen living abroad should not buy rental property in Ithaca or anywhere they are not living there. Your questions indicate you have done little research. You should just forget the whole idea.
0 votes Thank Flag Link Mon Dec 10, 2012
I have lived in Ithaca before and know the streets around Cornell collegetown. I find this area attractive since the rental demand is steady...And thanks Margaret for the answers.
Flag Mon Dec 10, 2012
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