HOMES USA International Buyer s Guide WHY CHOOSING THE U.S. IS SO POPULAR HOT LENNAR MARKETS. WHERE TO LIVE AND WHAT TO BUY HELPFUL TIPS. HOW LENNAR MAKES HOME BUYING EASY 2014-15 Global Edition // USA English 1
FINDING YOUR U.S. HOME Consisting of 50 states, hundreds of cities and thousands of places, America offers a panorama of housing choices, geographic settings and styles of living. Big cities. Quaint towns. Lakefronts. Coasts. Hills and mountains. Lush plains. Luxury resorts. You name it. It could be your next home. 2 3
INSIDE BUYER S CHOICES Page 22 So, you are thinking about buying a home in the U.S.? Smart move. The timing is right, and there are many options to consider: vacation homes, 55-plus age-targeted communities, and multi-generational living. BUILDER S SHOWCASE Page 6 As international buyers increasingly point to the U.S. as a destination for their real estate dollars, Lennar is well positioned to meet the needs of those buyers. That means you. ALSO: Where does Lennar build? COUNTRY PROFILE Page 10 Why buy in the U.S.? Low prices, strong economy, good return on investment. And great value. ALSO: Who are the international buyers in the U.S. and where are they buying? U.S. MARKETPLACE Page 14 The U.S. consists of very distinct regions, each marked by its own characteristics and nuances, including culture, climate and landscape. A tour of U.S. regions illustrates that diversity. RESOURCES Page 30 How to buy a home in the U.S. Here are seven easy steps to owning a home from finding the right partners all the way to Settlement. YOUR GUIDE TO OWNING A U.S. HOME With more than $92.2 billion (U.S. dollars) in international sales as proof, purchasing a U.S. home has been widely popular across the world during the past year. This guide describes why, where and how to make that purchase. Kindly brought to you by Lennar Homes one of the leading builders of quality homes in the U.S. this guide is filled with facts and figures, photos and maps, and insight about everything you will need to know about making this very important decision. Is the U.S. economy strong? Which countries are doing the most buying? Where are the popular places to live? What types of homes can I expect? Who can help settle my transaction? How will I fit into the lifestyle? These and many more are the questions answered in the pages that follow. Enjoy learning more about housing in America. And good luck on your purchase! San Francisco, CA 4 5
BUILDER SHOWCASE LENNAR S INTERNATIONAL APPEAL AS INTERNATIONAL BUYERS INCREASINGLY POINT TO THE U.S. AS A DESTINATION FOR THEIR REAL ESTATE DOLLARS, LENNAR IS WELL POSITIONED TO MEET THE NEEDS OF THOSE BUYERS. THAT MEANS YOU. Founded in 1954 and listed on the New York Stock Exchange in 1972, Miami-based Lennar Homes is one of the leading home builders in the United States, having built more than 750,000 homes in more than 50 of the most desirable cities. But to Lennar, it is more than merely building homes. It is about building long-lasting relationships. Programs are tailored to all international buyers, taking into account their specific needs, country of origin and reasons for buying in the U.S. Simply put, Lennar cares about you culturally and personally. Lennar asks the question: Why would you buy from a company that does not care? For example, Lennar s Associates are dedicated to providing customers with Total Lennar Care (TLC), no matter where you are in the world. TLC is a willingness to do the extraordinary every day for customers and make the home buying process a true celebration. Even after you have closed, Lennar strives to continue to keep customers 100 percent satisfied in their new home, with regularly scheduled visits from Lennar s Customer Care Team. In addition, Lennar has the requisite specialized skills customer appreciation, cultural awareness, language capabilities and transaction expertise to serve the international market by focusing on things that matter most to you. In other words, for Lennar, working with buyers abroad is all about international engagement, not international sales. Lennar is not just selling you a home. Lennar is selling you quality, value, integrity, and a lifestyle to fit your desires and needs. QUALITY Lennar s home plans demonstrate a commitment to customers by showcasing outstanding new home construction and a dedication to excellence in homebuilding. That equals a quality product and a quality customer service experience that is highlighted by an extensive warranty program. That also equals going above and beyond the superior standards and exceptional service that customers expect and deserve. EVERYTHING S INCLUDED Lennar s Everything s Included is just that thousands of dollars in extras plus the latest in luxury, technology and efficiency. Lennar asked buyers what features they wanted most in a home, then simply included them. To understand better, take the concept of a better way to build a home with the highest standard of quality. Then add a better way to save money and the environment, and a better way to control your home and have peace of mind. Now imagine a home that does it all a home that takes everything to a new level of quality, energy efficiency, technology and simplicity. Everything s Included is the next generation of living. That is quality. VALUE Then there is the value. Lennar builds affordable homes for both first-time buyers and buyers who purchased homes previously in communities that cater to almost any lifestyle, such as urban, golf course, suburban and resort style. According to the U.S. National Association of REALTORS, nearly half of all international home purchases in 2013 had prices less than $250,000 well within Lennar s standard price structure. Also, Lennar s product offerings include a variety of options from detached single-family homes to condominiums and townhomes. Is there another builder anywhere in the U.S. that delivers as much in the way of value as Lennar? Community features. Home options. Styles of life. For overall value, Lennar has a long-demonstrated track record of being the best at each of them. And even more in the form of Everything s Included. Lennar is not just selling you a home. That is value. INTEGRITY Most important of all is Lennar s integrity. When you are abroad and exploring the U.S. housing market, for whatever reason you are looking to buy, Lennar recognizes that the decision to make a purchase is a very big one. Lennar understands that being thousands of miles away is not easy. Also, Lennar understands that, when you are abroad, you must have more reasons to believe in your decision. And you need a company that will stand beside you to resolve any problems, as well as a company that stands behind its products. That is Lennar. And that is integrity. This is true, regardless of your reason to buy in the U.S. If you are buying a vacation home, Lennar provides resources that will assist with property management. If you are buying a home for investment, Lennar makes sure you have access to professionals and a good network of support. And Lennar wants your experience to be so great that you will refer friends and family. Lennar will make the same promise of commitment to them. The U.S. is, and has always been, a melting pot for people from around the world. And it is the companies that demonstrate real caring, plus appreciate cultural differences and values, that are rewarded with the business of international buyers. Every day and for everyone, Lennar strives to earn that reward. 6 7
BUILDER SHOWCASE WHERE DOES LENNAR BUILD? Almost anywhere there is international homebuyer interest. In fact, Florida, California, Texas and Arizona made up more than half of international home sales, according to the National Association of REALTORS 2014 Profile of International Home Buying Activity, and Lennar has a particularly strong presence in each state. The lyrics of one of America s most patriotic songs, America the Beautiful, includes the words from sea to shining sea. Lennar is there from one U.S. coast to the other. THE TOP FOUR STATES IN TERMS OF NUMBER OF BUYERS CONTINUE TO BE FLORIDA, CALIFORNIA, TEXAS AND ARIZONA. IN 2014, THOSE STATES ACCOUNTED FOR 55 PERCENT OF TOTAL REPORTED INTERNATIONAL SALES. ALSO, THE STATE OF WASHINGTON A MAGNET FOR TECHNOLOGY JOBS IS BECOMING INCREASINGLY ATTRACTIVE TO INTERNATIONAL CLIENTS. IN ALL, LENNAR BUILDS ACROSS THE U.S. IN 18 STATES AND MANY OF THE BEST CITIES: ARIZONA Phoenix Tucson CALIFORNIA Bakersfield Fresno/Central Valley Inland Empire Los Angeles/Valencia Orange County Palm Springs/Coachella Sacramento San Diego San Francisco/Bay Area COLORADO Denver DELAWARE Millsboro FLORIDA Clermont Fort Lauderdale Jacksonville/St. Augustine Lakeland Melbourne/Viera Miami Naples/Fort Myers Orlando Palm Beach Sarasota/Manatee Tampa GEORGIA Atlanta MARYLAND Baltimore Maryland/DC Metro MASSACHUSETTS NEVADA Las Vegas Reno NEW JERSEY Burlington Township Hanover Mays Landing Monroe Township Morris Plains Rockaway Township Waretown Weehawken NORTH CAROLINA Charlotte Raleigh OREGON Portland TENNESSEE Nashville TEXAS Austin Dallas/Fort Worth Houston Killeen San Antonio Temple VIRGINIA Fredericksburg Williamsburg Virginia/DC Metro WASHINGTON Seattle Vancouver Boston SOUTH CAROLINA MINNESOTA Minneapolis/St. Paul Charleston Charlotte Myrtle Beach New York City, NY More information: www.lennarhomesusa.com 8 9
COUNTRY PROFILE WHY BUY U.S.? LOW PRICES. STRONG ECONOMY. GOOD RETURN ON INVESTMENT. AND GREAT VALUE. It is official. International buyers continue to identify the U.S. as a desirable place not only to own, but also to make a profitable investment. According to the National Association of REALTORS 2014 Profile of International Home Buying Activity, total residential international sales in the U.S. equaled $92.2 billion for the year ending March 2014. International sales now are roughly 7 percent of the total U.S. housing market. By comparison, the total dollar volume in 2013 was $68.2 billion and in 2012 it was $82.4 billion. While those tallies are impressive, particularly in 2012, this most recent sales figure represents 35-percent growth and is a historical high point. (According to the National Association of REALTORS, foreign or international homebuyer is defined as one who principally resides outside the U.S. and who is not classified as a foreign-born resident of the U.S.) WHY THE SURGE IN BUYING U.S.? Although, while many homes purchased by foreign buyers are used as a primary residence, vacation and rental use are also major reasons for a purchase. All totaled, 65 percent of international buyers purchased detached single-family homes, according to REALTOR data. In the foreseeable future, that strong activity is expected to continue, mirroring the general housing market nationwide. As an indicator that housing sales are robust, all segments of the homebuilding industry are forecasted to continue to grow in 2014, according to the National Association of Home Builders. Generally speaking, with its large and diversified economy, the U.S. is the premier location for new business investment, tops among all countries from a statistical perspective. The U.S. gross domestic product (GDP) of approximately $17 trillion in 2013 is significantly larger than the GDP of any other country. The GDP value of the U.S. represents 27 percent of the world economy. For housing specifically, recent advantageous market conditions have drawn increasing interest from foreign buyers, including low housing prices, strong rental rates, good long-term appreciation possibilities and relatively strong buying power, according to data from the National Association of REALTORS. Also, international buyers now have access to more home financing options than ever. Other reasons to buy include purchasing a vacation home or rental unit, the desire to put money in the U.S. for safety, access to top colleges and universities, employment, and immigrant achievement values. Here is a comment from National Association of REALTORS President, Steve Brown: We live in an international marketplace. So while all real estate is local, that does not mean that all property buyers are. Foreign buyers are being enticed to U.S. real estate because of what they recognize as attractive prices, economic stability, and an incredible opportunity for investment in their future. 10 11
COUNTRY PROFILE THE INTERNATIONAL BUYER WHO ARE THE INTERNATIONAL BUYERS? EVERYONE. FROM EVERYWHERE. International buyers come from all corners of the globe, with the U.S. holding a welcome sign. Canadians account for 19 percent of home transactions to foreign buyers, mostly favoring vacation homes in Florida and Arizona. In addition, buyers from China (16 percent), Mexico (9 percent), India (5 percent) and the United Kingdom (5 percent) are prominent. Collectively, this group U.S. HOME SALES VOLUME BY COUNTRY Canada 19% China 16% Mexico 9% India 5% United Kingdom 5% Germany 3% Brazil 2% New York POPULAR PLACES WHERE ARE INTERNATIONAL BUYERS MAKING THEIR PURCHASES? WHILE INTERNATIONAL BUYERS PURCHASE ACROSS THE U.S., FOUR STATES RECORDED MORE THAN HALF OF THOSE SALES: FLORIDA, CALIFORNIA, TEXAS AND ARIZONA. Florida was the leading destination of choice, accounting for 23 percent of foreign purchases, according to the U.S. National Association of REALTORS 2014 Profile represents 54 percent of international buyers, according to statistics from the U.S. National Association of REALTORS. Notably, while Canada was the top source of international buyers in terms of transactions volume, China accounted for the largest sales dollar volume because of the higher average France 2% Japan 2% Russia 1% California of International Home Buying Activity. California was second with 14 percent, and Texas was responsible for 12 percent and Arizona for 6 percent. Those four states accounted for 55 percent of all international sales. Other states with at least 2 percent of international sales were New York, Virginia, Georgia and Washington. price of properties purchased by Chinese buyers. Chinese buyers tended to buy properties in higher-priced markets such as California, Washington, and New York, while Canadians bought in lower-priced markets such as Florida and Arizona. Proximity to home country, the presence of relatives and friends, the convenience of air transportation, climate, safety, and location are particularly important considerations to prospective foreign buyers. In 2014, nearly half of all international buyers preferred to locate in a suburban Arizona area and about a quarter located in a central city/urban area. The other quarter was split almost evenly between resort area and small town/rural. LEADING STATES FOR INTERNATIONAL SALES Denotes leading countries for U.S. home sales volume Florida Florida, 23% California, 14% Texas, 12% Arizona, 6% Washington, 4% New York, 3% Georgia, 2% Source: U.S. National Association of REALTORS 2014 Profile of International Home Buying Activity 12 13
U.S. MARKETPLACE REGIONS OF THE U.S. The U.S. consists of very distinct regions, each marked by its own characteristics and nuances, including culture, climate and landscape. Here is a brief tour. CHOOSE THE NORTHWEST for lush forests, towering trees, glistening coastlines and flourishing business. CHOOSE THE MIDWEST for a centrally located destination booming with industry and agriculture. CHOOSE THE NORTHEAST for famous cities full of vibrant culture, big business and diverse terrain. CHOOSE THE WEST COAST for California, Oregon and Washington, which all boast beautiful weather and wondrous landscapes. CHOOSE THE SOUTHEAST for miles of sun-soaked sands, swaying palms and charming hospitality. CHOOSE THE SOUTHWEST for an adventurous mix of desert and mountains alongside exciting metropolitan areas. 14 15
U.S. MARKETPLACE Boston, MA Naples, FL The northeastern U.S., or simply the Northeast, is bound to the north by Canada, to the east by the Atlantic Ocean, to the south by the southern U.S. and to the west by the midwestern U.S. This region encompasses the states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware and Maryland. Throughout the region, you will find terrain that ranges from mountains to flatlands and sandy soil to heavy forests. Part of the charm of the region is that diversity of landscape coastal plains to rolling hills that can peak up to 1,524 meters. Similarly, there are stark contrasts in lifestyles from the cities of New York (the most populous city in the U.S.), Philadelphia (the fifth most populous nationwide) and Boston (the third most populous city in the Northeast) to rural towns. New York, NY The southeastern U.S., or Southeast, is one of the fastestgrowing regions of the U.S. States include Alabama, Florida, Georgia, Kentucky, Louisianna, Mississippi, North Carolina, South Carolina, Tennessee, Virginia and West Virginia. With more than 18 million people, Florida has the biggest population, followed by Georgia and North Carolina. In the past two generations, the Southeast has changed in character greatly. Most recently, there has been a boom in tourism, service industries, manufacturing, high technology and financial industries. Surprisingly, the many automotive manufacturing plants in Alabama have made the state the leading carmaker in the U.S., passing Detroit, Michigan of the Midwest. While still important, no longer is agriculture predominant. The regional climate does not change quite as much as the lifestyles. Winters are cold while the summers are generally warm and humid. The autumn and spring seasons are more mild. However, Southern culture is distinct and rooted in history. The Southeast has been, and remains, generally more socially conservative than other parts of the country. Land ownership and close-knit communities remain important and prevalent. And from its many cultural influences, the Southeast has developed its own unique customs, literature, cuisine and music. The terrain is largely flat, with a few hilly exceptions. As for the weather, it can be described this way: humid and hot in a summertime and moderate for the rest of the year. Key West, FL Mount Katahdin, ME Miami, FL 16 17
U.S. MARKETPLACE Grand Canyon, AZ Chicago, IL The southwestern U.S., or Southwest, is a sprawling territory of land that takes up about one-fourth of the U.S. Among the states are Texas, Arizona, New Mexico, Colorado, Utah, Nevada, Arkansas and Oklahoma. Even parts of southernmost California can be considered Southwest. Because of that vast landmass, natural resources play a big role in the region s economy. The leading industries are oil drilling, fishing, diamond and iron mining. And the culture of the Southwest is reflected in those areas, where being rugged, tough and resilient are commonplace. Southwesterners are known for being bold, strong and adventurous. The Southwest features a semi-arid to arid climate, depending on location. Much of the Southwest is an arid desert climate, but higher elevations in the mountains in each state, with the exception of western Texas, feature alpine climates with very large amounts of snow. As a result, the Southwest can go from desert to snow very quickly. The metropolitan areas of Phoenix, Tucson, Las Vegas and El Paso hardly ever receive snow at all, as they are strictly desert lands with mountains. However, the cities of Reno, Salt Lake City, Denver, and Colorado Springs can receive significant snowfalls. Boulder, CO The midwestern U.S. consists of 12 states: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin. Illinois is the most populous of the states, with Chicago being the largest city. The most recent report from the U.S. Census put the population of the Midwest at more than 65 million people. The Midwest is sometimes divided into two regions: the Great Lakes States (Illinois, Indiana, Michigan, Ohio, Minnesota and Wisconsin) and the Great Plains States (Iowa, Kansas, Missouri, North Dakota, Nebraska and South Dakota). Economically, the region is balanced between heavy industry and agriculture, with finance and services such as medicine and education being increasingly important. Its central location makes it a transportation crossroads for river boats, railroads, autos and trucks, trucking and air travel. And the Midwest has a higher employment-to-population ratio than any other U.S. region, which points to the availability of jobs. Politically, the region is often referred to as typical America or Middle America, with attitudes that reflect the nation as a whole. The vast central area of the U.S., into Canada, is a landscape of low, flat to rolling terrain. Those lowlands gradually rise westward. With the change in topography, there are significant differences in the climate from state to state and season to season. Summers can be brutally hot, while winters can be frigid. Countryside, WI Tucson, AZ St. Paul, MN 18 19
U.S. MARKETPLACE Portland, OR Newport Beach, CA The Northwest is in western North America, bound by the Pacific Ocean to the west and, loosely, by the Rocky Mountains on the east. Although no universally agreed-upon boundary exists, a common conception includes the U.S. states of Oregon, Washington, Idaho, Montana, Wyoming and the Canadian province of British Columbia. This region is also sometimes referred to as the Pacific Northwest. The region s largest U.S. metropolitan area is Seattle/ Tacoma, Washington, followed by the city of Portland. The geography of the Northwest is especially diverse, dominated by several mountain ranges and broad plateaus. Also, because many areas have plentiful rainfall and mild summers, the Northwest has some of North America s most lush and extensive forests, which are populated by some of the world s tallest trees. The coastline is marked by bays, rivers, plains and mountains. The major cities of Portland, Seattle and Tacoma all began as seaports supporting the logging, mining and farming industries of the region, but have developed into major technological and industrial centers. The culture of the region is defined by both old and new industries rugged outdoors and intellectual minds. The Northwest experiences a wide variety of climates. Semi-arid and arid climates are found east of the higher mountains. Humid continental climates occur inland, while a sub-arctic climate can be found farther north. Seattle, WA The West Coast, or the Pacific Coast, primarily encompasses the coastal state of California. The estimated population of the region is approximately 50 million, largely in California. When people refer to the West Coast, they typically mean the California cities of Los Angeles, San Diego and San Francisco, along with their surrounding areas. The Los Angeles metropolitan area is the 13th largest metropolitan area in the world and the second-largest metro area in the U.S. San Diego, located approximately 190 kilometers south of Los Angeles and immediately adjacent to the border with Mexico, is the eighth largest city in the U.S. and second largest in California; it is also one of the nation s fastest growing cities. San Francisco, to the north of Los Angeles, is the leading financial and cultural center of Northern California. The industries of the West Coast are quite diverse, much like the California coastline. Top industry sectors include entertainment and technology but also agriculture and shipping. While the weather is quite pleasant throughout California and the entire West Coast, there are subtle differences, particularly traveling north, where average temperatures fall a bit. Still, many people choose the West Coast simply because of the pleasant weather. San Francisco, CA Redwood National and State Parks, OR Northern California Coastline, CA 20 21
BUYER S CHOICES BUYER S CHOICES SO, YOU ARE THINKING ABOUT BUYING A HOME IN THE U.S.? SMART MOVE. THE TIMING IS RIGHT, AND THERE ARE MANY OPTIONS TO CONSIDER. In the year ending March 2014, $92.2 billion, approximately 7 percent of the total U.S. housing market, were from international sales. That means almost one in every ten U.S. homeowners is from another country. Impressive numbers. The median price for an international purchase was $199,575, according to the U.S. National Association of REALTORS. Approximately 60 percent of reported transactions were all-cash sales. And, in the foreseeable future, that strong activity is expected to continue, as the U.S. housing market remains in market recovery. All segments of the homebuilding industry continued to grow in 2014, according to the National Association of Home Builders. In 2013, builders enjoyed their best year since 2007, according to the U.S. Department of Commerce. While housing construction starts rose by nearly 25 percent in 2012 from 2011, they again rose in 2013, and projections call for further growth in 2014. As for types of homes, 65 percent of international buyers purchased detached single-family homes in 2014, according to REALTOR data. Yet, there are many different types of single-family homes. Notably, while many homes purchased by foreign buyers are used as primary residences, vacation and rental uses are also major reasons for a purchase. Plus, green homes (eco-friendly homes) are popular such homes are expected to increase between 29 percent and 38 percent within the total residential market by 2016. Why the popularity? Because buying for vacation or rental use in the U.S. has proven to be a good investment. U.S. home values are climbing, and optimism for sustained growth in those values is high. The end result: lots of buyer s choices. And excellent values. 22 23
BUYER S CHOICES VACATION HOMES In the U.S., vacation home sales improved in 2013 and have continued to show vitality. According to the U.S National Association of REALTORS 2014 Investment and Vacation Home Buyers Survey covering existing- and new-home transactions in 2013 there were approximately 717,000 sales of vacation homes in 2013, an increase of nearly 30 percent from 2012. The median investment-home price was $130,000, and there are more than 8 million vacation homes in the U.S. Clearly, that is a lot of resort-style living across the U.S. in the form of well-appointed communities in luxurious settings. Imagine fully furnished homes, sprawling activity centers, sports courts, heated pools and gated security. Case in point is The Retreat at ChampionsGate in Orlando, where up to 700 luxury vacation homes will be built, such as the Bali model with five bedrooms and four-and-a-half baths in 257 square meters of living space with twocar garage. Another example is the Maui model home, offering eight bedrooms and five baths in 355 square meters of living space with two-car garage. Orlando, of course, is the unofficial vacation capital of the world. 24 25
BUYER S CHOICES 55-PLUS AGE-TARGETED With the age 55-plus demographic showing no signs of slowing globally, this segment of the international real estate market should not be neglected. These types of communities are real estate developments that offer independent, relatively maintenance-free living to residents aged 55 and over. At its most basic level, this means active, so these communities offer no assistance with daily living activities, such as meals, medication, housekeeping and personal care. They do usually present a variety of on-site activities and easy access to natural or cultural attractions, shopping, nearby medical facilities and large metropolitan areas. U.S. builders and developers say they have witnessed an increase not only in the number of people who are interested in 55-plus age-targeted housing, but also in the number of people who are actually purchasing a new home. And they expect that trend to extend into international sales. Using construction starts as an indicator of home sales activity, the National Association of Home Builders states the number of homes in 55-plus age-targeted communities increased by over 20 percent in 2013 with an anticipated increase of an additional 20 percent in 2014. What will you find in these communities? Comfort, plentiful amenities and a wide range of pricing. You will find fitness centers and hobby rooms, golf courses and swimming pools, and lakes with boat access and restaurants. One example is the Destinations in Vineyard Point community in Sacramento, California. There, residents are able to take advantage of a resort-style lifestyle that is anchored by a private 232-squaremeter clubhouse and sprawling recreational areas. Homes are priced from the low $200,000 s. 26 27
BUYER S CHOICES MULTI-GENERATIONAL An estimated one of every six people in the U.S. 49 million of the approximately 312 million are living with an extended family member in their home. And, as the baby boomer generation grows older, that total will likely rise, according to the U.S. Census Bureau. Lennar is the first national homebuilder to recognize the need of individual homebuyers and families to double up. In response to this growing trend, Lennar offers NEXT GEN TM The Home within a Home. It is a complete suite with bedroom, eat-in kitchenette and living room. It can be integrated into a home s living space or kept as a private residence. For multi-generational housing, in addition to caring for an elderly family member, there are financial factors, including when living with family is needed in order to share the cost of mortgage and other living expenses. In response, the concept of building homes that are designed to accommodate that expanded family has become one of the newest trends in the housing industry. Among the multi-generational home features are a large separate kitchenette with dishwasher, full-size refrigerator, full-size sink and microwave; private patio; laundry space for additional washer and dryer; private garage with access to private bedroom and bathroom; private living room; and private porch. Such a home, for example, could have more than 204 square meters and three bedrooms, plus another 74 square meters and two bedrooms for family and friends. One example: Miami area communities with homes that have a separate outside entry, and suites are one- or two-bedroom living spaces with kitchenette, washer and dryer and an inside door that connects the two residences. Those homes range from the high $200,000 s. 28 29
RESOURCES HOW TO BUY A HOME IN THE U.S. STEP 1: FIND THE RIGHT PARTNER. As you start your home-buying search, you should start by finding the right partner to guide you through your home-buying process. This may include a real estate agent, an attorney or a Lennar New Home Consultant. Make sure you seek experienced people like Lennar New Home Consultants, who work regularly with international homebuyers. STEP 3: LOCATE YOUR PERFECT HOME. Step number 3 is usually the most fun part of your home-buying journey. Before you get started, you will need to determine the type of home you want townhome or villa home, vacation home or detached single-family home or condominium. There are different community types that should be considered. STEP 5: OBTAIN YOUR MORTGAGE. (If you are going to purchase your home with cash, you can jump ahead to Step 6.) With U.S. mortgage rates low, many international home buyers choose to finance their purchase. Not all lenders in the U.S. offer home loans to foreign buyers, but this type of loan is available. An international home buyer should expect to pay 30 percent of the value of the home being purchased, as a down payment. As the borrower, you will be asked to provide documentation to show sufficient income, bank statements, reference letters from your banking or credit institution, and two forms of identification. Also, it is beneficial to gain an understanding of lending fees, insurance costs and property taxes. Total closing costs may vary due to the state the home is located in, and the actual size of the home, but it is typically between 2 percent 5 percent of the loan amount. FINAL STEP: CLOSE ON YOUR HOME. The Closing, sometimes called the Settlement, is your final step in becoming a U.S. homeowner. On the day of your Closing, everyone involved finalizes the purchase agreement and transfers ownership of the home from the seller to the buyer. For an international buyer, the Closing can take place without you, the buyer, being physically present in the U.S. The buyer would simply assign Power of Attorney to the buyer s lawyer or another representative who would then close the deal on the buyer s behalf. This is a common practice done throughout the U.S. You Are Now A U.S. Homeowner. Congratulations. And Welcome Home! 1 2 3 4 5 6 7 STEP 2: NOT MAKING AN ALL-CASH PURCHASE? GET PRE-APPROVED FOR A HOME MORTGAGE. (If you are going to purchase your home with cash, you can jump ahead to Step 3.) Beginning a home search without knowing how much you can spend is like heading to a destination without an address. You just do not have the necessary information. Buyers often begin their home search before they know how much they can afford or whether a bank will finance their purchase. That is a mistake. It is a smart idea to receive bank pre-approval for a home mortgage before you start your search. Pre-approval is not an especially lengthy process so it is best to take this step before starting your search. STEP 4: PURCHASE YOUR HOME. When you have located your home, in the community you love, you will work with a Lennar New Home Consultant or a real estate agent and make an offer to purchase. Once approved, you will supply the seller an earnest money deposit along with a pre-approval letter from the bank and proof of available funds. Your next step will be to get a mortgage to make sure you can finalize your purchase, unless you are paying all cash. STEP 6: PREPARE FOR THE CLOSING OF YOUR HOME. Depending upon the type of home you are purchasing (already existing or a to-be-built home), you can anticipate that your Closing will take place anywhere from 30 to 120 days from the signing of your purchase agreement. As you prepare for your Closing, there are a number of things you will need to do. If you are working with a Lennar New Home Consultant or real-estate agent, he/she will walk you through the closing process every step of the way to ensure that your Closing is timely, easy and as smooth a process as possible. Your real estate agent will help you set the closing date; meet conditions of the loan offer (if applicable); guide you in obtaining homeowners insurance; and, if purchasing a new home, possibly have a final walk-through inspection before Closing. 30 31
Choose U.S. for the BEST INVESTMENT. Choose Lennar for the BEST IN THE BUSINESS. HOMES STARTING FROM $150,000 TO OVER $3 MILLION USD IN OVER 50 CITIES, INCLUDING: Orlando Naples Houston Miami Austin Los Angeles San Francisco and more... ONE OF AMERICA S LARGEST HOME BUILDERS. VACATION HOMES INVESTMENT HOMES MULTI-GENERATIONAL HOMES TOWNHOMES NOW IS THE TIME TO BUY. LennarInternational.com 32 Copyright 2015. Lennar Corporation, Lennar, the Lennar logo, Everything s Included home and the ei logo are registered service marks of Lennar Corporation and/or its subsidiaries. 1/15. Next Gen is a registered trademark of Lennar Corporation and/or its subsidiaries. 1/15. Stated dimensions and square footage and square meters are approximate and should not be used as representation of a home s precise or actual size. Prices subject to change without notice. Models/lifestyle photos do not reflect racial or ethnic preference. Proposed amenities for communities are subject to changes, substitutions and/or deletions without notice. This is not an offer in the U.S. states where prior registration is required. Void where prohibited by law.