Over 800,000 people in the UK own a second home overseas and the Florida is a destination which is growing in popularity for the property investors.
We’ve had a chat to Summer Greene, president of Florida Realtors, who has given us her top ten tips on buying a property in the sunshine state.
1. Location, location,location (as always)
This is not an easy decision.
South-east Florida offers urban living in a subtropical climate. South-west Florida is a retirement haven that has a diverse environment where the Gulf of Mexico meets the Everglades.
Central Florida is renowned for world-famous theme parks, and has world-class dining and resorts to match.
Jacksonville and the north-east corner of Florida marries a growing banking/finance climate with a taste of the traditional southern lifestyle.
The communities in Florida’s panhandle include award-winning beaches, fishing and even a bit of a winter season – though not too much of one!
2. Now is the best time to buy
I guess I would say this but… real estate recovery is firmly underway across Florida, and property prices have already begun to climb once again.
For those looking to invest in Florida, this can be the ideal time to get a bargain – provided you know where and when to look.
3. Work with a realtor
Unlike buying in the UK, you do not need a lawyer to complete a property transaction in Florida.
Florida has a legal assumption that all real estate licensees act as transaction brokers, giving the licensee the ability to represent both the buyer and seller in the same transaction (unless another agency relationship is established). The idea behind this is that it helps speed up the deal.
The process of buying real estate in the United States includes certain contractual protections not seen in similar UK transactions.
The risk of “gazumping”, the practice of a seller backing out of a deal at the last minute to instead raise the price or sell to a higher bidder, is non-existent in the U.S., as such an action would be considered a breach of contract and subject to legal action.
4. Know your price and “what would be nice”
How much home can you buy? It depends on what you’re looking for and where you’re looking. A waterfront family home in a ritzy part of West Palm Beach could cost more than $1m, whereas a one or two bedroom condominium in one of Florida’s growing business districts may be available for $100,000.
If you begin by knowing how much you can spend, what aspects of the real estate purchase are most important to you, and what trade-offs you might be willing to make, you can make a more educated decision on your purchase.
5. How to get finance in the U.S.
Because so much of Florida’s home ownership population consists of foreign buyers, realtors in Florida are regularly staying up to date on the financial institutions that work with facilitating international purchasers, the latest changes to investment laws, and anything of which you may need to be aware.
Realtors will connect you with the experts who can make an international purchase go as smoothly as possible.
6. How to get the best exchange rate
If buying with cash, keep an eye on the currency exchange rate and ask about other fees, such as those attached to international money transfers.
In addition to looking at banks to transfer money, you can also work with foreign exchange companies. Make sure you look at all these options to get the best rate with the lowest fees.
7. Be familiar with immigration laws: How long can you stay?
The U.S. has a complex visa system, and the visa you choose will be based on whether you plan to move to Florida, live in the state part–time, whether you will be associated with a U.S. based company, and other factors.
You can stay in the US for up to 90 days under the visa waiver program. If you would like to stay for a longer time, you will need a visa. For more information, visit the U.S. Department of State website.
8. Understand the taxation
Florida has no state income tax, and as such many affluent people have chosen to relocate their primary residences to Florida.
Additionally, the local sales tax rates in Florida’s major cities such as Miami and Orlando are lower than those in other cities such as New York or Chicago.
Property taxes are, however, one of the main sources of revenue for county and state projects. As such, you’ll want to get a clear perspective of what the taxation on your property will be when you own it.
Florida also has some favourable exemptions for primary residences, so remember to tell your realtor if you are planning to relocate to Florida or just looking to invest, as it may affect your tax status.
9. Ease of access
Many European air carriers offer direct flights to Miami, Orlando, and Tampa. British Airways services each of these airports daily, and Virgin Atlantic also connects to Miami and Orlando.
Several of these airports have recently undergone significant expansions as part of ongoing efforts to add international routes.
In total there are 18 international airports in Florida and many smaller regional airports as well across the state.
10. Shop till you drop, go home and rest, then shop some more!
One of the best is the posh Bal Harbour Shops, a the luxury location with the distinction of the highest sales per square foot in the world
If you’re looking for something cheaper, then bargain shopping at Orlando’s outlet stores are perfect for those aiming to purchase name brands directly from the manufacturer. There are also trinket-laden craft stores in Key West’s historic Duval Street.
With no VAT and a favourable exchange rate, you can furnish your new Florida home for less than you might think. There will even be enough left over to pick up some guayabera shirts, flip flops and sunglasses!
For more information visit The Florida Living Network, your gateway to homeownership in Florida. The site should prove useful whether you are seeking the help of a professional realtor, or just want to peruse some properties.
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