FAQ
Is it a good time to buy in Florida?
Many investors believe now is an ideal time to purchase property in Florida as property prices are likely to rise sharply over the next few years.
House prices are now very low compared with 2 or 3 years ago, mortgage rates are low and the excellent Pound Dollar exchange rate means property in Florida represents extremely good value for money, especially for UK purchasers.
Why Florida?
Buying a property in Florida offers the best of both worlds, a fantastic holiday home location and great investment potential.
If you plan to rent your property out, well chosen areas offer excellent returns. The rental season is long and you can expect to attract both US and European clients.
Can I get a mortgage in Florida?
Yes, obtaining a mortgage in Florida is possible and quite straight forward. Loans of up to 70% are available for non-residents and are secured against the Florida property. There are fixed and variable rate mortgages to choose from with repayment terms varying from 5 - 30 years and there are no age restrictions. We will be only too pleased to help you look into the financial side of purchasing.
How safe is it buying a property in Florida?
Provided you take the same precautions as you would when purchasing a property in the UK, Florida is a very safe location, more so than many European destinations. Just make sure you understand the mortgage offer and costs involved, property appraisal, Taxes and Insurances.
Do I need a visa when visiting Florida?
The UK is part of the Visa Waiver program, which means that usually you do not require a visa provided you do no t stay longer than 90 days. In certain circumstances you may need to consult a visa specialist and apply to the American Embassy.
How easy is it to purchase a home in Florida?
Purchasing a home in Florida is less complicated than you might think. The most important factor is to ensure that you use the services of a fully licensed real estate broker. The Florida office is fully licensed by the State of Florida and will oversee the complete procedure, from the minute you set foot in Orlando to when you complete on your new property and beyond. This would include showing you properties suitable to your personal requirements, dealing with the legal aspects of purchasing, looking over construction, taking photographs, liaison with the mortgage broker, doing the pre-closing walk through, arranging delivery of furnishings, connection of aIl services and finally arranging the final occupation licenses.
If I purchase a property in Florida, how many weeks do I need to rent out my home to cover all the running costs?
This will of course depend on the type of property, location and amount of mortgage. As a general guide, if you take up a 70% mortgage you will need to rent your home for approx. 36 - 40 weeks per annum to break even.
How long will it take?
Firstly you should obtain a mortgage approval in principle before looking at properties. This will save you time and money and eliminate delays further on in the process. However, on average the time from mortgage application to the funds becoming available typically ranges from about three to six weeks.
Can I self certify my income?
Yes, this is called ‘Stated Income’ and enables clients who can not prove their income to state an income on the mortgage application form and qualify for a mortgage based on that stated income. A deposit of at least 20% is usually required with this type of mortgage.
Can I rent my property out?
Yes you can rent your property out provided there are no deed restrictions preventing it. In addition you must specify this at the beginning of the mortgage application so the correct mortgage product can be selected for you.
What are closing costs and how much are they?
These are costs incurred when completing the purchase of the home. They comprise of a mortgage set-up fee along with the legal costs and registration of the property, which will total approximately 4.5% of the sale price, when taking an US mortgage. If a mortgage is not required the closing costs will total approximately 2.5%. If you purchase a resale without finance your closing costs can be under $1000.
How will I know the properties I view are the best for my personal requirements? How can I be sure? That any decision I make is in my best interests?
We will have built up a portfolio of your personal requirements, knowing exactly what sort of property you need and what you want from your property.
Being Independent from any builder, we can show you any properties that are suitable to you without being impartial or unbiased.
Are there rental restrictions in Orlando, if so what are they?
Yes, there are restrictions as to where and when short-term rentals are permitted. The four counties that make up the majority of the Orlando area each have different rules relating to the letting of vacation homes. It is therefore essential to obtain correct professional advice and guidance as to the suitability of a particular property and location.
What deposit would I need to reserve a property?
In most cases a $3000 to $5000 deposit will be sufficient to reserve a property with a credit card. This furthermore, would hold the lot and fix the price of the property. If it is a resale property you would require a personal or cashiers cheque once your offer of contract has been accepted.
Are there any hidden costs that I should be aware of?
Yes there are if you intend to rent your property. You will need to comply with local legislation. This includes obtaining a hotel/motel lodging license and ensuring that safety features, such as fire extinguishers and smoke detectors, are fitted. This would be arranged by your management company so everything was in place when you close on the property.
Do we need to open an American bank account in Florida?
lf you choose to purchase a property, it is usually necessary to open a bank, account. We will take you to a very reputable local bank and assist you in opening your own account. You will need usually $100.00 to open an account.
Would I need to do a tax return?
Yes at the end of every financial year you would have to submit a tax return. The easiest way to do this is to enroll the services of an American Accountant and their fees are usually around $400 - $450 per calendar year. So don’t forget to keep all of your receipts for items purchased for your home.
