 |
 |
|
|
|
Florida - Orlando |
When is the best time to buy?
The Real Estate Market in Florida is very active and buoyant and now is always the best time to buy.
Are there any restrictions when using an Agent?
Unlike the UK, the first agent you visit a development with will register you as his client; he is the one who receives the commission on a sale if you later buy there. It does not matter if you subsequently visit with a different agent that you prefer to deal with, the first agent will still be paid. It is therefore important that you choose a selling agent you can feel comfortable with first time.
Who should I use to help me buy?
It is always advisable to use a qualified Real Estate Professional when buying a property in Florida. Their services are free of charge and can help you avoid making an expensive mistake. The agent is paid by commission from the property sold.
Are you a Builder’s Agent?
At Dream Homes Orlando Ltd we are independent of any one builder or developer and can offer you unbiased, impartial advice based on your individual situation. We will introduce you to a fully qualified Real Estate Agent will look after you and show you as many properties as you wish to view. There is no limit to the number of properties he can show you and he will be happy to spend as much time with you as you wish.
How do I open a Bank Account?
The Real Estate Agent will be able to help you open a US Bank Account.
Will I be pressured into purchasing?
At no time will any pressure be put on you to buy. If you do find a property you would like to purchase the Real Estate Agent will be able to help and advise you. We are able to offer all new and re-sale properties for sale in Florida.
Do Selling Agents differ?
Selling agents (Realtors) can be divided into three categories;
Those who act solely for you.
Those who act for both the seller and the buyer.
Those who act for the seller.
What extras are there when I buy a New Property?
The price of a new property will often exclude a lot premium (an additional cost for a particular plot of land that is deemed desirable and that it is to be built on). The location of a plot within a development is important, as well as the location of the development itself.
What Deposit will I have to pay?
The minimum deposit in the US for foreign nationals is 20%.
What deposit should I pay and will it affect my mortgage application?
The deposit you pay for your home will have an impact on how self-financing it will be when rented out. For low deposits you may have to produce a range of references, which it is difficult to acquire in the UK, and need to receive a great deal more in rental income to cover the costs.
Do I need to purchase upgrades and extras on a New Home?
Not all properties come with the necessary extras to make them a viable rental home, you will need good advice on what to purchase without increasing your costs unnecessarily.
What Mortgage should I have?
There are a wide variety of US Dollar and specialist UK mortgages. You will need advice on the differences and one most suitable for your needs. If you borrow from a UK High Street Bank you will be unable to set the interest against your annual US tax assessment. Dream Homes Orlando Ltd can introduce you to mortgage companies within Florida, who will be able to advise you on the best deal for you.
What legal costs are payable?
Closing costs, the final payment to make your home your own, are often not mentioned by sellers until you have put down a deposit and are committed to purchase. This can be as much as 5% of the house value, depending on the property purchased, type of mortgage obtained (if any) and certain other factors. Closing costs are reduced for a cash purchase.
Is there anything I should be careful of in the Management Agreement?
Check small print carefully in the management agreement with any prospective management company, some will require you to pay a percentage of your rental receipts to them, even if you sourced your own rental. You may also find that you have to give twelve months notice to leave them.
Should I sign up for a Guaranteed rental scheme?
You may be offered a guaranteed rental agreement for your villa. Please bear in mind these agreements are often only for a couple of years at most. Under a rental agreement you will be paid a set amount for the year for the rental company’s use of your home. This may leave you with a loss, as you will be paying your mortgage and all the bills and taxes. You will have no say in who stays in your home and if you wish to use it yourself it is usual for you to have to pay the full rental cost. We do all our own rentals. This may seem daunting at first, but it is possible to do with good advice and reasonable effort.
Condo Hotel Rental schemes are very advantageous and you should seriously consider the in-house management and rentals they offer. They are not the same as Guaranteed Villa Rental Schemes.
What is Real Estate Tax?
This is a tax on your property value. You are assessed annually and the tax bill is sent to either you or your mortgage company. Most US mortgages include an amount that builds up over the year to pay this bill.
What is Tangible / Personal Property Tax?
This is a tax on the furniture and other items in your home that you use in connection with your rental business.
What is Sales & Use Tax and Tourist Development Tax?
Sales & Use Tax is paid to the State of Florida and is currently 7%.
Tourist Development Tax is paid to the County and depends on the County that your home is situated in; it is currently 5% in Polk County and 6% in Osceola. In total this is 12%/13% tax paid on all of your short-term rental monies.
If you rent out long term, i.e. more than 6 months and 1 day at a time, you will not have to pay these taxes.
What is US Income Tax?
This is a tax on the profit from renting out your home
What type of Insurance should I have?
Your new home will need to have insurance on both the property and the contents. If you have a mortgage, your mortgage company will add the cost of the insurance premiums to your monthly repayments. You will want to be covered against liability and you will need at least $300,000 cover in addition on your main policy. If you are letting your home, we recommend that you also take out liability top up insurance for $1 Million. |
|
|
|
|  |
