UNITED STATES Vacation/Holiday Rentals & Sales

Buying a property in Florida

In recent years buying a property in the United States and probably most popularly, in Florida, has become extemely popular, particularly with UK nationals. There is something very rewarding about owning your own second home in another country and many find that this arrangement is more preferable to seeking a different destination for each holiday. As well as the climate, Florida, and particularly Orlando, has become extremely popular as a holiday destination as it is home to the biggest tourist attractions in the world - the many theme parks.

There are an increasing number of property exhibitions that aim to persuade you to purchase brand new or nearly new properties in the United States. Sales staff are skilled in using highly seductive marketing methods to sell as many as possible. Like all other salespeople, they know that if a customer has time to go away and think about a purchase, then a sale is lost as is their commission! You should not however feel pressured into ‘signing on the dotted line’ there and then.

You should always seek expert advice when buying your first Investment Property in America. However this article aims to provide a basic insight into points to remember or consider when you embark on buying property in the United States.

If buying new, once you have identified the property you wish to purchase, all relevant parties involved in the transaction are already on site so that you can seal the deal there and then. If using a mortgage you will be asked to send a deposit, and once this is received construction will begin. The construction will only begin once sold and the property will be constructed just for you!

Construction can take up to six months, after which the final payment must be made to the builder.

If paying cash, typically you would need to be thinking of a deposit of around $1,000 - $2,000 and then make payments at intervals of 25% with the balance due upon completion. Construction will not start until the first 25% has been received. The next 25% would be due on completion of the slab, the next once the frame had been erected and the final one once the walls are finished.

Once yours, prepare for the raft of utilty bills and real estate taxes. In Florida these are calculated on the value of the home and are paid in arrears.

Incomers to Florida area allowed to buy a business as long as they have a certain amount of cash invested in the business (cica £130K) and the business must be active. You will need to obtain a E2 Treaty Investor Visa, which is valid for five years.

December 2005