Buying a Home.
Owning a Holiday Home in Florida.
Buying a second home can be daunting, time consuming, frustrating & an expensive affair. Buying a property thousands of miles away can seem like an insurmountable hurdle plagued with problems. As with any financial investment, proper professional advice and guidance can alleviate most, if not all your worries. Our expert guidance should ensure that the entire buying experience is a pleasurable one.
Decision Making
Before considering the purchase of a home, you should determine the purpose of it. Is it mainly a holiday home? Will you rent the property when not being used by family, friends, or yourself? How important is that rental income?
Location, Location, Location
A holiday home generating income will need to be within close proximity of the major attractions. The correct location of the property is crucial. If your property is within 20 minutes driving distance to the gates of Disney World, the chances of maximising your rental income will be increased. There are constant expansions of the major routes to Walt Disney World, Interstate 4, Highway 192, Highway 27, and several new through roads making travelling quicker & easier to the Attractions.
Free Representation When You Buy
We understand the needs and perspectives of foreign and US buyers. You are entitled to professional representation and it costs nothing! Why take any risks? The seller or builder pays our brokerage fees. Why not let us help you every step of the way as your personal buyers broker? DO NOT enter into a real estate contract without representation!!
Contracts & Deposits
Never sign a contract you don't understand in every respect. Consult us first! We will spend whatever time it takes to explain this and every other factor in the buying process & will not complete on the home until you are happy with everything. The initial deposit will vary from builder to builder. Most will require $1000 - $5000 at contract stage. This goes directly into a Ledger Account and fixes you into the current price & chosen lot, as well as allowing you to write a legally binding contract.
Zoning & Licensing
It is essential that your chosen property be in a subdivision zoned for its intended use, such as short-term rental if you intend to rent your home out. We will advise.
U.S. Bank Accounts
A U.S. Bank Account is desirable to facilitate the transfer of funds. We will be happy to introduce you to one of the major Banks and assist in opening a suitable account. You will be required to give photo identification (passport is sufficient) and $100- $200 initial deposit.
Closing Costs And Rental Setting-Up Charges
Purchasers are concerned about hidden extras and have heard stories about buyers being saddled with unexpected charges for closing costs long after it has become too late to withdraw from the purchase. To alleviate these concerns we have listed the extra costs to you.
Closing costs comprise several elements, many of which are stamp duties payable on various documents. The biggest expense is usually applicable to the mortgage. This alone can amount to 3 -5% of the loan amount and can be clarified further once the most appropriate source of finance has been determined with your mortgage lender.
If the property is being managed and rented out, also required is $1,000 to set up utilities. A lodging license, fire extinguisher and security bolts, etc. are necessary items at an additional cost of approximately $250. Inter-linked smoke detectors and battery operated emergency lights are also now required and if not installed by the builder will cost around $450-500. Sometimes it is necessary to pre-pay 1 months mortgage repayment, insurance and property tax, which could be anywhere between $1500-$2500 depending on the amount mortgaged.
Therefore you will require cash available over and above the deposit and furniture monies of around $5,000.
Taxation
You will need to have or apply for a tax ID number. This is for the sales tax you collect on your rentals, which is split between the state and county. Property tax generally amounts to approximately 1.5% of the property's value and payable annually in advance of monthly payments along with any mortgage repayment. Sales tax must be charged on rental income generally at a rate of 12%. Federal Tax is charged annually. If you buy anything for your home or are flying out to check on it, this is tax deductible, it is advisable to employ an American accountant to take care of this for you.
Rental income is declared in the U.S. for income tax purposes. It may also be declared in the owner's country of residence, although double taxation agreements between the U.S. and other countries enable any income tax paid in the U.S. to be deductible from any tax liability arising in the country of residence thus avoiding any "double taxation". Actual liabilities will depend on ones own circumstances and it is recommended that appropriate advice be sought from a suitable experienced accountant. We will gladly introduce you to a highly experienced accountant, who would be happy to give you advice and file the necessary U.S. tax returns for you.
Furniture Packs
Many new owners would like to furnish and equip their home themselves, however this can be somewhat time consuming & costly. Most buyers now opt for a choice of furniture from individual "Furniture Companies" who work in conjunction with the builder or are a separate company recommended from us.
It is not necessary, or advisable to spend excessive sums on furniture, but equally, you should purchase furniture that can stand up to the rigors of a rental property. Furniture packages should completely furnish and equip your property to an attractive, yet hard wearing standard. 
From appliances to lamps, TV's, ashtrays, cutlery and toilet rolls are included. More expensive packs are available and most items can be customized or upgraded to suit your tastes and your pocket.
Homeowners Insurance
It is advisable and mandatory that your home is insured to cover the structure and its contents, this is normally done as part of the mortgage but they will not include for public liability or for damage caused by your guests. We have a list of recommended insurance brokers that again specialise in short-term rentals and are sometimes cheaper than the mortgage companies.
Mortgage Information
Florida property purchases can be mortgaged from your own country using main residence or secondary property as security, U.S. mortgages will frequently be more attractive and are readily available subject to status. Advances of 70% of the cost (house, lot & pool) are relatively simple to obtain. Advances of 75% and above are not normally a problem, although much detailed financial information will be required. We will happily recommend you to the most appropriate mortgage company for your circumstances.
After Sales Service
Our job does not stop there! Our services continue after the sale. We are here to help you should you have any questions relating to the closing date, photos & progress of construction, doing the final "walk through" prior to your home completing to ensure the colour schemes and all extras are installed.