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What you should consider before buying in Florida?
Buying property in Florida is a desired investment by many real estate investors in the field. This is mainly due to the fact that the Florida real estat market classifies as one of the best places to invest in real estate. As you can imagine, however, that is simply not enough to decide whether or not buying property in Flroida is the right thing for you and your real estate investing business.
Naturally, many questions arise. What should you consider before buying property in Florida as a real estate investment? What are the benefits and pitfalls of buying property in Florida? What is the forecast for the Florida housing market? Where to buy a house in Florida? These questions are probably the main concerns that appear in your head when thinking about buying real estate in Florida. Do not worry! We will present you with all the information you need to know before you invest in Florida real estate properties.
10 Things Foreign Buyers Should Know About Buying a Vacation Home
- Know Where Your Purchase Money is Coming From
Most foreign buyers purchase their vacation properties using all cash, since financing for foreign buyers can be difficult to obtain. If you intend to finance your vacation home, plan to pay a minimum down payment of 30 percent or more.
- Know How The MLS (Multiple Listing Service) Works
In many countries around the world, homebuyers have to go to many different real estate brokers to find a home.
The MLS (Multiple Listing Service) is a collection of real estate listings aggregated into one database used by real estate brokers who agree to share their listing agreements with one another to locate homebuyers for property listings more quickly than they could on their own.
- Free Service to the Buyer
In most sales brokered through the MLS, the seller pays the real estate brokerage fee, which means the buyer gets the benefits of agent representation FREE of charge.
- Find a Local Real Estate Agent
If you are a foreign buyer looking to purchase a vacation home in the Orlando, Florida area, find an Orlando real estate agent who specializes in working with foreign nationals. Look for agents who are well-versed in working with people from around the world, and handling online real estate transactions.
- Is a Visa Needed or Not?
Foreign buyers can purchase property in Orlando, Florida just like any American Citizen can. There is currently no special U.S. Visa requirement for foreign nationals buying Florida real estate.
- Know the Financial Stability of the Homeowners’ Association
Many vacation homes in Orlando belong to a homeowners’ association. You should review the financial records and copies of the meeting minutes to see what’s going on and how well things are running.
- Know About the Taxes:
Your property taxes should be between 1-3% of your vacation home’s assessed value, per year. The assessed value is typically less than your purchase price.
Taxes on Rental Income
If you decide to rent out (lease, let, put into the rental pool) your vacation home while not in use, you will likely be required to pay income tax. Find out more about your income tax obligation by hiring a local accountant.
8. Find a Property Manager
Many vacation properties provide onsite management for your vacation home, should you decide to put your home into the “rental pool.” In most cases the onsite management company is your best option, because they know the community and what it has to offer the best. They also have built up the resources that are best suited to keep your property occupied, which produces revenue while you are not using it.
- Know the Cost of Ownership
At the very least, you will have to pay property taxes, insurance, maintenance and utilities. If you plan to use a property manager to rent out the home while not in use, know what they charge including all there related fees.
- Know How You Will Use Your Vacation Home
Now for the good stuff. How will you enjoy your new vacation home in Orlando. Are you looking for a quiet getaway? Maybe you are looking for a place where the whole family can gather for retreats? Whatever it is, Orlando has many options and offers so many things to do and see while you are on vacation. Let your real estate agent know how you plan to use the home, and then ask for the best locations that meet your goals and dreams.
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