Buying Guide Details
Buying property for Sale in Florida
Overview
- Slowing US house-price increases and favourable exchange rates are good news for those looking to buy property in Florida
- A wide choice of property in Florida to suit every buyer
- Over 300 sunshine days a year
- A wealth of natural beauty and some of the world’s most popular tourist attractions
- Easily accessible, with cheap flights available from a number of competing airlines
Florida is one of the major tourist destinations of the world. Disney World, Universal Studios, the Everglades, numerous world-class golf courses and some superb beaches are just some of the reasons why some 70 million visitors come to the Sunshine State every year. Yet with a permanent population of just 4 million in an area greater than that of England, Florida still offers a sense of space that appeals to many people looking for a holiday home or to re-locate permanently.
The fact that the USA is an English-speaking nation is also a big plus for British home buyers, who along with large number of house hunters from Canada and northern Europe find themselves spoilt for choice in the property market. At prices far lower than one would pay at home, a buyer can find apartments, condos and houses in a wide range of locations – beach, marina, rural, suburban or on a golf course. One of the biggest headaches a buyer will have is making a decision about which one to plump for!
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Choice
There’s still a great deal of land to develop in Florida, so as well as a wealth of re-sale property there is a supply of brand-new and off-plan property for sale all over Florida. Though the tourist resorts are often the first places that spring to mind when Florida is mentioned, it’s a large state with a great diversity of locations to find a home. As with every property purchase, location is the prime consideration, and the best location for you rather depends on what you want the home for.
If you’re looking to buy a holiday home in Cyprus, proximity to one of the tourist resorts, a golf course or the beach will be an important factor. This will also maximise your chances of renting out your property in Florida when you’re not there, though the downside is that understandably, property prices will tend to be higher in the most convenient spots.
Gated communities are a popular option, offering a private and secure environment with communal facilities. Condominiums (condos) are more common in urbanised areas, offering private properties and communal areas, and those looking for a house have a huge choice, from ordinary family homes to palatial multi-million dollar residences. The excellent year-round climate in Florida attracts a large number of retirees. The security and social options offered by a gated complex will appeal to some, though there is also plenty of choice for the independent homebuyer too.
Those on a very tight budget might look at two other options. Fractional ownership schemes are becoming increasingly popular, and offer buyers a chance to have a share of home and its usage for only part of the full price of the property. There are also around a million mobile homes in Florida, though the devastating effects of recent hurricanes to these cheap dwellings would make a potential buyer understandably hesitant.
Property market in Florida
Headlines around the world were dominated in the latter half of 2007 by news of the American “credit crunch”, the sub-prime mortgage crisis and stagnating house prices in the US. It’s true that in general, house price growth in the States is slowing down, though the capital appreciation experienced in the previous few years was never going to be sustainable forever, and a “cooling” of the market is far preferable to a crash.
However, the rise of the pound against the dollar since 2006 means that UK buyers’ money goes a lot further than it did two or three years ago. It is difficult to generalise about property prices in Florida as there are so many factors that determine the value of a particular home. In broad terms, prices in the north of the state tend to be lower than in the south (the more popular areas with tourists) and the Atlantic Coast, which includes Miami, Orlando and Palm Beach, tends to be pricier than the Gulf Coast in the west, in for example Tampa, Naples or Clearwater. But there is a lot of variation even at a local level.
With the burgeoning tourist industry, the rental market in Florida in strong, both for short-term and long-term lets. Buyers looking to earn rental income from their property in Florida should make sure of the “zoning” of their home before committing to it, as there are restrictions on short-term lets in some areas.
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The process for buying property in Florida
- When a property in Florida has been chosen, the buyer and seller draw up a contract setting out the conditions of the sale, which also includes title checks and property inspections. Both parties are represented by different agents, who act through a broker
- A deposit of at least 10% is paid at this point. The buyer loses this if he/she withdraws from the deal, but if the property fails to meet the conditions of the sale outlined in the contract the deposit is refunded
- The buyer and seller then both appoint a settlement company in order to complete the transaction. The balance is paid by the buyer and both parties sign the final documents
- The transfer of ownership is then registered with local authorities
- When buying a property in Florida from the UK you might want to consider giving a US representative power of attorney to act on your behalf. Making frequent trips can be difficult to arrange, not to mention expensive
- You might also need to find an American notary here in the United Kingdom to oversee the paperwork
Homes Overseas Property Club
Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.
The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.
For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com
Health
Private medical insurance is a must for anyone visiting the US, as all treatments in American hospitals and clinics are based on a pay-as-you-go system, which could leave you having to pay thousands of pounds if you fail to take out insurance
Visa/residency issues
Visiting for periods of up to 90 days is pretty easy for UK citizens, and simply requires that you complete a couple of forms on arrival into the country. However, for those wishing to spend longer periods of time, visa and immigration issues are notoriously complicated in the US and the bureaucracy involved – though pretty straightforward – should not be underestimated. Consult the American embassy for advice or hire an independent consultant to guide you through the steps
Fees and taxes
- Allow between 3 and 5% for transfer fees, although this will be more like 2% if you don’t need to take out a mortgage on the property
- Purchase taxes do not exist in Florida, but annual taxes of around 1% of the value of the property apply
- There are no agents’ fees for the buyer
- Ensure you set aside at least $300 (£160) for title service companies
- Annual property taxes apply. Expect to pay around 1% per year.
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