Buying Residential Real Estate in Florida from Overseas – Part Two: Money Matters

Welcome to the second part of our three-part series of articles about buying residential property in the Sunshine State. In this article, we’ll be looking at the fees and charges associated with buying a property in Florida from overseas.

Calculating the Cost

In addition to the purchase price of your piece of Florida, buyers should allow additional funds to cover the closing costs. Closing costs are complicated, some are fixed fees such as settlement fees, courier fees, recording fees and some are variable, calculated upon the sales price of the property such as state stamp taxes.

The closing statement is known as the HUD-1 and itemizes all the charges imposed on a borrower and seller in a real estate transaction.

Realtor commissions are paid by the seller in the US.

Property taxes are paid annually in the US and in Florida are 2% of the assessed value of the property.

Finding the Right Mortgage

There are various options to consider if you need raise a mortgage for your dream home purchase.

Mortgages are available in the US for overseas investors, even in this post-credit crunch era. The mortgage would be secured on your Florida home. As a foreigner, you will typically need a deposit of at least 35%. An advantage of holding a US mortgage is that you can reduce your exposure to exchange rate fluctuations if you are planning to receive a rental income in dollars.

Alternatively you could raise finance in your home country either by remortgaging an existing property or by obtaining a new mortgage on your Florida home. The advantage of this is your own familiarity with the mortgage market at home.
However, in the UK and other developed countries, there are many mortgage consultants with experience of helping investors find the best way of financing their American dreams. Your ability to obtain a mortgage at a decent interest rate will require a good credit rating and evidence of earnings.

Transferring Funds to the US

If you are a cash buyer or obtain a mortgage in your home currency, you will need to purchase a large quantity of US dollars during in the buying process. When obtaining financing to purchase your American Real Estate and wiring funds to the US there must be a clear trail evidencing the source of the funds.

If you are planning to collect rental income in the US, you may want to consider opening accounts with a bank with presence in both your home country and the US. Some international banks offer low-cost or fee-free transfers between accounts in the US and countries like the UK or India e.g. Citibank.

You could save more than $1000 for a typical home purchase by using a currency broker like HIFX and Moneycorp to buy your dollars. Be aware that FX brokers tend not to be covered by regulatory authorities, so it is probably best to use a larger, reputable firm.

You may also want to consider obtaining a forward exchange rate to protect yourself from adverse currency market movements between exchanging contracts and completing your home purchase.

If you are based in the UK, check out Martin Lewis’ Money Saving Expert website for up to date information about the best deals on foreign currency transfers.

Conclusion

We hope you’re clearer now about the types of costs you’ll face when buying your dream home in Florida. In the final part of this series, we will be looking at settling into your Florida home and give you some top tips for maximizing your rental income. See you next week!

Kelly Charles is a licensed Florida Realtor working in Miami Beach. She specializes in helping overseas investors enter the Miami real estate market.

www.BritishMiamiRealtor.com

Buying Residential Real Estate in Florida from Overseas – Part One: How It Works & Choosing Your Advisors

Want some more Fun and Sun in your life? Excited about the investment opportunities in Real Estate right now? Thinking of buying a property in Florida but don’t know how? Then you need our quick guide to get you started!

This is part one of a series of three articles. We’ll cover the purchasing process and the advisors you will need to secure your piece of paradise.

Buying real estate in the USA is generally far less complicated than in any other country in the world and Florida remains a particularly easy and safe place for overseas investors to buy, with thousands of foreigners finding dream homes in the Sunshine State every year.

In Florida, the buyer and seller are each represented by Real Estate Agents or Realtors, who work through a broker to draw up a contract that defines the conditions of sale. Once the contract is signed, the buyer pays a deposit of around 3-5%. (New developments often require a 10-20% deposit). On a regular sale, the closing typically takes around 30 days. Short sales and foreclosures may take much longer, 3-4 months is not unusual.

Finding the Right Realtor

The Realtor you choose is an important factor in making your purchase a dream, rather than a nightmare. Your Realtor will help you find your home, represent your best interests in negotiations and connect you to other professionals you may need in the buying process.

Unfortunately, there have been property scams and con artists keen to rip off unfamiliar entrants to the Florida real estate market. Therefore, it is important that you use common sense when choosing your Realtor. As a precaution, you can check their credentials on the Florida licensing website.

It is a good idea to interview a few Realtors. The ideal Realtor to help you buy or sell your property will be honest, hard working, an excellent negotiator, knowledgeable about the local real estate market and have good client testimonials. As an overseas investor, it is advisable to select a Realtor with experience of working with newcomers to the US property market.

Legal Eagles, Tax and Travel

As with almost every other country, we strongly recommend that you use a fully independent lawyer to oversee and give advice through the buying process in the US.
To save the time and expense of multiple round trips to sign legal documents and papers during the buying process, you can give power of attorney to a trusted US representative. A real estate attorney and consultation with an accountant can assist in how best to purchase the Real Estate, particularly if you are considering renting out your investment, in order to limit your liability and manage your tax payments.

Conclusion

We hope you’ve found the article a helpful start in your buying process. Next week, we’ll talk about Money, Money, Money – including fees, mortgages and foreign exchange.

Kelly Charles is a licensed Florida Realtor working in Miami Beach. She specialises in helping overseas investors enter the Miami real estate market.

www.BritishMiamiRealtor.com

Buy Miami’s Finest Real Estate with Miami’s Finest

This week, Gary Hennes Realtors announced one of the largest home sales in Miami Beach this year.

Selling at $9.35m, the spectacular home on star-studded Hibiscus Island boasts 8,000 square feet of decadent Miami luxury, including an infinity pool and 120ft of frontage onto Biscayne Bay. The selling price is a great indicator of the growing strength of the luxury market as the highest priced unit sold on the island last year closed at $5.4m.

The home was designed by the award-winning Chad Oppenheim, one of the hottest young architects in the world right now. His current projects include the design of the luxury Delano Mondrian hotel in Las Vegas. Ten Museum Park, a condominium building in downtown Miami, is another of Oppenheim’s projects. Built in 2007, with its double storey units, spectacular array of community swimming pools and spectacular views of Biscayne Bay, it is already considered a design classic. Check out Chad’s youtube video where he talks about designing Ten Museum Park.

Units sold out fast when the building was launched, but there are a few on the market right now ranging from $279K to $1.8m. It’s a great opportunity to live in your very own piece of cutting edge design.
Like Oppenheim, Gary Hennes Realtors is emerging as a star of the glittering Miami real estate market and recently entered its sixth year of operation.

“Gary Hennes Realtors stays competitive by providing the finest properties, from the most exquisite art deco and historic luxury condos to sophisticated luxury waterfront properties with million dollar views,” said Gary Hennes. “Our philosophy is to create a concierge relationship where buyers, sellers and our Realtors thrive.”

So if you’re feeling inspired to join the Miami glitterati, make your move in safe hands and contact Kelly at Gary Hennes!

www.BritishMiamiRealtor.com

Brickell CitiCentre Set to Transform Downtown Miami

Brickell just South of Downtown Miami has been desirable area for property investment since the 1980s, attracting a cosmopolitan clientele of both expats and native Floridians. Close to the financial district and an abundant selection of high quality bars and restaurants, the neighbourhood has a classy, high-end ambience.

The development of Brickell from deserted brownfield wasteland into today’s sophisticated neighbourhood has been a terrific success and some of the key architects of that transformation have new plans to further enrich the area.
This week The Miami Herald has reported on exciting plans for a 4.6 million square foot mixed-use project that is set to revitalise Brickell and its neighbouring areas. The Brickell CitiCentre development is set to contain residential, commercial and a mix of luxury to moderate retail units and is estimated to generate $1bn in overall economic impact, including thousands of additional jobs being generated in the area, according to a study by Miami Economic Associates.

The Mayor of Miami, Tomás Regalado, is understood to be a strong supporter of the scheme. “This is a huge complex that will bring to Brickell Avenue, downtown Miami and East Little Havana an energy it has never, ever seen before,” said Regalado, who will take the nontraditional step of presenting a developer’s project to the City Commission. “I think it needs to carry the clout of the office of the mayor to send a message that this is a huge project for the city of Miami.”

The development would be large-scale, phased over a time period of ten years and starting as soon as December 2011.

Exciting plans, indeed, Brickell could well be the very hottest place to be in Florida soon! Contact Kelly now if you want to grab your piece of the action!

www.BritishMiamiRealtor.com

Painting Fun and Sun – Britto’s Success in Miami & Beyond!

Miami is a city full of sunshine, optimism and colour. And Romero Britto Central is an artist full of sunshine, optimism and...well, colour too!

Born in Brazil and named after Grand Central station in New York City, Romero Britto came to prominence through a chance meeting with the founder of Absolut Vodka’s Absolute Art Ad campaign, Michael Roux. Roux was so impressed with the artist’s work, he asked him to design limited edition promotional packaging, following in the footsteps of art icon Andy Warhol. The designs were a tremendous success and, from there, Britto developed a career making Pop Art for companies, municipalities and also private collectors.

His following grew and eventually Britto started attracting celebrity attention. Collectors of his work now include Arnold Schwartzenegger and Michael Jordan. He has completed commissions for the likes of Michael Jackson, Madonna and President Obama.

Britto works on canvas and sculpts and has developed a distinctive style combining bright colour and strong lines. His work has a childlike appeal and innocence, but also enough depth to satisfy the more discerning contemporary art aficionado.
In contemporary art circles, Britto’s name is virtually synonymous with Miami, so much so that Miami-Dade County have commissioned him to make a series of public art pieces throughout the city, such as the giant installation at 5th and Alton, Miami Beach.

If you want to find yourself your own piece of celebrity Pop Art, Britto has permanent exhibition space on Lincoln Road, Miami Beach and a sales website. There you can find a large range of original works, Britto prints and Britto designed products ranging from candles to suitcases! Britto is a very accessible artist, with something to suit every budget.

If contemplating art has inspired you to soak up the Miami sunshine and color, check out Kelly’s latest listings online! The Bentley Bay has wonderful space and light, perfect for hanging a piece of Britto’s work!

www.BritishMiamiRealtor.com