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

Royal Wedding Fever in the Miami Heat!

Everyone loves an excuse for a party in Miami! And what better one could there be than the society event of the decade – the wedding of Prince William and Kate Middleton on April 29!

Typical of Miami, you can choose the perfect party to meet your Royalist needs!

If classic Miami glam with a British twist sounds like your thing, The National Hotel is hosting a breakfast viewing party complete with Full English at its oceanfront location right in the heart of the Art Deco district in South Beach. With live BBC and BBC America coverage, from 6 to 11 am, you can be sure that in the luxurious surroundings of their Blues Bar, you'll be rubbing shoulders with true Miami royalty. Dress up well to be in for a chance of the Best Kate Hat spot prize! If you’re not an early riser, don’t despair - they’ll loop the coverage through the day so you can sip your Kir Royale and get your fill of glam at any time! Contact The National Hotel to reserve tickets at $24 each.

If you want to celebrate the pomp and circumstance with an old-fashioned Afternoon High Tea, complete with proper British brew, pastries and champagne, check out The Biltmore in Coral Gables. Starting at the civilised time of 1pm, the screening will be accompanied by an informal fashion show of Nordstrom wedding attire. During the event, The Bilmore will be launching their nationwide contest, “Marry me in Miami!”, the winners getting their very own Royal Wedding – a $150,000 dream do at The Biltmore. Contact pr@biltmorehotel.com to reserve your ticket at $30 each.

If you want to want to make your whole family more Royal, then Veronica’s Dollshouse Boutique in South Miami is offering High Tea and etiquette training, along with a screening of the wedding and all sorts of traditional English frivolities for all the family. Perfect for budding Princes and Princesses of all ages! Purchase your tickets online – tickets are limited!

After a right Royal knees-up, remember that Kelly is the Best of British for all your real luxury estate requirements in Miami. Click here to search for a Miami pad fit for a Princess!

Whatever you end up doing, be sure to raise a glass to toast the happiness of good ol’ Wills n’ Kate on April 29!

A Dream Walk on Ocean Drive

It’s hard to walk along Ocean Drive without being accosted by glamorous hostesses, trying to tempt passing tourists with drinks and food offers. All sorts of entertainment can be found on the strip, ranging from table top dancing by nubile dancers ( both male and female) at Mango’s, or checking out the bikini body contests at the MTV-famous, Clevelander or upping it in the class stakes with a smart cocktail at The Tides and much more besides. This weekend the Miami Beach Gay Pride Festival dominated the strip, with classic 50s cars and a celebration that in Miami Beach you can live your life and be the person you truly are!

A strange thing about Ocean Drive is that although all the events and madness go on, it is pretty easy to escape. If you aren’t in the mood for the bar life, then just cross the street and you find yourself strolling the promenade amongst the palm trees, watching the beautiful people weave between pedestrians skilfully on their rollerblades. Or the inept tourist riders doing their best on segway scooters. From this side of the street, it is easier to appreciate the beautiful architecture of the Art Deco buildings that line the strip.

After your gentle stroll, imagine being able to just walk in off a quiet part of Ocean Drive, into one of its classic Art Deco buildings, and call it your home. With a rarely available apartment for sale in the 1931 Van Ness building – your Ocean Drive dreams could come true! Contact Kelly today to arrange your viewing!

www.BritishMiamiRealtor.com