How to invest in real estate in Florida? U.S.A
Would you like to develop your real estate assets in the United States? Why not invest in Florida? It’s an opportunity that continues to be promising. You still need to know your real estate landscape, the specifics of each sector, high-potential neighborhoods, profitable investments, taxation and many more.
In addition to offering an ideal setting, Florida is definitely one of the most prominent sectors in real estate and investments are always more profitable. In this article, find out how to acquire a property in Florida!
Focus on the specifics of the real estate sector in Florida
Foreign investor, you can acquire real estate in Florida without applying for a visa or other permits. In addition, you should know that the goods offered for sale are all listed in an inter-agency system covering the territory. In other words, all real estate agencies in Florida have the same portfolio.
Like any type of investment, you will need to open a US bank account to help manage your investment later. To do this, you usually only need to provide two ID cards and cash.
To invest in Florida, you will also need to learn about the specifics of each neighborhood. Orlando is a dynamic and cosmopolitan city, each district having its own specificities and assets. For example :
South Beach is a safe bet for obtaining better profitability thanks to its tourist attractions.
Downtown Miami is recommended for a new purchase because 23,000 new homes have just been created.
Brickell is a real opportunity if you want to invest for the long term. This district brings together a young and dynamic population (managers, employees, executives).
The northern part of Miami, including Bal Harbor, Aventura, and Sunny Isles, is ideal if you want to target internationally. These are modern and very residential buildings.
Coral Gables is perfect for an investment in a home. If you want to target wealthy families in Miami, this is the place to invest.
As you will have understood, it is important to inform yourself beforehand of these specificities by the district before investing in Florida: it all depends on your objectives, your means and the profile of tenant you are looking for.
The steps to follow to invest in Florida
It seems important to point out that you don’t have to land on American soil when buying a property. However, you must issue a power of attorney to your representative, who will then have the right to conclude the transaction. Also, the commission of your real estate agent is the responsibility of the seller of the property.
Open a bank account
In fact, the process of buying real estate in Florida can take anywhere from 20 to 45 days depending on whether you buy from a developer or a real estate agency. In addition, US banks can lend to foreign investors under certain conditions.
First, you will have to pay a deposit of 40% of the total amount of your investment. Also, the amount awarded is capped at $ 1,500,000. And finally, you will have to build up reserves equivalent to one year for the payment of taxes, for ancillary costs and for the maintenance of his property. In return for all these advantages, you will have to make a long-term commitment with your banker and remain loyal to him. That is to say, you cannot change banks.
Find out about co-ownership fees and taxes
After acquiring your Florida real estate, you will need to inquire about the fees and taxes applied. For information, the condominium fees are between $ 1.9 to $ 12 / m2 per month and property taxes can amount to 2% of the value of your property during the first year.
Organize rental management
In general, it is necessary to provide 7% of the annual amount of rents for rental management. The latter mainly concerns collection costs, co-ownership charges and any work to be carried out. In the event of a change of tenant, this constitutes approximately 10% of the annual rent.
What about Florida tax?
In Florida, just like in the United States, any rental product is taxable. Indeed, the rental income tax is deducted from the amount of rental income. However, you should know that the amount of taxes is low.
There is also a tax following the sale of your property. According to FIRPTA law, the executor of the sale is obliged to withhold 15% of the entire sale while waiting for the capital gain tax to be paid. If the amount of the sale is less than $ 300,000 and the property in question constitutes your residence