 |
BUYING
Buying Process
Before deciding on a purchase of a property in Florida, you must determine the purpose of the home. Is it going to be only a holiday home? If this is the case, you may want to consider renting your property when it is not being used by your family, friends or yourself. How important is that rental income? Or will it be purely used to generate income? Select an option below for more information...
- Your First Decision
- Rental Restrictions
- Deposit
- Bank Account
- Resale
- US Visas
- Mortgages
- Closing and Rental Setting-up Charges
- Spec. Homes
- Furniture Packs
- After-Sales Service
- Commercial
Say you decide to buy a brand new home to be built worth $300,000 with a 20% deposit. Here are the breakdown of deposits:
| |
US Dollar($) |
UK Pound (£) |
| Due on contract (say today) |
5,000 |
2,941 |
| After 30 days (before construction) |
25,000 |
11,764 |
| After 6-12 months (completion) |
30,000 |
14,705 |
| In addition, an estimated 5% of the price of the home will be due during completion and serve as your closing costs or legal |
|
|
| |
|
|
| FEES |
|
|
| 20% Total deposit |
60,000 |
29,411 |
| 5% of $300,000 (completion) |
15,000 |
5,882 |
| Total Cash Outlay |
75,000 |
35,294 |
| Some builders will pay $10,000 - $12,500 towards the closing cost. The total cash outlay in this instance will be a little over $60,000. |
|
|
| Furniture packages are available from $15,000 (4 bed) - $19,000 (5 bed) |
|
|
1. Your First Decision
You need to determine the purpose of the home before considering the purchase. Will it only serve as a holiday home? Will you consider renting it out when it is not being used by your family, friends or yourself. How important is that rental income? [ Top ]
2. Rental Restriction
Questions have been raised about rental restrictions imposed within the Disney area. Three counties have different sets of restrictions. Orange County forbids rentals of less than 30 days. This does not mean that a property owner cannot rent their house; only that each rental must be for a minimum of 30 days.
Osceola County now has rental restrictions in place. However, the position is very different from Orange County. Authorities have created exceptions and exclusions to protect the large number of investors who have already purchased houses in the county and the large number who continue to do so.
Consequently and without going too deeply into what are fairly complex provisions, many developments have effectively been excluded from the restrictions rendering them communities from which short-term rental activities are allowed.
Polk County and Lake County are developing relatively fast. Therefore further investment is being encouraged.
It is vital that a buyer obtain advice as to the suitability of the property / development and the use of which it is intended. Rental restrictions should be carefully evaluated and understood. We will gladly provide you with advice guiding you safely and expertly throughout your selection process. [ Top ]
3. Deposits
The payment amount of the initial deposit will vary from builder to builder. Most will require a $5,000 at contract stage. A deposit will enable you to write the contract, thus fixing the price and protecting your chosen "lot" or home from a price increase. A total of 10% based on the contract price will be required prior to construction and balances due when home is completed. [ Top ]
4. Bank Account
A U.S. Bank Account is desirable to facilitate the transfer of funds. We will be happy to introduce you to one or two of the major banks and assist you in opening a suitable account. An initial deposit of $100 should be adequate to open your account. [ Top ]
5. Resale
The resale property availability changes daily. We will be happy to include a tour of appropriate resale properties within your viewing program should this be of interest to you. Good resale property in Florida will not generally be on the market long, and while there is always a possibility that a "bargain" may become available, a true bargain in a prime location can be difficult to find.
The importance of buying in a "prime" sought after location is crucial if the property's resale value is to be optimized. There could well be a good reason why a particular resale is "cheap". Properties are about location, location, and location. [ Top ]
6. US Visas
If you are an investor seeking to run a business in the United States, you will need to obtain the appropriate visa to do so. We will briefly explain these to you and we can arrange a meeting with our Immigration Attorney at your convenience to discuss all options in more detail. [ Top ]
7. Financial Mortgage Information
While purchases of property in Florida can often be financed from one's home country, US mortgages will frequently be more attractive and are readily available subject to approval. Advances of 75% of the cost (house, lot and pool) are relatively simple to obtain, 80% are not normally a problem although much more detailed financial information/paperwork will be required. We will be happy to introduce you to various mortgage brokers with whom we are associated. [ Top ]
8. Closing and Rental Setting-up Charges
Many are concerned about hidden extras and have heard stories about buyers being saddled with unexpected charges for closing costs long after it has become too late to withdraw from the purchase.
Some builders will make a substantial contribution to closing costs. If a US mortgage is not required some builders may offer a cash discount.
Closing costs comprise of several elements, many of which are stamp duties payable on various documents but the biggest expense is usually applicable to the mortgage.
Finally, if the property is being managed and rented out, you will need additional money for escrow, lodging license, fire extinguisher and security bolts. [ Top ]
9. Furniture Packages
While you may like to furnish and equip your home yourself, this can be somewhat time-consuming and expensive. Most buyers opt for one of our "furniture and house ware" packages. We do not consider it necessary or indeed advisable to spend excessive sums on furniture, but equally we believe it could be false economy to buy furniture of inferior quality that may not stand up to the rigors of a rental property.
Our furniture package will equip your property in Florida with attractive, yet hardwearing furnishings. Everything from a colour TV, fridge, washing machine, lamps, linen, towels, ashtrays and toilet rolls are included. More expensive packages are available and most items can be upgraded to suit your taste and budget. [ Top ]
10. After-Sales Service
We will:
- Be available to answer all your questions and queries regarding mortgages, closing dates, rental, etc.
- Set-up internet account for you to see the state of construction of your new home and or send you photographs on a monthly basis to show you the progress of the construction.
- Carry out the "walk through" just prior to closing. This avoids the necessity of you having to returning to Florida to "close" the purchase. We will ensure that the house is completed, the colour schemes are as ordered and all extras are installed.
- Arrange for deposits to be paid on your behalf (provided that these funds have been established in an account) for all utility services.
- Co-ordinate the delivery of your furniture package and ensure that all items are in working order and that all packaging is removed from your home
- Ensure that your property in Florida is continually ready to receive either your guests or yourselves. [ Top ]
Email: info@villaconnect.com Tel.: +44(0)2074 745 745 Mob.: +44(0)7961 369 829
*************************************************************************
If you are interested in purchasing a property please request a FREE Brochure from us.
If you wish to discuss your requirements further then please contact us from this website or contact us directly.
*************************************************************************
|
|
