Sunny Florida is the southernmost mainland state of the USA. To the south of it, lies the island of Hawaii. This is a land of a scorching sun, ripe oranges, and stunning beaches. If you are looking for the perfect balance between urban amenities and a beach lifestyle in the USA, buying a property in Florida is a great option for you.
We invite you to peruse our material and learn about the procedure for buying real estate in Florida, the stages you need to go through, and other important aspects of buying a home in the "sunny state".
Contents
- Foreign investors in Florida
- Rights obtained by foreigners after property purchase
- What is expected of a foreigner once they have purchased a property in Florida?
- Additional expenses when buying real estate in Florida
- Property tax
- How can a foreign national buy a property in Florida?
- Finding an agent
- Real estate registration
- Establish the payment method
- Signing the contract
- Making a deposit
- Inspection and additional assessment
- Become a real estate owner in Florida!
Foreign investors in Florida
Can a non-US citizen buy an apartment in Florida? There are no restrictions on this in America. Foreign nationals and legal entities, regardless of their status, can purchase real estate (commercial or residential).
When foreigners buy a home in Florida, there are no additional taxes and fees. All real estate transactions are regulated by law, just as they are for American citizens.
Rights obtained by foreigners after property purchase
The first thing to take note of before buying a home in Florida is that this will not guarantee the purchaser a residence permit in the country. However, under certain conditions, for example, to obtain an EB5 or L1 visa, a property purchased for leasing can be used as an argument in your favor. An important condition is that the price of real estate should be at least $ 1 million, and you will be expected to employ 10 people in Florida.
What is expected of a foreigner once they have purchased a property in Florida?
Buying real estate in the USA involves certain obligations, for non-residents included. Any foreign owner, regardless of his citizenship and the presence/absence of a residence permit, must pay utility bills and annual taxes. If a foreigner refuses to pay them, this can lead to fines, cancellation of a residence permit, and refusal to grant a visa.
Additional expenses when buying real estate in Florida
State laws in Florida divide the costs of a real estate purchase and sale transaction as follows: the seller pays all pre-sale expenses, including the payment of property taxes and the sale of property, utility bills and loans, and the cost of a cadastral statement.
The buyer is charged for all expenses after the transaction, including legal registration of the deal, loan processing, and the fee for submitting county documents. If a non-resident buys real estate in Florida for cash, the transaction price will be about $500 (depending on the type of property and time of year).
Property tax
There are no additional real estate taxes for non-residents in Florida, but there is a special property tax that applies to all owners and must be paid accordingly.
This type of tax is levied once a year in November. The amount is published on the official website of the District Tax Service. On average, the tax amount is 2% of the cadastral value of the real estate.
How can a foreign national buy a property in Florida?
The procedure for purchasing real estate in Florida can be divided into several stages. If you strictly follow due process, you will be able to purchase an apartment and meet your needs.
Finding an agent
If you are buying real estate in the USA, you should not dismiss the help of a professional, as they can advise you of the process involved in buying a house in Florida as an investment.
A qualified realtor has access to a single database (MLS-Multiple listing service) with all available adverts about real estate. Often, the agent has a team of competent specialists, including lawyers, mortgage specialists, appraisers, and others.
The realtor will provide you with a wide range of services to choose from and advise you regarding the purchase of a property, taxation, and immigration documents.
Real estate registration
A contract to buy a house in Florida can be issued to an individual or LLC – Limited Limited Liability Corporation/LLC.
Registration on LLC has its advantages:
- Protection from gift and inheritance taxes.
- Limitation of the owner's liability in case of an accident.
To make a wise decision, you need to consult a tax lawyer.
Establish the payment method
The procedure for acquiring real estate in the USA gives a foreigner the freedom to choose to buy a property with their own money or take out a mortgage. For the latter option, American banks have a special product – a mortgage for foreigners.
Each organization sets its own rules. The conditions are as follows:
- The minimum loan amount is $100,000.
- The minimum initial payment depends on the property – an average of 30%.
- The interest rate is from 5% per annum.
- The loan term is 30 years.
Signing the contract
After discussing the terms of the transaction, the purchase and registration of real estate in the USA is accompanied by the signing of a contract. It contains all the nuances, including the deposit, the amount and terms of sale, the terms of evaluation and inspection of the real estate, as well as the date of the transaction.
Making a deposit
The deposit acts as a guarantee of fulfillment of the buyer's obligations. The amount is transferred to the account of an independent company (escro). The deposit is also taken into account in the final calculation. On average, the minimum deposit amount is 3.5% of the property price.
Inspection and additional assessment
On average, the real estate registration procedure in Florida takes 30-60 days. During this period, the following procedures are in progress:
- Real estate inspection by a licensed specialist. His task is to check the property and give a detailed report to the potential owner about the presence or absence of any problems. The cost of the procedure varies from the area of the property – an average of $300 to $500 for a room of 140 square meters.
- Market value assessment.
- Mortgage registration.
Become a real estate owner in Florida!
The website «Florida.Realestate» provides the leading construction companies of Florida and the best offers at competitive prices directly from developers and homeowners. Our experts will help you choose a property and conclude a deal, as well as answer all questions about the profitability of purchasing real estate in Florida.