Florida is one of the most popular US states where foreigners like to relocate to permanently, and are also interested in buying real estate as an investment. Purchasing a foreign home raises many questions, the answers to which we will attempt to answer below.
Content:
- Can Foreign Nationals Buy a Property in Florida?
- Why Choose Florida for Relocation?
- What Should I Expect to Pay When Buying a Home in Florida?
- Can I Make a Deal Without Intermediaries?
- How Profitable are Investments in Florida Real Estate?
- Can Foreigners Rent out Their Apartments?
- How Much Will it Cost to Maintain Housing?
- Which Part of Florida is the Safest?
- How to Easily Adapt When Moving to Florida?
Can Foreign Nationals Buy a Property in Florida?
Yes, they can. There are no restrictions on the acquisition of residential and commercial real estate for foreign nationals. They can own freehold property and purchase an apartment with a mortgage. But it is important to keep in mind that this does not automatically give the purchaser the right to a residence permit or to work in the country. These documents are issued separately and in accordance with the rules of the legislation in force in the USA.
Why Choose Florida for Relocation?
There are several reasons for buying real estate in Florida, including:
- Favorable climatic conditions, as there are no cold winters in the state.
- Access to the ocean.
- Pristine natural environment.
- More affordable housing prices than in New York or California.
It should also be noted that there is no income tax for individuals. Florida also has the highest rate in the US national rankings. The state ranks third in education and eighteenth in natural resources.
What Should I Expect to Pay When Buying a Home in Florida?
There is no clear answer to the question about the value of the real estate in Florida. The pricing policy of the state directly depends on the region where you are going to purchase a home. The resort area of Miami offers the most expensive accommodation. Here, wealthy people from all over the world buy apartments and villas. Having a house in Miami is a prestigious acquisition, so the prices in the city are appropriate. The cost of 1-bedroom apartments starts from $400,000. A spacious villa in Miami can reach a price of several tens of millions of dollars.
At the same time, in Jacksonville, the most populous city in the state, you can buy a spacious house for $700,000. The city is located on the Gulf Coast, half an hour's drive from the South Florida International Airport. Thanks to the well-developed infrastructure, residents can live here in no less comfortable conditions than in Miami.
Can I Make a Deal Without Intermediaries?
Theoretically, you can pick up the property yourself. But it is extremely difficult to guarantee that the information given by the seller is true without the deal being controlled in the US real estate market. In addition, processing documents in another country requires knowledge of local legislation. You risk serious mistakes without a professional broker.
How Profitable are Investments in Florida Real Estate?
The capitalization of the value of housing in 2021 exceeded 20% compared to 2020. The results for 2022 have not yet been calculated, but the interim results indicate that prices continue to rise. Thus, at the end of March 2022, the city of Trump, one of the twenty largest in the United States, recorded the highest annual price growth of 32.5%. This indicates that Florida’s real estate is a profitable investment, as it can be resold for a significant profit.
Can Foreigners Rent out Their Apartments?
In Florida, as in other places in the United States, non-residents have the same right to dispose of their property as citizens. This makes it possible to earn passive rental income outside the USA. To do this, you can secure the services of housing trust management. Analytical data for 2021 indicate the profitability of this strategy, as the average rental in the state increased by 35.5%. These are the highest rates in the USA. When calculating the expected profit, it is important to consider what needs to be deducted from it:
- real estate tax (which is set by specific counties of the state and varies from 0.5 to 2%);
- tax on real estate rental income (which can reach 30%);
- utility costs that depend on the location and type of property.
Income from short-term rentals for up to two weeks is tax-free.
How Much Will it Cost to Maintain Housing?
It all depends on the area and location. On average, the maintenance of a small apartment will cost about $150 per month, but a lot depends on the consumption of basic resources such as electricity and water. The cost is calculated by the counters. For example, 1 kW of electricity costs $0.11. Communication and the Internet are quite expensive. The package price can vary from $100 to $150. Apartment owners pay an additional fee for landscaping and internal amenities. The amount of the contribution depends on their package and can vary from fifty to several thousand dollars per month.
Which Part of Florida is the Safest?
Despite its comfortable climate, the state’s weakness is its seismological instability. Hurricanes are also common in this area. South Florida, popular with property buyers, has suffered the most. Therefore, the northern regions of the state, located at a greater distance from the coastline, are safer.
How to Easily Adapt When Moving to Florida?
People who do not speak English fluently often pose this question. The easiest way is to start communicating with compatriots who will help you adjust to life in the new conditions. Today, about 250,000 foreigners live in Florida. Therefore, the foreign community in the state is quite extensive. The easiest way to adapt is to find your compatriots in Miami, where you can hear foreign speech everywhere. In addition, there are signs and menus in varying languages in the city.
