A Guide to Buying a Property in Florida
Buying property in Florida is safe and easy - foreigners enjoy the same property rights as locals. Every year, thousands of property transactions are conducted without problems.
When a new property is being built in Florida and prior to closing, an orientation (walk thru) with the builder takes place. This involves either you or your representative checking the property to ensure entire buyer satisfaction (snagging list).
The 'Title Company' conveys the title (a title insurance policy is issued) & then ensures that the appropriate monies are distributed to all of the relevant parties. They do not act for either seller or buyer and you can rest assured that the money is protected and will be dispersed correctly. The closing costs are similar in many ways to the items that we pay in the UK: Stamp duties, etc.
What are the costs involved in buying a property?
It is sensible to budget for up to 4.5% of the total purchase price, to include disbursements (this is the maximum sum it should cost you). A cash purchase should reduce this sum to nearer 2%.
What about taxes?
The property taxes on your home normally amount to approx. 1.5% of the property's value and this is commonly paid on a monthly basis along with your mortgage payments.
A sales tax (VAT) must be charged on all rental income and this is currently 12%. The tax treaty between the UK and USA means that double income tax is avoided, although all rental income must be declared.
As a guide, all relevant expenses including the mortgage interest, can be off set against any due tax from rental income and it is not uncommon for an ultimate payment to be minimal, once all of the appropriate expenses are taken into account. In some cases it may even be wiped out completely, although it will all depend entirely on the individual’s personal circumstances.
It is always wise to seek independent advice on tax matters as circumstances can vary significantly from one person to another.
Read more about owning or buying a property for sale in Florida from Overseas Property Centres.
Home >> Country Guides >> Florida
Print
Recommend this page 