Purchasing a Property in Florida

The good news is that compared with most European countries - including Britain - the actual process of buying a home in Florida is quite simple. The legal aspects of home buying in Florida do not require each party to appoint and pay their own Legal Advisor. However, we advise all clients to utilise the services of a combined Attorney / Title Guarantee Corporation - we instruct the Title Company to act on your behalf.

From our experience gained over many years, we have concluded that location is all-important, especially if it is your intention to offset rental income against expenses on your investment.

Do not accept verbal assurances from sales persons that short-term rentals are permitted unless you see it for yourself in the Covenants & Restrictions of the development. Many developments and even some whole Counties do not allow short-term rentals in private pool homes. We can guide you through this potentially hazardous area and ensure your chosen home is zoned correctly. We will arrange appointments with an independent Mortgage Broker. This way you can be assured that everyone is working in your best interest.

Although Florida villas feature high specifications as standard (carpets, landscaping, cooker, dishwasher etc. usually included) be careful about ordering expensive builder options which do not generally increase the value or rentability of the home.

All these aspects and many more, have been researched to provide you with the best information, including seeking out the higher quality builders, especially established builders given a good report by the Florida Better Business Bureau. Every location we recommend for rental homes is fully zoned for that purpose by Developer and County. We can help you select a development that offers the best prospects for long-term capital growth.

How easy is it to purchase a home in Florida?
Purchasing a home anywhere in the continental USA, is in general terms, far less complicated than virtually any other country in the world. Florida is very much a "user friendly state" giving the buyer an extremely easy and safe approach to home ownership. The single most important factor is to ensure that you use the services of a fully licensed Real Estate Brokerage. Sunworld Estates only work with fully licensed Real Estate professionals in Florida. We will oversee the complete transaction from the time that you arrive in Florida to when your home is ready for occupation. This includes the following:
* Helping you to find the most suitable property.
* Handling the legal aspects of the purchase.
* Monitoring construction and taking photographs.
* Liasing with the mortgage broker and ensuring that the final paperwork is in order.
* Carrying out the pre-occupation inspection, co-ordinating the delivery of furnishings, organising the connection of all services and arranging the final occupation licenses.
* These services are completely free to all of our customers.

I am concerned that when I visit Florida I may not view the best properties that are suitable for my personal requirements. How can I be sure that any decision I take is in my best interest?
This is a concern shared by many prospective purchasers. The best possible assurance you can have is to ensure that you select a company that is totally independent and can therefore offer you impartial and unbiased advice on every aspect of property purchase and management. It is essential that a company is highly knowledgeable and expert in all aspects of purchasing a property, has excellent relationships with all major developers, and can provide a professional and reliable management service with a proven track record of providing high levels of rental income. Sunworld Estates and their associates, have several decades of experience in Florida real estate, and are without doubt the leading company for sales and management of homes in Florida.

How much deposit do I require to reserve property?
In most instances, a "good faith deposit" of just $1000 will be sufficient to reserve a property and fix the price. Furthermore, we will guarantee to refund any deposit paid, for whatever reason, at any time up to exchange of contracts.

Is it easy to obtain a mortgage in Florida?
Subject to status, obtaining a mortgage in Florida is relatively straightforward. Loans of up to 90% are available for residents and non-residents, and are secured against the Florida property. The majority of resident loans are made at 80% of the purchase price to avoid private mortgage insurance, and the majority of non-resident loans at 75% as these offers the best terms, especially for our overseas buyers. There are several mortgage programs currently available where you can choose a fixed or variable rate mortgage. Repayment terms range from 5 to 30 years with no age restrictions. We can ensure that you obtain the most suitable and competitively priced mortgage relative to your personal requirements.

Are there any other costs that I should be aware of, in addition to the purchase price?
If you intend to let your property when you are not using it, you will need to comply with local legislation. This includes obtaining a hotel/lodging license and ensuring that safety features such as commercial grade fire extinguishers, smoke detectors and emergency lighting are fitted. Wherever possible, we insure that these costs are included in the final price.
For all purchasers using a mortgage, there are closing costs to be paid. These are costs incurred when completing the purchase of a home. At the beginning of the loan process there is a fee for the credit report and appraisal, usually they are approximately $300 to $500. As the loan completes there are other expenses to be paid, such as the mortgage set-up fee, legal costs associated with the purchase and registration of the property, title insurance, and various pre-paid items, such as 12 months household insurance and association fee. As a guide, purchasers should allow around 4% of the total purchase price to cover all closing costs

I understand that there are certain rental restrictions in Florida- is this true?
Yes, due to the fact that Florida attracts so many families from the northern states, Canada and overseas, that spend only part of the year within its borders, there are many restrictions as to where and when short- term rentals are permitted. For instance, the four counties that make up the majority of greater Orlando, each have different rules relating to the letting of homes on a short-term basis. On the Gulf and Atlantic coast the restrictions are extremely complicated and specific. It is therefore essential to obtain correct professional advice and guidance as to the suitability of a particular community. Sunworld Estates' associates will ensure that the property you select is completely free from any such restrictions and is legally zoned.

How many weeks do I need to rent my home to cover all of the running costs?
This is dependent on the type of property chosen, the location and the amount and term of the mortgage. As a general guide, if you secure up to a 75% mortgage you will need to rent out your home for about 35 weeks per annum to break even on an average sized four-bedroom villa. If a fairly large home is selected it only takes another two or three weeks to cover the difference in out goings. A normal year of bookings will provide 21K-25K per year in rental income on a 4 to 5 bedroom home.
If I am purchasing a second home or "holiday" home that I intend to rent out, to what standards should I furnish the home?
Most of the builders deliver a complete package including all the furnishings, kitchenware and linens. Very few clients upgrade the standard furniture packages, as they are so comprehensive and attractive. For the builders that do not handle furniture, our interior designers will be pleased to show you several examples of furniture packages that provide excellent value for money.

So how do I know which management company to appoint?
This is not an easy question to answer. Appointing a professional management company to manage and maintain your home in your absence is vital. If you intend to rent out your property, it is also important to use the services of a company that will provide you with high levels of occupancy throughout the year, ensuring that you obtain the best possible returns. We can recommend management companies that have an enviable track record of providing owners with a comprehensive, professional and totally reliable service.

Am I covered by insurance in the event of damage to my property?
We help our clients obtain the most comprehensive policies from several of the nation's leading underwriters. If you are letting your home, the management company should also make provision to obtain a security deposit from each group of guests on their arrival to cover all accidental breakage's.

What are the tax implications of owning a property in Florida?
This is dependent on both individual circumstances and whether you intend to rent out the property. We will be pleased to discuss the implications with you prior to you visiting Florida, and can provide advice on the best methods of making your investment tax efficient.

Is purchasing a property in Florida a sound investment?
Providing that you purchase the correct type of property, in a location that is suitable, real estate in Florida can be one of the best investments currently available anywhere in the world.

I would like to book an inspection visit with your company-how much notice do I need to give you?
Simply call the office with your preferred dates for travel and we will book flights, car hire and accommodations for you. Depending on the time of year, we can normally make the necessary arrangements with just a few days notice. However, at certain times, particularly Christmas, Easter and all school holidays, we may require longer notice to ensure flights and accommodations are available.

I have booked a fly-drive holiday to Florida but need to arrange accommodations-can you help me?
Yes, we have a wide range of homes available within our rental program, and can reserve accommodations for you at discounted prices. Simply telephone one of our offices, give us your travel dates and type of accommodation you would prefer, and we will make all the necessary arrangements for you.