No doubt you’ve heard about the mess of the Florida real estate market with the sub-prime mortgage disaster. Many thousands of people are losing their homes, while entire new subdivisions sit vacant, yet ready for occupancy.
Thoughts of escape to the fun and sun, after five months of a cold and snowy Canadian winter, appeals to many, and now just might be the time to consider your Florida getaway or rental property
From now and for next couple of years, may be the best time to buy in Florida, price-wise. If you picture yourself sitting on your patio, entertaining business associates or friends on a balmy summer’s night, there’s no time like the present to educate yourself about the Florida market.
Buying a home in Florida can be a confusing prospect for many people, and this often stops them from making their move. The buying and closing process, getting a mortgage, income, death and property taxes are all part of the deal, and without help from qualified and knowledgeable agents, this can seem like a daunting task. However, help is available.
Closing a Florida Home
An important consideration on this topic is your knowledge of U.S. occupancy laws.
No doubt you’ve heard about the mess of the Florida real estate market with the sub-prime mortgage disaster. Many thousands of people are losing their homes, while entire new subdivisions sit vacant, yet ready for occupancy.
Thoughts of escape to the fun and sun, after five months of a cold and snowy Canadian winter, appeals to many, and now just might be the time to consider your Florida getaway or rental property
From now and for next couple of years, may be the best time to buy in Florida, price-wise. If you picture yourself sitting on your patio, entertaining business associates or friends on a balmy summer’s night, there’s no time like the present to educate yourself about the Florida market.
Buying a home in Florida can be a confusing prospect for many people, and this often stops them from making their move. The buying and closing process, getting a mortgage, income, death and property taxes are all part of the deal, and without help from qualified and knowledgeable agents, this can seem like a daunting task. However, help is available.
Closing a Florida Home
An important consideration on this topic is your knowledge of U.S. occupancy laws.
If you are a Canadian, you can be in Florida for up to six months only – without permission from U.S. authorities. Anything over the six months (even a single day) can have negative tax and health-care ramifications and you could risk losing your Provincial medical coverage. Tracking your whereabouts is not difficult since your comings and goings are now meticulously recorded at the border.
When purchasing a property in Florida, you will first write an offer and then give your deposit money, to an escrow agent when you cross the border (usually a lawyer or realtor). Your escrow agent is then legally obligated to hold your deposit until one of two things happen. Firstly, the seller hands him or her a deed conveying title and a “Guarantee” that you do, in fact, own the property. Secondly, if the deal falls through, the agent ensures that your deposit money is returned to you. When the escrow agent determines that all is in order, the deal will “close”. At this time your money is exchanged for the title to your Florida home, and you will receive the keys to your property.
There are “Title” insurance companies in Florida used to make these “Guarantees”. Your lawyer will supply you with a policy issued by one of these companies. Research is done to ensure that the company chosen is well known and solvent. Further research is done to ensure the Florida seller owns the property and that there are no claims or liens against the property. (In Canada this is known as a title search, rather than a guarantee)
Once there is confirmation that the property title is clear, you will be issued an insurance policy. An important clause in this type of insurance policy is that the insurance company you’ve used is liable if it is found that the seller did not, in fact, actually won the property you just purchased. This is a very rare occurrence, however this clause is a guarantee that you will not lose your money. The insurance company will refund your purchase, in this rare instance.
You may have heard that property insurance and taxes in Florida are higher than elsewhere. This is correct. However, what you save on the purchase price in the current Florida market should substantially offset higher taxes and insurance. You could also consider only homes built after 1992, as well as homes that are not situated right on the beach. Due to changing building codes, properties build after 1992 are able to withstand higher winds from hurricane activity, and thus are less costly from an insurance standpoint.
Currently property taxes are run around $1600.00 per year for every $100,000 of property value, and are assessed annually. Initially your taxes will be based on your purchase price. However depending on how you take title if you rent the property then it can be arranged so that your expenses including interest are deducted from your income on the property. That lower net figure will not be taxed by the State of Florida rather, only by the U.S. Federal government whose rates are much lower than in Canada. Now could be the perfect time for you to grab your beach towel and live in sunny Florida during the long, cold Canadian winter.
If you are interested in investing in Florida Real Estate, the following web pages contain articles that offer information you need to know. You will want to know about cross border trusts, tax laws, and estate planning before going ahead. You can find information for that by clicking on the link at the bottom of this article. It will take you to other appropriate articles.
It is important to get qualified legal advice from a lawyer experienced in cross-border real estate and planning. The advice of a knowledgeable tax advisor would also be a good idea.
Please note that the information on these pages is not to be construed as tax or legal advice, but rather as information only. One thing to remember: Revenue Canada and Florida Laws can change without notice, so current advice at the time of your purchase is essential.
This information has been collected from workshops we have attended and are in place to help simplify the buying process for you and to offer important information you may require before making this very important purchase.
It can be difficult for investors to make the numbers work on properties in Toronto or other parts of Canada these days with Canadian real estate prices at an all-time high. So if you are planning to invest in Florida, this is a great opportunity to build your portfolio and catch some good deals while the prices are favourable and the rental numbers can make you profitable.
Posts Tagged ‘Florida Real Estate’
Canadians Buy Deep Discount Florida Homes
Saturday, March 13th, 2010Florida Real Estate and Property Tax Cuts
Wednesday, December 30th, 2009
One of the reasons that the Florida real estate market has been sluggish over the past couple of years has been the result of property taxes in the state. Over the course of the past decade, Florida in fact had one of the higher property tax rates in all of the United States. Efforts are now underway to reign in the costs associated with property tax in Florida at this point in time. By dealing with property tax issues, the goal is to reinvigorate the Florida real estate marketplace.
Many real estate experts have maintained that residential real estate has languished on the market in part due to the fact that real estate tax rates have been considered to be high. Some individuals simply balked at making the purchase of a residence because they did not feel that they could effectively and comfortably manage the property tax assessments that they would be hit with when making the purchase of a home.
Historically, the new owner of a residence was saddled with the purchase price as the basis for the property tax computation. Therefore, this provided a buyer with an added motivation to really bargain for a purchase price that might even end up being below the appropriate market rate.
In Tampa recently the promotion of a new constitutional amendment proposal involving property valuation, property taxes and home purchases took place in the home of Tampa resident who has had a property on the market for an extended period of time. This resident had come to learn that one of the reasons her property was slow in selling rested in the fact that many potential buyers simply did not feel that they could effectively or appropriately manage the property tax that would be assessed against the property based on the asking sales price for the home.
If the new proposed amendment becomes a part of the Florida constitution, the valuation for tax purposes of residential real estate would “reset” at the actual, lower market value immediately after the sale. Therefore, the new property owner would not be “stuck” with the higher property valuation assessment that otherwise does occur in the absence of this amendment.
Beyond this amendment proposal there is also a proposal that would allow for a super-exemption on homestead property. This super-exemption actually would work to exclude a higher percentage of the home’s overall value or worth from property tax liability. This mechanism will work to significantly lower a homeowner’s tax liability in many instances. A homeowner would have the ability to select one or another of these two tax liability reduction plans, but not both. A homeowner will be able to determine which scheme makes sense under his or her particular set of circumstances.
The bottom line is that Florida governmental leaders are attempting to take useful and meaningful steps to bring down the costs associated with property ownership in the state. The goal is to stabilize the market sooner rather than later.
Hudson Florida Real Estate – Affordable Waterfront Property
Tuesday, November 11th, 2008
Hudson, Florida bills itself as the place where ‘the nature coast meets the sun coast’, and it’s a fitting description. Located at the very northern tip of the Tampa Bay metropolitan area, you can head north from Hudson into Florida’s Nature Coast and follow the many hiking trails along the shore and inland, or head south through the Sun Coast cities of Port Richey, Tarpon Springs and Palm Harbor. Or – you can stay right in Hudson and enjoy the best of everything that Florida’s Gulf Coast has to offer. And when we say everything, we mean everything.
Named one of the Top 3 areas for vacation homes by the Wall Street Journal, Hudson has a split personality – a three way split. The unincorporated city has three separate and very distinct areas. To the west of US 19 along the coast, you’ll find one of the most delightful old coastal towns ever created. In the 1950s, a group of businessmen decided to increase the property value of their town with a unique idea – waterfront property for everyone. Thus began a system of canals dredged inland from the Gulf Coast. The old coastal neighborhood features homes built on the canal and the belief that every man should be able to park his car in the driveway, walk through the house and out the back door to his boat. Today, the original homes built on the canals, many of them single and doublewide mobiles, rub shoulders with brand new homes built on stilts with luxury amenities.
East of US 19 are the beautiful homes and subdivisions of a comfortable, prosperous suburban town. This central area of Hudson features spacious homes, curving streets and cul de sacs, and manicured greens and golf clubs. With names like Beacon Woods, Brentwood Estates and Fairway Oaks, the carefully planned neighborhoods are a haven away from the bustle of the big city, where families and retirees can enjoy a life of leisure in the sun.
To the east and north of the subdivisions you’ll find the old southern neighborhood, which still bears all the hallmarks of rural living. Sparsely populated, development has yet to reach this area of Hudson, but you’ll find farms, ranches and wild wetlands far from the beaten path here.
So what does it cost to live in one of the top three locales for a vacation home in the country (top ten in the world)? It’s amazingly affordable, with some older single family homes still selling for under $100,000. The average home selling price is inching up, with luxury homes in the more desirable subdivisions averaging about $350,000. If you’re intrigued by the idea of living on your own dock with a canal in your backyard, Hudson is definitely worth a look.
Florida Real Estate Properties
Sunday, June 29th, 2008
Florida real estate properties include the residential, office and commercial buildings, as well as the land itself. The most expensive property is that along the coastline overlooking the water. They are rather expensive, and the rich own most of the beach homes and villas lining the coast.
Going into the interior, Florida real estate properties decrease in price. However, there are a couple of zones within that area that do carry a hefty price tag. While there is no dearth of property availability in Florida, it is important to be sure about the real estate agent that you choose.
Keep in mind that in order to get the most for your money, you must research what is available in the Florida real estate market. You have to know what you are looking for in the way of size, price, location and what your purchase will be worth down the road. The cost of property in Florida varies greatly depending on these factors. The most important consideration should be the location, as you should want your property to escalate in value. This means you should be looking in areas that are close to businesses like banks, shopping malls, restaurants and entertainment. If you are interested in real estate in Florida, find a good real estate agent and sit down and talk about what you need to get started. The real estate agent needs to have a clear picture of what you are looking for and how much you are willing to spend. With this information in hand, a good real estate agent will guide you, give you options and find the home that you are looking for.
Why Invest in a Florida Real Estate Property?
Tuesday, July 17th, 2007
Investing in a residential property in Florida real estate is a good idea if you’re of a mind to relocate to the region or aiming for a tidy profit in the market. Here are some of the reason why it’s worth your time and money to buy one for your very own.
1. Tourism
The Sunshine State of Florida is teeming with tourist attractions that will surely capture your fancy. Living in one of the major cities, like Miami Beach, Sarasota, or Fort Lauderdale offers a lot of selections that will surely give you a fun time while living it off in a quiet neighborhood as you go ahead with your daily routine. Enjoy the tropical climate as you frolic in the beach, or do a little fishing in the Florida waters. Having your own home near these areas will surely add to a memorable stay for both you and your family without having to travel far just to spend some quality time with them.
2. Quality Homes
If you are planning to live in a quality home then Florida real estate offers thousands of selections for you to choose from. Luxury condos offer a convenient access to the city and recreational facilities in the surrounding areas while you enjoy the comfort and convenience of a modern home. If you want to live a simple life in the region, then a single-family residence is enough to give you the space you need for you and your family, while enjoying a serene atmosphere to cater to your need of quality rest and relaxation.
Tourists who plan to have their own residential property in the city instead of dishing out thousands of dollars on hotel accommodations will surely love the vacation homes and townhouses conveniently located near popular tourist attractions.
3. Booming Business
Considering that there are practically hundreds or even thousands of visitors in the region each year, you might want to tap into the local market by investing in a home that you can sell off for a tidy profit. Florida real estate showcase a large number of quality homes that you can buy at a lower price and sell it for a hefty price when the time is right.
4. Rich Economy
If you want to start a new life in a new city filled with opportunities for a large income, then Florida is definitely the perfect place for you. The rich economy offers untold opportunities to be had for both business and career, and having your very own home in the area ensures a comfort while you sweat it out to get your bank account on the rise.
http://commercial-realestate-florida.xon.us/ — Florida Real Estate