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How to buy property in Florida? Useful tips to know

Many foreign citizens are considering buying a home in Florida to move to permanent residence or investment. The Sunshine State has been breaking all records for the number of homes sold and the growth in its value for many years. For example, prices apartments in Miami-Dade rose by 31.4% over the year. During the pandemic, the demand for housing in Florida even increased. This is because there were no strict quarantine restrictions in the state. At the same time, many people wanted to move to live in a region with a comfortable climate, especially since many of them switched to a remote work format and stopped being tied to certain cities.

Features of buying real estate in the USA

Foreign citizens do not have any restrictions on buying a home in the states. To purchase a house or apartment, you will have to resort to the help of the following specialists:

  • A Realtor who accompanies you at all stages of the purchase;
  • Lawyer for the correct drafting of the contract, registration of the purchased property, and property rights;
  • A tax consultant who will calculate taxes and prepare a tax return.
  • If you are buying a property to rent out, you must hire an accountant to keep track of your income and expenses.
  • A foreigner in the US can take out a loan to buy real estate. In this case, you will need to contact a mortgage broker.

Buying property in Florida remotely

For many who want to buy investment property in Miami or other districts of Florida, it will be good news that the sale and purchase transaction can be carried out remotely. To do this, the buyer must contact the US consulate in their country and issue a power of attorney for a lawyer.

The lawyer can mail the established form of power of attorney to the buyer.

Payment is made through an American trust account in the lawyer's name. After the transaction, the money will be transferred from the trust account to the seller's account. It is essential to use the services of a licensed professional.

Another option for a remote purchase can be done through an escrow company. In this case, contacting the embassy and drawing up documents for this company is also necessary. Next, the buyer deposits money into an escrow account, and when the transaction is completed, they are transferred to the seller.

Deal stages

Buying real estate in the USA has several stages:

  1. Conclusion of a standard purchase offer agreement with the seller indicating the terms of the transaction;
  2. Depositing to an independent escrow account (the amount of the deposit is 3.5% or more of the value of the object);
  3. Signing a contract with the seller;
  4. Conducting an independent assessment of real estate, a certified specialist will determine all the shortcomings of the object.

Typically, the checkout process takes one to two months.

Market analysis before buying

The preliminary selection of real estate options is an important stage in the buying process. Today, on the web, you can analyze the most relevant offers from developers and real estate agencies. With the help of a convenient search, you can compare the cost, technical characteristics, and infrastructure of apartments, townhouses, and villas located in the resort towns of Florida. To make it easier for the buyer to navigate the cost of objects on the site, you can choose prices in euros, and dollars.

As an owner of American real estate, you may be faced with two types of income that must be declared:

  • income received from the rental of real estate;
  • income received from the sale of real estate.

The standard rate of tax on rental income is up to 30%. However, it is possible to reduce the amount of this tax by writing off the costs of maintaining your property (for example, interest paid on a mortgage; insurance; payments to the homeowners association; repair costs, etc. .). When selling real estate, you must pay 10% of the transaction amount, but some special conditions and exceptions can significantly reduce this tax.