With interest rates at record lows and the exchange rate working in overseas buyers favor, NOW is the time to look at purchasing an investment property in Florida. Whether you are after a new build or a resale property there are lots to chose from. In this article we will cover resale properties only.
For example, there is a property for sale in Florida that is for sale at $203,000, a 4 bedroom villa which is fully furnished, and at todays exchange rate is just over 136,000 GBP or 281,000 CAD.
Why would you buy a resale property versus a new build?
One of the many advantages of buying a Florida resale property is that many of these properties are being sold fully furnished with existing rental reservations, which will give you a great investment starting point.
The first thing you need to check when buying a Disney villa is that they are zoned for short term rental. Surrounding Disney areas such as Clermont, Davenport and Kissimmee are zoned ready for short term rental.
Next, make sure that the property you are purchasing has everything to help you market it successfully - prospective holiday guests will be looking for heated swimming pool, heated spa, games room (well equiped) and quite often a rear view that is not overlooked, allowing for greater privacy when using the pool. If you can tick all of these options then you are onto a good start.
Finding a realtor: In Florida there are two types of realtor, the sellers agent and the buyers agent. Fees can vary per buyers agent, our associate realtor charges a fixed fee of $500. In our opinion, it is beneficial to have a buyers agent as it gives you someone to perform contract negotiations, help you perform all the relevant searches and also assist you with the closing of the property, if you do not have a buyers agent then you will be responsible for performing all of the above tasks and more, whilst if you rely on the sellers agent they will not always have your best interests at heart.
How long does it take to close on a property?
Closure can take anything from two weeks upwards, in our experience anything from a 4-6 week time period is a more common time frame. If you use our Florida mortgage service and pre-qualify then the two weeks is possible.
What will our closing costs be?
Your closing costs will be around 3% of the purchase price and includes things like, property taxes, HOA fees, mortgage payment, house insurance, title company searches etc. We will do a seperate article on the exact break down of closing costs as on a resale the seller will also pay towards your closing costs.
What surveys should I have done?
We would recommend that you have them all done, full structural survey, termite inspection, swimming pool inspection, roof wind survey (This can save you money on your house insurance).
What about buying a short sale or foreclosue?
There is nothing stopping you going after these properties. However, they can be harder, and take longer to close.
How does the low interest rate help me?
In Florida you can get a fixed rate mortgage which is for the term of the mortgage. With rates low it means even if they go up you are protected and will have a greater rate of return on your investment. The higher the deposit the better the interest rate.
How much of a deposit do I need?
We would recommend you having 20% to 25% this will make getting the mortgage a lot easier and get you a beneficial mortgage rate. Of this % you will place an intial deposit, known as an ernest fee. The ernest fee is payable when the offer is accepted, this is to show you are serious about purchasing, this money can also be lost if you should pull out of a sale due to your own doing. Should you be unsuccessful in getting a mortgage or the surveys uncover some issues then these funds will be returned, all of this is detailed in the purchase contract.
This article was written by Steve at Disney Villa for Sale and is intended as a guide to purchasing property in Florida. All information should NOT be used as a legal guide to purchasing property.Tweet