Every year, I assist numerous Non-Americans who are interested in purchasing a property in Southwest Florida. Below is a list of questions that many interested buyers have asked me:
Who takes care of my property when I am not in town?
Most property owners have a property manager who looks after their property while they are away. This includes checking the air conditioning and water pipes, processing incoming mail, monitoring pool service, lawn care, and pest control. If the home is rented out, the property manager takes care of the final inspection and cleaning. Standard rates range from $120-$200 per month, depending on the size, location, and services chosen. I work with several reliable Homewatch companies that I recommend to my clients.
Are the additional purchase fees higher than in other countries?
The fees when buying a property in Florida are nit too high. If you don’t finance, the fees are usually less than 1% of the purchase price, but at least $1,000. A few residential communities charge higher transfer fees and are little more expensive.
Do I have to be present when buying a property?
I recommend viewing the property before buying it. You don’t have to be present for the actual transfer of ownership (closing). There are only a few documents to sign, which can be faxed or emailed. If you don’t finance in the US, they don’t even need to be notarized.
How much do the properties cost?
Real estate prices in the area range from $50,000 to $100 million. As everywhere else, the main factors are location, size, age, and amenities.
Most Non-Ameriacns want a newer single-family home with a pool near the beach. If you are looking west of I-75 (maximum 20 minutes bay car to the beach) you will currently find some newer homes for $700,000 to $900,000. There are some older homes with a pool in the $500s. Very few homes are currently below $700,000. A little east of I-75 (about a 30-minute car ride to the beach) you can get a newer property with pool for as little as $650,000 to
A newer condo, townhome or attached home in a well-kept community with about 1500 sqf can be purchased from $400,000 (about 20-minutes ride to the beach). Simple, slightly older apartments are available from $200,000 (mostly with need for renovation).
You can find an older single-family home with a boat dock and access to the Gulf of Mexico at $600,000. Expect to spend at least $1,000,000 and up in the more luxurious areas with boat access.
Do I need a visa or proof of residency to purchase property in Florida?
Most of our non US customers only come to the US for vacation. There are no special terms or conditions to purchase real estate. Buyers do not need a green card, visa, or American citizenship. A regular visitor permit through the ESTA procedure or a visitor visa is sufficient. Starting from 2023 there are some exceptions for people from certain countries (China, Russia, Iran, etc).
Is it worth buying an older building with lots of charm or should I avoid them?
Building codes have changed significantly in recent decades, especially in 2002 when they were greatly increased for real estate, particularly for hurricane protection and flood resistance.
Renovated homes are typically found in desirable locations such as Downtown Naples, Aqualane Shores, Port Royal, Coquina Sands, and Moorings, Bonita Beach, along the river in Fort Myers, but they often have lower ceilings, smaller windows, and bathrooms. Insurance premiums for these properties are also typically higher.
Older homes, on the other hand, are often more attractive because of their lower prices, larger lots, and prime locations.
In conclusion, the charm and appeal of an older building is subjective and depends on individual taste. It is important to consider the age, condition, location, and insurance costs when deciding whether to purchase an older building.
Who handles the formalities after the closing?
After the closing, I assist my clients with enrolling at the utility and electricity companies, as well as obtaining insurance quotes. I am also happy to assist with opening a local bank account and signing up for services such as internet and cable TV (you’ll need to be present for this). Additionally, I can provide referrals for any needed renovations.
Is it better to finance here in Florida or in another country if I can’t or choose not to pay in cash?
I am aware of some banks that offer financing up to 70% of the purchase price for foreign buyers. However, the interest rates for foreign buyers tend to be relatively high (compared to some other countires) and the interest rate lock terms are typically shorter, with a maximum of 7 years. The loan closing costs are also comparatively high, averaging around 2-3% of the loan amount. But I don’t know of any bank outside the US that accepts a home in the US as a collateral.
What is the average annual cost of maintaining a property?
The maintenance costs for a property depend on various factors such as its value, size, location, and age. For newer single-family homes with a pool located in a gated community, worth around $900,000, the average annual maintenance cost is around $25,000 per year. For a smaller apartment worth around $400,000, the expenses typically start at around $15,000 per year. These costs do not include financing or capital expenses, repairs, or depreciation.
Can I reduce the costs with seasonal rentals?
Renting out the property to vacationers is a common way for homeowners to cover their expenses. However, it’s important to note that rental restrictions may vary in different communities. Properties that are most suitable for rental are single-family homes with private pools located near the beach. Some of my clients have been able to rent out their homes for 20-30 weeks per year, which covers all of their expenses and even helps to recoup some of their capital costs.
Does renting out the property require a lot of effort on my part?
Many of my clients have enlisted the help of a rental management company. In coordination with the property management company, she handles advertising, leasing, payments, security deposits, key handover, final inspection, billing, and cleaning.
Should I buy property in an HOA community or a free residential area?
HOA communities often offer a range of amenities such as golf courses, tennis courts, clubhouses with restaurants, fitness centers, playgrounds, etc. These communities usually appear well-maintained because the HOA takes care of maintenance. Guarded gated entrances also provide a sense of security. However, real estate in upscale communities can be more expensive, as you pay for the overall environment, and HOA fees for the above amenities are higher. There may also be restrictions, such as on the appearance of lawns, exteriors of houses, and rental restrictions, that don’t exist in free residential areas.
Can I be sure that the property has no hidden flaws?
It is highly recommended to have a licensed home inspector check the property before purchase to ensure that there are no hidden flaws. This will provide a more detailed understanding of the condition of the house and help identify potential issues. Typically, the seller is required to repair major defects prior to closing, although there may be exceptions. Various inspections, such as those for technical equipment, mold, radon, and termites, are available.
Do houses here even have heating?
In most houses, the air conditioning has a heating function but normally the heater is only needed a few days throughout the winter.
Why do most homes here have pool and/or lanai screens?
The screen has several benefits, including protecting from mosquito bites, reducing dirt and debris from entering your pool or lanai, deterring animals from swimming in the pool, and providing sun protection equivalent to SPF 20.
Are the mosquitoes bad in summer?
Mosquitoes are not a significant problem in populated areas as they are effectively treated. However, in the rainy season (May to September) they can be more prevalent especially in areas near the Everglades and at dusk or when sweating. For golfers at golf courses located near the Everglades, it is recommended to use bug spray for added protection. The screens around patios also offer additional protection.
