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Patricia Tan Perspectives International Real Estate

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Buying Property in Florida?
Tips for Success

By Patricia Tan

Now we are in the height of our traditional “buying season” here in Florida, I thought it might be useful to provide some tips, particularly for our out-of-state and overseas visitors. Over the years, I have worked with buyers from many U.S. states and other countries and helped educate them on ways to make a successful purchase – one that they will enjoy many years into the future. These are my tips for success:

Understand Your Motivation
Are you buying a holiday or retirement home, rental investment or a blend of the two? Think about how HOA rules, zoning and resale strategies may affect your purchase. Consider your personal preferences versus those that might be important when you resell.

Work with a Realtor®
Interview several, but choose only one. Find a real estate professional with whom you feel comfortable and who displays a detailed knowledge of the area, housing options, market statistics and trends, and can advise you on the issues that you may face both as a buyer and home owner. Overseas visitors may not appreciate that one agent can show ALL homes for sale – the MLS system is something we tend to take for granted, but this does not exist in many other countries. Your Realtor® will work for you, rather than a listing agent or builder representative who may be working in the seller’s best interest.

Set Realistic Expectations
This is particularly important when it comes to pricing. You may have read in the press that “Florida is on sale”. While it is true that our current prices are discounted by about 50% from the market high, that discount is already reflected in the list price of a property. Making an offer of 50% of the list price will not result in success! On average, homes in our area close at prices that are within 6% of the list price.  Once you have selected a property, and before you make an offer, ask your Realtor® to research similar homes that have sold in the area, so you understand what the fair market value of that property is in today’s market,

Do Consider New Construction
Ask your Realtor® to show you new communities that meet your needs. Many of our builders offer buyer incentives and, if timing is an issue, they can often deliver new homes quickly. A new home will comply with the latest building codes and incur fewer maintenance costs in the early days.

Understand Property Taxes
Despite recent changes to our property tax system, many buyers from outside Florida still believe they are disadvantaged, and pay more taxes than locals. This is true if you compare taxes paid by a full time Florida resident on their primary home, but the differential is much smaller than it used to be when we had rapid price appreciation. In addition, bear in mind that there is no tax benefit to locals who own multiple properties – they pay the same tax as absentee owners on every property other than their primary residence.

Think About Federal Taxes
These can be many and varied! There are income tax implications if the property is to be rented, capital gains tax considerations when the home is sold, and possible estate tax issues. It is important to consider these before you purchase a property and take the appropriate professional advice on how the property should be titled – your personal name, a limited company, or a cross border trust for instance. The approach will vary depending upon your citizenship and personal circumstances.

Plan for Currency Exchange Fluctuations
Protect against them! Research options for currency exchange well in advance of your planned purchase. Find a specialist currency partner, other than your local bank, who can provide more attractive exchange rates, tools to enable you to time your exchange to maximum benefit, and the ability to fix an exchange rate now and into the future – this will help not only with your initial purchase, but also with future running costs, condo fees, etc.
 
patricia-tan-prudential-palms-realty [1]Patricia Tan was born in England, and her career in international sales and marketing led her to live and work in many countries around the world before moving to Sarasota in 1997. Patricia is a Certified International Property Specialist (CIPS), Graduate Realtor Institute (GRI), and Transnational Referral Certified (TRC). She is involved in global activities of the Sarasota, Florida and National Association of Realtors, and currently serves as NAR President’s Liaison to U.K. Her real estate business operates from Coldwell Banker on St Armands Key, where her focus is to bring international buyers to the local market. She regularly makes marketing trips to Canada, Asia and Europe, to promote Florida’s Gulf Coast and the Sarasota area in particular. Patricia may be reached at 941-504-9232 or Pat@PatriciaTan.com [2].

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