Below are some questions answered. Although
not meant to be an entirely comprehensive guide, if you have any suggestions
as to content or something you wish answered, just ask!
Q - How do I get started?
A - Contact us so that we can discuss what your goals are and how we can get
you ready to purchase your second home or other investment properties in Florida.
Q – Where do I go for financing?
A – We have several really good and competitive Lenders we will introduce
you to. These Lenders will help you work with the equity you may have in your
current home and help you finance your second home or investment property in
whatever way is best for you.
Q – Are the Lenders you will refer to me competitive
with programs and rates?
A – We will only use Lenders that stay competitive. We do not benefit
from the Lending process, therefore, we will only refer you to Lenders that
are prepared to put you on the top of their list of priority clients.
- By the same token, some of our builders use “preferred lenders”
and you may be required to go through them in order to benefit from the incentives
they may be offering for your purchase. We will advise you every step of the
way.
Q – What kinds of programs are available to Buyers?
A – Of course, everything depends on the quality of credit you have.
With that in mind,you can obtain 90% financing for a second home if you
have an excellent credit history. There are adjustable rates, interest
only programs and the traditional amortization products available to you.
Q – How easy is it to purchase a home in Florida?
A -Purchasing a home in the Disney resort area is generally much less complicated
than virtually any other country. The
single most important factor is to ensure that you are using the services of
a fully licensed Real Estate Broker. Our
Orlando division is fully licensed by the State of Florida, and we will oversee
the complete transaction that requires the
time you first arrive in Florida to the time your home is ready for occupancy.
These services include: initially helping
you to find the most suitable property, handling the legal aspects of the purchase,
monitoring construction, emailing to
you photographs of your home, coordinating with the mortgage broker, ensuring
that the final paperwork is in order,
performing the pre-occupancy inspection, coordinating the delivery of furnishings,
organizing the connection of all
services, and arranging the required licenses. These, and other services, are
completely free of charge to each of our
customers.
Q – I am concerned that, when I visit Orlando, I
may not view the best properties that are suitable for my
personal needs. How can I be sure that any decision I make is in my best interests?
A -This is a concern shared by many prospective purchasers. The best possible
assurance we can give you is to ensure that
you select a company that is totally independent and can offer you impartial
and unbiased advice on every aspect of
property purchase and management. For continuity, it is essential that a company
is highly knowledgeable and
experienced in all aspects of Orlando/Disney resort areas, has excellent relationships
with all major developers, and can
provide a professional, reliable solution for rental management of your property.
Q – What is a Buyer's Agent and why do I need one?
A -In 1983, a Federal Trade Commission study revealed that over 70% of all home
buyers nationwide mistakenly believed
they were being represented by the agent who was showing them homes. As
a result, laws requiring agents to disclose
exactly who they represent have been passed all over the country. When
consumers became aware that most agents
worked for the seller, they began demanding their own representation thus
the birth of The Buyers Agent!
A Buyer's Agent acts solely on behalf of the Buyer - not the Seller. Their
specialized knowledge and expertise is in
assisting home buyers. Listing agents have homes to sell. A Buyer's Agent
does not try to "sell" you a particular home,
because we don't sell homes, we serve home buyers! A buyer who relies
on the seller's agent does not receive the same
degree of legal protection as that afforded by an agent acting solely
on the behalf of the buyer.
Q – Is it easy to obtain a mortgage in Florida?
A - Subject to status, obtaining a mortgage in Florida is relatively straightforward.
Loans of up to 90% for US residents and
80% for non-US residents are secured against the Florida property. You can choose
a fixed or variable rate mortgage and
repayment terms range from 5 to 30 years with no age restrictions. Because we
work closely with some of the best
mortgage brokers, we ensure that. you obtain the most suitable and competitively
priced mortgage for your personal
requirements. We will provide you with more information on this subject as necessary.
Q – How much deposit do I require to place a contract
on a property?
A -In most cases, a "good faith deposit" of only $5,000 is required
with your contract for purchase. Depending on the
builder, you will possibly be required to provide the balance of your 10% deposit
within a specified time period (usually
30 to 45 days). If for some reason you are not approved for financing, all monies
will be refunded.
What are closing costs and how much are they? .
Closing costs are standard, administrative, and government fees associated with
buying a home in Florida. They
comprise of a mortgage setup fee, legal costs (associated with the purchase),
and registration of the property, title
insurance, and various pre-paid annual fees such as insurance and association
fees. As a guide, you should allow
approximately 4% of the purchase price to cover all fees. Depending on the property,
we can sometimes obtain builder
contribution to these costs. Once a specific home is selected, we can arrange
for you to receive a "good faith estimate" of
all of the costs associated with a particular mortgage product for the amount
financed. As a part of our services, we will
be glad to assist you in this important part of your holiday home purchase.
Q – Are there any additional costs I should be aware
of?
A -If you intend to rent your property, you will need to comply with local legislation.
This includes obtaining a hotel/motel
lodging license and ensuring that required safety features are present, such
as fire extinguishers, smoke detectors, and
emergency exit lighting. These are normally included with the price of the home,
but may be a required add-on.
Additionally, you may be required to place small deposits with the local utilities
when these accounts are "turned on" by
your rental management company.
Q – What is "Short Term Rental" and are
there any restrictions in the Orlando area?
A -Short Term Rental is defined as renting a home for a period less than 1 month.
The county property appraisers' office
controls this special zoning. The four counties that make up the majority of
the Orlando area each have different rules
pertaining to the renting of holiday/vacation homes. It is therefore essential
to obtain correct professional advice and
guidance as to the suitability of a particular community for short-term rentals.
We will ensure that the property you select
is completely free from any restrictions and is legally zoned for short-term
rental.
Q – How many weeks do I need to rent out my home
in order to cover all the running costs?
A -This is dependent on the type of property you purchase, the location and
the amount and term of the mortgage. As a
general rule, if you place the minimum down payment and finance the balance,
you will need to rent out your home for
about 30 to 35 weeks to pay all costs. For the convenience of our clients, we
have researched the rental/management
market to be able to recommend some of the better, more competent companies
to take care of your home. We will be
glad to assist you in this area at an appropriate time by introducing you to
a representative trom these companies.
Q – How do I know which management company to chose?
A -As a "Buyer's Agent", we will represent you and guide you in every
aspect of the purchase of a holiday home. We
recognize that appointing a professional management company to manage and maintain
your home in your absence is
vital. If you intend to rent your home, it is also important to use the services
of a company that will provide you with
high levels of occupancy throughout the year, ensuring that you obtain the best
possible returns on your investment. We
will be glad to assist you in this critical step by recommending companies whose
integrity and business ethics are
unquestioned; whose record of service is impeccable. At an appropriate time,
we will be glad to suggest a
rental/management company and provide the necessary introductions to the key
management in these companies.
Q - Am I covered in the event of damage to my property?
All homes in Florida must be covered by a comprehensive insurance policy, which
includes storm damage. If you are
renting your home, the rental/management company will normally further insure
your property, by requiring a security
deposit from your guests prior to their arrival. When your guests leave, the
rental/management company will normally
conduct an inventory inspection to determine if any items are damaged or missing.
Q – Are there any restrictions on when I can use
my home or how long I can stay?
A -As the homeowner, you are tree to use the home as much or as little as you
choose, whenever you choose. Of course, you
would normally coordinate with your rental/management company to facilitate
the stay in your home. Non-US residents
would be required to comply with normal immigration and visa restrictions.
Q – What are the tax advantages of owning a property
in Florida?
A -This is dependent on individual circumstances. There are some very positive
tax advantages to these short-term rental
homes, especially if you rent your home when not in use. We will be glad to
discuss these advantages with you, but
would suggest that you consult with a tax/accounting professional to determine
the full benefits to you.
Is purchasing a property in Orlando a sound investment?
Providing that you purchase the correct type of property in a prime location
(especially the Disney resort area) that is
suitable for short-term rentals, property in Orlando is one of the best property
oriented investments currently available
anywhere in the world.
Q – Can I purchase more than one property?
A – Depending on your goals, we can accommodate any type of strategy your
may want to follow.
Q – I have property that I own elsewhere and would
like to do a 1031 Exchange. Can you help me?
A – We are fully knowledgeable and experienced in the 1031 Exchange process
and we are prepared to assist you with your trade for new properties.
Q – I have a Self-Directed, Roth IRA, is it true
I can use funds from that to make a purchase?
A – Yes. Please click here for more information
Q – How will I manage a property if I live out
of state?
A – Before we work a particular area, development, or county, we prepare
by arranging for good Property Management. The Property Manager will arrange
to get and keep your property rented, take care of maintenance issues and send
you your monthly income check so you can pay your mortgage.
Q – Why would I want to purchase in Florida ? Will
it make sense to me?
A – Florida is still affordable. Florida is appreciating steadily and
rapidly. Florida 's economy and population is growing. All things considered,
a purchase now, in Florida, will help you grow your retirement fund, allow you
to increase your net-worth and help you make an eventual move to the Sunshine
State if that is part of your goals.
Q – What is the easiest method to make contact
with an agent?
A - You may choose to call us but, if you e-mail us and take the time to explain
Who? What? Where? When? And Why? We can respond to you quickly and efficiently.
Note: All properties are on a first come, first serve basis. You should contact
us immediately so that we can put you and your needs on track quickly.
If you have any further questions, or require additional information on any
of the above subjects,
please feel free to contact me. I look forward to hearing from you. *Required
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