Buying Property in Florida

Buying a property in Orlando, Florida or anywhere in the USA, is in general terms, far less complicated than virtually anywhere else in the world. Florida is very much a "user friendly state" giving the property buyer an extremely easy and safe approach to home ownership.

The USA operates a Multiple Listing Service where all licensed real estate agents and brokers have access to every property in their area. A real estate agent can act on behalf of the seller, the buyer or indeed for both parties. The agent's obligations to the buyer vary depending on what arrangement is entered into, but commissions are paid for by the seller in all cases.

Title Companies are often used instead of lawyers for property transactions. They operate on a fixed fee basis. Lawyers can be employed and are more expensive than title companies, but not substantially so.

Total Buying Costs including legal expenses, taxes, insurance, etc., are between 3% and 6% of the property's price. If buying property with the intention of renting it out when you're not using it, it's important to note that property in Florida is often subject to zoning regulations preventing, or limiting, short-term lets. Tax must be paid on rental income.

The single most important factor is to ensure that you use the services of a fully licensed estate agent in Orlando. At James Mitchelll PA we will oversee the complete transaction from the time that you arrive in Florida to when your home is ready for occupation. This includes the following:

• Helping you to find the most suitable holiday home for sale in Orlando.
• Handling the legal aspects of the purchase.
• Monitoring construction and taking photographs.
• Liaising with the mortgage broker and ensuring that the final paperwork is in order.
• Carrying out the pre-occupation inspection, coordinating the delivery of furnishings, organizing the connection of all services and arranging the final occupation licenses.

Buying a Holiday Home in Orlando - we do all the legwork.

Whether you buy a property in Orlando as a holiday home or simply as an investment it is imperative that you research all aspects of the property purchase.

James Mitchelll PA assists holiday home buyers and property investors with our comprehensive research allowing you to make well informed decisions about where and which property in Orlando to buy.

Due Diligence:

The two main aspects of our due diligence procedures are the property investment in Orlando as a viable proposal and equally important; the reputation and track record of the developer.

Buying Property in Florida - Understanding the Buz Words

Condominiums

Condominiums or condos as they are more commonly known are the equivalent of European apartments or townhouses. With the properties and land being purchased on a freehold basis but within a communal area where there are community rules and regulations. A president, treasurer and secretary is typically elected by the owners and they will oversee the day to day running of the community under guidance of regulations and rules set down by Florida state.

These rules are known as the Home Owners Associations or HOA. You will also be liable to pay monthly HOA fees which will pay for the running costs of the community including the gardeners, pool cleaners and general maintenance; these are very similar to European community fees. We recommend that prospective condo owners read the HOA docs before agreeing to purchase a property as you need to understand what you can and cannot do as well as the estimated monthly and/ or annual costs involved.

Owner that intend to use a property intermittently may benefit from buying a condo, as they do not have to be concerned with the day to day upkeep of the property and can be confident that the property, the grounds and the amenities are being looked after in their absence.

Hundreds of thousands live year round in condos throughout the United States, and the Home Owners Associations tend to be run very efficiently. In recent years we have seen in upturn in the amount of American purchasers investing in condos especially as vacation homes that can rented out for certain amounts of time dependant on their location.

Townhouses

Townhouses have seen a massive surge of interest in recent years in rental zones as well as for residential purposes. There have been many developers that have begun to construct townhomes as they fill the middle ground between condos and single family homes or villas. They are very popular with families who want to get on the property ladder and also with the retired who are looking to downsize.

In the Orlando area there are numerous townhomes available in  short term rental zones and these again could fill the gap between those who want a completely hands free investment of a condo and those that want a good sized villa or single family home.

These townhouses can be found in the Disney catchment area and serve two purposes, the first already mentioned above, the second is it allows the developers to construct more properties on a smaller acreage, at a convenient price for the multitude of buyers and investors. Many townhomes in Orlando are offered with fully fitted kitchens, lighting and with a large “wish list” of extras than can be purchased especially when buying off plan or even during construction.

Single Family Homes

Single family homes and villas have long been the favourite of home buyers in the Orlando area. Either as an out and out holiday home or as investment property single family homes and villas are the ideal vacation home especially foe many British and European investors who realise how much property they can get for their money especially at the moment with the pound buying nearly two dollars. There are many established vacation home communities that are located in short term rental zones in the Orlando area such as Highlands Reserve and Windermere,  numerous gated communities around Kissimmee, with many more in the Davenport and  Highway 27 areas in construction.

There are also many luxury communities such as Celebration, Reunion Resort, Bell Collina, Belmere, Alaqua etc where you can find million dollar homes on the golf course or by the water and still within a short drive of Disney and the theme parks

Vacation Homes

Vacation homes in Orlando are the staple diet for many European investors as well as Americans from out of State, who wishes to invest in the sunshine state. There are only a few counties in the Orlando area that allow short term rental of property and you need to ensure that you are buying a vacation home in a suitable area that is compatible with your requirements.

Buying  a vacation home for many is the possibility to take great holidays in Florida with the family with the added benefit of being able to rent out the property and achieve a rental income that could go towards paying for the monthly mortgage fees. A vacation home that is purchased with 25% down and with a 75% mortgage should break even with around 24-30 weeks occupancy per annum.

Therefore it is essential that you build a relationship with a good property management company that has an established client base of happy owners that have a decent annual occupancy rate year on year. There are many management companies that will offer a wide variety of rates and conditions. It is worth shopping around and listening to good advice.

Condo Hotels

Condo Hotels / Aparthotels are typically run and controlled by 5 star resort management companies such ar Ritz Carlton and Sheraton. Sometimes referred to as apart-hotels are usually high rise condos, located in high demand, prestigious areas around the world near to casinos, theme parks and upmarket golf courses. These condo hotels will typically be full resort communities offering fabulous amenities for its guests, including spas, high end restaurants, boutiques and concierges.

Essentially you would purchase a property within the resort and then place it in the inhouse rental program when you are not using it and receive a proportion of the rental income. It is an effective way of buying into an exclusive resort which can be used as a luxury holiday home or second home which can provide an income. The management companies will maintain the unit in your absence and ensure that smooth running of the property and by doing so increasing the occupancy percentage which in turn can increase the overall value of the property itself.

Essentially a hybrid investment, condo hotels allow individual investors to enter the hotel business. Owners pay their property taxes, their insurance and their maintenance fees. The hotel company  will rent our the room/ units, rotating the reservations through the owners and then dividing the derived revenue on an equal basis with the individual unit owner

Condo hotels are suitable for investors who are willing to invest for the longer term where an equity gain can be achieved. See The Blue Rose Condo Hotel.