Canadian Purchasing Of Florida Real
Estate
The following information is intended to
provide information to the international traveler that I hope will assist
them. Being an international traveler myself and having lived and worked in
Canada over the years has given me an appreciation of the different customs
of other countries. I am anxious to keep learning more of the rich cultures
of foreign lands.
The US continues to be a very popular country for
Canadian investors buying second homes abroad, and the majority of them buy
in Florida. With the favorable exchange rates and the availability of flights
(and bargain fares) from all major airports to Southwest Florida Fort Myers
International Airport help make the area a desirable destination for
vacations. Interesting statistic is that approximately 60% of the Us's
wealthiest citizens winter in Southwest Florida. With magnificent white
beaches, azure seas, plentiful moorings, shopping, cultural amenities, fine
restaurants and the large number of championship golf courses it is easy to
see why. See Southwest Florida Map at Southwest
Florida MAP.
Although there are no restrictions on Canadians
buying a property in Florida or anywhere else in the US, there are limits to
how long they can spend in the country each year. See Visa application
requirements at Visa application
requirements. Please independently verify the current visa requirements
for entry into the US.
Many developments in Southwest Florida also impose
restrictions on the number of days per year that homeowners are allowed to
lease their property to visitors. Also there are usually other lease
restrictions that you need to be aware of. If your intent is to purchase then
lease the unit part of the year then a Property Management Service is a must.
Please consider Grande Cypress Realty for your property management needs. You
can find a description of the program here: Property Management
Service
Paying a mortgage and other costs using lease
returns, although most desirable, is rarely feasible. Purchasing Real Estate
in Florida is quite different from Canada so the services of a Florida
licensed Real Estate Agent is essential. We hope you will consider using
Grande Cypress Realty.
In Florida, nearly every property for sale by Real
Estate Agents is listed on a central database called a Multiple Listing
Service and is available to all real estate agents that subscribe to the
service. Different Multiple Listing Services cover different areas. We can
provide a no-cost or obligation access so that buyers can search both
Southwest Florida Multiple Listing Services. Just E-mail us what areas you
are interested in. Most real estate agents join the National Realtors
Association and subscribe to a code of ethics that is strictly
enforced.
The purchase process starts with a formal offer in
the form of a purchase contract. When signed, this is binding, though
contingency clauses allow either side to withdraw in defined circumstances.
Once a price is agreed, the buyer deposits a goodwill deposit that is held in
an escrow account, usually by a third party such as a title company. A title
insurance company searches public records and insures the property against
any third party claims. Transferring of the balance of the purchase price
into the escrow account can complete the purchase. Time is a crucial element
in the purchase process. If you fail to observe dates stipulated in the
contract, you risk losing your deposit. Again the services of a Florida
licensed Real Estate Agent is essential. We hope you will consider Grande
Cypress Realty.
Buyers should allow around five per cent of the
purchase price for various legal fees, document fees and property taxes &
insurance. Always obtain a document titled as a "Good Faith Estimate". This
document will be an itemized list of all the costs and fees that is
associated with the real estate purchase. In case you are interested, it is
customary for the seller to pay the real estate commission to the seller's
real estate broker. The seller's broker offers a commission to any Florida
licensed real estate broker representing a willing and able buyer. So it
makes sense to be represented by your own Real Estate Broker. We hope you
will consider Grande Cypress Realty as your own personal Real Estate
Broker.
Paying cash is often recommended, but you may not
want to tie up a relatively large sum in this way. Consult one of the
specialist currency exchange companies for best available exchange rates and
potentially save thousands in the process. If you prefer a mortgage we can
put you in touch with a local lender. Note that lenders will require at least
a 20% down payment and may require much higher depending on your particular
situation. We always recommend local lenders since they are familiar with
local customs and the market. We do not receive any fees from any lender that
you were to chose. You may want to consider a loan for the equity value in
your current home to pay for the second home. Contact your current lender if
applicable.
The US taxation system is a complex one, and may
involve payments to at least four different levels of government: local,
regional, state and federal. A Taxation Treaty between the US and the Canada
prevents double payment of taxes. Florida ranks lower than many other US
states in terms of the tax burden it imposes. It is one of only nine states
that do not levy a personal income tax. More than half of its non-federal
revenue is collected at the local level, mostly through property taxes,
which, for homeowners, amount to about 2 per cent of their property's value
per annum. All rental income in Florida is subject to tax. Intangible
personal property (that is, stocks, bonds, mutual funds and so on) is also
taxed. Although not considered to be a tax, developments that are managed by
a homeowners association will impose a fee to cover various costs for upkeep
of the development. This fee varies greatly between various developments. It
can be from several hundred dollars a year to thousands of dollars a
year.
Florida's sales and use taxes provide over half of
state revenue. Sales tax applies to most retail items. The rate is currently
6 per cent.
Florida's immigration laws are strictly enforced.
Those seeking a Florida Green Card, which entitles them to live and work in
the state, face close scrutiny by the Immigration and Naturalization Service,
particularly if they wish to start a business. Those not planning to work,
including retirees, must be able to demonstrate substantial means. This can
be an obstacle to many people's dream of retiring to Florida. Again, Please
independently verify the current visa requirements for entry into the
US.
Hospitals in the US provide some of the most advanced
health care in the world. Most are private. There is no national health
service. For visitors, private medical insurance or travel insurance is
essential. If you are seriously injured, the emergency services will treat
you and charge you later. If the injury is not serious and you need to
consult a doctor, a basic consultation will cost approximately $100US. There
are a variety of policies available for travelers.
Visit one of our main web sites at http://www.grandecypress.com
If you have additional questions you can Click here to send E-Mail to Grande
Cypress Realty 
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Canadian Purchasing Of Florida Real Estate
