Purchasing
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Florida's Gulf Coast offers a tremendous range of unique locations for your dream home. |
| Salt Water or Fresh Water canal-front with boat access. Conservation view land, golf course, lakeside or a regular street front building lot. There is the choice between simply buying a plot of land for future development, building a new home or purchasing an existing home. The use of a licensed Realtor acting as your Buyers Broker when planning your vacation home can be invaluable, the buyers broker legally owes allegiance to the purchaser and will advise his or hers client based upon their specific requirements, regardless of which agent is listing the property or building lot. There is no charge to the buyer for this work, the seller's real estate agent simply shares their listing fee with the buyer broker. Time can be saved with informed research being done by your buyer's broker prior to homes or building lots actually being viewed. Your Buyers Broker will have access to ALL listings (building plots/new homes/ re-sale) through the Multiple Listing Service (M.L.S). Area and price information can be shared and financial and deed restriction advice given. Once your purchasing parameters are established a computer search will locate suitable homes or building lots in the nominated area, listed by ALL Realtors. Your Buyers Broker can then plan a route to view each of these options. |
Choosing New Build |
| With Intimate knowledge of the surrounding area the Buyers Broker’s role in helping you select a new home would be to advise on location, check the deed restrictions to ensure there is no problems with short-term rental, help with the design of a suitable floor plan, advise on a suitable lender, act as your agent for passing correspondence during the loan application, liaise with the builder during construction, perform the final walk through and help with furnishings if required. |
Choosing an Existing Home |
| This can also have its attractions, for instance immediate availability, location in a maturing neighborhood or in the case of waterfront homes simply because there is limited land available. A little time and money may have to be spent preparing the home if rentals are required, however your Buyers Broker can advise on this and supervise any work in your absence if required. |
Selecting your Gulf Coast Location |
| Cape Coral is located just 10 minutes from South Fort Myers across the Caloossahatche River. and across the bay from exclusive Sanibel & Captiva Islands. The area is an ideal location for waterfront lots with gulf access. Generally land is zoned into double size lots of approximately 80ft x 120 ft allowing ample space for larger type detached homes. This area of Florida is very popular for boating with numerous marinas and 400 miles of waterways. Off water building lots are also available in areas close to the local beach and waterways. Cape Coral represents an excellent Investment opportunity. Saltwater lots with gulf access are available from $250,000 freshwater lots from $135,000 & off water lots from around $100,000. Add the cost of a home with pool at around $250,000. Re-sale homes on saltwater canals range upwards of $450,000 There is a real investment opportunity in Cape Coral due to the State-wide restriction on further waterfront development and the 'Last Waterfront Community' is fast becoming a reality. |
| Fort Myers is located twenty miles north of Naples and adjacent to the exclusive Sanibel and Captiva Islands. Similar to Cape Coral the area is an extremely popular winter destination for travelers from the northern United States and Canada. The area has also experienced a huge increase in popularity as a year round destination for UK and Europe. Generally homes in the Fort Myers area are built in residential communities developed by specific builders. Home prices range from $325,000 for a good quality 3 or 4 bedroom detached home with a large screened pool on a standard home site and from $375,000 for a similar home with lakeside views. There are also 2 and 3 bedroom Condos and Town homes available from around $195,000 / $275,000 Appreciation opportunities are excellent in Ft. Myers as this area of SW Florida continues to see large amounts of investment dollars in new building and infrastructure projects. |
| Sarasota/Bradenton Sarasota is well known as a vacation resort and its beaches are first class, however property can be extremely expensive along the Keys and all types of waterfront property are rising in price. The best value is to be found inland where prices drop to more realistic levels. Sarasota County imposes a one month rental restriction which can severely restrict rental opportunities. Manatee County has no such restriction and properties are available in the Bradenton area which avoids this complication. New build three & four bedroom detached homes with screened pool range from the low $300,000 in residential communities located approximately 20/25 minutes from gulf beaches. |
The M.L.S. (Multiple Listing Service) |
The M.L.S. lists every home or building lot, for sale by ANY real estate agent in the area. Your search should start with a knowledgeable Realtor who can pre-search for, location, price range, pool, etc. No need to drive around the streets looking at FOR SALE boards, searching the newspapers and magazines, or contacting different real estate companies. Members of the M.L.S. co-operate on sales. Remember; any Realtor will be pleased to show and sell any property that is listed and not just the homes with their company sale board outside. However if you are intending to rent out the property it is important to choose a Realtor who is knowledgeable on Homeowner Deed Restrictions, Property Management & Rental Opportunities. This very efficient viewing system makes a sensible option for clients with limited time in the area and we would suggest the following scenario. 1. Select the most interesting possibilities and let your Realtor plan a route. 2. If there are a number of homes or building lots to view then do a drive-by and short list the best prospects. 3. Carry out an inspection on the homes you are really interested in. Most properties have an electronic lock-box fitted which your Realtor can access. This gives availability for viewing without an appointment. 4. Once you have selected a home or building plot your Realtor can prepare a written offer. (You should be aware that in Florida, offer to purchase contracts are legally binding and if your offer is accepted by the seller you are legally bound to proceed to purchase – this system ensures genuine intent and eliminates multiple offers). 5. If your offer is accepted your Realtor will prepare the sales contract for signature and a deposit will be required. An Initial a $2000 - $5000 is acceptable with the balance up to 10% to follow at an agreed date. 6. If a mortgage is required the contract is made contingent upon this being granted. 7. It is unusual to have a chain sale in America and sellers tend to be ready to move out within a short period of time. The final closing or completion can take place as soon as the mortgage or other funds are in place. 8. If you are not able to return to Florida for the closing then the title company (a solicitor is not required) will mail you out the closing papers for signature and your management company can take possession of the home on your behalf. |
Financing (information for UK residents) |
The lending system in America is primarily based upon the borrower’s demonstrated ability to repay the mortgage loan from income. Personal assets and net worth are regarded only in that these assets can or should produce income. For foreign purchasers the mortgage term can range from 15 to 30 years, regardless of the applicants age. Down payments will range from 25% - 30% Income will primarily be determined from your last two years P60 and a recent pay stub, alternatively if you are a self employed person you should provide copies of your last two tax reports as filed with the Inland Revenue. In the case of a person holding more than 25% share in a Limited Company or Corporation, copies of both your P60 and any additional directors drawings reported to the Inland Revenue should be provided to determine your effective income. As a general rule no more than 25% to 28% of your monthly income (Gross before Taxes) should be committed towards paying for your vacation home. The mortgage Application Process will initially require a signed contract for the purchase of a house, a completed loan application form, plus a fee for valuation of approximately $350.00. In order to save time and the inevitable criss-crossing of additional paperwork you should also have available: 1. Proof of income for the last 2 years. (Form P60 and three wage slips would be ideal) 2. A statement on your U.K. Mortgage showing outstanding balance and monthly payments. 3. Monthly Statements on any credit cards you may have. 4. Copies of any hire purchase, lease payments or other loans you may have. 5. Current and Savings Account Bank Statements, including Building Societies. 6. Copies of any Stocks and Shares you may own. 7. Income Tax returns for two years. Or if self employed copies of accounts. 8. Proof that you will have the cash deposit available for closing. This deposit can also be borrowed providing that it is against equity, for instance a mortgage on an existing property, however you should bear in mind that you will need to show sufficient income to repay this loan along with your new mortgage. Do not be afraid to show existing loans, in America this is taken as a good sign that you are credit worthy. Remember when signing a contract to purchase your home builders will accept a holding deposit of $2000 - $5000 thus enabling you to send on further funds later. |
Easy Qualifying - None Documented Mortgages |
The qualification for a none-documented mortgage is very simple. These requirements are: 1. A 30% cash deposit 2. Your Passport 3. A U.S. bank account, which you can open on arrival. - It really is that easy. |
US or UK Mortgage? |
The U.S. Internal Revenue Service allows full tax relief on mortgage interest, therefore if you intend to rent out your home this income can be used without tax deduction to pay down your loan. A loan taken out in the UK would probably involve making re-payments with monies on which tax has already been paid. In addition you would be subject to currency fluctuations, remember rental income is paid in U.S. Dollars. |