Guest Blog Post by Mary Aldoseri
A Home In Orlando – A Nest Egg That Will Never Be Empty!
Orlando is one of the world’s leading travel destinations. More than 50-million people visit Orlando every year (www.orlandotouristinformationbureau.com), to relish in the many attractions, beaches, and events that make Orlando a great place to visit and live. To boot, current market trends make buying in Orlando even more seductive, a recent report by Winkworth International has tipped Florida as a hot spot for bargain property in 2010. Sean Snaith, economics professor and forecaster for the University of Central Florida in Orlando, stated in the report, that 2010 will be an opportunistic time for international buyers looking at Florida due to,
l Imbalance of supply and demand
l Large inventory
l Pricing power
l Continuing weakness of the dollar when compared to other currencies.
That’s tempting knowledge if,
- You intend to own a home in Orlando as a second port
- You would like to combine using your property as a holiday home and leasing it to others.
However knowing that the geographic location and the favourable market conditions are HOT for buying a home in Orlando, is not enough, lets quickly touch base on the 4 essential facts needed to make sure any property purchases you make are the best for your needs and finances. US property legislation is completely different from others countries and in fact varies from state to state!
Choose Buyer Representation!
Until recently in the US, real estate agents always represented the seller, not the buyer, in real estate transactions. By law, the agent was always required to get the highest price and best terms possible – for the seller! More than one million people in the USA are licensed to sell real estate. Of those licenses, very few are Buyer Representatives. Licensing laws in virtually every state are now being reformed to enable and encourage representation for the buyer. Sellers list their homes with real estate agents to ensure professional representation throughout the home selling process. As a buyer, you deserve the same kind of service when buying your home in Orlando!
Be Smart From the Start: Get a Real Estate Lawyer!
Your real estate lawyer can answer a lot of intricate questions, including some very important ones that you may or may not know to ask when buying your home in Orlando:
● What are my estate tax consequences?
● What do I need to know about Florida property taxes, zoning or special assessments? (This is crucial for those looking to short term let).
● How will I handle estate issues? (Are you married? Retired? Buying with relatives/friends?)
● Is the property’s recorded legal description accurate?
● Will I be able to use the property as I wish?
● Will the title to the property be marketable if I decide to sell or refinance later?
Financing Your Dream Home In Orlando
The first step is to decide how you will finance your purchase. For most, this first step will involve getting pre qualified for a mortgage. This will eliminate the hazard of putting in a bid on you dream home and then failing to qualify and so gives you peace of mind and establishes your price bracket. This step is critical when there is no mortgage clause in the purchase contract (common in condo sales). A mortgage clause releases the potential buyer from the contract if a satisfactory mortgage could not be obtained within a specified time. For those who are thinking of making cash investment to secure their property it is useful to note that interest and mortgage related expenses can be deducted from your US income tax. A good lawyer will be able to assess the pros and cons more thoroughly especially if you intend to let your property.
How To Choose a Property Management Company
Choosing a good property management company will help your second home in Orlando be an investment that will:
l Gain appreciation over time
l Offset mortgage payments via rental income and tax rebates
l Combine as own holiday home
Property management helps you make the most from your rental property and saves you time. If you are an overseas home owner looking to rent they are essential! You must be licensed by the state when ‘renting out’. Property management can assist with this. There’s a lot of jargon in the buy to let world, like gross yields and net yields. It helps to know a bit about them, especially when you are dealing with your home buying team.
Gross yield. This is just rent you earn in a year, shown as a percentage of the value.
Net yield. This is the percentage left after taking off your running costs.
By taking our 4 essential facts into consideration you can and will secure a home in Orlando that will be financially productive for years to come. It really can be that nest egg that is never be empty!
Mary Aldoseri operates an online company which provides information and property locator services for those looking to buy property in Florida