Own a home in Florida?

[minnie56]

Can anyone that owns Florida property tell the me the pros and cons?

We used to own but many years back..

 

[minnie56]

Nobodyyyy?

 

[BLBCB]

My husband and I have often talked about buying property down there. I would love to hear from some Canadians about the legalities of buying in another country like that. Isn't there some kind of policy that you have to live in Canada a certain number of months per year or you lose Medicare? Can you imagine being able to go down for a month or two at a time!

 

[Gigi22]

My parents owned a condo in Florida for a number of years. My father, who was a lawyer, did all his own research prior to purchase--I remember he was terribly shocked at the cost of health insurance in the US, should he consider a permanent move. From our experience of selling the condo after my father's death, my own recommendation would be that you hire an accountant familiar with US taxes to complete your tax forms for at least your first year of ownership of a foreign property.
I did a very quick search online at the Service Canada website. They offer access to a pamphlet from the Canada Revenue Agency, pamphlet #P151, "Canadian Residents Going Down South", that discusses the tax implications in both Canada and the US. You would also need to check your provincial health dept. website to find out about healthcare coverage.

 

[glendalais]

My husband and I have often talked about buying property down there. I would love to hear from some Canadians about the legalities of buying in another country like that. Isn't there some kind of policy that you have to live in Canada a certain number of months per year or you lose Medicare? Can you imagine being able to go down for a month or two at a time!

It depends on your province of residence. Most provinces and territories require that you reside there at least 183 days (six months) per year to maintain your resident status and coverage. Ontario requires that you reside there at least 153 days (five months); and Newfoundland and Labrador requires that you reside there at least four months out of the year.

 

[minnie56]

You can spend up to 6 months there without health coverage issues..and Immigration implications also.

At this stage in our life..we are contemplating maybe 6-8 weeks in the winter and maybe a little spurt of time here and there in between...

 

[Belle599]

Well it sure is a buyers market down there!

The 2 main things that have prevented me from purchasing in FL are:
1. Cost of home insurance in FL for the non-US
2. It is most beneficial for your beneficiaries (god forbid) for the property to be owned by a trust to prevent tax issues

If you do decide to purchase, please consult with a tax accountant or tax lawyer who specializes in US real estate transactions by Canadians.

Hope that helps!!

 

[dancin Disney style]

There is a Toronto based company that only deals helping Canadians buy FL properties. I think it is called Florida Home Finders. I went to a seminar last year about buying foreign real estate and that companies name came up as being reputable.

Right now the FL housing market is starting to stabized so it is a great time to buy. You can get condos for well under $100K that just a few years ago were selling for 2-4 X the current price.

 

[minnie56]

Well we have bought. Will find out today how far apart the bank appraisal is from what we have paid....hope it's not too big a spread!

 

[kamanda]

We bought down there this year and the biggest negative I find is needing to rely on a property management company. I just need to learn to let go and have comfort that someone else will take good care of the home.

I did not find the insurance or the property taxes too bad. Property taxes are actually coming down due to the decrease in market prices down there.

 

[minnie56]

I don't think we are going to rent it out...maybe only to friends and family. Don't want a Management company! Most of them are snakes...

 

[sk8jdgca]

Depending on the value of your assets, you could be assessed US estate tax on your entire estate (including your Canadian holdings) It can be pretty messy for your executor which is why Canadians buy the home within a corp

 

[minnie56]

We did buy as a corporation...used the same lawyer that we purchased previously with but some years back.

 

[Sue M]

I don't think we are going to rent it out...maybe only to friends and family. Don't want a Management company! Most of them are snakes...

My mom is a US resident and has a condo in Ft. Lauderdale. She is no longer living in it, she had to go into assisted living. We still have it. I pay the monthly condo fees. Some condos- incl my moms don't let you rent it out for less then a year. We rented to a cousin, and they made us do up a lease for not shorter then 1 year term. So if you are wanting to use it for vacation rentals- they may not allow it.
Also in Florida, because of the humidity and heat, you have to run the air conditioner all year. When we leave, I set it for h higher setting, maybe 80 or 85, but you can't turn it off or you will get a mold problem.

 

[abdmom]

I do own a U.S. condo, but not in Fl, and rent it out. Like a pp mentioned, if you plan to rent it out, make sure that it is zoned for short term rentals. Also, the IRS requires me to maintain a bank account on U.S. soil and make my rental deposits to it (so that they can keep track of my money). There is also a short term rental tax that I must charge renters and pay to the state.

 

[minnie56]

Yes, we are in a short term rental neighbourhood. But as I said..I think we will not rent other than to friends and family. We are aware of the 12% State tax on rental income. We have owned both a condo and a house in Florida but in the Sarasota area.

Also realize that we will run the AC in the summer on a moderate setting and alternatively the heat in the winter. I have a good friend that lives in the Orlando area that is happy to check in on the house when we are not there as well.....

As for banking...we have had a US Bank account for many years in Orlando ...so we are good there.

 

[Subrbnmommy]

My parents have owned property in Florida for a long long time. They have recently added my sister and I to the deed. We don't rent it out. Our only somewhat problem was the liability insurance. We were only covered for $250k. So, we added an umbrella policy to our current home insurance (our actual house in Canada) that covers liability for our Florida property.