Purchasing house/condo in Florida

[bgula]

I know there have been a few other threads regarding this subject, but if everyone can bear some repeating, I have a few questions I'd like to ask of those Canadians that have purchased property in Florida.
Some quick background: We're thinking of this as more of an investment in future retirement which could be in 10-15 years. Considering that property values are still tanking in Florida, we don't want to miss this opportunity if we can afford it.

1) I've heard that people prefer buying into a condo rather than a house. Some of the reasons are everything is basically looked after by the condo "group" (i.e. maintenance, etc.). What are your opinions on this - which way would you swing?

2) Does anyone have a recommendation for a good real estate person to contact that is used to dealing with Canadians?

3) Do you look for the "For Sale" properties only, or would you also look at the tremendous amount of foreclosures as an option?

4) We obviously love Disney and would like to be in the general area. Is there an area you would suggest to look at that is relatively quiet and safe? Should I be looking at gated communities?

I'm sure I've got many other questions, and as you can probably tell, I'm not that "up" on this subject yet. So if there are any other things I should be looking out for, please let me know.

TIA

 

[Gigi22]

DSis and her DH purchased a property near Clearwater last year. I don't have the details, but I do know they rented properties in the area before purchasing. Since they were fully acquainted with the area, they were able to develop their own local contacts and purchased a recently renovated property.

 

[Aladora]

My dad and the stepmother just bought a condo in Bonita Bay. Since they are snowbirding it, they felt as though a condo was a better choice for them.

 

[isabellea]

My parents bought a condo in the Ft Lauderdale area (Lauderdale Lakes). Since it is the area where the bulk of Canadians go in the winter, there's many services offered to them. Buying was very easy as they dealt with the american franchise of Desjardins where their canadian and american accounts are linked.

 

[Maddysdaddy]

I'm sure I've got many other questions, and as you can probably tell, I'm not that "up" on this subject yet. So if there are any other things I should be looking out for, please let me know.

TIA

Please have a chat with your accountant prior to making any purchase of foreign property. There could be some unanticipated and expensive tax issues that you will want to take into consideration before making your final decision.

 

[bgula]

Please have a chat with your accountant prior to making any purchase of foreign property. There could be some unanticipated and expensive tax issues that you will want to take into consideration before making your final decision.

Perhaps you could elaborate as I do not have an accountant?

 

[hcortesis]

I have owned and sold a Florida condo. Things are not as simple and straight forward as they are in Canada. (at least for a Canadian buying and selling U.S. property).

There are many accountants out there. You should find one who knows a little about buying and selling U.S. property and ask him or her for advice and tax implications.

We are now Disney Vacation Club Members and are very happy.

 

[csm101]

We are at a very high level of buying a vacation home. Have you spoken to your bank? Are you paying cash? will you need a mortgage? We deal with RBC and have a great relationship with our banking team. They will guide you through the process and give some some tips. The banks have many contacts in the USA that will also provide details. I'm not sure about posting links but if you Google RBC USA property there is a nice article posted March 24th - 2014.

 

[Maddysdaddy]

Perhaps you could elaborate as I do not have an accountant?

I say this with all sincerity and no snark intended - if you have the time and money to buy an investment property, you have the time and money to find an accountant who can speak to you about US tax implications of foreign ownership.

You will need to speak with someone at one of the 'larger' firms, as your neighbourhood accountant will very likely not have the expertise and resources to discuss this issue with you.

 

[stefanospops]

I think there are a lot of things to consider. I am actually a real estate agent in Toronto, but I also sell real estate in Florida too through a partnership. I deal primarily from the investment side of things. Feel free to PM if you want specific details/help.

In general, property values in Florida have actually increased in the last couple of years with Miami leading the way up double digits from last year. With 35 million+ Americans in the northeast US (not including us Canadians) reaching retirement age in the next 10 years I anticipate values will continue to climb in places like Florida and Arizona. Just think Seinfeld and Del Boca Vista.

In working with investors I have connections set up for property management, mortgages (you can as a Canadian buy with as little as 20% down at times and depending on your/proeprty specifics). Do primarily condos and have many properties that come with tenants already in place.

If you know you need no access to the the property for the next 10-15 years then a house or condo that is rented unfurnished to a local is your best bet. If you would like the chance to use the property at times then consider purchasing a vacation rental where the property is furnished and you hire a company to manage your bookings. You can then use sites such as tripadvisor to post your vacation rental. You can make more money doing so but have more overhead too since you need to supply furniture, cutlery, towels, etc.

Definitely want to seek out an accountant specializing in US/Canada investments/property. Message me if you like more details. good luck!

 

[migel]

Hi there. We're from the Hamilton (ontario) area and purchased a condo 5 miles west of Disney World in March of 2012. No accountant, no lawyers, all done via email, and of course a visit prior by myself to scope out a few resorts. We absolutely love it, although be prepared for the monthly expenses of owning a property in Florida. Our unit is not in the rental program (Wyndham Resorts manages the resort), hence no need for an accountant. We occasionally rent to family/friends which helps divert some annual costs. Prices have slowly risen since 2011, although there are still great deals available. I have a good contact who knows the area well and currently acts as our property manager. I also keep abreast of a Disney area properties, mostly condos and townhomes. PM me if you want any further info. Heading back down next week!

 

[Belle599]

Our unit is not in the rental program (Wyndham Resorts manages the resort), hence no need for an accountant.

Just to clarify for OP, I believe that the advice of seeking out an accountant was to determine the taxation implications and also to determine whether the purchase should be made via the person, a corporation, or a trust etc.

OP, when you are looking for an accountant please be certain to look for a CPA, CA who specializes in US taxation for Canadians as there have been some changes in the last couple of years on the US tax side that could change the requirements to file a US tax return.

Good luck and hope you find your dream vacation property!

 

[bgula]

Hi there. We're from the Hamilton (ontario) area and purchased a condo 5 miles west of Disney World in March of 2012. No accountant, no lawyers, all done via email, and of course a visit prior by myself to scope out a few resorts. We absolutely love it, although be prepared for the monthly expenses of owning a property in Florida. Our unit is not in the rental program (Wyndham Resorts manages the resort), hence no need for an accountant. We occasionally rent to family/friends which helps divert some annual costs. Prices have slowly risen since 2011, although there are still great deals available. I have a good contact who knows the area well and currently acts as our property manager. I also keep abreast of a Disney area properties, mostly condos and townhomes. PM me if you want any further info. Heading back down next week!

Thanks for the info! Sounds interesting! We are also heading down in a little over a week and can't wait. I"m not sure what you mean by the "rental program" - maybe you can elaborate. Would you prefer me to PM you for more info rather than in this thread?

Just to clarify for OP, I believe that the advice of seeking out an accountant was to determine the taxation implications and also to determine whether the purchase should be made via the person, a corporation, or a trust etc.

OP, when you are looking for an accountant please be certain to look for a CPA, CA who specializes in US taxation for Canadians as there have been some changes in the last couple of years on the US tax side that could change the requirements to file a US tax return.

Good luck and hope you find your dream vacation property!

Thanks. This is all just preliminary stuff for us. We're not looking to jump in right away and know that our homework must be done. All this accountant stuff at this point is way over my head. First we have to see what's available and whether we can afford it or not sometime in the next few years.

 

[migel]

Our resort, like most in the area, is considered a 'short term rental' condo-hotel. That means the units can be rented out by the day, week, etc. Wyndham resorts manages our complex which means if you agree to be in their rental program, they will actively rent out your unit (when you're not using it), collect the fees, arrange for cleaning, etc. they take a cut of the profits also. Our unit is for our own enjoyment, so other than other family members and the occasional friend, it is not rented out. Of course this makes it quite expensive to maintain, monthly HOA fees are quite high. Some complexes like Bella Trae are not approved for 'short term rentals', so you technically cannot rent by day or week, I believe only half year leases or longer are allowed. Hope this helps.