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International Investment Orlando
Certainly we live in a global market for Real Estate Investment. With the dollar weakening in comparison to other currencies such as Sterling, or Euros, International Investment in Orlando Florida Real Estate has escalated greatly. International investment can be challenging without proper advise and guidance. Our team of professionals pledges to provide sound real estate advice to assist you throughout each and every step of the process.
Search for Disney Area Properties
First of all, what are the primary concerns for investing in a foreign country:
- Protecting your investment against foreign currency fluctuations
- Establishing a mortgage with trusted Banking Institutions
- Identifying a credible Property Management team to look after the property and to oversee rental income opportunities- Buy to Let
- Finding property that will meet my investment strategy
- Other considerations regarding Visa requirements, tax ramifications, and buy to let insurance requirements
Most investment strategies will focus on Protecting the Real Estate Investment, long term capital gain, maximizing buy to let opportunities with the ability to use the property personally whilst on Holiday. We have established a program with trusted institutions to protect your Real Estate Investment and meet your investment strategy.
Protecting your Investment- Buy to Let Abroad
It starts with the mortgage and we offer two options:
- Lloyds International TSB, a known and trusted institution since 1765.
- International Mortgages.Net, registered mortgage brokers in both the UK and Florida.
Certainly, you may be comfortable with other lenders, but it is essential to work with a mortgage team highly experienced in mortgaging property in Florida. The first step is to contact the lender and get a decision in principle.
Lloyds International TSB
Lloyds International TSB offers a number of programs and options with regard to the mortgage, including buy to let mortgages. The first consideration is currency. How do you protect your real estate investment with currency fluctuations, especially a volatile US Dollar. Exchange rates can greatly affect the cost of an overseas property purchase. Lloyds offers a choice of currencies. So lets say you purchase in US Dollars, Lloyds could convert that purchase to Sterling and set up the monthly mortgage repayment in Sterling. That way fluctuations in US dollar will not impact your monthly mortgage payment. In fact, Lloyds will let you switch currencies under their "Free Currency Switching" program. You also will benefit from a highly flexible repayment schemes, including traditional (capital and interest), or with various Interest Only options. You do not have to have a property selected for purchase, Lloyds will provide you with an approval in principle, subject to finding satisfactory investment property.
Downloads Available:
Mortgage Application Lloyd's Brochure Terms and Conditions
Contact for Lloyds International TBS- Buy to Let Mortgages UK:
Lloyds International Website
Scott Beecroft, International Mortgage Assistant, Credit-International Banking, Lloyds TSB, PO Box 12, Peveril Buildings, Douglas, Isle of Man IM99 1SS (TNT 15)
Office: +44 (0)1624 638119 | Fax +44 (0) 1624 666497
Email: lending@lloydstsb-offshore.com (please include my name in subject box)
International Mortgages.Net
With regard to the second option, you may prefer to deal with a Mortgage Broker who is not tied to a specific bank, and can offer independent investment mortgage advise. They can research the whole market to offer you a choice of competitive and suitable buy to let mortgage solutions. International Mortgages.Net are Mortgage Brokers licensed in both the UK and Florida and are very experienced with British and Foreign National purchases of Florida Investment Property.
Mortgage Application
Contact information follows:
http://www.internationalmortgages.net/
Internationalmortgages.Net
Elan House, PO Box 118, Berwick Upon Tweed
TD15 1XA United Kingdom
Tel: (UK) 0870 787 5100
(International) +44 1289 386644
info@internationalmortgages.net
Buy to Let - Identification of suitable Florida Investment Property with credible Property Management
Annually, Orlando Florida has over 49 million visitors making it the ideal area to invest. Not only does Orlando draw visitors to the Theme Parks such as Disney World, Sea World, Islands of Adventure, but Orlando also boasts the Nation's second largest Convention Center. Resort style properties convenient to the Theme Parks and Convention Center offer a great investment opportunity for Buy to Let.
Intercontinental Hotels and other developers are planning some extraordinary resort style properties. These properties are a combination of hotel and condominium. The properties are operated as a hotel with a front desk for checking in daily and short term rentals. What better security than to have Intercontinental, one of the largest hoteliers in the world, managing your property! Make sure your lender understands the type of investment you are selecting as not all lenders will issue mortgages on resort style properties.
Some of the properties are condominiums, each of which have bylaws and rules regarding the operation of the property. All of the featured properties allow short term rentals and have property management by well established companies for Buy to Let.
There are choices of preconstruction opportunities as well as recently built properties. Some of the properties have guaranteed rentals for a period of time, usually up to two years, which is another way to minimize your financial risk with buy to let property.
The website features several properties suitable for real estate investment purposes. The features and amenities of each property are described in detail. Please feel free to use all of the resources of the site, including searching technologies in other areas such as Daytona Beach.
The Buying Process
As your Orlando Real Estate Agent, we are only a phone call away for any further questions you may have now, and will be working with you at every stage when you choose to go ahead.
Buy Association.co.uk provides unbiased evaluations:
Click for Audio- Buying Property in Florida
Type of purchase- Buy to Let
It is important to determine the purpose of the home. Will it be only a holiday home to be used by your family, friends or yourself? Or will it be necessary to let your property so that rental income helps the home pay its way? The answers to these questions will help us direct you to the right type of properties.
Contracts and deposits
The purchase of property is always made through a written contract that provides the terms of the purchase, including the payment of deposits. Although money is paid in stages, the minimum deposit on your holiday home is 20%. The initial deposit will vary with builders; however, most will require a $1,000 - $5,000 “good faith” deposit to enable you to enter into a formal agreement. There will be contingencies with the contract that will protect your rights with the builder, thus fixing the price and protecting home from any price increases.
It is important to obtain a good faith estimate of closing costs from your
lender once the property to be purchased is identified. This will provide an
estimate of closing costs that can be reviewed prior to closing. Many closing
costs are negotiable, but the determination of whether the buyer or seller pays the costs is determined largely by customary practice.
Hedging for Foreign currency fluctuations
Since deposits and closing fees would normally be converted from Sterling to US Dollars, exchange rates can greatly affect the cost of an overseas property purchase. Registration with a currency exchange company would be prudent, as funds can be booked up to 18 months in advance. This is particularly useful should the purchase be off-plan, as it allows these cost to be “fixed”.
If a Sterling mortgage has been chosen, the exchange rate can greatly affect the Sterling equivalent of the mortgage. The loan is converted from USD to Sterling at the exchange rate on the day of closing. For example, based on a loan of $200,000, at 1.70, the Sterling equivalent would be £117,647 and at 1.85 £108,108; saving £9,539. It should be noted, that exchange rates would similarly affect this loan upon the sale or refinancing of the property. USD would need to be converted to Sterling, to redeem the outstanding loan, and this can have a very positive effect if the USD is stronger when selling/redeeming, than when initially purchased.
The closing process
Bonded, licensed Title Companies handle the closings in the United States. They will scrutinize the public records and issue a policy insuring clear title to the property. Closing costs comprise several elements, many of which are stamp duties payable on various documents, lender fees, taxes and other closing fees.
US contracts are "date sensitive" so it is important to adhere to payment dates for deposits, inspection periods, and mortgage approval periods. Failure to do so may result in a breach of contract and the loss of your deposits.
Property Management- Buy to Let
The terms of managing your property should be in the form of a written agreement that covers the cost of service. In the case of a condo hotel, it is important to clarify the amount held by management from the short term rentals to cover maintenance, room cleaning, and running costs of the property.
Depending on the agreement, you may need a small amount of additional cash for your escrow account for lodging license, fire extinguisher and key box, etc. The property management should provide a monthly statement that reconciles the escrow account where your rental income accumulates, and from which your running costs are deducted.
A US Dollar bank account will need to be opened, to enable the payment of local taxes, utility bills etc. Some lenders also require six months mortgage payments to be held in your account before closing.
Licensing, taxation and legal requirements
We recommend that you obtain advise from a competent Certified Public Accountant or an attorney as the licensing, taxation, and legal requirements can be complex. Your home in Florida may need to be registered with local, state, and Federal departments for tax purposes.
Under United States (U.S.) income tax law, a foreign citizen or national is subject to U.S. tax in varying ways depending on whether he/she is a resident or nonresident. A U.S. resident alien is taxed on worldwide income in much the same manner as a U.S. citizen: he/she will be required to file U.S. tax returns and pay U.S. tax on income from all sources. When computing taxable income, a resident alien is generally entitled to the same deductions and personal exemptions available to a U.S. citizen.
Nonresident aliens, on the other hand, generally are taxed only on their income from U.S. sources, with some exceptions. As a result of limited exposure to U.S. tax, deductions and exemptions available to nonresident aliens are limited.
Foreign Nationals who rent out their Florida condo or other real estate located in the U.S., should beware: a withholding tax of 30% normally applies to the gross amount of any rent paid on real estate located in the U.S. Unlike withholding taxes on interest and dividends, this tax is generally not reduced by tax treaties. The tenant must remit 30% of the gross revenue to the US Internal Revenue Service; however, this can be avoided by completion of form W-8ECI and no withholding is required. This form tells the tenant that you will be filing a US tax return, and accordingly, you must file a US tax return. For your convenience, here is the Form W-8ECI:
Download Form W-8ECI
If a Foreign National owns U.S. rental property and incurs significant expenses (mortgage interest, maintenance, insurance, property management, property taxes, etc.) he/she may want to file a U.S. income tax return and take advantage of the net rental income election. The amount subject to tax at the marginal rate will likely be substantially lower than the amount subject to 30% withholding. Graduated rates start at 0% and go as high as 35%, but that rate applies to income over approximately $300,000. You will need to obtain a tax payer identification number on Form W-7.
Download Form W-7
US VISAS
Immigration to the US is a complex issue and we rely on the services and
expertise of immigration attorneys. If you wish to discuss any of these issues
is detail, please contact an immigration attorney. For your convenience, here is a link to Mr. David Vedder, a prominent Board Certified Immigration Lawyer:
David Vedder, P.A Website
Under the Visa Waiver Program, Foreign Nationals from several countries can visit the United States without a visa for up to 90 days.
If you are an investor seeking to run a business in the United States, you will
need to obtain the appropriate visa to do so. Many UK residents may wish to
immigrate to the USA. There are a number of criteria which should be met in
order to ensure that you address all the legal requirements of the US
Immigration Services, and so enable you to acquire resident status.
L-1A & L-1B- Immigrant and nonimmigrant visas
The L-1A visa is intended to accommodate the intra company transfer of a managerial/executive employee from an overseas company to a United States affiliated company.
The L-1B visa is intended to accommodate the intra company transfer of an employee possessing specialized knowledge from an overseas company to a United States affiliated company.
E -2-Non-Immigrant-intra company transferees
The E-2 treaty investor visa is made available for persons wishing to invest
in business in the United States and thus live and work in the United States in order to develop and direct the business operation established by their investments.
Green Card Permanent residency
The Alien registration card also known as "the green card" is the symbol of permanent resident status. Permanent resident status is available to
beneficiaries who have demonstrated significant contributions to the economy of the United States.
H-1 & H-2 Nonimmigrant specialized / seasonal visa
The H -1B nonimmigrant visa is available to professionals in specialty
occupations who are coming to the United States to work in their fields of
expertise. Eligibility requires at least a bachelor's degree or its equivalent
in the specific field in which the beneficiary will operate.
The H-2B visa is available to foreign, seasonal or temporary workers needed to fill positions for which there are insufficient numbers of available,
qualified American workers.
The cost of a typical visa application is approximately $4000 to $5000 for
an L, E and H application. The reason for the band is that the basic fee of
$4000 does not include incorporation of a US company which is usually an extra $400. INS (Immigration and Naturalization Service) fees are also not included; these fees are subject to change but as a guide are around $110.
The cost of a Permanent Residency (GREEN CARD) is approximately $5000 and does not include INS (Immigration and Naturalization Service) fees which are subject to change but are around $225.
Buy to Let Insurance
You must arrange cover and proof of payment with an Insurance Company that is acceptable with your lender. Generally, a B+ Class VI or better rating is required and would include:
- Hazard Insurance
- Extended Coverage and other perils
- 'Wind Cover'
- Earthquake Cover (where applicable)
Deductibles would generally not exceed $1000.00 or 1% of the loan amount or loan limit whichever is the greater. If you intend to use the property to generate Rental Income then the chosen policy must include Landlords coverage.
If your chosen property is located within Special Flood Hazard areas, "A or V", Flood Insurance will be required. In the case of Planned Unit Developments and Condominiums, it may be necessary for you to arrange your own top-up cover to ensure adequate coverage, including liability insurance.
Contact Us for More Information about our communities
or real estate in Orlando and homes in Daytona Beach:
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Are you planning to invest in Orlando Property and want to find the perfect resort style community for your investment? Orlando Real Estate is a first-rate choice. Check out the following Orlando Investment Properties that are also near to the Florida Theme Parks and Convention Center. Coastal resort properties are also available in Daytona Beach and Palm Coast.
Floridays
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Pricing from $380,900
Managed by
Paramount Hospitality
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| Mirabella |
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Pricing from $187,900
Managed by
MCZ/ Centrum
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| Discovery Palm |
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Pricing from $160,000
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Coastal Real Estate:
Pricing from $300,000
Managed by
Wyndham Vacation Resorts
Pricing from $425,000
Managed by
Ginn Property Management
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