Miami is an extremely attractive market for foreign real estate investors.
Home to year-round warm weather, beautiful waterfront properties, a majority foreign-born population, and the relative stability of the US economy, it makes perfect sense as both a vacation and investment home destination. If you are moving from Australia then Pakenham Removalists will be able to assist you in getting your belongings out of your current home.
However, as a foreign buyer, there are some common issues/questions that come up before, during, and after real estate transactions. We’ve created a list of those topics and will be addressing them in today’s blog article:
1) Examine the Market
With all the hype surrounding real estate in S. Florida, it’s easy to make quick decisions without doing the necessary homework.
First, we encourage all of our clients to do some research on the neighborhoods they’re most interested in and the types of properties that fit their investment profile. From condos to single-family, multi-family, and commercial, there are options to satisfy any investor.
We’ve written comprehensive articles on many of these topics, so our blog is a great place to start your research!
2) Understand Financing Complexities
The vast majority of foreign real estate investors purchase their properties with cash. This is the fastest and most hassle-free way to invest given the financing complexities.
While it is possible to obtain a mortgage loan as a foreign national, this proves to be time consuming and often requires a high downpayment and multiple streams of financing.
For further questions, please contact us using the email/phone at the bottom so we can put you in touch with one of our lending experts.
3) Partner With a Knowledgeable Real Estate Agent
In order to maximize your investment, make sound decisions, and purchase your property effectively and efficiently, it’s imperative to partner with a real estate agent. In the US, both buyers and sellers are often represented by experienced real estate agents with each side taking a commission percentage of the final sale price (learn more about commissions here).
Consider your real estate agent to be your eyes and ears on the ground. It’s important to provide them with your clear desires and expectations so they can act in your best interest.
4) Leverage the MLS & Other Real Estate Sites
Unlike many countries, real estate agents in the US cooperate through a platform called the Multiple Listing Service (MLS). We often recommend foreign buyers begin their search through the MLS property search website, along with the countless other real estate listing sites such as Zillow and Trulia.
Not only will these sites give you a better idea of the market, but they also make it easy to flag properties you’re interested in visiting with your real estate agent.
5) Navigate Taxes & Visa Requirements
Taxes: As a real estate owner, you will be required to pay property taxes like any US citizen. These taxes vary by state and county, so it’s important to check with each local government (click here for the Miami-Dade Tax Collector’s website). In addition to property taxes at the time of purchase, owners will be required to pay income taxes if they generate revenue from renting/leasing their property.
Visa Requirements: Even though there are no specific visa requirements to purchase property in the US, the length of your stay here is controlled by the federal government. For countries that are eligible for the Visa Waiver Program, that duration is 90 days. Residents of all other countries are required to have an official visa to enter the US (click here for more information).
Proceed With Next Steps
Curious to learn more? We’re happy to assist you with the foreign investment process and have years of experience advising foreign clients. Please reach out to the Spectrum team via spectrumrg.com/consult or (305) 921-0972.