In our opinion, Florida offers quite simply one of the best lifestyle propositions in the world today. The obvious draws such as sun, golf, and the Gulf beaches, continue to pull in the visitors year after year, but we believe the little-known natural splendor of Florida’s waterways also contribute hugely to the wonderful lifestyle here.

Some of the Most Diverse Ecosystems in America

Florida boasts incredible natural flora, fauna, and habitats – something which often gets overlooked in favor of the state’s man-made attractions. In fact, the everglades – spanning 1,500,000 acres – is a world heritage site, an international biosphere reserve, and a wetland of international importance, and draws a million visitors a year to its beautiful mangrove forests and stunning waterways.

Among its 350 species of birds, 300 fish species, 40 species of mammals, and 50 of reptiles are many protected and endangered species. It is also the only habitat in the world where alligators and crocodiles co-exist. The Everglades can be explored by canoe, kayak, and boat, and are a truly magical other-worldly experience.

700 Natural Springs!

Further north in central and northern Florida, another spectacular natural wonder greets visitors – over 700 natural springs create magical havens for exploration and communing with nature. Wakula, Manatee, and Silver Springs are some of the most famous. Authentic Florida writer Robin Draper describes a recent trip to the Ichetucknee River, just northwest of Gainesville, on her excellent blog. She says:

“The gentle flow of aqua translucent water caresses you into a state of complete relaxation on a three-hour “chillaxing” drift downstream … a river is a place of natural beauty and abundant wildlife. On a recent morning drift down the river, shaded by overhanging trees and green luscious foliage, I spotted egrets, wood storks, ducks, limpkins, ibis, and scads of turtles sunning on partially submerged logs. I passed through an area of marsh river grasses dotted with blooming white lilies were beneath me otters swam and played. Nearby, on the riverbank, under a canopy of oaks, I spotted a grazing white-tailed deer. The water, the abundant wildlife, moss-draped trees against the bright blue sky – all came together so perfectly that I knew this would make this one of my favorites.”

Lakes Galore

In addition to the springs and everglades, Florida boasts some stunning lakes among the 30,000 lakes which scatter almost 3 million acres of its landscape. Lake living offers an alternative water-centric lifestyle based around the many sports, nature, and recreation activities the lakes and their landscape provides. If birding, kayaking, fishing, boating, and swimming are activities you’d like to factor into your Florida lifestyle, along with the special peace that comes from enjoying time on the water you may want to choose an inland lake-side location for your Florida property.

You’ll no doubt benefit from lower prices away from the coastal hot spots, and lower property insurance than coastal properties. And you’ll still be enjoying the incredible water-based elements of Florida living.

If you’d like to learn more about the natural splendor we have here in Sarasota sign up for a 20 minute highly informative Sarasota Real Estate Orientation with Lee.

Choosing an Area of Florida

Most people who choose to purchase a home in Florida, have a previous relationship or experience of the place they wish to buy-in. Or they have a close friend or relative who has that experience and is able to advise them on the area’s outstanding features. For other people who are looking for a straight investment property, which they won’t use as a holiday home throughout the year, and won’t rent the property to vacationers the location is less important and the ROI alone drives the property selection.

For each person, the factors driving the purchase are different, and these factors will ultimately determine the location of the property. Our agents are experts in helping buyers navigate the tricky questions of price vs. location and investment vs. lifestyle.

At our brokerage Investments In Sarasota, we believe firmly that if you are buying a holiday home, you should make your choice primarily based on lifestyle, and you should buy the best location you can afford that provides your desired lifestyle.

Here’s a Brief Summary of the Areas of Florida and How they Differ:

Northwest Florida:

Prices tend to be lower in the north, which is further from the huge tourist areas and attractions. This may not be the best investment for a rental return, but as a holiday home and lifestyle choice it is still a splendid place to buy, and a winner for those seeking a quieter, gentler pace of life.

Southeast Florida:

As another sweeping generalization, the southeast Atlantic coast — encompassing Miami, Ft Lauderdale, and Palm Beach up to Orlando —- tends to be generally pricier than the south-western Gulf coast. This stretch includes some of the priciest residences in America, with multi-million dollar homes pushing up the median house prices.

However, if you choose your area wisely, away from the ultra-rich enclaves of Palm Beach, it’s still possible to get a three-bedroom, single-family home with a pool for around the $250,000 mark. In the south Florida market returns are less, ranging from 6–10 percent, but appreciation and prices are much greater. However, it depends on the investor’s appetite for risk and investment goals.

The Miami property market is really a law unto itself. Typical apartment prices begin around $300,000, which isn’t necessarily expensive to be in one of the most happening metropolises in the world and with all that the city has to offer.

In fact, Miami is perhaps the one location that has bounced back the fastest, with an influx of buyers from Latin America. Inventory is now fairly low, which means prices are only going one way. However, it’s still possible to get deals on condos, as this market experienced a construction boom and so has the most inventory available.

Northeast and Central Florida:

The big attractions of Disney, Universal, and Sea World are concentrated around the center of the state, and we think the massive tourism potential of these areas does keep prices high—but also offers a huge potential for returns from tourism rentals, so values are probably fair.

According to Shalimar Santiago, CEO of Investors Advisers Network, central Florida is currently the hottest market, from Orlando to the Tampa region, with returns yielding on average 8–12 percent.

Southwest Florida:

Prices are somewhat lower than in the southeast. Strong rental potential in the summer comes from Europeans and Americans in school summer holidays. In terms of lifestyle, this coastline is fabulous and boasts some of the best beaches in the country. This has helped to skyrocket the waterfront property prices, which can be more than double the price of comparable properties in the Orlando area. This helps explain why 60 percent of the wealthiest people in the country winter either on this southwestern Gulf coast in Naples or at Palm Beach on the southeast Atlantic coast.

If you’d like to learn more about buying property specifically in Sarasota sign up for a 20 minute highly informative Sarasota Real Estate Orientation with Lee.

If you’re considering buying a property in Sarasota, one of the first questions you may have is whether or not, as a resident of another country, you need a visa to buy real estate. The short answer is no. You don’t need any special visa or paperwork to buy a house in Sarasota, as our in depth article “Do I Need a Visa to Buy Property in the US?” explains.

You May Need a Visa to Visit Your Property in Florida

However, when you use your Sarasota home, if you are intending to stay for more than three months on your visit, work while you’re here, or visit for multiple extended periods, it may be necessary for you to get the correct visa to do so. We explain all about the different types of visas you may be eligible for in “Do I Need a Visa to Buy Property in the US?”. However, we want to stress that the process of obtaining the correct visa is usually simple and straight forward. As always, we advise talking to an immigration lawyer who has the expertise and can guide you on which will be suitable for you.

Visiting for Under 90 Days? You May Be Eligible for the Hassle-free Visa Waiver

The Visa Waiver Program allows visitors from thirty-eight countries to visit the U.S. for a period of 90 days or less without a visa, as long as they meet all the criteria specified. If you buy a Florida home and want to use it for vacations, you may be entitled to do so under the Visa Waiver Program.

It’s important to note that if you are intending to visit your home in Sarasota several times for periods of a month or more that you may be better getting a visa which is also quick and easy to do. The US customs and border protection website is a little vague about the amount of time they expect to see between visits when using the visa waiver system. So it’s best to err on the side of caution:

When traveling to the U.S. with the approved ESTA, you may only stay for up to 90 days at a time — and there should be a reasonable amount of time between visits so that the CBP Officer does not think you are trying to live here. There is no set requirement for how long you must wait between visits – US Customs and Border Protection

Electronic Visa Waivers – Super Quick and Valid for 2 Years

If you are eligible for a visa waiver you can now apply quickly and easily online, using the ESTA system. This quick and easy system provides you authorization to travel (often in seconds) and puts an electronic stamp in your passport to show airline staff and border control that you are pre-approved for travel to the US.

You only need apply once, and the authorization remains on your passport for 2 years or until the passport expires. It costs $4 to apply, and a further $10 if you are given authorization. You can apply online here and pay with your credit or debit card.

These programs are always subject to change so we recommend you always get the latest information at Travel.State.Gov

If you’d like to learn more about buying property in Sarasota, FL as a foreigner sign up for a free 20 minute highly informative Sarasota Real Estate Orientation with Lee.

You will need the assistance of many professionals on your journey to being a Sarasota homeowner, and in fact the list can be daunting. As a first step we want to stress that the most important professional you will hire is, without doubt, your Realtor.

Unlike in the UK, and many other countries in the world, when buying real estate in Sarasota you typically engage a buyer’s agent or Realtor who works exclusively for you. An experienced and skilled Realtor will manage the process of engaging the other professionals you need, and make your buying process as seamless as possible.

Under the US system your Realtor costs you nothing — as the buyer’s agent is paid by the seller. And if you choose the right Realtor, it can ensure your buying experience is stress-free and smooth. International clients have told us that having a licensed professional actively working for you to find a home and get the deal done, is a huge plus of buying US property.

How to Buy a Property in Florida?

Find A Great Realtor: The Most Important Professional You Will Hire

But like all things in life, real estate agents vary, and there are different levels of competence and expertise. We want to stress that you should make sure your real estate agent is a licensed Realtor, as this shows they have taken extra certifications to ensure their expertise is up to date.

In addition, as an international buyer, you should only work with Realtors with the CIPS (certified international property specialist) certification. These professionals have the extra knowledge necessary to finesse the specifics of an international sales process and guide you on all aspects of how to buy a property in Florida.

Once you have your Realtor in place, he or she should have a network of trusted and experienced professionals they can pull in to assist you in all areas of your purchase. Over many years of working in real estate, we have interacted with hundreds of different real estate professionals, contractors and vendors.

Over this time we have developed the philosophy that we will only work with people that we know, like and trust. The correct Realtor, like us, will have great relationships with exemplary professionals, who have proven themselves to go above and beyond.

In this article, our goal is to provide you with a context for the role each of these professionals play, and some parameters to help you choose them on your own should you need to.

Other Professionals You Will Need and What They Do:

Home Inspector

The home inspector plays one of the most important roles during the Sarasota home purchase process. They analyze the property’s condition very comprehensively and often this reveals issues that wouldn’t be picked up on a walk-through. The home inspector’s work protects you as a buyer from any nasty surprises, and the subsequent report can help you re-negotiate a contract, or factor-in any work that needs doing, to the price you’re prepared to pay for the house.

Mortgage Broker

A mortgage broker is a liaison between borrowers and lenders. They have a relationship with a number of lenders and are expert at matching the needs of each client’s particular situation with the best lender. Mortgage brokers gather all the necessary documents, including credit reports, to complete your file for the lender.

If you provide all your paperwork in a timely manner, and are proactive in disclosing all the pertinent information, you will make sure that your mortgage broker can do the best possible job for you. Also, time is of the essence here, as when you submit all your paperwork your broker will do their best to lock in good interest rates.

Insurance Agent

In Florida when you work with an insurance agent — also known as an insurance broker — they work on our behalf to find the best coverage available for your circumstances. Don’t be tempted to go with the cheapest offer.

Make sure that your insurance agent is reputable and honest and that you are FULLY covered for all the potential eventualities at your specific property. You don’t want to find down the line, when you really need your insurance policy to be watertight, that you were under-insured or missing important details because the agent was trying to give you the cheapest possible policy.

Pest Inspector

The pest inspector will spend anywhere from twenty minutes to an hour (depending on the size of the home) examining the entire structure of the property, including any access points into the attic or under the house, where pests might be hiding. The report the pest inspector prepares is very important in identifying any current, or potential future problems.

This gives the buyer peace-of-mind but also can identify any costs which may be incurred in sorting out problems. For some international buyers, a pest inspection is a worrying concept, but it is very necessary in Florida’s tropical climate. Rest assured, dealing with pests is very routine here, and should not be a problem. But you do want to know up-front if any money will need to be spent.

Appraiser

The appraiser is an independent third party hired to give a fair and accurate value of the property. If you are working with a lender they will choose the appraiser. If you are paying cash and elect to have an appraisal, you will be able to choose one.

The appraisal is important as it can sometimes highlight an inconsistency in the price of the house according to the market, and it is good to have that information at your fingertips whether financing or buying your Sarasota home outright, so you are able to negotiate, or adjust your offer accordingly.

Escrow Agent

Escrow refers to money held by an independent third party on behalf of two parties who are completing a transaction. When you are purchasing a property and submit your deposit(s), these monies go into escrow. The escrow agent (person holding the escrow monies) can be either a real estate broker with whom your Realtor is licensed, a real estate law firm, or a title company.

Money held in escrow is not accessible by the buyer or seller during the transaction process, until the conditions of the contract are met or not. This is an important safeguard that protects everyone in the transaction.

Tax Accountant

We strongly advise all non-resident buyers to invest a few hundred dollars to meet with an accountant in Sarasota who has a breadth of experience working with international clients, in addition to a tax accountant in your own country.

It’s important to understand your unique tax situation and make sure you are compliant with all aspects of tax law. In many cases the tax to pay may be zero, but the costs of not filing or defaulting may be much higher. Florida has some great tax benefits for residents and property owners, and it is also important you make sure you are getting all the breaks you may be entitled to, and paying tax intelligently.

Closing Agent

The closing agent is the person or company who conducts your closing. The closing agent can be one of two things: either a title company or an attorney. There is typically not much difference in cost between using a title company or an attorney, and the costs for this person or company’s services are included in the title insurance fee. In fact around 70 percent of that fee (for properties under $1M) goes to the closing agent and is paid at closing.

In Conclusion, at risk of repeating ourselves!

A Realtor worth his or her salt will have a network of excellent relationships with all of the above professionals, and the experience to call in the right person for your specific needs. Once you have an excellent Realtor engaged as your buyer’s agent, you can trust that the professionals he or she recommends will handle everything with the expected level of transparency, professionalism, and efficiency.

Our book Your Guide to Florida Property Investment is an informative guide which provides all the knowledge you need to buy a home or investment property in Florida.

If you’re ready to find the perfect Realtor then please visit our Find a Realtor page to get connected with one of our expert team.

If you’re ready to find the perfect Realtor sign up for a 20 minute highly informative Sarasota Real Estate Orientation with Lee.

Our number one recommendation as you begin your Sarasota property search? Find a local Realtor that is right for you, and you will immediately be ahead of the game. Working with a realtor that has extensive market knowledge, a track record for excellent customer service, and who has completed many transactions for foreign clients, will be key to the ease and success of your property investment.

Using a Realtor Delivers Exceptional Value

If you are a buyer, it does not cost you anything to work with a Realtor and choosing a professional that is singularly focused on your interests through every stage of the negotiation and transaction is, without question, the single most important decision you will make in the process.

Local market knowledge is imperative to making good buying decisions. Only a local, well-informed, and experienced Realtor can know the intricacies and nuances of any particular market, and how that will affect the outcome and lifestyle for the buyer. Even in our own home market of Sarasota, the variations in lifestyle offered, price, and rental potential vary neighborhood to neighborhood and even street to street in come cases.

What is a Realtor?

A Realtor is a licensed real estate agent who is a member of the National Association of Realtors. Only Realtors have access to the MLS, have signed up to the association’s code of ethics, and participate in regular training and continuing education.

What is the MLS?

A multiple listing service (MLS) is a comprehensive database of ALL the properties for sale in a given geography. The state of Florida is divided into nearly 35 areas, each one with a specific MLS (Multiple Listing Service). The local MLS, which is only accessible by Realtors, has the details of every property on the market, as well as historical data on each and every sale. What this means for you, is that once you find the Realtor to represent you, he or she will be able to advise and guide you on ANY property that’s available in the marketplace.

Transparency is On Your Side

Because of the MLS system, and the fact that all the details of any real estate sale are public record, buying real estate in Sarasota is a refreshingly easier process than in many other parts of the world.

A realtor’s work just begins with a skillful MLS search to present you will all the viable options given your criteria, budget, desired geography and living experience, etc. His or her expertise on neighborhoods, the local school system, taxes, insurance, and so on are key to helping find the right match for your needs. Once you decide on a property you would like to purchase, your Realtor will help to analyze the comparable sales, structure the offer, and negotiate the terms of the contract.

…And So is Your Realtor

Once you find a home that you like, your Realtor becomes your counsel on many more fronts. First, they are the point of contact for all price negotiations. They know how much other homes are selling for in the neighborhood and will negotiate for the fairest price. Once the buyer and seller enter into a
Contract for Sale and Purchase, the Realtor will arrange for a professional home inspection. Your Realtor will help you to work through any issues that may arise in the inspection process, advise you on possible solutions, and when necessary renegotiate the offer. Your Realtor will walk you through the closing process, preparing all of the documents to complete the transaction.

In our book we discuss in detail how to select the best Realtor as well as other professionals to work with.

At the end of 2014, President Obama announced a new Chinese visa rule allowing Chinese people wishing to visit or do business in the US to get extended tourist and business visas for up to ten years. This significantly eases the process for potential Chinese buyers looking to buy an investment property in Florida, as they would only need to apply once, in order to be able to visit the US freely with a 10-year American visa. Citizens of both nations will now be able to obtain 10-year multiple-entry visas, eradicating much of the hassle of travel to the US, particularly for Chinese investors and entrepreneurs.

According to statistics from the National Association of Realtors, Chinese people became the largest overseas purchasers of homes in the US homes by dollar value last year, replacing Canadians at the top of the list. In addition, 1.8 million Chinese people visit the US every year contributing hugely to the tourism economy. And according to a statement from the White House, this number is set to rise to 7.3 million by 2021, by which time Chinese visitors are predicted to be contributing nearly $85 billion a year to the US economy and supporting 440,000 jobs.

All this is good news indeed for the property market in Florida. According to a recent China Daily article “The housing market is apparently getting a boost from the new visa rules, which make it attractive to wealthy Chinese who want to relocate or send their children or families to the US.” From April 2013 to March 2014, Chinese purchasers bought properties in the US worth a combined $22 billion, accounting for about 25 percent of total international sales “That number is likely to surge in the coming years,” says Liu Jun, a Realtor in Florida who deals primarily with Chinese clients, in the same article.

A recent Florida Realtors article outlined how this will particularly affect the Florida market. In it they reference a survey by East-West Property Advisors, which helps Asians buy U.S. property, saying “25 percent of Chinese respondents said the visa extension would directly translate into speedier purchases, while 42 percent said it would help to a varying degree.” It will make a trip much easier,” says Tony Huang, managing director of Shanghai-based Maxview Realty. With a 10 year American visa “One just needs to buy a ticket and pack.”

Typically in the past, one of the main ways for Chinese buyers to get a long term visa to the US is by using the Eb-5 Investment Visa program, which allows those investing $500,000 in a US business and creating 10 jobs to apply for a Green Card or resident visa. In fact, in recent years 85% of these Eb-5visas have been given to Chinese investors, and the demand has been so great recently that there is a significant backlog in processing times. The new Chinese visa rule for tourists and business visitors will open up Florida property investment to those who, while not financially eligible for an EB-5 Visa, still have the capital to invest in Florida property.

As always, we recommend that you consult with an immigration expert to check your eligibility for any kind of US visa.

Learn How to Make a Great Investment in a Reunion Villa

At Investments In Sarasota we are continually working behind the scenes to bring our readers the best possible information and opportunities as we identify them. We are constantly communicating with our network of exceptional Realtors, and traveling across the state to find the best Florida property investment opportunities to share.

Recently, we’ve been hearing a lot from our respected colleagues about Reunion, a master planned community in Kissimmee, and we headed over there to check it out. We were really impressed with the resort, it has all that our international buyers are typically looking for, and the potential to tick a lot of buyers’ boxes. Watch our video below to learn more about the best way to invest in Reunion villas for sale.

What Reunion Offers in Terms of Holiday Lifestyle

Reunion is set up on over 2200 acres, they are expected to have roughly 6000 residential units, and 1500 hotel rooms. The resort also boasts three golf courses — designed by none other than golfing legends Arnold Palmer and Jack Nicklaus — its own water park, and award-winning tennis and spa facilities.

For investors, the best part about Reunion’s location is that it’s within 15 minutes of Disney World and other attractions which draw 19 million visitors annually, and 30 minutes from Orlando International Airport.

An important consideration when looking at buying a house in Reunion is that the community offers the opportunity to have short term rentals — which is critical for those looking to make cash flow returns. It’s worth noting that in some districts, such as Orange County in Orlando, short term rentals aren’t allowed, so Kissimmee’s flexible short term rental market is a major plus point since short term rentals offer the greatest cash flow. Overall, we think Reunion’s location, facilities, lifestyle, property values and return rates make it an excellent investment.

The Opportunity – What are Customers Looking For?

Typically most holiday makers are looking to rent 4-5 bedroom homes with at least 2-3 bathrooms so that most of the guests in each bedroom get their own private bathroom. They also want a property with its own private pool. According to our colleague in Reunion who is an excellent rental manager, there are currently properties being managed/rented that are offering up to a 10% return.

To achieve this, single-family homes should be purchased for about £230,000 or less, and rented out weekly. With about 35 weeks rented at the current market rates, it will offer about 10% per year return (£23,000) — and that leaves around 17 weeks open for friends and family to enjoy the home.

We think this is a great balance for most of our clients between making healthy returns, and really getting the personal benefit of a Florida holiday villa. Want to earn even more return? Raise the rents and use it less for personal use.

We always add the caveat that in any investment property it can take some time to build up presence/awareness on the market and thus income stream, so just be aware while cash flow returns can be steady, they’re not always instant. And returns may fluctuate from year-to-year depending on how much you need to invest for capital improvements to the property. As always, how well your property performs will come back to how good the marketing and reviews are, and how well you get the message out and attract customers.