Welcome to Domocare's Frequently Asked Questions and Answers section. Please select a category that is relevant to your question. The matching questions and answers will then appear under this list.
To situate you: a new home of 1,900 sq. feet with a swimming pool costs about $225,000 in Port Charlotte or Gulf Cove. This amount depends on the location of the property. If the property is located on a golf course or on the water, the price will rise. If you own a waterfront lot with a dock and direct access to the Gulf of Mexico for a sailboat, the price will be at least double. However, this last property will of course be easier to rent.
Don’t forget costs of furnishings (count with $15,000) and maintenance ($50 per month for a yard service and $50 for pool maintenance (including the chemicals)), and utility costs (water, telephone, electricity, cable- and internet connections).
Maybe yes, maybe no! When you rent, you are never bothered by maintenance or having to rent out your home. But you don’t receive the proceeds of renting a house either once, for whatever reason (investment), you don’t wish to own your home in the USA. And distance is hardly a problem. From Brussels or Amsterdam, you can fly to Miami, Orlando, Tampa, Fort Myers, Tallahassee, Pensacola, Jacksonville or Sarasota/Bradenton in less than 12 hours and direct or with one stop. The flight from Düsseldorf is non-stop and you land in Fort Myers in less than ten hours.
Try the Internet. Many homeowners offer their homes on line. Try the homepages of local real estate agents (realtors). Take a look in your local home and living oriented magazines. European realtors also quite often have homes for sale in Florida (e.g. Domocare, Inc.). International property trade fairs can also be good sources of information. And you can visit local realtors in Florida.
Good question! Besides price and how easily a location can be reached by car or public transport, keep in mind travel times and costs. Are there social, cultural and recreational opportunities nearby? How about a local physician, clinic or hospital? And what about shopping? What is the cost of living locally and what will taxes costs you? TIP: Why not rent a house in the location that appeals to you for several months. Don’t do this in the spring or summer, but rather in the fall, winter or spring, when there are fewer foreign tourists. This will give you an indication if the home can easily be rented during the off-season. Also find out if the house would easily be subject to a quick sale.
Drawings/blueprints of the home, including floor plan, cross sections and information about the finish, equipment and materials. Also information about the type of homes surrounding the construction site, the lot sizes, orientation with regards to the sun, and lot prices. Further, information concerning the facilities offered by the development and the way the home may be used. Don’t forget information about central rental facilities, a forecast of rental income, and, in the case there will be a homeowner’s association, their rules. Essential are further more data about the distances from highways, stations, airports and the level of services in surrounding villages and cities.
Just as in your own country, you could manage well yourself. In addition, American realtors are fairly expensive. Do you prefer to look via a realtor? Only employ people who have a broker’s or broker’s agent license. Without such a license, no one may trade in real property. The license also guarantees that the person has the necessary diplomas and a professional liability insurance. Domocare, Inc. can be an ideal intermediary in all these cases.
The costs are approximately the same as in Europe, on the average about 10% of the purchase price. Half of all transactions in Florida takes place directly among private owners. Occasionally, the finder’s fee is “waived”. When that happens, the selling realtor divided his fee with your realtor. Eventually, you get to pay the bill inasmuch as the broker’s fee is included in the sales price. Make sure that the agreement with your realtor to find a house for you, is on a no cure, no pay basis. Confirm all agreements in writing.
Use the Title Company (or Domocare, Inc.) to check with the registry office of the municipality or county where the property is registered that no special rights for other (neighbors) exist in connection with the home or its garden, and that no other conditions or liens exist that could negatively impact the sale. Also check the community deed plan. Some properties are deeded in a way that would not permit you to build additions to the home.
Are you doubtful about the condition of the home? Have an expert do a building inspection. He will be able to give you an estimate of the costs of the necessary repairs.
You can rent out the home yourself, but passing on the responsibility to an (international) management organization is also an option. They will see to it that your home is advertised and rented and will even organize payment of taxes due on that transaction. In the U.S.A., rental income is taxable above a certain minimum amount. Is the home located in a large subdivision? In that case there frequently exists a professional rental service. Make an agreement about the services to be rendered by the rental agency, the cost to you, how often you will receive rental notices and rental income. Ask for a copy of the tax return and tax payments. Check regularly that the renters don’t pay more than you receive or that the home had not been rented out when you didn’t know about it. Domocare, Inc. can arrange all those items for (if you wish!).
That is a document that you and the seller agree to, and is called a Sales Disclosure. It is always a good idea to use the professional help of a real estate attorney. The document should always contain any conditions that would nullify it, for instance the non-receipt of financing sought or the non-receipt of a building permit.
Via a mortgage loan on your second home. Once you increase the mortgage on your principal residence, it will become a top mortgage, and you will have to pay a higher mortgage rate on the whole amount. The disadvantage is that the amount that you can borrow on your second home is limited, often only 70% of the sales value. If you cannot pay the remainder from your own resources, you will have to take a second mortgage on your primary residence. Is the mortgage rate on the second home higher than on the first home, and do you have sufficient unencumbered asset value on that home? It then becomes a simple calculation which loan is less expensive.
Always consult a local expert in these matters.
As far as we know, this is possible only with three banks: C en E Bankiers (030) 256 0911, F. van Lanschot Bankiers (073) 548 3548, and the ING Bank 0800-7011. C en E Bankiers and van Lanschot will only be able to help you if you are purchasing the home exclusively for your own use. Renting is out is not permitted. The ING Bank is less rigid: as long as you don’t use the home as a business investment, you can get a mortgage loan.
For other countries always consult your local expert.
Yes, income requirements are more onerous than with a mortgage on a primary residence. That is logical: the interest rate on the second mortgage is not tax deductible and has to be born by you alone. C en E Bankiers demands a minimum yearly income of €125,000, or unencumbered investment assets with a minimum value of €500,000. Van Lanschot a minimum yearly income of €100,000 or unencumbered investment assets of €100,000. ING Bank is the least demanding and requires a gross minimum income of €50,000. In addition, you have to borrow a minimum amount of €75,000 (ING Bank), €125,000 (C en E Bankiers), or €250,000 (Van Lanschot Bankiers).
For other countries always consult your local expert.
Each has advantages and disadvantages. What is positive with a Dutch bank loan is the help that is offered to you. All administrative work is done by the bank. The bank works together with a designated, specialized attorney in The Netherlands who checks the purchase contract, takes care of tax matters, prepares the contracts in two languages and works with an American attorney to register mortgage in the U.S. These extra services are not cheap: the interest rate and other costs are high. You pay, for instance, double attorney fees, for the Dutch as well as the American attorney.
For other countries always consult your local expert.
An American bank is a lot less expensive: the bank will charge you a lower interest rate and fewer costs. In addition, the American bank will be familiar with the local American real estate market. If the bank refuses to finance the home, that can be a reason to reevaluate the purchase. When you use a Dutch bank, life insurance is not always mandatory and you can extend the mortgage costs over 30 years. A question of evaluating one against the other. Don’t forget that an American mortgage loan can be acquired via a Dutch intermediary.
The past few years somewhat lower than in The Netherlands. This past September, the U.S. interest rate for a fifteen-year fixed rate loan moved between 5.2 and 5.5%, and occasionally went down to below 5%. In The Netherlands, the interest rate was between 5.45% and 6.1%. In the U.S., the interest cost of a loan also depends on the term of the loan and the type of mortgage.
Take out a homeowners’ insurance policy. You will need an American insurance agent. There are very few companies in The Netherlands that will insure a house outside of that country. Nationale Nederlanden, however, is a useful exception. But an American insurance agent is more practical. He or she will be well versed in the applicable laws, can do a better job of matching premium costs with the risks to be insured, and works with an extensive network of companies that can fix any damages that have occurred. And that probably means faster help in the case of damage.
A Dutch insurer has the advantage that all correspondence and repair of the damage runs via The Netherlands, and that you can lodge any complaints with the relevant Dutch entities.
The best and easiest way is to ask the help of an architect, having him make the plans, and giving him the responsibility for the whole construction. Everything will be arranged for you, including the permits. A somewhat less expensive way is to let a builder construct your home according to standard plans that have been modified to include your wishes.
In Florida for practically everything that includes construction. You will need to request a building permit from the relevant county administrator for even small changes, such as the addition of a lanai or porch, a dormer, a swimming pool, but also for roofing repairs.
In theory, you will fall under both the Dutch and the American fiscal authorities, but according to the existing tax offset agreements between the two countries, only the American IRS may tax your property. Normally, you would pay 1.2% tax on returns in box 3 for the full value of the house. In this case, you won’t have to!
For other countries always consult your local expert.
In The Netherlands, you have to declare your home in box 3. But that is merely a formality, because you will be paying taxes in the U.S. only. The following taxes will be charged:
· Property Tax for owners and users. Both taxes are levied on the home as it exists on January 1 of any year.
· Income Tax. You pay this tax on rental income. But only if the home has been rented out for a large part of the year, since the tax is subject to generous exemptions.
· Personal Tangible Tax. You only pay this tax if the home is worth more than €700,000, after deduction of the mortgage debt.
There still exists no tax-offset agreement between The Netherlands and the United States on this subject. For that reason, both countries can levy death duties on the total value of your home if you should die. However, your successors can possibly recuperate funds from the Dutch tax authorities. The Dutch fiscal services can give you more information about this.
For other countries always consult your local expert.
You have a choice: sale by owner (you) or through a realtor (try one of Domocare, Inc.’s partners!). The former takes time, but makes a considerable difference in the amount of fees that need to be paid. Do you prefer using a realtor? In that case, have the home for sale through one realtor only, since he or she will work harder for you. Be sure to set a time limit of for instance three months. At the end of this period, you can then determine if you want to continue with this realtor.
Yes. When you sell the house as a nonresident, you will have to pay 20% tax on the profit after one year. However, you can deduct costs for improvements and maintenance of the home, as well as various purchase and sales costs, for example the cost of your realtor. You may apply a correction for inflation. It is very important to save all receipts!
Yes, you can usually stay for up to six months on a B-1/B-2 Visa. This is a visa for business (B-1) or tourism (B-2) that is issued by the U.S. Consulate in your country. The visa is normally given for a ten-year period and the customs official at the border decides the maximum length of your stay, which can be six months. The customs official will assume that you want to live in the United States as your primary residence if you stay in the U.S. for more than six months per calendar year, and may bar you from entry if he or she thinks that this may be the case.
There are several nonimmigrant visas that are especially designed to allow you to live and work in the United States. Examples are the L-1A Visa, the E-2 Visa and the H-1B visa. Specialized visas exist for individuals who are considered to have exceptional abilities. And don’t forget the study visa for high school and college students.
There are several ways to obtain permanent residency (the “Green Card”) in the United States. Two of the nonimmigrant visas mentioned in the previous paragraph (the L-1A and H-1B Visas) lead to the Green Card. Permanent residency can be obtained through investment (EB-5 Visa). The Green Card can be obtained through marriage with an American citizen, or if you have an eligible family member in the U.S. who is a permanent resident or U.S. citizen. There is a yearly visa lottery for residents of many countries under which the Green Card can be won.
We recommend the website of Visas USA (www. visas-usa.net). Click on the situation that best represents your wishes or needs and the visas that are relevant will be shown. You can contact them at info@bizvisas.com.
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Property Disclosure Form . This form requires you to reveal all known defects to your property. Check with your state government to see if there is a special form required in your state.
Purchasers Access to Premises Agreement. This agreement sets conditions for permitting the buyer to enter your home for activities such as measuring for draperies before you move.
Sales Contract . The agreement between you and the seller on terms and conditions of sale. Again, check with your state real estate department to see if there is a required form.
Sales Contract Contingency Clauses . In addition to the contract, you may need to add one or more attachments to the contract to address special contingencies—such as the buyer's need to sell a home before purchasing yours.
Pre- and Post-Occupancy Agreements. Unless you're planning on moving out and the buyer moving in on the day of closing, you'll need an agreement on the terms and costs of occupancy once the sale closes.
Lead-Based Paint Disclosure Pamphlet . If your home was built before 1978, you must provide the pamphlet to all sellers. You also must have buyers sign a statement indicating they received the pamphlet.
At the moment due to the level of interest rates in America, you will find that a mortgage in the UK or Ireland will work out cheaper then borrowing in America. A mortgage over here will have to be based on the equity of your property as the banks will not guarantee the loan on the American property. We can assist you with a an American mortgage should you wish to borrow over there.
Absolutely, you can’t beat a place where in excess of 50 million people visit every year and at least 48 million of them are Americans. It is also important to know that around 80 million Americans will retire within the next 15 years and a significant percentage of these people will relocate to Florida mainly for tax purposes and the unbeatable weather. These people can save as much as 15% on taxes if they relocate to Florida. With the fast growth of South America, many Asian and European companies are relocating their headquarters to places like Miami so they can benefit from south/central and North America business. Is Florida is still a good place to invest? I definitely think so, and I can only see it doing better and better. Prices have leveled this year due to the economy changes. The exchange rate is predicted to stay around $2 to the Pound for the first quarter of the New year and interest rates are expected to go down around the same time. It will not stay like this for long so that couldn’t be a better time to buy in Florida.
Buying a property in Florida is fairly easy, most importantly; the companies we work with have their own closing department which means that they will have a dedicated person taking care of the whole process on your behalf. We will also assist you and the developers bringing everything together for a smooth buying process and completion.
There are different ways to get a rental return in Florida, you can buy a condo-hotel where a hotel chain will promote your apartment the whole year around and depending on their location, it can bring you a very high level of occupancy/rental return. We particularly work with projects in key location which should ensure high occupancies. It is also a property that you can forget about, as the hotel will manage it all for you. There are properties you can rent out to a local with yearly contracts much like the buy to let here in the UK. Again you will need a company to manage the rental for you in case something goes wrong with the property or they don’t pay the rent etc. Finally you can buy a holiday home that you can use and rent out via a rental company or you can also promote the rentals yourself. You can’t go wrong with the Florida market, especially if you pick highly visited places like Orlando. Not all projects will fully pay for themselves, so it is important that you make provisions to put something towards the property.
The Battle of Olustee, which took place near Lake City on February 20, 1864, was the largest military engagement to occur in Florida during the war. The battle resulted in a Confederate victory. Confederate forces,however, failed to capitalize on their victory by not aggressively pursuing the retreating Union army.
Florida sided with the Confederacy during the Civil War. However, there was a notable Unionist sentiment in some parts of the state, especially in Jacksonville.
No. In fact, Tallahassee was the only Confederate state capital east of the Mississippi River that was not captured by Union forces. However,the Union Army did occupy Tallahassee on May 10, 1865, following the surrender of the major Confederate armies in the east.
On June 17, 1942, four German saboteurs paddled ashore at Ponte Vedra Beach on a rubber raft from a submarine. They were later captured with four other German agents.
Wayne Mixson was governor for three days, from January 3 to January 6, 1987. He was serving the remainder of the term of Bob Graham, who had resigned as governor to become a United States Senator. Mixson had been lieutenant governor under Graham.
Hurricane Andrew, which devastated Homestead, Florida City, and the surrounding area in 1992, was Florida's most devastating hurricane and the costliest natural disaster in American history at that time.
During the age of dinosaurs, the Florida peninsula was underwater and did not exist as a land mass. Therefore, no dinosaur remains were ever deposited in Florida.
In 1819, Florida was ceded to the United States in the Adams-Onis Treaty.The formal change of flags came in 1821, and Florida was formally organized as a U.S. Territory with a legislative council in 1822.
Yes. During British occupation (1763-83), Florida was divided into two colonies, East Florida with a capital in St. Augustine, and West Florida with a capital in Pensacola. The two capitals were retained during the Second Spanish period (1783-1819) and into the American period from 1819 to 1824.
William P. DuVal of Leon County was appointed by President James Monroe to be the first territorial governor of Florida in 1822. The year before,General Andrew Jackson was named by Monroe as Commissioner, with all the powers and authorities heretofore exercised by the Governors of East and West Florida.
No. The Seminole and Miccosukee people are descendants of Creek Indians who migrated from Georgia and Alabama to Spanish Florida in the early to mid-1700s. The original Indian people of Florida including the Timucua,Calusa, Apalachee, and other Indian groups were either killed by disease or warfare, captured as slaves, or they left Florida with the Spaniards.
The water temperature for the Gulf of Mexico (West Coast) ranges from the low to mid 60’s January through March and up into the 80’s from June through September. Atlantic Ocean waters (East Coast) are several degrees cooler. Northern beaches are always a few degrees cooler than southern ones.
The Daytona Beach area is approximately a one hour drive from Orlando to the east, and the SpaceCoast area is only 35 miles to the east. To the west, the St. Petersburg/Clearwater area is approximately a two-hour drive.
Spring Break vacation times vary from school to school. Some start as early as late February, however March through April are the months when most Spring Breaks occur. Students on Spring Break visit destinations all over the state, but the areas with the most Spring Break activities are Daytona Beach, Key West, Miami and Panama City Beach.