I'm a Realtor. Ask me anything
Discussion
I am looking to retire in the next 7 years and my current thoughts are to buy a property outright and spend 5 months in Florida over the winter.
Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
For example.
How does health insurance work, if you are not resident all year?
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I am sorry, you did ask if anyone had questions.
Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
For example.
How does health insurance work, if you are not resident all year?
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I am sorry, you did ask if anyone had questions.
Hol said:
I am looking to retire in the next 7 years and my current thoughts are to buy a property outright and spend 5 months in Florida over the winter.
Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
For example.
How does health insurance work, if you are not resident all year?
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I am sorry, you did ask if anyone had questions.
The concept you are looking at is a 'Snowbird' - people going to warmer States for the winter is a common phenomenon.Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
For example.
How does health insurance work, if you are not resident all year?
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I am sorry, you did ask if anyone had questions.
I don't have too much info on specifics but I do know some UK people who do this.
On the subject of buying somewhere bigger and renting it, if you can afford not to, I wouldn't if you're planning to live in it for the winter.
This will be your home, at least you want it to be. Would you rent out your UK house for the summer for God-knows-who to come and damage things, etc?
How long did it take you to become a realtor in Florida?
What percentage comm do you get?
Do you do those open house things?
How do you find new clients who want you to sell their houses?
What’s the market like at the moment in South Florida?
What do you think of TV’ a Million Dollar Listings?
What percentage comm do you get?
Do you do those open house things?
How do you find new clients who want you to sell their houses?
What’s the market like at the moment in South Florida?
What do you think of TV’ a Million Dollar Listings?
Muzzer79 said:
Hol said:
I am looking to retire in the next 7 years and my current thoughts are to buy a property outright and spend 5 months in Florida over the winter.
Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
For example.
How does health insurance work, if you are not resident all year?
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I am sorry, you did ask if anyone had questions.
The concept you are looking at is a 'Snowbird' - people going to warmer States for the winter is a common phenomenon.Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
For example.
How does health insurance work, if you are not resident all year?
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I am sorry, you did ask if anyone had questions.
I don't have too much info on specifics but I do know some UK people who do this.
On the subject of buying somewhere bigger and renting it, if you can afford not to, I wouldn't if you're planning to live in it for the winter.
This will be your home, at least you want it to be. Would you rent out your UK house for the summer for God-knows-who to come and damage things, etc?
It would probably be a much smaller property. Which is fine for two people.
Hol said:
I am looking to retire in the next 7 years and my current thoughts are to buy a property outright and spend 5 months in Florida over the winter.
Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
Yes - a lot of people do buy homes in FL and enjoy from Europe through different times of the year. If you'd like to have a call at some point to chat through the potential pros/cons we could set that up - it really is so personal.
For example.
How does health insurance work, if you are not resident all year?
Being in the US for 5 months solid is tricky (assuming you do not have the ability to get here in the first place - e.g. US Citizen) from a visa perspective. That aside, you could buy a local short term policy, you could buy a travelers policy with an extension on trip length which I know some used to do and assume they still do, you could get a credit card with travel cover - I think the UK NatWest and Amex products were pretty comprehensive in the past - don't know so much about now. Also, I wouldn't rule out spending time here in the summer if you are able. I really enjoy the summer months.
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
It really depends on what type of person you are. There are 2 types of snowbirds down there that I see that own cars - those that want nice things that are your things and those that just want an old beater to knock around in - like a $5k SUV. If you're in those categories then buy one. If you just want to turn up and drive then rent. If you do not have a garage, I would not buy as the paintwork will end up in a horrendous state. If you do buy, you have to do all the maintenance so you'll find that when you get here you'll have to spend a bit of time dealing with that stuff.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Really it depends on your budget and what you want from the environment. I have some friends who have a great lock-up-and-leave townhouse condo. 3 bedrooms, 2 and a half baths, 1 garage space and drive for 2 more, communal pool and other facilities, all landscaping and external upkeep is taken care of etc. But it does cost nearly $500 a month. It is rather social and they meet a load of people at the communal facilities and works great for them. The real downside to a community (called an HOA) is that if it's badly managed you will end up paying through the nose at some point with a "special assessment". A good agent will help you work out if the community is being run responsibly (fiscally).
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I do not know the market around the parks in Orlando - I'm not in the area and I don't enjoy theme parks...my wife calls me the bag lady
That being said, it's just a matter of doing the research and the math(s). Florida is also so much more than Orlando and Miami - I would really suggest you buy something that YOU want, not what might rent better. That way, if there is a downturn for some reason, you're not stuck with something you don't really want. If your favorite is a yellow car, then don't order one in silver for the next guy. Same deal with whatever property you buy out here!
I am sorry, you did ask if anyone had questions.
No problemo!
Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
Yes - a lot of people do buy homes in FL and enjoy from Europe through different times of the year. If you'd like to have a call at some point to chat through the potential pros/cons we could set that up - it really is so personal.
For example.
How does health insurance work, if you are not resident all year?
Being in the US for 5 months solid is tricky (assuming you do not have the ability to get here in the first place - e.g. US Citizen) from a visa perspective. That aside, you could buy a local short term policy, you could buy a travelers policy with an extension on trip length which I know some used to do and assume they still do, you could get a credit card with travel cover - I think the UK NatWest and Amex products were pretty comprehensive in the past - don't know so much about now. Also, I wouldn't rule out spending time here in the summer if you are able. I really enjoy the summer months.
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
It really depends on what type of person you are. There are 2 types of snowbirds down there that I see that own cars - those that want nice things that are your things and those that just want an old beater to knock around in - like a $5k SUV. If you're in those categories then buy one. If you just want to turn up and drive then rent. If you do not have a garage, I would not buy as the paintwork will end up in a horrendous state. If you do buy, you have to do all the maintenance so you'll find that when you get here you'll have to spend a bit of time dealing with that stuff.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Really it depends on your budget and what you want from the environment. I have some friends who have a great lock-up-and-leave townhouse condo. 3 bedrooms, 2 and a half baths, 1 garage space and drive for 2 more, communal pool and other facilities, all landscaping and external upkeep is taken care of etc. But it does cost nearly $500 a month. It is rather social and they meet a load of people at the communal facilities and works great for them. The real downside to a community (called an HOA) is that if it's badly managed you will end up paying through the nose at some point with a "special assessment". A good agent will help you work out if the community is being run responsibly (fiscally).
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I do not know the market around the parks in Orlando - I'm not in the area and I don't enjoy theme parks...my wife calls me the bag lady
That being said, it's just a matter of doing the research and the math(s). Florida is also so much more than Orlando and Miami - I would really suggest you buy something that YOU want, not what might rent better. That way, if there is a downturn for some reason, you're not stuck with something you don't really want. If your favorite is a yellow car, then don't order one in silver for the next guy. Same deal with whatever property you buy out here!I am sorry, you did ask if anyone had questions.
No problemo!
Ayahuasca said:
How long did it take you to become a realtor in Florida?
About 2 and a half weeks from starting my course. I did an intensive course that was over a 2 week period. The course just happened to slot into a quiet period in my proper work so I smashed out the course. At the end of the course, you have to take and pass a test with the school who ran the course. You then have to do a state test which I actually booked before I even started the course for a few days after the course was to finish (taking a bit of a flyer but I was confident that I'd pass the school's test). It is however a bit like learning to drive - you pass the test and then you learn to drive!
What percentage comm do you get?
[b]It varies but in my market the usual total commission is 6% for "normal" or 5% for higher value or special situations. That commission amount gets equally split between both of the agents involved in the transaction. After that, whichever brokerage you are with takes a cut of your commission. As a quick exercise:
Sale price of property - $300,000. 6% commission = $18,000. Each agent ends up with $9,000 gross commission. The brokerage takes a cut of this - some are as high as 50%, others just charge a transaction fee. Whatever is left then goes in the agent's pocket from which taxes and marketing expenses are deducted to end up with a net number for the transaction.
[/b]
Do you do those open house things?
I do not - but I am not a full time agent that makes all my money doing this. We have our licenses more for our own transactions.
How do you find new clients who want you to sell their houses?
See answer above. This is the hardest part for full time agents. Every full time agent has their own technique. Some literally go door to door. Some chase ambulances. Some market on social media. Some pick up the phone. Some mail flyers. Some drink cocktails at country clubs. There are so many different ways to drum up business in what is basically a relationships business.
What’s the market like at the moment in South Florida?
Absolutely insane. Big time seller's market.
What do you think of TV’ a Million Dollar Listings?
In what way?
About 2 and a half weeks from starting my course. I did an intensive course that was over a 2 week period. The course just happened to slot into a quiet period in my proper work so I smashed out the course. At the end of the course, you have to take and pass a test with the school who ran the course. You then have to do a state test which I actually booked before I even started the course for a few days after the course was to finish (taking a bit of a flyer but I was confident that I'd pass the school's test). It is however a bit like learning to drive - you pass the test and then you learn to drive!
What percentage comm do you get?
[b]It varies but in my market the usual total commission is 6% for "normal" or 5% for higher value or special situations. That commission amount gets equally split between both of the agents involved in the transaction. After that, whichever brokerage you are with takes a cut of your commission. As a quick exercise:
Sale price of property - $300,000. 6% commission = $18,000. Each agent ends up with $9,000 gross commission. The brokerage takes a cut of this - some are as high as 50%, others just charge a transaction fee. Whatever is left then goes in the agent's pocket from which taxes and marketing expenses are deducted to end up with a net number for the transaction.
[/b]
Do you do those open house things?
I do not - but I am not a full time agent that makes all my money doing this. We have our licenses more for our own transactions.
How do you find new clients who want you to sell their houses?
See answer above. This is the hardest part for full time agents. Every full time agent has their own technique. Some literally go door to door. Some chase ambulances. Some market on social media. Some pick up the phone. Some mail flyers. Some drink cocktails at country clubs. There are so many different ways to drum up business in what is basically a relationships business.
What’s the market like at the moment in South Florida?
Absolutely insane. Big time seller's market.
What do you think of TV’ a Million Dollar Listings?
In what way?
Hol said:
Muzzer79 said:
Hol said:
I am looking to retire in the next 7 years and my current thoughts are to buy a property outright and spend 5 months in Florida over the winter.
Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
For example.
How does health insurance work, if you are not resident all year?
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I am sorry, you did ask if anyone had questions. :wavey
The concept you are looking at is a 'Snowbird' - people going to warmer States for the winter is a common phenomenon.Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
For example.
How does health insurance work, if you are not resident all year?
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I am sorry, you did ask if anyone had questions. :wavey
I don't have too much info on specifics but I do know some UK people who do this.
On the subject of buying somewhere bigger and renting it, if you can afford not to, I wouldn't if you're planning to live in it for the winter.
This will be your home, at least you want it to be. Would you rent out your UK house for the summer for God-knows-who to come and damage things, etc?
It would probably be a much smaller property. Which is fine for two people.
A B2 is not assured (like any other non-resident visa) and if the application is denied, the denial must be notified in any subsequent application for a visa, or to use the visa waiver program.
There is a school of thought that buying a residential property in the US and then relying on a successful (and repeated) visa application to access and enjoy the property is a little risky.
I'm a British national living in the UK with no current opportunity to live in the US, but I'm curious...
How is property tax calculated? I understand that, for example, it's 0.7% in California, therefore, you pay 0.7% of the value of the property, annually, as a tax. However, how is the value of the property determined? Is it the price you purchased it for, or its value on a specific date in the past, or something else? If it's based on the value of the property on a historic date then what if it's a new build that didn't exist on the date in question?
How is property tax calculated? I understand that, for example, it's 0.7% in California, therefore, you pay 0.7% of the value of the property, annually, as a tax. However, how is the value of the property determined? Is it the price you purchased it for, or its value on a specific date in the past, or something else? If it's based on the value of the property on a historic date then what if it's a new build that didn't exist on the date in question?
Matt Harper said:
Don't overlook the fact that the VAST majority of non-USC snowbirds enjoying the Florida 'winter' are Canadian. Canadian citizens may spend up to 6 months in the USA without a visa. A UK citizen would require a B2 visa to remain in the US for more than 90 days and not more than 6 months.
A B2 is not assured (like any other non-resident visa) and if the application is denied, the denial must be notified in any subsequent application for a visa, or to use the visa waiver program.
There is a school of thought that buying a residential property in the US and then relying on a successful (and repeated) visa application to access and enjoy the property is a little risky.
My parents have a house in the Villages and spend 5-6 months there every winter, although not this year obviously. They’re UK citizens but have a 10 year visa which allows them to visit for 6 months at a time, although they can leave the country for a day and come back for another 6 month period which they have done a couple of times by visiting Mexico or the Caribbean. A B2 is not assured (like any other non-resident visa) and if the application is denied, the denial must be notified in any subsequent application for a visa, or to use the visa waiver program.
There is a school of thought that buying a residential property in the US and then relying on a successful (and repeated) visa application to access and enjoy the property is a little risky.
4Q said:
Matt Harper said:
Don't overlook the fact that the VAST majority of non-USC snowbirds enjoying the Florida 'winter' are Canadian. Canadian citizens may spend up to 6 months in the USA without a visa. A UK citizen would require a B2 visa to remain in the US for more than 90 days and not more than 6 months.
A B2 is not assured (like any other non-resident visa) and if the application is denied, the denial must be notified in any subsequent application for a visa, or to use the visa waiver program.
There is a school of thought that buying a residential property in the US and then relying on a successful (and repeated) visa application to access and enjoy the property is a little risky.
My parents have a house in the Villages and spend 5-6 months there every winter, although not this year obviously. They’re UK citizens but have a 10 year visa which allows them to visit for 6 months at a time, although they can leave the country for a day and come back for another 6 month period which they have done a couple of times by visiting Mexico or the Caribbean. A B2 is not assured (like any other non-resident visa) and if the application is denied, the denial must be notified in any subsequent application for a visa, or to use the visa waiver program.
There is a school of thought that buying a residential property in the US and then relying on a successful (and repeated) visa application to access and enjoy the property is a little risky.
What we have done is made the decision to buy a larger property in a resort and let it. The owners of the property we usually rent in Kissimmee do just that.
4Q. I have never heard of a 10 year visa, so will Google it with an open mind and expectation that We won’t qualify.
Hol said:
4Q. I have never heard of a 10 year visa, so will Google it with an open mind and expectation that We won’t qualify.
It doesn’t give them an automatic “right” to enter the country as its still down to immigration on the day. It it does mean that they can stay for 6 months at a time rather than 90 days and that they only have to leave for one day before they can come back. I don’t know what visa it is but I can ask them. It involved a couple of visits to the US embassy in London though. Edited to add, it’s a B2 visa which Matt mentioned previously.
Edited by 4Q on Sunday 14th February 09:56
Hol said:
I am looking to retire in the next 7 years and my current thoughts are to buy a property outright and spend 5 months in Florida over the winter.
Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
For example.
How does health insurance work, if you are not resident all year?
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I am sorry, you did ask if anyone had questions.
I can answer some of your questions as a property owner who rents. But if its a thread hijack, and not useful, please say so and I'll delete it.
Find somewhere that is close to either the coast, or Disney; as thats where most of the rental crowd will look to.
Find somewhere thats gated, if for Disney, as families tend to want that style, and security; not always but often.
Find a community that has a mixture of people, and remember not everywhere does rentals, some are zoned in a peculier way.
Check the property taxes, HOA and other ongoing, no-negotiable fees, they mount up quite quickly, as does ongoing costs such as pool cleaning, and water...
Allow for the unforseen, some costs are better than the UK, but IMHO most are not, and choices can be restrictive. Phone and Cable for example, you might not get the choices you wished for in the area you are thinking of.
Our costs for our small place (3 bed townhouse) on Encantada https://encantada-vacation.com/ are:
$1,129.32 Phone and cable
$455.00 Hardings accountant fees
$1,548.00 Kernow Homes fees (MC)
$300.00 Pest Control
$350.61 Water
$100.00 Maintenance bills and furnishings etc/month, there's always something that needs doing every year, and this helps support the overal costs.
$1216.33 Electricity
$1,700.00 Insurance contents and umbrella
$4,828.00 HOA fees
$1,140.00 Pool cleaning
$2,450.00 property tax
And this is standing still, costs when occupied go up considerably, and I mean considerably. For our small place, we have had A/C use Electrical costs of over $330 in one month, now I have WiFi controlled A/C with smart sensors that turn the A/C off if guests leave the patio door open for example. Its lower, but only down to $250 or so peak periods.
We have in 11 years, replaced:
A/C complete, including the internal AHU external condesor etc $5.5k
Pool Heater, went pop. $3.5k
All white goods, fridges dishwasher etc. $3k
All Beds, they just wear out obviously, and some guests have different BMI's to others. $3k
Washing M/C Tumble dryer. $2k
Sofa's and Dining room furniture. They just wear out again... $4k
From memory, thats around $21k without the small items i've done with regards to the smarthome features...
Just food for thought, and I hope its useful to you.
If you wanted anything in particular, and so as not to hijack the thread, just PM me.
K
Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
For example.
How does health insurance work, if you are not resident all year?
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I am sorry, you did ask if anyone had questions.
I can answer some of your questions as a property owner who rents. But if its a thread hijack, and not useful, please say so and I'll delete it.
Find somewhere that is close to either the coast, or Disney; as thats where most of the rental crowd will look to.
Find somewhere thats gated, if for Disney, as families tend to want that style, and security; not always but often.
Find a community that has a mixture of people, and remember not everywhere does rentals, some are zoned in a peculier way.
Check the property taxes, HOA and other ongoing, no-negotiable fees, they mount up quite quickly, as does ongoing costs such as pool cleaning, and water...
Allow for the unforseen, some costs are better than the UK, but IMHO most are not, and choices can be restrictive. Phone and Cable for example, you might not get the choices you wished for in the area you are thinking of.
Our costs for our small place (3 bed townhouse) on Encantada https://encantada-vacation.com/ are:
$1,129.32 Phone and cable
$455.00 Hardings accountant fees
$1,548.00 Kernow Homes fees (MC)
$300.00 Pest Control
$350.61 Water
$100.00 Maintenance bills and furnishings etc/month, there's always something that needs doing every year, and this helps support the overal costs.
$1216.33 Electricity
$1,700.00 Insurance contents and umbrella
$4,828.00 HOA fees
$1,140.00 Pool cleaning
$2,450.00 property tax
And this is standing still, costs when occupied go up considerably, and I mean considerably. For our small place, we have had A/C use Electrical costs of over $330 in one month, now I have WiFi controlled A/C with smart sensors that turn the A/C off if guests leave the patio door open for example. Its lower, but only down to $250 or so peak periods.
We have in 11 years, replaced:
A/C complete, including the internal AHU external condesor etc $5.5k
Pool Heater, went pop. $3.5k
All white goods, fridges dishwasher etc. $3k
All Beds, they just wear out obviously, and some guests have different BMI's to others. $3k
Washing M/C Tumble dryer. $2k
Sofa's and Dining room furniture. They just wear out again... $4k
From memory, thats around $21k without the small items i've done with regards to the smarthome features...
Just food for thought, and I hope its useful to you.
If you wanted anything in particular, and so as not to hijack the thread, just PM me.
K
C2Red said:
Hol said:
I am looking to retire in the next 7 years and my current thoughts are to buy a property outright and spend 5 months in Florida over the winter.
Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
For example.
How does health insurance work, if you are not resident all year?
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I am sorry, you did ask if anyone had questions.
I can answer some of your questions as a property owner who rents. But if its a thread hijack, and not useful, please say so and I'll delete it.
Find somewhere that is close to either the coast, or Disney; as thats where most of the rental crowd will look to.
Find somewhere thats gated, if for Disney, as families tend to want that style, and security; not always but often.
Find a community that has a mixture of people, and remember not everywhere does rentals, some are zoned in a peculier way.
Check the property taxes, HOA and other ongoing, no-negotiable fees, they mount up quite quickly, as does ongoing costs such as pool cleaning, and water...
Allow for the unforseen, some costs are better than the UK, but IMHO most are not, and choices can be restrictive. Phone and Cable for example, you might not get the choices you wished for in the area you are thinking of.
Our costs for our small place (3 bed townhouse) on Encantada https://encantada-vacation.com/ are:
$1,129.32 Phone and cable
$455.00 Hardings accountant fees
$1,548.00 Kernow Homes fees (MC)
$300.00 Pest Control
$350.61 Water
$100.00 Maintenance bills and furnishings etc/month, there's always something that needs doing every year, and this helps support the overal costs.
$1216.33 Electricity
$1,700.00 Insurance contents and umbrella
$4,828.00 HOA fees
$1,140.00 Pool cleaning
$2,450.00 property tax
And this is standing still, costs when occupied go up considerably, and I mean considerably. For our small place, we have had A/C use Electrical costs of over $330 in one month, now I have WiFi controlled A/C with smart sensors that turn the A/C off if guests leave the patio door open for example. Its lower, but only down to $250 or so peak periods.
We have in 11 years, replaced:
A/C complete, including the internal AHU external condesor etc $5.5k
Pool Heater, went pop. $3.5k
All white goods, fridges dishwasher etc. $3k
All Beds, they just wear out obviously, and some guests have different BMI's to others. $3k
Washing M/C Tumble dryer. $2k
Sofa's and Dining room furniture. They just wear out again... $4k
From memory, thats around $21k without the small items i've done with regards to the smarthome features...
Just food for thought, and I hope its useful to you.
If you wanted anything in particular, and so as not to hijack the thread, just PM me.
K
Do you get many people who look to do that, as I haven't done a deep dive into any of the pitfalls ,as all of visits to date have been holidays near the 192.
For example.
How does health insurance work, if you are not resident all year?
Is it better to buy a car, or go for long term rental each time ? We may not have a garage.
We were thinking of a condo or town house, in a gated community with access to communal pool. Is that the best way?
Would it better to spend more on a bigger villa property with its own pool and rent it out for the summer months, in which case how far away from the parks is the crossover point for realistic rates?
I am sorry, you did ask if anyone had questions.
I can answer some of your questions as a property owner who rents. But if its a thread hijack, and not useful, please say so and I'll delete it.
Find somewhere that is close to either the coast, or Disney; as thats where most of the rental crowd will look to.
Find somewhere thats gated, if for Disney, as families tend to want that style, and security; not always but often.
Find a community that has a mixture of people, and remember not everywhere does rentals, some are zoned in a peculier way.
Check the property taxes, HOA and other ongoing, no-negotiable fees, they mount up quite quickly, as does ongoing costs such as pool cleaning, and water...
Allow for the unforseen, some costs are better than the UK, but IMHO most are not, and choices can be restrictive. Phone and Cable for example, you might not get the choices you wished for in the area you are thinking of.
Our costs for our small place (3 bed townhouse) on Encantada https://encantada-vacation.com/ are:
$1,129.32 Phone and cable
$455.00 Hardings accountant fees
$1,548.00 Kernow Homes fees (MC)
$300.00 Pest Control
$350.61 Water
$100.00 Maintenance bills and furnishings etc/month, there's always something that needs doing every year, and this helps support the overal costs.
$1216.33 Electricity
$1,700.00 Insurance contents and umbrella
$4,828.00 HOA fees
$1,140.00 Pool cleaning
$2,450.00 property tax
And this is standing still, costs when occupied go up considerably, and I mean considerably. For our small place, we have had A/C use Electrical costs of over $330 in one month, now I have WiFi controlled A/C with smart sensors that turn the A/C off if guests leave the patio door open for example. Its lower, but only down to $250 or so peak periods.
We have in 11 years, replaced:
A/C complete, including the internal AHU external condesor etc $5.5k
Pool Heater, went pop. $3.5k
All white goods, fridges dishwasher etc. $3k
All Beds, they just wear out obviously, and some guests have different BMI's to others. $3k
Washing M/C Tumble dryer. $2k
Sofa's and Dining room furniture. They just wear out again... $4k
From memory, thats around $21k without the small items i've done with regards to the smarthome features...
Just food for thought, and I hope its useful to you.
If you wanted anything in particular, and so as not to hijack the thread, just PM me.
K
4Q said:
although they can leave the country for a day and come back for another 6 month period which they have done a couple of times by visiting Mexico or the Caribbean.
They need to be really, really careful doing that. What you describe here is a very obvious and blatant abuse of that visa. B visas are for temporary business or vacation that extend beyond VWP 90 day permissions. What your parents are doing is effectively residing in the US and that is not permitted with that visa type. Eventually, a switched-on CBP officer will suss that behavior and that could have very serious consequences (10 year bans and the like). Generally it is suggested that B2 beneficiaries should spend as much time outside of the US as they do within. Back-to-backing will end in tears, you mark my words.I have lived in Central FL for 20 years and have occasionally been required to visit/work in The Villages. What a bizarre environment. Anyone who wants a little insight to this (freak-show) community should check out a new documentary entitled "Some kind of Heaven" https://youtu.be/gmRnGHrjl1w.
MitchT said:
I'm a British national living in the UK with no current opportunity to live in the US, but I'm curious...
How is property tax calculated? I understand that, for example, it's 0.7% in California, therefore, you pay 0.7% of the value of the property, annually, as a tax. However, how is the value of the property determined? Is it the price you purchased it for, or its value on a specific date in the past, or something else? If it's based on the value of the property on a historic date then what if it's a new build that didn't exist on the date in question?
The price you purchased it at. However even then there are increases year on year because other costs are included like paying for police which isn't fixed.How is property tax calculated? I understand that, for example, it's 0.7% in California, therefore, you pay 0.7% of the value of the property, annually, as a tax. However, how is the value of the property determined? Is it the price you purchased it for, or its value on a specific date in the past, or something else? If it's based on the value of the property on a historic date then what if it's a new build that didn't exist on the date in question?
I'm not sure that percentage is right, but it's around that.
It creates an interesting situation for old people, to a certain extent it forces them to remain in a large family home until they die
-very rough numbers, pick them apart by all means but the principal stands
Couple lives in house bought for $75k in 1980, now worth 3 million ,property tax is about $1k per year.
If they downsize to a smaller property they will have to pay capital gains because the allowance is only 500k for a married couple, that leaves them with 2million. Then they buy a smaller house for 700K, but now their property tax is 10k a year but their income is fixed so that money has to come from house sale proceeds.
So they would burn up the equity and end up in a smaller house, with limited savings, for nothing.
Instead, stay in the massive house until you die, and have something to leave your children.
To go back to your question. That couple paying 1k a year will be living next door to some poor b
d working his arse off to pay property tax of $30k+ a year as well as a mortgage on 3 million dollar house.Matt Harper said:
They need to be really, really careful doing that. What you describe here is a very obvious and blatant abuse of that visa. B visas are for temporary business or vacation that extend beyond VWP 90 day permissions. What your parents are doing is effectively residing in the US and that is not permitted with that visa type. Eventually, a switched-on CBP officer will suss that behavior and that could have very serious consequences (10 year bans and the like). Generally it is suggested that B2 beneficiaries should spend as much time outside of the US as they do within. Back-to-backing will end in tears, you mark my words.
I have lived in Central FL for 20 years and have occasionally been required to visit/work in The Villages. What a bizarre environment. Anyone who wants a little insight to this (freak-show) community should check out a new documentary entitled "Some kind of Heaven" https://youtu.be/gmRnGHrjl1w.
They’ve had a B2 visa for 15+ years and only done this a couple of times without issue. The Villages is a little bizarre but they’re in their 70’s and in a fully inclusive community with loads going on, something I don’t think exists anywhere else in the world. I think “freak show” is a little unfair, it’s mostly oldies making the most of their twilight years and I love visiting even though I’m only early 50’s. I have lived in Central FL for 20 years and have occasionally been required to visit/work in The Villages. What a bizarre environment. Anyone who wants a little insight to this (freak-show) community should check out a new documentary entitled "Some kind of Heaven" https://youtu.be/gmRnGHrjl1w.
Stigproducts said:
MitchT said:
I'm a British national living in the UK with no current opportunity to live in the US, but I'm curious...
How is property tax calculated? I understand that, for example, it's 0.7% in California, therefore, you pay 0.7% of the value of the property, annually, as a tax. However, how is the value of the property determined? Is it the price you purchased it for, or its value on a specific date in the past, or something else? If it's based on the value of the property on a historic date then what if it's a new build that didn't exist on the date in question?
The price you purchased it at. However even then there are increases year on year because other costs are included like paying for police which isn't fixed.How is property tax calculated? I understand that, for example, it's 0.7% in California, therefore, you pay 0.7% of the value of the property, annually, as a tax. However, how is the value of the property determined? Is it the price you purchased it for, or its value on a specific date in the past, or something else? If it's based on the value of the property on a historic date then what if it's a new build that didn't exist on the date in question?
I'm not sure that percentage is right, but it's around that.
It creates an interesting situation for old people, to a certain extent it forces them to remain in a large family home until they die
-very rough numbers, pick them apart by all means but the principal stands
Couple lives in house bought for $75k in 1980, now worth 3 million ,property tax is about $1k per year.
If they downsize to a smaller property they will have to pay capital gains because the allowance is only 500k for a married couple, that leaves them with 2million. Then they buy a smaller house for 700K, but now their property tax is 10k a year but their income is fixed so that money has to come from house sale proceeds.
So they would burn up the equity and end up in a smaller house, with limited savings, for nothing.
Instead, stay in the massive house until you die, and have something to leave your children.
To go back to your question. That couple paying 1k a year will be living next door to some poor b
d working his arse off to pay property tax of $30k+ a year as well as a mortgage on 3 million dollar house.As far as I'm aware it is worked out annualy on the perceived value, this is why 4/5 years after I bought mine and the market crashed in the US my property tax fell by almost 50%
The property tax thing is even more complicated than that. I also suspect it changes hugely depending on where in the US you are - like everything I am sure it's different from state to state. The below is a high level overview of the Floridian system. It's really rather complicated.
Each year every property is given an appraised market value (to confuse matters, this is not the market value if you went to try to sell! In my area, the appraised market value is usually significantly less than the actual market value). That's made up of a sum of money for the land and a sum of money for the improvements (buildings etc). For the most part, this is a "desktop valuation" which is an automatic calculation based around information the city/county hold for your property.
There are then various different allowances that can be made depending on personal situation - such as widow's allowance, blind person's allowance, wounded hero allowance etc etc etc. This market value is then turned into an assessed value by making adjustments based on the various allowances given. This is what the tax amount is calculated from. The tax bill has multiple categories - as a guideline, mine is made up of these categories:
County - General Fund
Public Schools - School Board State Law
Public Schools - School Board Local Board
City - Operating the City
City - Voter Debt (repayment of a bond)
South Florida Water Management
Other - County Mosquito Control
Each category has a millage rate (which can change from year to year). You take the millage rate and you multiply it by the assessed value. That gives you how much you pay for each item. Which is then all added up and that is your property tax bill.
With me so far?!
It gets much more complicated when you add Homesteading laws. Basically, a person/married couple can declare 1 property in the USA to be their primary homestead. If the property incurring taxes is your homestead then the assessed value can only increase by a certain %age each year (3% IIRC). The difference between the appraised market value and the assessed value you pay taxes on is called "Save Our Home". What this does is build up a big buffer between the appraised market value and the taxable value of the property. This "credit" is portable if you sell, buy and declare the new home to be your homestead.
Each time a property transacts, the tax values reset to the current level. I have some friends that have lived in their current home for about 8 years. They have built up nearly $175k of Save our Home reduction which they could then move to their next home if they wanted to sell and buy something else.
If a property is not your homestead (i.e. a second property or if you are not eligible to homestead - if you're foreign for example) then your tax bill fluctuates up/down at the property appraiser's will.
Clearly that's confusing when trying to get a back of the fag packet number. Here I use the rule of thumb to expect 1% of the purchase price as your tax bill and it'll be that +/-. It generally works pretty well.
Does that help...or make it more confusing?!
Each year every property is given an appraised market value (to confuse matters, this is not the market value if you went to try to sell! In my area, the appraised market value is usually significantly less than the actual market value). That's made up of a sum of money for the land and a sum of money for the improvements (buildings etc). For the most part, this is a "desktop valuation" which is an automatic calculation based around information the city/county hold for your property.
There are then various different allowances that can be made depending on personal situation - such as widow's allowance, blind person's allowance, wounded hero allowance etc etc etc. This market value is then turned into an assessed value by making adjustments based on the various allowances given. This is what the tax amount is calculated from. The tax bill has multiple categories - as a guideline, mine is made up of these categories:
County - General Fund
Public Schools - School Board State Law
Public Schools - School Board Local Board
City - Operating the City
City - Voter Debt (repayment of a bond)
South Florida Water Management
Other - County Mosquito Control
Each category has a millage rate (which can change from year to year). You take the millage rate and you multiply it by the assessed value. That gives you how much you pay for each item. Which is then all added up and that is your property tax bill.
With me so far?!
It gets much more complicated when you add Homesteading laws. Basically, a person/married couple can declare 1 property in the USA to be their primary homestead. If the property incurring taxes is your homestead then the assessed value can only increase by a certain %age each year (3% IIRC). The difference between the appraised market value and the assessed value you pay taxes on is called "Save Our Home". What this does is build up a big buffer between the appraised market value and the taxable value of the property. This "credit" is portable if you sell, buy and declare the new home to be your homestead.
Each time a property transacts, the tax values reset to the current level. I have some friends that have lived in their current home for about 8 years. They have built up nearly $175k of Save our Home reduction which they could then move to their next home if they wanted to sell and buy something else.
If a property is not your homestead (i.e. a second property or if you are not eligible to homestead - if you're foreign for example) then your tax bill fluctuates up/down at the property appraiser's will.
Clearly that's confusing when trying to get a back of the fag packet number. Here I use the rule of thumb to expect 1% of the purchase price as your tax bill and it'll be that +/-. It generally works pretty well.
Does that help...or make it more confusing?!
Stigproducts said:
MitchT said:
I'm a British national living in the UK with no current opportunity to live in the US, but I'm curious...
How is property tax calculated? I understand that, for example, it's 0.7% in California, therefore, you pay 0.7% of the value of the property, annually, as a tax. However, how is the value of the property determined? Is it the price you purchased it for, or its value on a specific date in the past, or something else? If it's based on the value of the property on a historic date then what if it's a new build that didn't exist on the date in question?
The price you purchased it at. However even then there are increases year on year because other costs are included like paying for police which isn't fixed.How is property tax calculated? I understand that, for example, it's 0.7% in California, therefore, you pay 0.7% of the value of the property, annually, as a tax. However, how is the value of the property determined? Is it the price you purchased it for, or its value on a specific date in the past, or something else? If it's based on the value of the property on a historic date then what if it's a new build that didn't exist on the date in question?
I'm not sure that percentage is right, but it's around that.
It creates an interesting situation for old people, to a certain extent it forces them to remain in a large family home until they die
-very rough numbers, pick them apart by all means but the principal stands
Couple lives in house bought for $75k in 1980, now worth 3 million ,property tax is about $1k per year.
If they downsize to a smaller property they will have to pay capital gains because the allowance is only 500k for a married couple, that leaves them with 2million. Then they buy a smaller house for 700K, but now their property tax is 10k a year but their income is fixed so that money has to come from house sale proceeds.
So they would burn up the equity and end up in a smaller house, with limited savings, for nothing.
Instead, stay in the massive house until you die, and have something to leave your children.
To go back to your question. That couple paying 1k a year will be living next door to some poor b
d working his arse off to pay property tax of $30k+ a year as well as a mortgage on 3 million dollar house.Also the reason to keep the big house is to avoid paying the CGT! I'm not a tax guy but I understand that when you die and your heirs inherit, their basis in the property is the value at the time of inheritance. So in your example:
Buy at $75k
Now worth $3m
Die & kids inherit
Kids sell for $3m
Kids pay no (federal) CGT
Kids pay no (federal) IHT if estate is valued at less than $23.x million (for a husband and wife)
The Moose said:
Not quite! The amount of money you paid for the house doesn't have any bearing on the tax bill.
It does. As someone else said, it depends on where in the US this isexample
"Property taxes in California are limited by Proposition 13, a law approved by California voters in 1978. The law has two important features.
First, it limits general property taxes (not including those collected for special purposes) to 1% of a property’s market value. And secondly, it restricts increases in assessed value to 2% per year. These two rules combine to keep California’s overall property taxes below the national average, which in turn keeps your bills low.
The average effective property tax rate in California is 0.73%. This compares well to the national average, which currently sits at 1.07%California property taxes are based on the purchase price of the property. So when you buy a home, the assessed value is equal to the purchase price. From there, the assessed value increases every year according to the rate of inflation, which is the change in the California Consumer Price Index. Remember, there's a 2% cap on these increases.
This means that, for homeowners who have been in their house for a long time, assessed value is often lower than market value. The same is true of homeowners in areas that have experienced rapid price growth in recent years, such as San Francisco and San Jose.."
The Moose said:
Also the reason to keep the big house is to avoid paying the CGT! I'm not a tax guy but I understand that when you die and your heirs inherit, their basis in the property is the value at the time of inheritance. So in your example:
Buy at $75k
Now worth $3m
Die & kids inherit
Kids sell for $3m
Kids pay no (federal) CGT
Kids pay no (federal) IHT if estate is valued at less than $23.x million (for a husband and wife)
I think I said that, maybe from a slightly different angle but my understanding is (and I am not 100% sure on this, I'll admit) that you can sell a house but as a married couple, if you make more than 500k "profit" you get taxed on the excess.Buy at $75k
Now worth $3m
Die & kids inherit
Kids sell for $3m
Kids pay no (federal) CGT
Kids pay no (federal) IHT if estate is valued at less than $23.x million (for a husband and wife)
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