The top ten reasons for buying property in Florida today as picked by our analysts are as follows:

1. Exchange Rate:

The best exchange for sterling versus the US Dollar since 1982

2. Price:

The prices of the properties are so low at the present time making it a very attractive time to make a real estate investing in the sun shine state. Provided you purchase the correct type of property, in a location that is suitable, real estate in Florida can be one of the best investments currently available anywhere.
 
3. Mortgages:

The process of obtaining a mortgage in Florida is relatively straightforward. Loans of up to 90% are available for residents and non-residents, and are secured against property for sale in Florida. The majority of resident loans are made at 80% of the purchase price to avoid private mortgage insurance, and the majority of non-resident loans at 75% as these offers the best terms, especially for our overseas buyers. There are several mortgage programs currently available where you can choose a fixed or variable rate mortgage. Repayment terms range from 5 to 30 years with no age restrictions. In most instances, a “good faith deposit” of just $1,000.00 will be sufficient to reserve a Florida property and fix the price. Furthermore, we will guarantee to refund any deposit paid, for whatever reason, at any time up to exchange contracts. The whole purchase payment only taking normally less than two months. Cornhill Investment Property will be in partnership with recognised and respected Realtor on the ground in local market who will know and handle the whole process for A through Z making the process as stress free as possible. If you intend to let your property in Florida when you are not using it, you will need to comply with local legislation, This includes obtaining a hotel/lodging license and ensuring that safety features such as commercial grade fire extinguishers, smoke detectors and emergency lighting are fitted, wherever possible, we insure that these costs are included in the final price.

For all purchasers using a mortgage, there are closing costs to be paid. These are costs incurred when completing the purchase of a home. At the beginning of the loan process there is a fee for the credit report and appraisal, usually they are approximately $300 to $500. As the loan completes there are other expenses to be paid, such as the mortgage set-up fee, legal costs associated with the purchase and registration of the property, title insurance, and various pre-paid items, such as 12 months household insurance and association fee. As a guide, purchasers should allow around 4% of the Florida property’s total purchase price to cover all closing costs.  

4. Tax:

Various tax advantages are available depending on the individual’s circumstance. Many of the important decisions in life are by necessity underpinned by money and this is especially true when planning for our leisure years. Florida is one of the few states with no income tax, and a sales tax of 6% (VAT in the UK currently running at 17.5%) swings the balance in Florida’s favour for those for those wishing to make the most of their money. Not surprisingly however there are hurdles to be negotiated, and as with so many things in life, risks!

Income tax – The US/UK dual taxation agreement will allow you to pay tax in just one country. There is a substantial difference in tax ranges from a minimum of 10% to around 35% for incomes starting at $336,550. In the UK, income tax rated quickly climb to 40% on salaries starting at just £34,600. Tax relief on mortgage payments, property tax, charitable donations), accountant fees and dependent education apply in the US. Depending on the circumstances, UK income can also be excluded from US taxable income. Tax efficient accounts for school education for children are added benefits in the US.

Pensions – The UK state pension remains payable after moving to the US. Due to agreement between the two countries, annual increases in the UK state pension continues to apply. Taxes on foreign- sourced pensions, including social security pensions, can be reduced by foreign tax credits.

Capital Gains – Long–term gains (On property held for more than one year) are taxed at 15% maximum. If the client is UK domiciled, a capital sale is taxable in the UK, and US tax rules allow a credit against tax due in the UK. It can be possible under certain conditions, that capital gains payable in the UK may be greatly reduced or eliminated after moving to the US. Conversely, the annual individual exemption amount for capital gains in the UK is £9,200 and the tax rate above this could be as high as 40%. Principal home rules apply in both UK and the US.

Income from property rental – US rental income will be subject to income rate at rates between 15 and 35% but unlike UK, the US allows certain expenses including depreciation on rental property and contents for taxation purposes.

Wages – Relief can be received for foreign taxes paid on wages for workdays outside of the US. There are tax breaks for income earned prior to becoming subject to US worldwide taxation that was paid after your arrival in the US

Interest Income – There is relief for foreign taxes paid on foreign-sourced interest

Estate and Gift tax –The Florida courts are bound by State law to follow valid foreign wills and the double taxation agreement between the UK and the US usually ensures your estate will not be liable for taxation twice.

5. Rental:

You can rent out your property to cover your running costs. This is dependent on the type of property chosen, the location and the amount and term of the mortgage. As a general guide, if you secure up to a 75% mortgage you will need to rent out your property for about 35 weeks per annum to break even on an average sized four bedroom villa. If a fairly large home is selected it only takes another two to three weeks to cover the difference in out goings. A normal year of bookings will provide 21k – 25k per year in rental income on a 4 to 5 bedroom home.  
    
6. Recreation:

From golf to water sports to the great out doors is Florida in two words Great outdoors. Wildlife of all shapes and sizes. There is so much to do and see year round add to that international dinning, with World class restaurants and bars give the resident the feeling that are entering a World wide experience of epic per portions. There is a wonderful ex pat community catering for everything from warm British beer to fish and chips; you can buy your British produce at the many British shops so you will not miss anything from home. There is also Sky sports showing the premier league at a pub near you each Sunday, although a pint and breakfast is sometimes a lot to handle that early in the morning. But most of what you want you can get and a lot extra, also add this together with Walt Disney / Epcot / Universal Studios / Sea World and well as some of the best professional sports the US and you will see that the sun shine state has so much to offer, if it’s for two weeks holiday in the summer or retirement there is plenty to see and enjoy.    

7. Climate:

Average summer temperatures and the Orlando and Kissimmee-St. Cloud  (May-August) vary between the low 90s F in the day to the low 70s F at night. For the most part, visitors can expect warm, beautiful weather year-round. Winter temperatures (October –February) average in the low 70s F during the day while night time temperature average is in the low 50s F. During the summer season, the Central Florida weather is very tropical.  The summer months are the most humid and have the most rainfall, but expect lots of sunshine between the rain and clouds. Expect an average daytime high of 70 ºF December through February, which are  generally considered dryer and cooler. During the warmer months, June through September, temperatures and humidity both remain high, but the heat is frequently cooled by an afternoon thunderstorm. March, April, May, October and November are delightful months with an average daytime high of 80 ºF.

8. Cost of living:

Inexpensive cost of living. Florida is one of the few states with no income tax, and a sales tax of 6% (VAT in the UK currently running at 17.5%) swings the balance in Florida’s favour for those for those wishing to make the most of their money.

9. Retirement:

Florida has been the destination of choice for American retirees for many years and its popularity continues to gain momentum, with 1100 persons a day moving permanently to enjoy the all important sunshine. Over the past few years the Florida lifestyle has also increasingly found favour with British retirees. The cry ‘the British are coming’ heard during the War of Independence is relevant again, with the new invaders choosing Florida in preference to Europe and the Mediterranean coast. The key reasons apart from that winter warmth are the lack of language barriers, allowing for closer integration with the residents and a comparatively inexpensive cost of living.

As the whole idea of retirement is to escape day to day work pressures, a number of Brits are now moving permanently to America via the EB5 visa which allows you to retire, this requires a $500,000 ( £267,000) investment which has to be held in an approved investment project for two years after receipt of the green cards that allow permanent residency (after then the investment can be sold).

The B2 visa is the other alternative used by many Brits, it allows for a stay of 6 months a year in the States.

Leaving the foggy drizzle of the UK in November landing over the azure waters of Florida with pelicans lined up as a guard of honour on the bridges is very therapeutic - Leaving Florida at Easter as it begins to get very hot and humid and return to the lush green fields of England, is considered by many an idyllic way of life.

There are a number of alternative types of retirement lifestyles to choose from depending on your individual priorities, some seek out the glamour and buzz of South Beach, Miami which can be a hive of activity. Others favour the convenience of Central Florida with theme parks, those endless buffets, the many activities on offer and the opportunity to recover some costs by renting out your house when not in residence. For others, the laid back Gulf Coast lifestyle offering golf, tennis, bowls, polo, cricket and boat parades, meeting other Snowbirds (local Floridians refer to winter migrants as snowbirds) and neighbours, provides the ideal winter retreat

10. Location:

Find the right location to meet your needs.  Finally it is very important when planning to buy a property in Florida that you do you home work and find the right location to suit your needs. If you are looking to buy a family holiday home that you will also rent out for the remainder of the year be sure that you look at the property and the rules governing it i.e. That it is not in a zoning area where by local law the property cannot be rented. Do you want be in the Orlando area close to the theme parks etc. or on the Space coast which is highly populated with everything for the sun worshiper, or the Gulf coast around the Tampa and surrounding area. There are even now new complexes appearing in Central Florida where contractors are building holiday complexes to meet all of the vacationers needs in one location.