Wednesday, February 26, 2014

Real Estate: now or never to invest in Florida

"The prices are very affordable at this time in the condo and town home to Québec investors ," says the vice president of business development for RBC Bank in Fort Lauderdale, Alain Forget.

The strong Canadian dollar and weak combined with an extensive inventory of condos and townhouses interest rates currently play for Canadian investors in our southern neighbors.

Prices vary according to the tastes and financial means for investors. "Let's say it can vary between $ 60,000 and $ 2,000,000 . This is according to the will of the people. But prices are still between 35-40 % cheaper than those observed during the housing bubble of 2006 and 2007 , "says Forget.

For example, Wednesday could reach into the area of ​​Lauderhill ( Broward ) on an existing two-bedroom condo with an area of ​​1,267 square feet overlooking a golf course and access to a swimming pool for less than U.S. $ 74 000 .

In the area of ​​Boynton Beach ( Palm Beach), an existing building of 1,377 square feet with two bedrooms and two bathrooms was on sale for less than $ 160,000 U.S. .

Active Market

It must be said that in recent years the real estate market in Florida is consolidating , while very large developers are back in force .

Canadian investors are most active in Florida, while new players have emerged , including the Russians and Brazilians.

Price stability

Price stability observed since two years also helped boost investment in major real estate companies associated with strong fund U.S. and foreign pension in South Florida .

Here we see how real estate projects ( condo towers ) then unthinkable there are still 18 months in the market.

This is particularly the case in Sunny Isles, in the north of Miami, where developers offer a Porsche car to any purchaser of a new condominium in a 57-story tower located on the seafront A robotic elevator allows Moreover park up to four cars directly to the floor of his condominium at prices ranging between 3 and U.S. $ 9 million.

Data compiled by the Florida Realtors reported a median sale price of U.S. $ 129,000 ( up 23 % year on year ) in the second quarter of 2013 in the market for condos and townhouses for counties Palm Beach, Broward and Miami- Dade .


Over 13,605 real estate sales in the second quarter in these counties , 10,603 were by cash transactions . Vendors say and have obtained an average of 95 % of original price displayed.

At the end of June , there were 19,112 and condominiums and townhomes available in the market in the counties of Palm Beach , Broward and Miami- Dade, down 14 % compared to the same period last year (22 175 units).

Homework Before Buying

The steps leading to the acquisition of a property in Florida are not the same as those in Quebec. Some direct and indirect costs can easily make up the bill . " In Florida, the cash is king ," says Alain Forget RBC Bank , which advises future owners to be prequalified before taking action . Having in hand the amount of money to buy a house , then a prospective buyer becomes very attractive to a seller. No wonder the majority of transactions take place in cash in the counties of Palm Beach, Broward and Miami- Dade .

There is also a tax on every mortgage contracted in Florida. Some buyers prefer therefore mortgage their home in Quebec to finance their purchase in the United States . For example, getting a mortgage in Florida can take up to 45 days ( this is the norm ) , while in Quebec , this time is about a week , said the vice president of consumer services, area Quebec, the Royal Bank, André Labbé.

Other legal and financial aspects should also be taken into account, including inheritance Canadian side where the heirs of a person who has a home in Florida may have to pay hefty fees when you sell . Anyway , Mr. Labbé recommends prospective homebuyers in Florida sit with their financial advisor to carefully study the tax laws related to this type of investment .

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