The load – “Closing costs”
The seller pays the registration fee and the buyer pays tax in case of credit use
For a total cost estimated at between 0.8% and 1.4% without recourse to credit and 3 to 5% in the case of a loan.
The load – “Closing costs”, A Seller’s account, To be paid by the buyer, Costs inherent in credit use
Costs to invest in Miami
- Registration right: $600.00 for every $100,000.00
- Update of property title insurance: between $200.00 and $250.00
- Lawyer fees (optional but recommended): between $300.00 and $600.00
There are no compulsory fees if buying with cash when you invest in Miami, but we recommend subscribing to the following options:
– Property title insurance: 0.7% of acquisition price (As there’s no land registry in the United States, we recommend obtaining a property title insurance to protect yourself against registration errors.)
- Inspections: $ 300.00
- Survey (at least equivalent): $ 300.00
- Lawyer Fees (optional but recommended): Between 400.00 and $ 800.00
- Insurance Property title: 0.7% of the purchase price
- Credit Capacity Analysis: $ 60.00
Inspections: $ 300.00
- Expertise of the market value: $ 275.00
- Cadastral Survey (at least equivalent): $ 300.00
- Bank Fee: 1% to 3% of the loan amount
- Processing fee: between 200.00 and $ 400.00
- Registry Fee: Between 40.00 and $ 80.00
- Registration fee: $ 35.00 for every $ 100,000.00 0.2% of the credit amount
So we have a total cost estimated between 0.8% and 1.4% without credit recourse and from 3% to 5% in case of a loan.
AMERICAN TAX FOR FOREIGNERS
Invest in property in Miami is something the international investors greatly enjoy thanks to the taxation advantages of such a decision.
In fact, the law that prevails is the one in effect in the location where the property is situated. As such, it will be American taxation that will be applied to your investment (tax agreement between the United States and France).
For a total cost estimated at between 0.8% and 1.4% without recourse to credit and 3 to 5% in the case of a loan.
A -TAXATION OF INCOME AND RENTAL FEES,
B – Charges,
C – Property tax
The net rental income of a property when you invest in Miami is taxable in the USA
A tax is applied per increment and according to the tax statement made by a non-resident individual:
Between 15% and 20% for net rental income; subsequently recovered as tax credit as part of an agreement on the avoidance of double taxation between the USA and France.
The monthly costs of an apartment when you invest in Miami consist of:
Condominium fees, water, necessary insurances, access to the pool / fitness gym / valet parking, 24/24 security, building maintenance, often cable TV and other benefits depending on the building.
This is the only tax that is paid annually and is slightly lower than 2% of the annual land registry value.
Invest in Miami : Capital Gain
The capital gain realized when you invest in Miami at the time of sale of the real estate property is taxable to the United States (article 13-1 of the convention of August 31st, 1994).
The tax on capital gain falls to 15% after the first year of holding the property. Moreover, you will not have to pay this tax if the financial product that results from the resale is reinvested in under 6 months. This allows the creation of a true real estate patrimony.
A good understanding of how to invest in Miami and good use of the American legal and taxation regulations, as well as of the tax treaties signed between countries will help you to greatly relieve the weight of taxation.
Thus, it is important to consider the method of acquisition (cash or via a loan – loan interests are deductible in the USA), the form of holding (directly or via a dedicated structure), as well as the method of disposition of the real estate asset (succession, donation, sale) so that the buyer can attain the set objectives.
Invest in Miami : Main Investment Steps
Before beginning research, Personalized Search, Visiting supply and negotiation, The inspection, Verification of the title deed, Closing sales or closing, After-sales
INVEST IN MIAMI :
You need to consider the reason behind your future acquisition when you want to invest in Miami.
There is a variety of reasons that lead to purchases: change of life, secondary residence, financial investment, interest in investing… all reasons may lead to different choices in regards to the acquisition that would suit you.
Your VIAC consultant will also be present to help you with your orientation regarding these factors so as to facilitate the searching process.
To start, you may find the investment types in the following link … read more…
You should also decide upon and identify the main features which should definitely be present in the property, as well as the secondary ones.
In Florida, all of the properties for sale or rent are listed in a central database called MLS (Multi Listing Service) which we can access. As such, there will be no need for you to work with multiple agencies to find the property you desire, in contrast to what happens in France, where each agency has its own exclusives.
In the United States buyers thus mostly decide to work with a real estate professional who guides them and represents their interests during the entire purchase process. The objective is to create a relationship of trust with your agent, who will in return work diligently to help you find the ideal property.
Your VIAC Luxury Real Estate consultant will also send you a detailed search report which best suits your criteria. Moreover, you will be informed in real time on all new properties in the market and/or updates that correspond to your search.
Once you have started visiting new properties together with a VIAC agent, keep in mind the small things that make each property different from the other. Doing so will help you take a more optimal decision and compare the information you gathered more easily.
After selecting the property you wish to acquire based on your search, visits, finances… you are ready to make an offer which will be drafted by a VIAC agent.
To invest in Miami, The offer must includes:
- The price you are willing to pay for the property in question. Your consultant will prepare a comparative analysis of sales prices in the neighborhood or building in question so as to help you determine the best price to propose.
- the type of payment (cash or financed)
- The amount of the initial deposit as evidence of good faith (between 1% and 2%)
- The amount of the deposit / down payment (10% of the purchase price) to do between 3 to 5 days after acceptance of the offer
- the deadline of the offer’s acceptance
- the objects, furniture and appliances that you wish to include in the sale or other comments
- the duration of inspections (10-15 days)
- the final date on which the sale will be closed.( closing date)
If the offer is accepted, it becomes a sales contract.
If the latter is refused, the seller will propose a counter-offer. This process will be repeated until the two parties reach an agreement.
If the payment of the price is in cash, a proof of funds will have to be attached to the contract. If the payment of the price is done in part with the help of a loan, you will have to send the seller the preliminary funding agreement of the bank. The contract is generally subject to conditions precedent of usage inspections and the final agreement of the bank.
Once the contract has been signed, we arrange for a company authorized to proceed to carry out the inspection of the property to be resold, in regards to the structure, plumbing, electricity etc…
If the inspections are validated, we move on to the next step.
If repairs are required, a negotiation could take place between the seller and the buyer.
The inspections fees are charged to the buyer, and cannot be recovered in case of withdrawal (see acquisition fees and costs here).
During this period, the buyer has the right to cancel the sale and thus recover 100% of the initial deposit. This period is defined in the sales contract and is usually 10 to 15 days after the contract signing.
Once this period has expired, you are legally obligated to purchase the property in question.
The closing will take place 30 to 60 days after the signing of the contract in regards to an acquisition paid in cash or financed.
The lawyers establish the “HUD”, the accounting document of the transaction which presents the funds of the buyer’s account on one hand and of the seller’s account on the other. This also allows the calculation of the balance due to the seller.
The buyer will be charged with:
- title insurance
- The survey
- lawyer’s fees
On the day of the closing, we will present you with the situational analysis of the pre-closing to assure you that the state of the property is consistent with what it was during the visit that took place once the offer had been made.
Once these steps have been carried out, the parties may reconvene to sign the final contract.
Your physical presence is not required to close the sale. You may provide your lawyer or any other person of your choice with a signed proxy, so that they can close the sale in your name.
VIAC LUXURY REAL ESTATE Miami accompany you until after the sale.
In fact, the majority of our clients who invest in Miami entrust us with the management of their properties, all the way from rental property management to management for comfort when you’re not present.
As such, we will take care of your property, carry out any needed renovations and rent it in case of an investment.
VIAC Luxury Real Estate Miami is a luxury real estate office located in the heart of the lighthouse district of Miami Beach: South Beach. With an experience of over 12 years in Miami, Miami Beach and 8 years in Naples, VIAC Luxury Real Estate Miami accompanies you during every step of the sales process or buying process or for any real estate project.
Specializing in high-end investment and support for international investors, the consultants of VIAC Luxury Real Estate Miami will guide you according to your request: second home, condo, villa, rental investment with a guaranteed return, investment property , business investment, short and long term rental management…
Our consultant are committed to meet your requirements by providing you our knowledge and expertise in the real estate market in Miami and Naples.
In addition we offer turnkey projects with our partners in each field: Architecture, Design, private bank and lenders, finance, accounting, business lawyer and immigration, contractor, as well a concierge service to meet all your needs.
When you invest in Miami, it is very important to understand that the luxury real estate market of Miami and Miami Beach is constantly moving. Therefore you need an expert to guide trough this the buying or selling process of your property.
The choice of the right real estate agent to invest in Miami is one of most important decision to make before the beginning of your research for your dream home. In fact, there is thousands of realtors in Miami and Miami Beach. Thereby your decision will have to be made by choosing the most efficient, knowledgeable, proactive, and specialist in what you are looking for.
By choosing VIAC Luxury Real Estate Miami to invest in Miami you will also be part of an international network of luxury real estate companies present in Paris, Saint Raphael, Marseilles, Cap d’Agde, New York, Los Angeles, Saint Martin, Saint Barth, Genova, Naples, Fort Myers Beach and Moscow