Buying Property In Florida

The next few posts will be my attempt at introducing my European clients on how to buy US real estate.  I'd like to try to help bridge the gap between the European and American ways of buying property. How doing business there, while different from what you’re use to, is easy and almost always a totally transparent transaction.  I’ve met with or spoken to several people interested in Florida real estate specifically so I thought I'd put together a guide of sorts to help them and hopefully you as well.

The first thing to know is that all agents (called Realtors in the US) have to be licensed in the State where they’re doing business.  They must attend licensing classes and pass a State issued exam before a license is issued and every few years they must attend continuing education classes то maintain their license.  This really legitimizes how business is conducted.  If an agent fails to disclose a problem with the property or makes a mistake, he/she could lose their license and be out of work. Moreover, with the US being such a litigious environment, agents go out of their way to make every part of the buying process completely transparent.  Everything must be disclosed thereby protecting property buyers from future problems.

Many of the better agents go on to learn more about the property business by attending classes geared to their specialty.  You should look for agents with these designations in order to know you're doing business with a professional.  Designations include CIPS (Certified International Property Specialist), CRS (Certified Residential Specialist), GRI (Graduate of the Realtors Institute) or CCIM (Certified Commercial Investment, Member) which is among the most sought after designation amongst commercial agents.

But probably the biggest difference between the US market (any US market actually) and most EU markets is that each US market has what’s called the Multiple Listing Service (MLS).  These are Realtor database listing systems which almost every US agent uses to list their properties (commercial agencies rarely use the MLS).  

Every

Typical MLS Listing Page

listing – and listings are almost always an Exclusive Listing - is input into the system and allows all agents to have access to all the listings in their area, regardless of who actually has the listing.  This means that sales are shared between a listing (sellers) agent and a sales (buyers) agent.  The seller pays the listing agent a commission and that agent pays a portion of the commission (usually 50%) to the buyer’s agent. You can have the best of both worlds because you can be represented exclusively by one agent, have access to every property being offered in your area of interest and you don't have to pay him a dime. 

This is great for a buyer because you have the ability to hire an agent to represent your best interests rather than having to work with a listing (seller’s) agent who is actually being paid by the seller of the property, or you having to bounce around between different agents. A buyer's agent can show you any listings and help you find a suitable property. All you need to do is find an agent you like, and hopefully trust, and then get to work.


Are you looking for US investment property at a discount? Are you looking for a discounted short sale or bank owned property?  John Breaux can be reached at john@marathon-group.cz or +420 602 355 810 or +1 504-208-4331.

Miami Beach, Florida Real Estate

It wasn't that long ago, 2008 to be exact, that many thought that Miami and Miami Beach would be a condo ghost town.  There were buildings as far as the eye could see - and see through - that had people wondering what would happen to this once vital city.

Well, a lot has changed since that time.  Miami is winning the hearts of many of the former naysayers in what could be considered a true renaissance story.   The city has become the epicenter of international interest and residential is leading the charge. 

According to a study I saw done by Lewis Goodkin and Craig Werley, 85% of 24,000 condo and apartment units built since 2003 are now occupied.  That, according to their study, is a 31% increase since summer 2009.  Moreover, some 78% of the units built during the boom and left vacant have now been sold.  "Sales and rental activity has outpaced even the most bullish predictions" said Mr Lewis.

This means that Miami's condo market now stands at one of the healthiest in the US.  Why?  Because, in large part, the interest by foreign buyers who bring cash to the closing table.  Buyers, especially from South America, are scooping up properties at a frenetic pace.  Prices remain low, compared to their original asking prices a few years ago, rental rates have improved and a push by the city to improve infrastructure and services have dramatically changed the landscape.  People who once said that Miami was a risky place to be, in more ways than one, are now realizing that the gentrification has brought about major changes including a safer place to live and work.  Tourism is a major industry and they all need a place to live, eat and shop. Miami is seeing an uptick in the commercial and retail arenas as well so it's become a win win for everyone.

And there are still lots of opportunities to be had.  Not just in Miami and Miami Beach but all along the Florida coast (actually, anywhere in Florida).  You just need to know what to look for.  Do a little homework, work with an agent you know will steer you in the right direction and give you all the information you need to make a good investment decision and you won't go wrong.  

Florida - The Sunshine State

They nailed that slogan!  I've been here in South Florida for two weeks and have seen only a few drops of rain the entire time.  Now I've moved a little further up from the Gold Coast to St Augustine, the US's oldest established city and still great weather.

Studio Condos in South Beach

My reason for being here - simple.  More and more people have been asking me about investing in Florida real estate.  I decided to take some time to explore a few of the markets which have been mentioned and can say that I'm personally very impressed with what's out there and how much bang you can get for your buck.  There's nothing like it in the CEE. 

First, there's Miami Beach which is a personal favorite.  I found studio condos two blocks from the beach completely furnished for $60,000 to $80,000.  Another property, an older 80 sq meter (810 sq ft) two bedroom unit in need of reconstruction, for $100,000.  It was in the heart of SOBE (South Beach) - three blocks from Lincoln Road and two blocks from Ocean Drive.  And still there are others in mid beach and north beach for less but equally interesting because they're all still "on the beach" - just not SOBE.

$78,000 2 bedroom home in Homestead, FL

Then there are the single family homes (SFH) within a short drive from Miami for less.  They are houses that were caught up in the foreclosure frenzy and are now renting at $600 to $1,000 per month.  These homes, many believe, will appreciate faster than the condos only because Americans will once again want to own their own home.  Once the country recovers you'll see people who were once renting going back to home ownership.  

So a lot is out there for you.  Just depends on the route you want to take.  Both can be excellent long term investments.  A condo has more up front costs such as the monthly home owner association dues (which typically average about $250-$300 per month) but they're fairly easy to manage from afar.  Those dues cover things like repairs and maintenance of the building, roof, elevator, etc.  Single family homes are more for the long term renter but you might have maintenance/repair issues as time goes on - from a simple repair to  new landscaping for example, after a tenant moves out.


If you're considering investing in real estate, now is as good a time as any and South Florida is one of the best places I've seen in recent years.  It's been out of reach for many people for so long but prices have come down to affordable levels.  And with the rental market going strong, even the most conservative investor  gets very reasonable returns.


For more information send me an email or message here and I'll get back to you.  I'll be happy to help you find you're place in the Sunshine State.