Buying a condo in Florida?

Leveraging, renting vs owning, making an investment or buying a home?
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Rickson9
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Re: Buying a condo in Florida?

Post by Rickson9 »

I would do it.

You may need a cross border trust in Florida because you can't hold title as community property with rights of survivorship, but speak with both an cross-border attorney and an accountant who is certified to file taxes with the IRS. Warning: they may give you different advice. Pay attention.

You are correct. It's a buyer's market.

Springbok is correct. Many individuals are rightly/wrongly conservative/scared.

I would take advice from an individual who has done what you are looking to do and ignore the rest.

My wife and I have bought a few condos, but in Phoenix, AZ. We like money.

Canadians who expect to collect rental income need to apply for an Individual Taxpayer Identification Number (ITIN):
http://www.irs.gov/individuals/article/ ... 87,00.html

An attorney that is selling the idea of setting up a cross border trust (CBT) to hold your U.S. property. Free book. Interesting read.
http://www.altrolaw.com/media-resources ... rder-form/

Speaking for myself, the returns on real estate haven't been as good as stocks, but they're not bad.

Good luck and best regards!
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Arby
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Re: Buying a condo in Florida?

Post by Arby »

The real estate market seems to be much improved this year where I stay on the Gulf Coast of Florida. Prices are up around 10% from last year (but still around 25% below the peak of a few years ago). There are far fewer listings for sale, and almost no listings with a banner indicating "price reduced by $..." (which was pretty common in the past few years). In my condo complex, I've never seen so many renovator's trucks in the parking lot, which indicates that a lot of units have recently been sold and the new owners are installing the requisite granite counters and stainless appliances.
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Re: Buying a condo in Florida?

Post by Arby »

This report on "Profile of International Home Buyers in Florida" provides some interesting stats on Canadian buyers of residential real estate in Florida.

- Canadians are the largest foreign buyers in Florida, at 31% of foreign purchases in 2012.

- Canadians are cheap buggers. Canadians tended to buy in the lower price range, while European and Latin American buyers bought at a higher price range.

- The top areas for Canadian buyers are Sarasota-Bradenon-Venice, followed by Miami-Fort Lauderdale, and Naples-Marco Island. The top area for non-Canadian buyers is Miami-Miami Beach.

- 90% of Canadian buyers paid in cash, and only 8% had US mortgage financing.
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Re: Buying a condo in Florida?

Post by SQRT »

Buying a vacation property in a foreign country especially the US certainly complicates your life. We bought a home in Arizona last year and love it but it is quite expensive and takes a lot of attention. i wouldn't view it as a business decision but rather a lifestyle decision. Don't rent it so financially it is just an expense. Used a cross border trust to protect against the US Estate tax rules which seem to be in a constant state of flux. We have to closely watch our time in the US to protect against the requirement of filing US tax returns. It was not something we did lightly or without considerable study.
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Re: Buying a condo in Florida?

Post by CROCKD »

Just another hassle for snowbirds and Canadian visitors to Florida.

Seems the US is increasingly making their country difficult to visit.

International driver’s licence rule

And don't think that flying in is going to get easier. This would affect Canadians flying into the US from a foreign destination enroute back to Canada,

The lineups at U.S. airports? They may get worse
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Re: Buying a condo in Florida?

Post by augustabound »

They're amending the International License law, so it won't be manditory and the police said they won't enforce it until then anyway.
There's been some confusion depending on the news source if it was going to be manditory for vacationers or not.
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Arby
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Re: Buying a condo in Florida?

Post by Arby »

CROCKD wrote:Just another hassle for snowbirds and Canadian visitors to Florida.

Seems the US is increasingly making their country difficult to visit.

International driver’s licence rule

And don't think that flying in is going to get easier. This would affect Canadians flying into the US from a foreign destination enroute back to Canada,

The lineups at U.S. airports? They may get worse
The official word from the Florida Dept of Motor Vehicles says they will not enforce the new law requiring an International Drivers Permit. See http://www.flhsmv.gov/IDP.htm
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Re: Buying a condo in Florida?

Post by jane doe »

Enforcement is the least of most peoples concerns. Getting into an accident and having your insurance company refuse to pay because you were technically driving without a valid license seems to be what most are worried about.

To make things just a little more difficult, some rental agencies won't ask for the permit while others will. If you rent a car with an agency that doesn't ask for it and get into an accident, you might be trouble with your insurance.
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Re: Buying a condo in Florida?

Post by Arby »

I'm currently in Florida so I was concerned about the insurance issue. I called my insurance company and they said my coverage would still apply in Florida even if I don't have an IDP. I asked them to note their response on my file. If others are concerned, I suggest they call their insurance company.
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Re: Buying a condo in Florida?

Post by Arby »

The Canadian Snowbirds Association says the Florida IDP law will not affect their auto insurance claims:
In regards to the CSA Automobile Insurance Program (a CSA Member Benefit), the underwriter, RSA (Royal & Sun Alliance Insurance), has confirmed that it will not use this law to deny any claim made in accordance with its policies. The CSA would like to ensure its members that it will assist any snowbird in the unlikely event that a Canadian insurer attempts to decline a claim based on this new law.
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Re: Buying a condo in Florida?

Post by Flaccidsteele »

gbill2004 wrote:What if I took a more conservative approach and got a 40-70k condo, instead of a 120-140k condo?
Hopefully the OP ended up buying a condo in 2011. Real estate prices have climbed significantly higher since then and the USD is smothering the CAD.
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Re: Buying a condo in Florida?

Post by kcowan »

Since 12/2007, exchanges gains alone account for 18% improvement in C$ price at no change in US price.
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Re: Buying a condo in Florida?

Post by OhGreatGuru »

As you seem to be determined to proceed in spite of all advice to the contrary, report back in 5 years on how you did.
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Re: Buying a condo in Florida?

Post by Flaccidsteele »

It seems that the last RE downturn in the U.S. has inflicted some heavy psychological scars on would-be homeowners. Individuals in the U.S. are more scared about purchasing a home and would prefer to rent. Rents continue to rise and apartments are in strong demand. If the OP purchased a condo and become a landlord back in 2011, they would be sitting very pretty as prices and rents have gone straight up.
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Re: Buying a condo in Florida?

Post by gsp_ »

OhGreatGuru wrote:As you seem to be determined to proceed in spite of all advice to the contrary, report back in 5 years on how you did.
Suggest you pay attention to the post dates, this thread was started 3 years ago and the OP has since renounced on his Florida plans and bought in Mexico, based on his posts in other threads.

Rickson9 just bumped this thread in his usual tapping himself on the back modus operandi. Guess it's best not to quote yourself when you've changed your posting handle. :wink:
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Re: Buying a condo in Florida?

Post by OhGreatGuru »

I didn't notice it was outdated material.
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Re: Buying a condo in Florida?

Post by alwaysasking »

Arby wrote:Good point by Altared about beach erosion. It's an ongoing chronic condition on Florida's Gulf coast where I stay, and it's probably a similar situation for all beachfront property. The town where I stay is having a vote on a 16 Million bond issue to pay for beach nourishment (i.e. dredging sand from another location and moving the sand to the beach). It's expected that beach renourishment will be required every 10 years or so, which will result in a hefty tax bill for the residents. The beachfront property owner will bear the brunt of the beach renourishment costs.
Although the topic is already a bit outdated, I would like to ask you about this beach erosion in Florida. I was scanning the forum for similar topics and found this discussion.

I've been looking for a new condo in Ft. Lauderdale for a couple of months. According to this article http://www.lbknews.com/2014/05/04/south ... -concerns/ , the whole area needs a renourishment. I've already read dozens of news about this problem.. Do you think that it's still a good idea to look for real estates in a region where erosion is causing issues recently? According to my agent from riva-condo, I shouldn't be worried.. but I actually am. What's your opinion, do you think my worries are justified?
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Re: Buying a condo in Florida?

Post by AltaRed »

It is only a question of when, not if. Beach erosion will only get worse over time, with increased storm intensities and sea level rises from climate change. Increasing attempts at maintaining the status quo will only get more expensive with time.

Whether that will happen slowly by stealth (over several generations), or more rapidly (within our lifetime) causing a collapse in RE prices sooner rather than later, only the crystal ball knows. I personally would not spend a cent on any beachfront property, especially any that is not at least 10 metres or so above sea level.
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Re: Buying a condo in Florida?

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AltaRed wrote:It is only a question of when, not if. Beach erosion will only get worse over time, with increased storm intensities and sea level rises from climate change. Increasing attempts at maintaining the status quo will only get more expensive with time.

Whether that will happen slowly by stealth (over several generations), or more rapidly (within our lifetime) causing a collapse in RE prices sooner rather than later, only the crystal ball knows. I personally would not spend a cent on any beachfront property, especially any that is not at least 10 metres or so above sea level.
Many beachfront municipalities use groynes made from rock and other materials to reduce beach erosion. These groynes prevent the sand from being washed away and in fact if properly designed, can allow beaches to recover. They had them 70+ yrs ago where I grew up. They worked effectively then but I believe they have since been upgraded several times as old ones deteriorated. New coastal engineering techniques have been developed that make groynes even more effective.

I agree with the part about not owning beachfront property unless well above sea level. Mind you, those hurricane storm surges can flood properties well above normal sea level. Then there is the wind damage. I wouldn't own anything in hurricane prone areas except perhaps for a condo in a high rise.
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Re: Buying a condo in Florida?

Post by kcowan »

On the Pacific coast of Mexico in PV, there has been a huge deposit of sand on the beaches this year. They have had to dig up the palapas because their tops were rubbing the sand. The recovery since the hurricane of 2002 has been amazing.

(OTOH I understand the the Lord giveth and taketh away. Our condo is 37 meters above sea level and facing north to the mountains across the bay. Our real risk is an earthquake.)
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Re: Buying a condo in Florida?

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alwaysasking wrote: I've been looking for a new condo in Ft. Lauderdale for a couple of months. According to this article http://www.lbknews.com/2014/05/04/south ... -concerns/ , the whole area needs a renourishment. I've already read dozens of news about this problem.. Do you think that it's still a good idea to look for real estates in a region where erosion is causing issues recently? According to my agent from riva-condo, I shouldn't be worried.. but I actually am. What's your opinion, do you think my worries are justified?
I've been wintering on Longoat Key for 7 years, which is the area referred to in the article in your post. Longboat Key has beautiful wide white sand beaches. Beach erosion is an ongoing issue. I don't think it's gotten any worse over the past 7 years, it just occurs in different areas each year. The town won't let the beaches deteriorate, because that would cause a major hit to the real estate prices. They seem to view the cost of mitigating beach erosion in the same manner as we view the cost of snow removal - it's just a cost of living that has to budgeted for every year. The town constructed groins (concrete piers) in the mid-key area a few years ago, which stopped the erosion in that area, and the beach recovered the next year. This year the problem is in the south end of Longboat Key, which is the beachfront for multi-million dollar condos, so I expect they will get quick action to fix the problems in that area.

As to whether you should be concerned about beach erosion, it was one issue in my decision to rent rather than buy. Another concern with beachfront property is the potential for hurricane damage. I'm not familiar with the beach erosion issues in Fort Lauderdale, but I expect they have similar issues as my area of Florida. However the Riva condo in your message appears to be on a canal rather than on the beachfront, so beach erosion shouldn't be an issue for that particular condo.
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Re: Buying a condo in Florida?

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With so many condominium properties plagued by foreclosures and delinquencies, you need to do your homework if you don't want to watch your dream condo turn into a nightmare.
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Re: Buying a condo in Florida?

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The February 2015 issue of National Geographic has an article about the effects of climate change on coastal properties in southern Florida. The article has some pretty dire predictions.
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Re: Buying a condo in Florida?

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Arby wrote:The February 2015 issue of National Geographic has an article about the effects of climate change on coastal properties in southern Florida. The article has some pretty dire predictions.
It may take some decades for the collective 'Oh crap' to happen but when the sentiment to sell and get out gathers momentum, it will be too late to get a good price. In the meantime, these low lying beach communities will have blown billions trying to maintain their shorelines.
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