Foreign Real Estate Investment Opportunities in South Florida


The National Association of Realtors demonstrated that the foreign real estate investment is growing. The value of the American dollar is at an all-time low, so there is no better time than right now for international clients to invest in U.S. real estate. The moment of opportunity is now. According to the Association of Foreign Investors in Real Estate, the United States is considered #1 among "the most stable and secure countries for real estate investment."


South Florida is the ideal U.S. market for foreign real estate investment. With numerous lifestyle amenities and miles of tropical beaches, it is quite simply one of the top lifestyle locations and vacation destinations in the United States. The opportunities to invest in south Florida real estate are plentiful. As a foreign investor in the Florida real estate market, you are making two intelligent financial investments: to purchase prime real estate at the lowest price in years and to take advantage of the future appreciation of U.S. currency.


The U.S. market is Prime for Foreign Real Estate Investment

  • International investors can easily obtain mortgages through U.S. lenders.
  • U.S. lenders are offering prime rates to foreign investors.
  • The conversion of funds is now easier and quicker than ever.
  • U.S. real estate prices are at an all-time low.
  • Foreign currency is strong against the U.S. dollar.

International Real Estate Investors Frequently Asked Questions

1. Can non-US citizens buy and own real estate in Florida?
Yes

2. Are there any restrictions on how the money is funded?
No. There are no restrictions, provided the method doesn't break any laws.

3. To whom should the money transfer be made when purchasing real estate?
When you purchase real estate in Florida, you will transfer money to what is called a closing attorney who will hold your money in escrow until he or she has secured all documents on your behalf. The closing attorney represents you and your interests. For real estate transactions in Florida, you will be required to have a Florida-based closing attorney.

4. When buying real estate with a mortgage, who negotiates the conditions of the mortgage with the mortgage company?
Your real estate agent can recommend a mortgage company and can assist throughout the process of negotiating with the mortgage company. It is always a good idea to get pre-approved by a lender.

5. What are the present requirements for a non-US Citizen to secure a mortgage to purchase property in the United States?
My experience is that lenders require that non-U.S. buyers put down a greater percentage of the mortgage (30 - 50%). Some lenders require a non-US citizen to set up an automatic monthly mortgage payment through a US account, and to ensure that the closing costs have been in a US bank account for 30 days before the transaction.

6. Can non-U.S. companies purchase real estate in Florida?
It is usually recommended that you form a U.S. subsidiary of an offshore company (BVI) -- this is driven by estate tax concerns. The tax treatment can depend on such variables as your home country, tax treaty, family succession intentions, the age and health of the buyer, the marital situation and whether or not funds are "declared" in home country. Lenders typically require that the borrowers be the main names involved in the corporation. If they were to lend to a company, it would then be considered a commercial mortgage and may change the status of the loan type. It would no longer be a residential mortgage. The lender will put the purchase into the corporation’s name after reviewing the corporation documents.