Investing in property abroad

atush

I can get over $3K per month in winter, but i only tend to rent about 4 months of the year where I am.

but there are a lot of costs that come out of that, from pool heating to utilities, Phone/tv/interent service, management fees, cleaning and 12% sales tax to name a few.

I never make a profit, but rent to cover some of my costs.

real1314

atush wrote: »

Yes, I was thinking of the OP. And no, I am not going to open my books and show them to you- I don't know you. But you can believe me because I own one.

but I can assure you, 100% that a 3 bed pool home in FL will have running costs from $20-25K per year. Ask on any FL home owners forum.

and yes, insurance is that high due to hurricanes, flood insurance etc. Then there are property taxes on top- change due to county but will be around 3K.

I was hardly asking you to "open your books" - a simple breakdown of some of the costs was all I was asking for.

So any chance of:-

a rough guide value;
Florida Property tax cost
Buildings Insurance cost
Contents Insurance
Any other insurance
Utility costs
Any other costs

At what point is the 12% sales tax incurred?

Archi_Bald

real1314 wrote: »

I was hardly asking you to "open your books"

ROFLMAO. It's true you didn't ask atush to open her books - you merely want all the details.

atush

But I can't give you details as it would depend on where in FL your property was located as those things change in each area. For instance, orlando has lower insurnce tha coastal areas as they aren't as prone to storm damage.

But a 2 bed condo on the beach could have insurance at $5K-10K per year, and property tax is based on price so a 2 bed on Miami beach would have ten times the property tax of a 2 bed up in St Augustine.

Then there are HOA fees, which could range from $20 per month for a development in a lower priced county, to $400 a month in a development with extensive community facilities like you find in the Orlando tourist area.

12% sales tax is paid on on rentals. Although also varies by a % or so depending on they county you are in. So if you rent for 3K, you have to pay $360 of that to the taxpeople. And on top, if you make a profit you pay income tax in the USA.

But your realtor, if you are looking to buy, can help you with these figures on the type, size, and price of properties in the area you are looking.

real1314

So what's included in the $20k of running costs you quoted for any 3 bed pool home in FL?

How have you arrived at that figure is all I am asking?

Does it include HOA charges?
Does it include Sales Tax?
What insurance have you assumed?

There's little point coming up with a figure if you can't explain how you've arrived at it, as it doesn't help anyone to understand the way costs might vary.

As for your comment Archi - any accountant will tell you there's a world of difference between a rough cost breakdown and open book accounting. You'll see plenty of people suggesting that for any quoted price for a bundled cost it is sensible to ask for a breakdown.
e.g House extension £50k - would you just accept the £50k without checking what's in/out and how it's made up?
Foundations / Bricks / Windows / Electric / Plumbing/ Plastering / Plmbing Fittings / Labour / Decor ??
This is a Money Saving site - one of the key ways to get what you want at the best price is to carry out a cost breakdown.

atush

that was based on orlando property. It includes all costs (incl maintenance and an amt for replacements), but not sales tax which is subtracted from Gross rentals. the figure is gross, not net of rental income (as some dont' rent their houses at all).

It was gleaned from property owning forums there, when I started looking. In a delux development, with lots of community facilities and high HOA fees it can go to 25K. I have low HOA fees so 20K is closer for me.

If you dont' live in your house, you need a property manager which can cost anywhere from $220/month up to double that. But this will possbily include items like cutting the grass, and weekly pool cleaning. You can't leave a property w/o it being inspected at least once per month- weekly is better.