But to Let Mortgage for Florida?

Pinkleylandii

Hi

I am trying to find out if any British Mortgage lenders will do a buy to let mortgage for a florida property or do I have to go for an American mortgage? I have only started begining to gather information so any help, advice would be appreciated.

Middlers

Having just sold my property in Florida I would advise against buying especially if you need a mortgage to do so. There are far too many owners out there now fighting for fewer renters. It is cut throat and owners are dropping their prices drastically and not making enough to cover the mortgage. There are so many other expenses to think about as well - cable tv, telephone, electricity, management fees, water and sewerage, insurances, sales and use tax paid every month, property tax, pest control, lawn care, home owners association fees, pool cleaning, cleaning after guests, tourist development tax paid monthly, tangible property tax, licences. Then there is the tax return for the IRS and the tax return for the UK. I could go on and on. You need to do your homework thoroughly if you still want to do it. Good luck.

defender_of_the_weak

I have still got my property and although it is a pain using remote management the capital growth has been phenomenal over the last two years. Yes, middlers is right about all the payments etc so you really need a local company to manage this for you

In terms of mortgage, get an American one the rates are generally cheaper and you can put in long term fixes to give financial stability and be able to plan your rental income needs.

joanneclaire

I currently own a villa in Orlando, Florida and whilst I do agree with Middlers in some parts, ie, you must do your homework prior to buying. I totally enjoy every aspect of our home and renting it out, whilst it is hard work and you need to be prepared to put the work in and gain rentals yourself - it does have its rewards.

As middlers has said, there are many costs involved - more than you can imagine, but with the right advice and guidance and more importantly a good management company coupled with owner rentals this can be done.

We average 40+ weeks rentals per year, and whilst some will argue this is above the average, I also know many other 'active' owners who also achieve such occupancy. We pay all our own bills / mortgage etc, easily done by setting up the US equivalant of DD, I pay all my own taxes - again easy when you know how, so no need to rely on a Management Company to pay these for you - there's no need to and it always baffles me why some owners let their management company pay all their bills etc?? with sometimes knock on effects when they dont pay on time! - but guess who gets the extra charges and penalties - YOU the owner - not the MC who made the late payment. It is always comes down to the owner.

Mortgages - I would ALWAYS go for a US mortgage, great rates, but the most important part is that it can be offset against your US taxes.

I guess I could talk forever on this subject as I love it so much, whilst there may be horror stories out there, there are also equally positive ones

whichever way you decide to go - good luck
Joanne