Buying property in Florida

[geewilickers]

Three years ago I bought a Toronto condo on paper, that was going to be constructed by today but they kept extending and now they are unable to finance the project so I had my lawyer get my deposit + interest back. The condo was for 210k and my down payment and initial deposit added to about 35%. With my saving and with my money back I now have around 100k to invest on real estate.

Right now properties in Florida are very cheap and some in great locations surrounded by golf courses and tennis courts and 30 minutes from the beach. They go for $50,000 and $60,000 so I could buy one and with the remainder, lets say $40,000 I have left over invest in a Toronto property. Then I could spend 6 months in Toronto and another 6 months in Florida.

I was wondering if any Canadians here own property in Florida. What are your experiences?

ps> The reason the property is that cheap is because it's bank owned and you have to pay 100% downpayment and therefore it only attracts buyers who can afford it.

Thanks!

[FrugalTrader]

Check out this thread: http://canadianmoneyforum.com/showthread.php?t=34

[homeinboca]

I bought a property in South Florida 6 years ago, so I got in before all the madness. I bought a really nice 2 bedroom, 2 bath, 1100 sq ft condo on a lake in a gated community around 20 minutes from the beach and surrounded by golf courses.

I paid only $66,000 and it probably tripled in price during the boom and now is back to what I paid for it. I put 20% down and financed the rest at 5.6% fixed for 25 years with a Bank of America mortgage.

It's been the most enjoyable purchase I have made. I am not ready for retirement, but use it several times a year including extended time in the winter. I plan to spend Oct - March when I retire in 8 years.

We haven't rented it out, but family has been using it regularly, including the kids with friends. I have had a very positive experience with the purchase and think the timing is perfect now, but financing from a US institution may be tough.

[Maltese]

A vacation condo in Florida for $66,000 intrigues me and sent me on an internet search of properties in south Florida. I couldn't find anything that affordable with the amnemities you described. You place sure sounds nice and certainly affordable.

[homeinboca]

Maltese, there are lots of available properties at this price range and even lower - try using realtor.com - all you need to do is type your price range, desired size of condo and zip codes where you want to live.

[purplesnow]

I bought a property in South Florida 6 years ago, so I got in before all the madness. I bought a really nice 2 bedroom, 2 bath, 1100 sq ft condo on a lake in a gated community around 20 minutes from the beach and surrounded by golf courses.

I paid only $66,000 and it probably tripled in price during the boom and now is back to what I paid for it. I put 20% down and financed the rest at 5.6% fixed for 25 years with a Bank of America mortgage.

It's been the most enjoyable purchase I have made. I am not ready for retirement, but use it several times a year including extended time in the winter. I plan to spend Oct - March when I retire in 8 years.

We haven't rented it out, but family has been using it regularly, including the kids with friends. I have had a very positive experience with the purchase and think the timing is perfect now, but financing from a US institution may be tough.

Wow, that sounds really GOOD! Just wondering, how is the property tax? I heard that Florida charge different tax (much higher) for non-state residents. What are other costs per month other than your mortgage?

[canadianbanks]

You are planning to invest the remainder of the money in Toronto property, right now when the prices are close to the top and are poised for a serious crash??

[homeinboca]

Purplesnow - yes there is a difference for Florida residents, called a homestead exemption. For long term home owners it means property taxes can be as low as $500 year. As valuations went through the roof, my property taxes went up, but now that are back down to $1,200.
I think prices will be pretty stable for some time so I'm hoping that taxes don't rise signficantly.