Careful to inquire, before signing, on the regulation of the local market, and the habits and customs of condominium management.
While on vacation, falling under the charm of the place and considering purchasing a second home is a relatively common situation. In this “emotional” context, the difficulty is often remain reasonable and sensible… A prudent and attitude all the more essential to adopt as one moves away from his country.
Example of the United States:
The United States is one of the headlights of foreign holidaymakers, architecture and the atmosphere of New York or for entertainment in Orlando. Favorite purchases are numerous, encouraged lately by a still low price conditions and a parity euro/dollar in favour of the Europeans. Result: the Foreigners succumb more easily to their desire to purchase ‘pleasure’, across the Atlantic. Good deals can be made to provided, however, to know the whys and wherefores surrounding the intended purchase.
Legislation, property taxes or condominium rules are to be taken into account before signing the deed of purchase. Relating, for example, cities such as New York or Miami, teeming with multiple purposes it is important to know.
The “co-op”: the great oral hosted by neighbors
Operating various and varied condos (condominiums) governed by more or less flexible rules, including the “co-op” represent the framed version, include studying closely.
Thus, regulations of many co – ops impose to the potential purchaser to obtain prior approval of owners already in place.
Some co – ops can impose rules on the Interior of the apartments. Others apply strict rules on the use of housing: duration of leaseco limited (fewer weeks maximum per year, for example), prohibition to hold a pet… Interference with individual freedom, which may be surprising for foreigners used to dispose of their property freely, once owners.
For their part, the Americans do not live it as a restriction of freedom and even celebrities are denied the right to acquire apartments in New York.
The precise knowledge of the condominium regulations is an essential aspect in these conditions before throwing his sights on a residence or accommodation
Bills: a budget to calculate
The rule is universal: it occupies his property throughout the year or only a few weeks a year, there are charges fixed, identical for all owners. A future recurrent expenditure to remember when buying. In order to properly estimate future loads, some points are to be monitored, in particular property tax last year and the current year, as well as the condominium fees. These can be more or less important depending on the level of services. Some homes offer, in fact, many services and quality (indoor pool, concierge, gym which sometimes even a basketball court!)… returning dear to non-permanent residents but which allow to set rents high in case of rental.
Another item to not be disregarded: the number of apartments at the building. Less housing, more risk of increase in load is important for reasons of potential vacancy. Finally, last test important: the year of construction of the building. More good is recent, more renovation expenses to predict will be low.
So that the loads are not an obstacle to the acquisition, some very recent buildings – for example, in the Financial district of New York – guarantee a low tax for a period of 5 to 10 years. A programme for lowering of taxes resulting from a partnership between the promoters and the municipality of New York. Finally, unlike Europe for example, about 90% of insurance are supported in the condo fees.
Rental: a lever to not overstate
All properties do not easily lend themselves to the game rentals. When purchasing ‘pleasure’, the owners acquired the property for their personal use, but – in order to minimize its cost – some looking to rent housing when they do serve. It is possible, but it must take into account the seasonality of certain markets. In Florida, for example, the rental market is subject to specific tourist cycles. Finally, who said said rental adaptable delivery to the greatest number. The chosen furniture should be considered.