When we take a Florida investment property to market all the properties are sold with a tenant. Florida law states that all residential property leases are 12 months, before the lease expires either party can notify that they no longer wish to renew. The normal time of notice is 3 months, so in practise your Florida investment property will not be empty for more than one month in any calendar year. In practise more than 90% of are tenants renew their lease. Before accepting a tenant we always perform background and credit checks and a security deposit is taken, this policy of vetting tenants makes buying a Florida investment property a low risk investment. During the term of the lease the tenant is liable for all non –structural maintenance. As a guide to occupancy levels, we currently have no empty homes out of more than 400, so we would expect 100% occupancy rates, should the unit become empty for any reason I wouldn’t expect to lose more than one month in a year.
Finance is not currently available to foreign buyers, its hard even for US nationals, this is one of the reasons the prices are so low. As the credit crunch eases and finance becomes more available I envisage the possibility of re-financing, allowing you to take a cash draw down but maintaining the asset. This is another excellent exit/profit enhancing possibility for your Florida property investment. The rate of foreclosure is slowing but the unfortunate families who lose their home stimulate the rental market, making a Florida investment property a great choice for your money.
After all costs of purchase/sale/maintenance you are liable for a capital gains tax, the amount depends on the length of ownership and the profit. Also the US has extensive dual tax treaties signed with many countries around the world so you don’t pay the tax again in your home country in most cases. India amongst other countries has a dual tax treaty with the USA, this means that any tax paid in the USA gives you a ‘tax credit’ in your home county and negates the need to pay the same tax twice. This again enhances the USA and especially Florida for investment in property.