Florida Facts

500,000 Canadians own Florida Homes.

Canadians are one of the largest group of Foreign Buyers and Investors in Florida real estate.

95% of Canadian Buyers are “ALL-CASH” buyers, with only a small percentage requiring traditional mortgage financing.

Canadians love Florida, and Florida loves us back. Most Canadian Snowbirds develop lifelong friendships with their American neighbors in Florida, and it is true testament to the unique and special bond of friendship between our two countries.

Demographics = Growth = $$$

An aging US population is moving south to escape the harsh northern winters.

Florida in now the 3rd most populous State in the US.

“A highly respected Sarasota luxury home builder said it best, to paraphrase, “the last wave of the baby boomers born between 1944 and 1964 are now all coming into retirement, 10,000 people retire every day in the US, and the Florida housing markets are going to have to accommodate hundreds of thousands of new residents every year for the next 10 to 15 years, and these demographic numbers are so compelling, so overwhelming, that we doubt even the government could mess this up. Most housing experts estimate, 1,000 people move to the State of Florida, every day, which translates into over 300,000 new residents annually.” – Prominent Luxury Home Builder, Sarasota, Florida.

What we are witnessing currently in Florida housing markets bears no resemblance to real estate market booms of the past.

  1. Florida property markets are trying to accommodate years of pent up demand that was held back from slow recovering housing markets like the Northeast and Midwest. The Baby Boomers have been waiting patiently for their local housing markets to recover, to allow them to sell their homes, move to Florida, purchase their dream retirement home, and pocket a big chunk of CASH.
  2. The vast majority of Boomers pay cash for their Florida homes. CASH BUYERS will never walk way from their properties in the event of a market correction, as will highly leveraged home owners, whose equity gets wiped out, and who then choose to leave the keys on the kitchen table for the bank. CASH BUYERS insulate the market going forward, from the probability of another meltdown caused by over leveraged homeowners, who get in too deep, and then bail out.
  3. We have never witnessed underlying market fundamentals, this powerful, in the history of Florida real estate, and it because most new home buyers are paying cash. They are investing for the long term, and for many, this will be their final home purchase.

Key IRS Tax Forms & Publications Index

IRS Form W-7, IRS Individual Taxpayer Identification Number

IRS Publication 515, Withholding of Tax on Non-Resident Aliens andForeign Entities

IRS Form 8288-A, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests

IRS Form 8288-B, Statement of Withholding on Dispositions by Foreign Persons of U.S. Real Property Interests

IRS Form 8288-A, Instructions

IRS Publication 527, Residential Rental Property

IRS Form 1040NR, U.S. Non-Resident Alien Income Tax Return

IRS Form 1040NR, Instructions

IRS 1042S, Foreign Persons US Source Income Subject To Withholding

IRS Form 1099-S, Proceeds From Real Estate Transactions

IRS Form 1099-S, Instructions

IRS Form 8840, Closer Connection Exception Statement for Resident Aliens

IRS Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for US Tax Withholding and Reporting

IRS Form W-8ECI, Certificate of Foreign Persons Claim That Income is Effectively Connected With the Conduct of a Trade or Business in the US

BRENT LEATHWOOD, MBA

LICENSED REAL ESTATE BROKER | BK 3300751

CROSS BORDER REALTY LLC | CQ1046895
2100 CONSTITUTION BLVD. #207
SARASOTA, FL, 34231
(941) 882-2995
Contact
3 Big Mistakes Buyers make:

  1. 1. NOT KNOWING THE NEIGHBORHOOD...ContinuedReal estate always has been and always will be a local business. Know your neighborhood is a cardinal rule in this business. A real estate professional knows what is going on in their local market area. Hire a knowledge, local professional. When we see folks wandering around with a notebook and a list of questions, we know they are the most likely to make a costly mistake. A PROFESSIONAL Realtor, (please note the word professional), can spend 15 minutes listening to your needs and wants, and probably rule out 90% of the local market options, and focus your attention, on the 3 or 4 or 5 communities that will meet your needs, and make sense from both a financial and lifestyle point of view. I am amazed at how many people from out of State, go it alone, end up buying in the wrong community, and come to regret it. I meet people like this everyday, and everyone single one of them will say to me: “I wish we had met you first.”
  2. 2. GETTING STUCK IN AN HOA NIGHTMARE...ContinuedHome owners association nightmares are the stuff of legend in our State. Do not buy the wrong property in the wrong community. A knowledgeable real estate professional can explain to you upfront, the ins and outs of the HOA regulations of the community you are considering, and help you avoid 99% of these potential pitfalls. This is another very costly mistake.
  3. 3. THINKING YOU DO NOT NEED A REALTOR WHEN BUYING A NEW HOME...ContinuedEverybody knows you need a Realtor to represent you, when buying a resale home. Many do not know, you also need a Realtor to represent you, when buying a new home. The new home sales person in the model home works for the Builder, not the Buyer. They are paid to look out for their employer’s interests, not yours. You will not save $1 by going it alone. You will lose money. A lot of money. One of our largest local builders reported 872 annual sales, of which, 762 were handled by Realtors representing the Buyer. That is 87% of the total. The Builder has already factored paying a finder’s fee into the price. The Builder will not rebate $1 of this money back to you. Builders laugh under their breath, when Buyers try this negotiating tactic, even though they will politely agree with you. Professional representation costs you $0, why would you fend for yourself, in a market you know almost nothing about? Buyers know less than 20% of what they actually need to know, to get a great deal. Having gone through the new home buying process hundreds of times with clients, we know all the pitfalls to avoid, and how to make the process go smoothly. Do not go it alone, get professional representation, it costs you $0. Not doing this is the most costly of the 3 mistakes. But everyone has heard the old saying, you can lead a horse to water. We are in the business of helping our customers solve a problem. Our ability to do that, is the sole reason we have a thriving business. We are here to help you through the entire process, and get a great deal.

4 Big Mistakes Investors make:
  1. INCOME... ContinuedThe rental income does not justify the $/sq. ft. purchase price.
  2. EXPENSES... Continued The monthly expenses are too high, relative to the property type and rental income produced.
  3. CAP RATE... Continued The capitalization rate is too low to justify the investment.
  4. HOA REGS... Continued The home owners association regulations are too restrictive, or do not permit the intended use. Frequently overlooked or glossed over by some sales people, the long run financial consequences are catastrophic if a mismatch occurs.
Avoid Costly $$$ Mistakes: Hire Brent. Costs you $0.