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 Asia Bankers Club July 2012

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International Survey  Why Invest in Florida ?

Key Locations

Vacation Rental v Residential Rental Associated Costs

Asset Protection

Tax Consequences

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  Established 1993 Central Florida (Orlando) Based “One Stop” Shop  Purchase & Sale Mortgage Financing Property Management

Tax Services / Accounting Asset Protection

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Chris WilsonMortgage Specialist (Foreign Nationals)

Real Estate AgentProperty ManagerCommunity Association Manager

 Accountant

Richard Butler 

Real Estate Broker

Real Estate Speaker

 Asset Management Specialist

Property ManagerCommunity Association Manager

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Foreign Buyers

Total USA 

Florida

$12.7 Billion

$41 Billion

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Total Florida Sales

Total Florida

Foreign Buyers

$48.8 Billion

$12.7 Billion

(25%)

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25% of all sales are to Foreign Buyers

Nearly all sales are cash transactions

 Foreign buyers purchase “high end homes” 

Median price - $174,700 (resident median - $136,500)

 Florida seen as being “on – sale !”  Total US home sales declined 31% 2005 to 2010

Prices declined 21% in same period

Florida sales declined 31% 2005 to 2010

Florida prices declined 42% in same period

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Property Type

Detached SingleFamily 

Townhouse

Condo

Other

39%

8%

4%

49%

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Attractive Destination

Desirable Vacation Location

Central Florida Attractions / Golf / Watersports

Profitable Investment Secure Investment

Favorable Exchange Rates

Good Rental Demand

Good Infrastructure

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Vacation or Residential Rental Use

Does Owner Wish to Stay in Property ?

Property Zoning Rental Restrictions

Location

Property Management

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  Central Florida Attractions Area

Some Beach Resorts

Mainly Single Family Pool Homes

Golf Course Locations

Furnished Homes

Property Management + Bookings

European Season (Apr – Oct)

Domestic Season (Nov – Apr)

Inconsistent, but Higher Rental Rates

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  7 or 12 Month Leases

Maximum Demand – “low end homes” 

 Condo’s or Single Family Homes  Consistent Monthly Income

Unfurnished Homes

Booming Current Demand

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Condo : Higher Association Fees

No Exterior Maintenance

Assessments

Lower Rental Demand Beach Resorts

Higher Insurance Costs

Type of Ownership

Lifestyle Choice Covenants, Conditions & Restrictions

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Single Family Home Lower Association Fees (sometimes no fees)

Greater Maintenance Fees

Fewer (if any) Assessments

Higher Rental Demand

Golf Resorts / Urban

Fee Simple Ownership

Private Pools Fewer Restictions

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Luxury  Higher Capital Appreciation

Higher Property Taxes / Insurance

Higher Running Costs

Much Lower Rental Demand

Lower ROI (Rental Use)

Larger Properties

Superior Locations

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Miami Beach Location 750 ft of Oceanfront Beach

State-of-the-Art Spa Facility 

Beauty Salon

Fitness Center

Health & Healing Center

4 Pools

Concierge Services

$360,000 (1/1 950 sf) - $3.35 m ( 3/3 2670 sf)

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Disney Connection

Walt Disney World Resort

resident Services

Family Resort Living Private Clubhouse

Four Seasons Resort (Opens 2014)

Four Neighborhoods

Prices start at $1.5m

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Median Priced Lower Capital Appreciation

Lower Property Taxes / Insurance

Lower Running Costs

Very High Rental Demand

Higher ROI (Rental Use)

Average Size Properties

 Fewer “Upscale” Locations 

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Purchase Legal Costs / Title Insurance

Prepaid Expenses

Recording Fees

Association Fees

Total 2-3% of purchase price

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Sale Legal Costs / Title Insurance

Realtor Commission

Recording Fees

Transfer Taxes

Total 7-10% of sales price

Capital Gains Tax

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Ongoing Running Costs Property Taxes

Insurance

Association Fees

Maintenance

Property Management

Leasing Fees

Utilities (vacation home only) Pool & Yard service (vacation home only)

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Purchase in Entity (LLC)

Deed Property into Land Trust

Privacy (Remove Name From Public Records)

Probate Protection (Establish US Will)

Avoid Law Suits (Hide Assets)

Trustee, Director & Beneficiary are Defined

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No Double Taxation

Establish US Business / Tax Return (if renting)

Be Actively Involved

Full Write Offs 10-20% Capital Gains (Long Term) - 2013

Please note that we are not providing “professional taxadvice” and that each individual should seek competent 

Legal council.

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Flipping Properties

  Buying & Selling with “Owner Finance” 

Commercial

Hard Money Loans

FLORIDA IS ON SALE !!

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