Thank you so much for the tremendous response to our recent announcement of the Orlando Builder Close-Out Sale.

For those of you proceeding with purchasing one of these unprecedented bargains we thought it might be helpful to review one of the major cost items associated with investing in Florida property: “Closing Costs” or “Settlement Fees”.

US Closing Costs can represent 4-5% of the total cost of investing in Florida property – and therefore should be understood thoroughly before you invest!

Needless to say, we can help you with any questions that you might have.

In the meantime following is an article on US Closing Costs from today’s issue of the US Helium magazine:

Overview on a home buyer’s recurring and non-recurring closing costs

by Gene Patterson

Closing costs are an unavoidable part of getting a mortgage or refinancing.  In a buyer’s market it is possible to get the seller to cover many of the closing cost fees.  But in a seller’s market where the properties are “hot” this is unlikely to happen.

What is a closing cost?

The closing costs are all of the little fees that are associated with buying a house.  It includes things like appraisal fees, application fees, title search, credit report, origination points and a lot more.  The amount of the closing costs can vary greatly depending upon the loan that they are based off of.  They can conceivably get as high as 4-5% of the price of the home.  Closing costs are broken into two separate type of costs:  recurring and non-recurring closing costs.  Both fees are due to be paid at closing and the homeowner will be required to pay the recurring fees annually.

Non-recurring closing costs

These are the closing costs that are all one time only fees.  These fees include: title insurance policy, wiring fees, credit report, lender fees, courier fees, escrow fees, notary fee, appraisal fees, government filing fees and title search.  These fees are due at closing and if the right deal is made can sometimes be absorbed by the seller rather than the buyer.  They are a onetime only fee.

Recurring fees on the other hand are going to have to be paid every single year.  Hence the word, “recurring”.  These fees include:

Property taxes:  for the first year, how much of the taxes you owe as the “buyer” depends on when you purchased the home.  You are only on the hook for the taxes while you live there.  Structure the home buying agreement right and all of the upfront (first year) closing costs will be covered by the seller.

Interest:  Of course the loan will accrue interest that will have to be added to the principal and paid over time.

Homeowners Insurance:  Your lender will likely stipulate a minimum amount of homeowners insurance you must have as long as your loan is in effect

Recurring costs can either have the annual closing costs paid out each year or have it rolled into the mortgage for simplicities sake.

See, once you break it down the difference between recurring and non-recurring closing costs is not that hard to understand.

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For those of you who have not yet found exactly what you are looking for in Florida’s exciting Buyer Market why not let us help you with your search?

We have information on over 20,000 homes in the Disney/Orlando area of Central Florida alone!

We also have “listing” information on many bargain-priced beach-front homes on the Sunshine State’s beautiful sandy coast – from Tampa to Miami.

Happy house-hunting and great savings!

And please tell your friends (they can share the purchase, use and rental income) – the time couldn’t be better! 
 
 
Sincerely,

Bill Cowie  President

www.BritishHomesGroup.com

Orlando Office: 407 396 9914

British-American Chamber of Commerce  Advisory Board

Auctions offer best opportunities for Florida Real Estate Bargains!

“How to buy at auction” on-line seminars Tuesday October 7th and 21st at 7pm UK time.

Next Auction – November 8th, 2008

Top quality homes in Florida are at their lowest price right now, but to secure an even better bargain you need to go to auction.  Auction properties can be half price or less off current values.

For some Brits, however, bidding for a luxury home over the internet can sound daunting.  The on-line auction route is a quick and definitive route to buying a home and also saves money on airfares.  But how do you do it safely? And how can you be sure that what you are really buying is a bargain?

In order to help British people through the auction maze, the Orlando-based British Homes Group, (www.britishhomesgroup.com) in collaboration with Stirling Sotheby’s International Realty, the Florida affiliate of Sotheby’s in the UK, is hosting two complementary internet auction seminars on October 7 and 21 at 19.00 GMT.
 
The purpose of the British Homes Group “webinars” is to explain the process and answer all the questions potential buyers might have.  BHG will also feature a selection of quality Florida holiday homes and other investment properties in the Orlando area that will be auctioned by Stirling Sotheby’s on November the 8th. A free booklet – “A guide to Florida On-line Property Auctions” can also be downloaded.

Bill Cowie, director of British Homes Group says: “These auctions are not a dumping ground for private owners to offload secondary real estate rubbish.  In this market they are also a sales platform for top US developers to turn their newly completed luxury homes into much-needed cash.  As a buyer you need to be aware. The first step is to make sure you are dealing with reputable companies, get prepared and familiarise yourself with the procedure.  Then if your bid is successful, it may turn out to be the quickest, most hassle-free and best investment you’ve ever made.”

British Homes Group is an Orlando-based, UK-staffed estate agency and mortgage brokerage company specializing in finding and financing Florida holiday homes and investment properties for UK residents.  BHG is a “one stop shop” for all things Florida property and prides itself on offering advice and guidance with no pressure on people just enquiring about the market.

BHG has assembled a team of totally objective professional advisors on all subjects including UK and US law, immigration, tax, insurance and who will guide people through all aspects of buying a home in Florida, from on-line auctions through to buying furniture and sourcing decorators or interior designers. 

The next auction on 8th of November, will feature a selection of properties developed by Ginn Resorts (www.GinnResorts.com).  Ginn Resorts is a premiere US developer with many resort communities throughout the south-eastern US and Florida.  The featured properties are at:

1.  Reunion Resort near Orlando (www.ReunionResort.com)
2.  Bella Collina Golf Club near Orlando (www.BellaCollina.com)
3.  Hammock Beach resort on the Atlantic coast, east of Orlando (www.HammockBeach.com)

In a previous auction, and reported on by the UK’s Daily Telegraph, Sheila Harrison of Luton, Bedfordshire snapped up a new three-bedroom apartment at Lely Landings in upmarket Naples, West Florida for £100,000 ($200,000).  The list price was double that at $399,000 and a near identical apartment at Lely Landings was independently valued in November 2007 for $397,000.  Brian and Debbie Gill from Leamington in Warwickshire successfully bid $270,000 (£135,000)  for a 6th floor three bedroom apartment at Oceanwalk Condominiums on the south beach area of New Smyrna Beach, Florida. 

Lee Weaver, Director of Operations of The British Homes Group, says:  “In all our many years helping UK buyers find Florida dream homes, there has never been a better time for Brits to buy in Florida.  With high supply of properties and low demand from locals, and the difficulty of getting credit here, the market has never been so full of bargains.  The dollar has strengthened against the £ in recent weeks but still presents excellent value for buyers from the UK and Ireland.”

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For further information please go to: www.britishhomesgroup.com/florida-property-auctions.php Or call freephone 0800 096 5989 or (+1) 407 396 9914

Lee Weaver of British Homes Group was recently interviewed by Hot Property Overseas.  Weaver notes that 2008 business at British Homes Group is up threefold as compared to the last half of 07 thanks to British investors.  His advice for UK real estate buyers?

"One thing UK buyers of US property should do is familiarize themselves with the buying process, which is quite different from the UK’s solicitor-based one."

Weaver notes some basic differences:

• Typically you don’t need a solicitor, instead you have a closing or title company
• The American MLS System is different from the British system in that agents share the data and split commissions acting as an incentive to show prospective buyers a wider range of properties
• The lending culture in the US is different, home loans bought through mortgage brokers often get sold to other financial institutions – often times you don’t know who owns the loan

Lee believes the window of opportunity is still open but narrowing – those who have been thinking about getting into the Florida market should not wait to investigate!

Call British Homes Group Today for help with purchasing or financing your Orlando area dream home!

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