Land historically goes up and down in value, at a relatively more significant rate. Therefore, some of the best bargains to be found are from buying the land itself, and holding onto it until property prices go up - rendering the land significantly more valuable, as there will be a much greater demand for new housing.
Buying land does not have to be purely an investment. Many people like the idea of building their own unique home in Florida, and this is particularly appealing from a UK perspective, as the costs are comparatively lower, and planning permission is easily obtained in Florida compared to in the UK.
Before investing in any land in Florida, it is important to do plenty of research into the broker/seller, the area where you are wanting to buy, and what services are included with the land.
Decide what are the reasons for buying land in Florida. Will it be for building your dream home? Or do you just want to invest?
If you are looking to live in Florida, which areas are you considering? There are several main regions, which have different cultures, attractions and weather.
Do your research on the seller/broker. It is recommended to do some thorough research into the plot itself, and the area in which you are buying.
Ensure that you have researched the local area for amenities, attractions and schools, as this will have an impact on the value of your land or property should you build on it.
Buy a plot of land in Florida. From a UK perspective, it is important to understand the differences buying property/land in the US compared to the UK. It is advisable that you seek out legal advice in the UK and Florida before committing to any purchase. It is possible to complete a purchase of land without acting through a solicitor/lawyer, but many people feel more comfortable acting through a lawyer to complete the process. You should at least seek legal advice to go through the contractual paperwork if you are unsure. A seller/broker of land plots should be able to advise you on how to build, and where to find a good contractor for the type of build you require.
Always use a Title company to purchase, especially their escrow account. This means any money you pay is secure in a third party account.
In order to complete the purchase, you will need to sign a contract that is then countersigned by the seller. Once this is completed, it will be passed to a Title Agent, who will start the process of transferring the title deed. This can take several weeks to process.
Once the title deed has been transferred, the purchase is complete. The Title Agent should send the final title deed to the buyer, and then, providing the balance has been paid, the buyer becomes the legal owner of the land.
If you want to hold onto the land as an investment, there are little maintenance expenses. You will have to pay a relatively small land tax each year, as well as paying to maintain the plot; such as keeping grass cut, etc.
If you decide to build on the plot, as well as the cost of the building project itself, you may incur other costs such as impact fees; a fee that goes towards the local community, funding services such as local schools and fire service.
Building a property in Florida can be different from building in the UK, as many homes are made using timber frame. Also, it is becoming popular in Florida to build modular homes. However, there are still many homes constructed in Florida using more traditional on-site construction methods. Either method will cost around the same; anything from $80,000 - $150,000 all in for a 3/4 bed house, depending on your individual specifications. Although, this cost can be higher for more luxury specifications.
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