What will a second home in SW Florida cost?

As the prices of homes in SW Florida are, can we say, more than
affordable,
many people across the U.S. and abroad are entertaining the possibility
of a
second home. The biggest question on everyone’s mind is “What will it
cost
me?” Obviously it is pretty easy to find the listing prices of homes
online
but to truly understand what the ‘cost’ will be can take doing some
research. In this article I will go over the basic costs you can expect
to
pay when investing in a second home here in beautiful Cape Coral or Ft.
Myers, Florida.

First to consider: Cost of Money

Are you planning to pay cash or do you plan to get a mortgage for some
of
the purchase price? If you plan to pay cash make sure that you are
comfortable with the rate of return on your investment. You may wish to
consider getting a loan for some of the purchase to keep more capital
for
other investments (more houses, or?).
If you are going to obtain financing make sure you determine which loan
is
best for you and your needs. Most investment properties will require
20-25%
down. If you are Foreign National you must be prepared to put down at
least
30% in most cases. You can also attempt to receive a loan from your
country
as well. The rates will be lower but you may have to put up your current
home as collateral (borrow against your equity). Some second homes may
be
purchased with less money down. But your payments will be much lower
with
the more money you put down on your purchase.

For comparison purposes here let’s take one of current waterfront
listings.

It is located at 1429 Vendome Ct. Cape Coral, Florida 33904. It is a
gulf
access home, built in 2007.

The current asking price is $375,000. Let’s
assume that you plan to put down 25%. This means that you will be
putting a
down payment of $93,750.

Here is an estimate of closing costs:

Taxes: $ 6,422.24*

Loan fees: $3,846

Prepaid taxes & insurance: $5,778

Total costs to close: $103,374.

* from current 2008 tax bill – properties are reassessed every year
here so this could change. Currently this home is assessed at $374,230.

To find insurance companies who are still readily writing homeowners
insurance in the state of Florida visit www.ShopandCompareRates.com

You can verify tax information online at www.LeePA.org

Ready to search for available homes now? Visit our Cape Coral real estate
source!

We look forward to hearing from you!

Yours in Success,

Florida Future Realty, Inc.

(239) 542-8521

FloridaFuture@gmail.com

www.Florida-Future-Realty.com