Cape Coral, Florida Real Estate & Home Buying Guide
Did you fall in love with Florida on vacation—its places and people? And now you can’t get this thought out of your head: Why don’t I just buy a property here in Florida, Cape Coral? Of course, it’s not a decision you make overnight. New questions keep coming up. One of them is likely the distance. Because if you only use your new home during vacation, the obvious question is what happens to the property the rest of the year. And legal questions come up as well, since the laws in the U.S. are different than in Germany. Still, you shouldn’t let that discourage you from your big dream. Living proof that it’s possible: More and more owners of homes and properties in Cape Coral are Germans. And if it works for others, it will be possible for you too!
The costs of a property in Cape Coral
Of course, owning your own villa in Cape Coral isn’t exactly inexpensive. Costs vary depending on location and amenities and start at around $350,000. Not everyone wants to—or can—afford that. Especially because you’ll probably only use your vacation home for a few weeks or months while on vacation. A first step, therefore, is to become fully aware of the costs—both for the purchase itself and for ongoing ownership.
Unfortunately, prices that had dropped sharply ten years ago after the real estate crisis have risen again. But: Even now, there are still many vacation homes in Cape Coral currently for sale. And in a wide variety of styles—and in different price ranges. Particularly luxurious—but also very high-quality—villas are for sale in Cape Coral.
One strategy to at least cover ongoing costs and repairs for the vacation home: More and more villa owners rent out their property over the winter to tourists who can afford to “winter” in the sun.
Ongoing expenses for a property in Cape Coral
Homebuyers should expect the following fixed costs per month:
Property management: from $160 (includes, for example, 1 visit to the villa per week, administration, etc.)
Insurance: from $1,300 to $3,000
Property tax: from $9,500 (depending on how much the home is worth)
Pool: maintenance and cleaning from $90
Lawn fertilization and mowing service: total from around $125
Pest control: from $40
Internet, TV, phone service: from $160
Water: from $85
What to look for when buying a vacation home
If you also want to rent out your new vacation rental, it will be especially important to choose a property with a pool. Location then becomes more important than if you’re using it only for yourself. You should also furnish your villa stylishly while also equipping it completely. You should also make sure you have enough bedrooms, bathrooms, and—especially important in Florida—air conditioning. When buying a property in Cape Coral, up to 35 percent of the purchase price is due immediately. You should also be clear from the start about what percentage of your costs you want to cover through rentals. Because if you rent it out, the mortgage of course has to be paid monthly as well. In addition, because of incoming and outgoing payments, you would need to open a bank account in the U.S. Depending on the bank, that isn’t always so easy. As a rule, you buy your home through a real estate agent. Only rarely are properties offered for sale by owner.
Legal considerations for buying and renting out a home
The good news up front: Both are permitted. You can finance the home purchase not only through a German bank. A U.S. bank with a branch in Germany is also an option. Some U.S. banks may also approve the financing. Before buying the home, you should definitely ask a title company—the counterpart to a notary—for advice, so they can confirm for you that everything is in order.
If you rent out your villa or home, the income must be taxed in the U.S. You also need to keep in mind: Even if you own a property in the U.S., you may stay in the country for no more than 90 consecutive days.
How the home-buying process works in Cape Coral
First, you do your own research locally or online; of course, you can also contact a trusted real estate agent in advance and share your preferences. If you’ve found a property that appeals to you, then you get in touch with the agent—and set an appointment to discuss the details.
If the agent is good, they won’t focus only on that one property, but will also show you additional homes.
Also important: There is definitely room for negotiation on the price. So don’t just look—and negotiate!
Also very important for your personal protection: Be sure to obtain “title insurance.” That way, your new dream property is protected—both against hidden defects and against third-party claims.
Once all of that is done, you can fully enjoy your new purchase—and enjoy your time in your own dream villa in Cape Coral.