The constantly fine weather, easy access and the recent strong pound against the dollar have all combined to make Florida a contender for the expat pound.

If you are seeking to purchase real estate or property in Florida, here are a few pointers for you to remember.

Costs:
The buyer pays no fees for purchasing. But, at the same time, there are no obligations on the part of the seller or realtor to disclose all details of the property. Many people hire a "buyers agent" on their behalf, who will find properties for you. Payment to the agent is made by splitting the sales commission between the seller and buyer agents.

In Florida, instead of using lawyers for property transaction, the general rule is to use a "title company" for the legalities. They generally chare a set fee of between $150 and $300. However, should you feel that a lawyer is necessary, legal fees are not much more expensive.

It is also advisable to take out Title Insurance while buying in Florida. This will protect you against financial loss if problems arise regarding your right to ownership of the property. It will also pay for the cost of defending against any claims made against you. It will generally cost 1% of the property price. There is no sales tax on the purchase or sale of property. However, instead we have "closing costs", which include Documentary Stamps (applicable only to properties with a mortgage, at a cost of 35 cents for each $100 of mortgage) and a Intangible Tax of 0.002% on the mortgage amount.

You will also have to pay local property taxes to the county where you are located. This is an annual tax on the assessed value of your property (which is generally valued at 75% of the market value of your property). The tax amount depends upon local amenities, but an average amount for a $150,000 property would be around $2,000 a year.

Property Renting

Rental income paid for in Florida is subject to US tax, and is taxable locally. There is however a double taxation treat between Florida and the UK, which will prevent double taxation.

Federal tax for a single person range from 10% per capita up to $7,150, rising to 15% upon income up to $29,050 then %20 upwards. The top tax band is 35% on incomes above $319,100. Married couples are subject to different rates. Florida is almost unique in the States for not imposing a local income tax. However, on a rental income taxable allowances are extremely generous, which will reduce the amount of tax payable.

Selling up.

Estate agents generally charge up to 6% of the sales price. You will need to pay "Docuymentary Stamps" on the Deed (full amount of the selling price), at the rate of 70cents per $100.

Capital gains tax on sale of real estate in uncommon, as it is only due on profits in excess of $250,000 per owner. So, a married couple would need to make a profit of at least $500,000 in order to qualify for capital gains tax in Florida.

Mortgages in Florida.

Overseas buyers are generally expected to pay down a deposit of at least 20%, or 30%. In general, the higher the deposit the lower the mortgage repayment interest rate. US dollar mortgages are at a fixed rate for a 5, 15 or 30 year terms. Inheritance tax

This is known as the Estate Tax, or "pick up tax". If your assets in 2004 and 2005 for not exceed $1,500,000 you are exempt from having to file with federal authorities.