View Full Version : longterm renting
Hi ya'll
Moving over spring next year and will be needing to rent long-term on the westcoast. 3 bed 2 bath min. Know any good websites guys. All i can find is short term villa renting.
We are on about renting for a min of 1 year before we buy.
thanks
Jimbo
There's nothing to stop you asking STR home owners if they'd be willing to take a long term rental as some may be pleased not to have to try to get bookings for a while.
Try a search on http://www.google.com for the following search terms 'long term rental homes gulf coast florida' which brought up some websites to choose from.
SusieDozOrlando
01-01-2004, 01:12
Is it worth renting for one year? Even at a rent of say 1000 a month, thats 12,000 at the end of the year!!! If it was me I'd rather put that down as a deposit on a home and if I wasn't planning to settle in that area, I'd rent it out. At least it's money invested than wasted....or is that just my opinion?
Yes renting is worth doing for a year. When you take into account Closing costs etc. and potential realtors fees for selling a home again, if you buy in the wrong place, it is infinitely preferable to rent.
Jimbo, as a UK national, you would have to put down around 30% to buy anywhere. It'll take you quite some time to establish a credit rating and be treated as an american would be when it comes to getting a mortgage.
Once you have fully explored the area then you'll know where you really want to live. Like Blott says do a search on google for the area that you need to live in and see which realtors handle LTR homes.
SusieDozOrlando
01-01-2004, 06:08
I actually disagree on several accounts. The first being that a 30% deposit is only applicable to a UK National if (a) you wish to have a non status mortgage, if you wanted to go into indepth questions you could get away with a significantly lesser deposit and (b) that's on the assumption you wanted to buy with a US mortgage (c) that's assuming you wanted to buy with a mortgage at all.
If you were in the position where you were buying with cash or equity release from a UK property, you would be in a totally different financial situation.
My view point is this. If you are living somewhere for 12 months, I seriously myself prefer to go down the track of a 'buy to let' basis, purchase a relatively modest property for those 12 months and then let it out thereafter to pay for itself. Eventually the rise in your equity would more than pay for your selling costs anyway. Besides, buying a modest property, taking into account the mortgage would probably be cheaper than rent, even bearing in mind the closing costs, I seriously don't think you'd be out of pocket. At the end of the year, the property would have risen in value and even if you come out with a dollar, you've made a dollar...when you rent, you come out with nothing.
That's my view point anyway after many years working in the financial and real estate industry.
SusieDozOrlando
01-01-2004, 06:12
One final point I forgot to make. You spoke about establishing a credit record. Well a mortgage is a good place to start. Once you have a mortgage, all kinds of people trip over themselves to offer you credit, i.e. loans and credit cards, and thats how you establish credit!
huckleberry house
01-01-2004, 06:33
Susie
Where abouts do you live ? Uk or Us.I ask because regardless of whether you have a US mortgage or not it is nigh on impossible to get credit in the US as a foreigner, let alone have people falling over to give it to you.
Lesley
Susie, you're wrong on a number of counts and if Jimbo took your advice he could well end up seriously out of pocket, particularly if he buys in the wrong neighbourhood at the wrong time. Maybe he could end up making money but the gamble for a foreigner is high.
What you write may well be fine for US nationals, but not for anyone from outside the US. As Lesley and I have both said, getting any form of credit is incredibly difficult and takes a long time. If you want to know just how difficult it is for a foreign national to begin life in the US then ask some of those on this forum who have done it.
SusieDozOrlando
02-01-2004, 00:52
Everyone has gone way off the subject. The man simply asked a question about long term credit and now everyone is talking about credit? He hasn't even asked about this.
The fact of the matter is, whether you move somewhere to rent or buy, if you are from out of the area you are taking a gamble. He could quite easily sign a year's lease in an area he grew to detest in which case that is no different. No one is talking about him moving to a bad area...we're not dealing with naive kids here. I don't believe a responsible would move to an area far out of the way not having researched it correctly.
Renting = loss of money plain and simple.
If Jimbo believes renting is the best option for him, then fine, I'm sure he's old enough to know what he's doing.
I'm just merely saying I would never waste 12,000 on rent. I'd rather buy a damn trailer with it and live from that in a nice park and then at least at the end of it sell it and move on. I don't line other people's pockets, only my own.
SusieDozOrlando
02-01-2004, 00:56
I, of course, meant to say he simply asked a question about long term renting!
Watch your language Susie. Children read the forum as well.
My husband is a born American and moved to France for 12 years. When he came back it was incredibly hard to start to establish credit again. It was like he didn't exist. He had to ask his mom to help us out to buy our car and first home. It's not easy [msnsad]
How difficult is it to get a mortgage straight away in the US? We will be moving from the UK to Florida with no credit history. Yes we will have funds available (£60,000) after we have bought the biz. But don't really want to tie that money up. I have read on this forum about the money you need in the first couple of years on deposits for utilities etc.. I'm not that interested in buying and then having to rent because we bought in the wrong place. In saying that, good point about throwing money away. This something we have thought about hence the request for renting websites.
I have heard that the rents can vary depending on the time of year?
Jimbo
If you look on www.realtor.com for a realtor who specialises in the area that you want to live Jimbo, they should be able to help you in the long term rental market. Rates for homes rented long term are different to those for short term. Many realtor companies act as agencies for long term rentals as well as selling homes.
You will, most likely, be able to get a mortgage, if you choose to buy instead of rent, but not on the same terms that Americans can get. You'll pay a higher interest rate and have to put a lot more money down as a deposit. Depending on where you decide to eventually buy you could easily have to use all of your £60K as deposit for the house purchase.
SusieDozOrlando
02-01-2004, 14:39
My opinion to Jimbo is to explore all those options with expert financial advice. Engage and independent financial adviser and get quotations for mortgages etc. Jimbo, I can understand you want to keep a reserve in the bank probably to live on and see you through until your business probably either takes off or makes sufficient money for you to live on.
However my opinion on it is this. You have around 60k, you will rent for around 12k. Effectively that means you will be using approximately one fifth of your capital. At the end of this time, you will have two options. One is to rent again. The other is to buy. If you buy after you have rented, you will have a far lesser deposit than before. If you rent again, you will further eat into your equity.
Weigh up the pros and cons very heavily on buying-v-renting.
Establishing credit is always hard. Even in your own country. If you are young, old, or even default in any way, you are going to have to establish credit again.
However, if I have any advice it would be this. Seek an independent IFA to handle this for you.
Just remember, what takes you months to spend in rent, has taken you YEARS to earn in equity in your home. It could take you years again just to get back what you lost. And with rises in property markets, you may find after renting you cannot afford to get on the ladder. SEEK EXPERT ADVICE.
Jimbo,
To get a head start, I can tell you where to look/call to get an American certified financial advisor. Send me a PM if you are interested [msnsmile2]
Jimbo, just so that you have some figures to work with if you do consider buying not only your business but a home at the same time.
On a property worth around US$200,000 (hard to get anything really decent on the Gulf Coast for less than this) the closing costs will be around US$12,000. Therefore total purchase price will be US$212,000. As a British national you'll most likely have to find 30% of the purchase price which would be US$60,000. So in order to purchase a home you would need at least US$72,000 up front. At today's rate of £1 = $1.78 that would equate to around GB£40,500. When you come to do it, if the rate has dropped then you'll need more pounds to cover the dollars. If it goes down to £1 = $1.5 then you'd need GB£48,000 to end up with US$72,000.
Since you said that you would only have capital of GB£60,000 left after purchasing your business, if you also bought a home you would then have only GB£19,500 left of your spare capital or US$34,700 (at £1 = $1.78) to fund your startup in a new Country. There are so many other things that you will have to pay out for, for the business and living costs, that you will run out of money very quickly. Based on the experience of others I know who have gone the route that you are taking, you cannot assume that your business will generate enough income to keep you going for quite some time - you will be using a lot of your spare capital to do this with.
I think that it is more important, initially, that you ensure that your business succeeds, and have sufficient funds to help it to succeed, rather than worrying about buying a property, otherwise you may find that you end up coming back to the UK with little or no capital.
You also need to bare in mind that this is the first year for sometime where there has been any significant growth in the equity in a home in Florida. Prices have been relatively stagnant for some time. You also cannot assume that this growth will automatically continue. The housing market in Florida should never be compared with the UK housing market.
I hope that it all works out really well for you. Let us know how you get on.:D:D
SusieDozOrlando
03-01-2004, 01:06
Jimbo
Always negotiate with your realtor. Remember that they are getting commissions. A lot will consider a cash back. I'm sure they'd rather a lesser commission than lose the whole deal.
Ask this before you commit to anyone. Remember YOU are the one with the money you can take it to any realtor you like. If they aren't agreeable to this, take your money elsewhere to someone who will.
Also if you are buying new, try and look for a builder who contributes significantly to your closing costs. Some builders will pay practically the whole thing. Choose wisely.
Same goes for business purchases. Negotiate!! Us British are notoriously bad at this.
Get as much information from as many experts as possible.
WOW! You guys are fantastic. I'm trying to take it all in before I reply fully
Jimbo
OK here goes, my twopenneth!!. Once you are living here and your only income is from new business here, it is INCREDIBLY difficult to get credit of any sort. It takes about two years to build up a credit rating. We just got credit cards witha $300 limit on them ( wowie) and we have owned a villa here for seven years!! We bought our home we live in here two months before leaving the UK, putting 30% down and buying as a "vacation home". At the time my husband was still working in the UK. We have been here six months now and recently enquired about changing to a Florida residents mortgage. We were told that definitely no chance of a residents mortgage as incomers with an unproven business for two years. Until you live here, you have no idea what life is like for those on a non immigrant visa. You are a non person when you first get here and cannot do anything at all. I was better than some as I had owned a villa so had some credit against my ITIN though none against the all important social security number. Without a rating in the US, you are nothing. Jimbo, it aint easy, this, dont expect it to be.
BTW, rents are sky high on the west coast. Renting long term will cost an arm and a leg.
Jimbo, put it this way...it's not easy making it here but if you make it here you can make it anywhere. I wouldn't leave this country to go back to my homeland if they paid me too :) You've got a lot on your plate.
Great breakdown of the finance Carla, very precise.
Hi Guys,
loads of advice and information. thanks also for the PM's
We are considering taking a lot of our furniture out with us. Is this a good idea? Is it possible to rent unfurnished? Anybody taken their own furniture out with them? who did you use?
This is at the moment a consideration. Is furniture cheaper in the States? Know any good sites I could look at?
Sorry lots of questions
Jimbo
Most long term rental homes/condos will come unfurnished, which is the norm in Florida. But taking all your furniture with you will cost you an arm and a leg (around GBPounds 5000 or so) and for that you could probably furnish a three bedroom home with sofas, beds, tables, chairs, etc for the $8500 and get new furniture into the bargain!
Don't know about the Gulf Coast but in the Orlando area try http://www.roomstogo.com or http://www.jcpenney.com or http://www.sears.com There are other cheaper stores but they don't necessarily have websites.
Furniture is cheaper here and nicer. Plus English furniture often looks odd in Floridian houses. I shipped out things I had a sentimental attachment to. Half of them got lost en route and never re-appeared and some of the rest arrived broken. So much for sentiment!!
chrizzy100
11-02-2004, 19:37
quote:Originally posted by jimbo
How difficult is it to get a mortgage straight away in the US? We will be moving from the UK to Florida with no credit history. Yes we will have funds available (£60,000) after we have bought the biz. But don't really want to tie that money up. I have read on this forum about the money you need in the first couple of years on deposits for utilities etc.. I'm not that interested in buying and then having to rent because we bought in the wrong place. In saying that, good point about throwing money away. This something we have thought about hence the request for renting websites.
I have heard that the rents can vary depending on the time of year?
Jimbo
Hi jimbo.....
We moved to the USA 4 years ago.....with around $60k in our pockets....not FL...but I still think its worth hearing from anyone whos done the big move.....:D
First off.....I landed just before thanksgiving...and was a home owner by New Year......no credit history.....but a lot of good luck......
Renting a place in FL for a few months at a time would give you a credit history.....our bank in the States told us to do that before buying..but we found our house a few days later.....and by having the right realtor........and I can't say this enough...you need an on the spot realtor.....who lives in and knows the area......and knows all the important people who maybe able to help you.....and you need all that help in a new country.....believe me.......
Keep and bring all the bills you have for gas....mortgage.....credit cards..etc for the year before moving.......banks in the US love paperwork......bring over the paid up notices of any loans you had in the UK......and a contact number for your English bank.....along with all your bank statements for around a year.......
After doing your taxes first time...you'll find you'll get all the credit cards etc that you need.....
We were lucky..we found a house at a good price.....in a low tax area....low water bill area......which we fell in love with.. and that was also ready to move into right away......whe had a realtor who knew the right people to help get us our mortgage after being told we would not get a mortgage until we had renting for around 6 months.....
I don't know if thats of any help......you're always welcome to PM me......:)
chrizzy100
11-02-2004, 19:48
quote:Originally posted by jimbo
Hi Guys,
loads of advice and information. thanks also for the PM's
We are considering taking a lot of our furniture out with us. Is this a good idea? Is it possible to rent unfurnished? Anybody taken their own furniture out with them? who did you use?
This is at the moment a consideration. Is furniture cheaper in the States? Know any good sites I could look at?
Sorry lots of questions
Jimbo
We were lucky having the backing of a large company bringing us over......they paid for everything to be shipped....but if not..I would of sold everything and got new over here......if you look on line you can fill a house for around 8k-10k.......
kevinprewett
11-02-2004, 20:46
Jimbo,
we have owned 4 different properties over the years and funished them all top to bottom in Florida! Much cheaper, better value and much better designs- no contest! It will cost a fortune to take it over |& its just not worth it.[msnwink]
chrizzy100
11-02-2004, 21:01
quote:Originally posted by blott
Most long term rental homes/condos will come unfurnished, which is the norm in Florida. But taking all your furniture with you will cost you an arm and a leg (around GBPounds 5000 or so) and for that you could probably furnish a three bedroom home with sofas, beds, tables, chairs, etc for the $8500 and get new furniture into the bargain!
Don't know about the Gulf Coast but in the Orlando area try http://www.roomstogo.com or http://www.jcpenney.com or http://www.sears.com There are other cheaper stores but they don't necessarily have websites.
I was unsure about Rooms To Go.....but the stuff I have from there is great.....I would shop there again......:D
JCPenney sells the best metal beds ever.....half the price of most bed and mattress shops......
on the question of credit heres my story..
been living here 10 weeks can buy a house no probs..
can get a car on finance rate 13%....
normally 5-6%...
can not get a target store card for love nor money..
been turned down for store cards ....
but in the uk i have gold cards...
morale of the story dont cancel uk cards for years sound advise i got before i came...
You can get a Costco or Sam's Club card though! [msnwink]
seashellmary
12-02-2004, 00:26
Not all rents are sky high on the West Coast, unless you want to be right on the coast, ie gulf front. There are lots of ordinary families living here, in normal homes, with unspectacular jobs, so they don't all earn huge salaries and still they manage to rent here. I have a friend, who is a single mom and has no support of the father. She manages to rent a condo with two bedrooms, just two miles along the road from one of the best beaches on the gulf coast.
She lives in Seminole, right behind Indian Shores.
seashellmary
12-02-2004, 00:39
Not all rentals are expensive on the Gulf Coast
seashellmary
12-02-2004, 00:41
oops for some reason I put up two posts, thought the first hadn't gone on and shortened my response for the second one, [msneek]
chrizzy100
12-02-2004, 01:40
quote:Originally posted by jeffc
on the question of credit heres my story..
been living here 10 weeks can buy a house no probs..
can get a car on finance rate 13%....
normally 5-6%...
can not get a target store card for love nor money..
been turned down for store cards ....
but in the uk i have gold cards...
morale of the story dont cancel uk cards for years sound advise i got before i came...
You can get store cards easier once you file your first taxes....I now get about 5 letters a day from stores and credit card companies but I'm staying with the ones who took a chance on us when we first moved here.....
We have been here 7 months. Have Sams Club cards wuth a $300 limit. Home Depot turned us down flat for their card. Our own bank, with them for 7 years, gave us $500 limits secured by a $99 savings account in spite of having well considerably more than that already on deposit anyway. Buying a house, yes we bought one too, but not on a residents mortgage at residents rates, we are still effectively paying a vacation home mortgage. If you have had a high level Amex for a long while it helps with credit. We keep getting pre-approved card and loan applications. This is because of our address. We give them our socials and they disappear and we never see them again. Hope our first year taxes help as Chrizzy says,
chrizzy100
12-02-2004, 07:24
quote:Originally posted by esprit
We have been here 7 months. Have Sams Club cards wuth a $300 limit. Home Depot turned us down flat for their card. Our own bank, with them for 7 years, gave us $500 limits secured by a $99 savings account in spite of having well considerably more than that already on deposit anyway. Buying a house, yes we bought one too, but not on a residents mortgage at residents rates, we are still effectively paying a vacation home mortgage. If you have had a high level Amex for a long while it helps with credit. We keep getting pre-approved card and loan applications. This is because of our address. We give them our socials and they disappear and we never see them again. Hope our first year taxes help as Chrizzy says,
My daughter with a job and SS number had a bad time getting credit........but after doing her taxes the first time....she had no trouble.....