What to be aware of when buying real estate in Tampa?

November 25, 2022

House model in home insurance broker agent hand or in salesman person. Real estate agent offer house, property insurance and security, affordable housing concepts

Reasons to buy real estate in Tampa

Tampa, nestled on the shores of the great Tampa Bay on the Florida Peninsula, is the third largest city in the state. It is also famous for pleasant climate and affordable properties. Property for sale in Tampa is very attractive to investors who want to earn passive rental income and future homeowners who decide to move to the USA.

As any real estate investment, properties in Tampa require deep knowledge and thorough investigation of the market.  No matter whether you have an intention to rent out the purchased housing unit or live there permanently, you need to check all the important issues. Besides, it would be a rational decision to perform a preliminary calculation and think through your budget.

Purchase of real estate on a credit

In the USA, there is an interesting rate system. The main rule is if you borrow money for a house from a bank, the down payment and interest rate will be much higher than if you buy your main house. It's also worth hiring a mortgage broker to advise you on the best loan option for your situation.

Mortgages for foreigners

The mortgage system of the USA provides relatively complicated conditions for foreign investors. A foreign national can apply to a bank for a loan, but it will always be associated with certain difficulties, additional checks and stricter conditions.

You can improve your chances of being approved by:

-       presenting a letter of recommendation from a major bank, confirming the reliability of the client;

-       making at least 30-40% of the purchase price of the house / apartment;

-       agreeing to a higher interest rate on the loan.

For foreigners, the interest rate on the loan will be higher in order to minimize the possible risks of non-payment of debt. Typically, a citizen of a European country and any other foreigner can expect to receive a mortgage loan at 5% per annum. Private lending institutions will offer rates even higher - 6-12% per year.


A special feature of Florida is the compulsory insurance against natural disasters for properties in certain cities and areas near the ocean. If you already have a basic house or apartment, and you buy another object for investment, then consider that the insurance of this type of property will cost more. It is important to choose an insurance company from Florida, as its experts understand the specifics of the region, keeping up with changes in the law and help choose the best insurance package.

Earning money by leasing in Florida

Renting out a house or a villa is a fairly simple way to make money, but it also has certain characteristics. As a rule, there are two types of rentals: long-term and short-term. By the way, the latter option usually brings more profit, but the expenses on it will also be more.

Features of a short-term lease:

-       The term of the lease is up to six months;

-       The income is subject to an income tax of 12.5%;

-       The cost to the customer per month is higher than a long-term lease;

-       The residential property must have everything you need for a comfortable stay (furniture, dishes, linens, etc.).

Features of the long-term lease:

-       Rental period of six months or more;

-       The cost per month of accommodation is lower than for short-term rentals;

-       Housing can be rented without furniture and appliances.


Possible restrictions on the property owner

A homeowner may face certain restrictions associated with renting out a property. Usually, this situation arises if you have purchased a home from a homeowners association. It can include both apartment buildings and townhouses. Before you buy, it's important to carefully review all of the association's rules, as some homes may have significant restrictions, often related to short-term rentals. For this reason, some investors prefer a private home where there are no such restrictions.

Select the best investment options with Florida.Realestate

Florida is a great place to live and is chosen by people of all ages, professions, and nationalities. The state's cities offer many opportunities for education, employment, medical treatment, and recreation.

There are theme parks, nature preserves, beaches, golf courses, universities, schools, hospitals, shopping centers, restaurants, and more. In addition, affordable housing is available in all of them.

To analyze the properties on the market in Florida, go to Florida.Realestate. Here you can find a variety of housing options: villas, apartments, studios and condos, and detached homes. With a convenient search you can compare prices in euro and dollars. Also, you can always choose the best option among the most current offers from developers and real estate agencies.


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