The Editor, Sir:

Avia Collinder's article in The Sunday Gleaner of December 21 was very informative about real estate opportunities in the United States at present.

There are opportunities but pitfalls as well. Some friends of mine in the United Kingdom had expressed an interest in buying properties here in Florida. I sent them a list of houses that are up for sale and which might be due for foreclosures. These houses are new, in excellent condition, and are in good areas in central Florida. The owners of these properties are reported to be open to any reasonable offer.

However, I cautioned these potential buyers about any such purchases - namely that such investments have to be for the long term. No one should expect to buy now hoping to make a profit anytime soon. My friends intended to buy these properties for rental purposes.

Serious crisis

The rental market is not good and one of the reasons for this is that many people can't afford to pay rent because they have no jobs. It's a very serious crisis here! I also advised my friends that there are other costs to consider: some of these include, property taxes and insurance which are going up all the time, and in the case of insurance, many people can't get coverage.

Also in Florida, one has to keep in mind that unless the house is one's primary residence, then the owner doesn't get the Homestead Exemption waiver or discount of US$25,000 off their taxes. Plus, there are other exemptions, say for age disabilities and so on that can apply, but which one would not get if the property is not the owner's primary residence.

Federal Government

On top of all these costs, one has to consider if one would have to file income returns to the Federal Government for income earned on these properties. I know that foreign owners may pay 10 per cent in Federal taxes on properties sold, not to mention local taxes that might have be paid. So indeed, on top of some of those costs cited in your article, e.g. closing costs, minimum deposits and so forth, one has to think really carefully about inves-ting in real estate here in the United States of America at present.

I am, etc.,

GEORGE GARWOOD

merleneg@yahoo.com

Port St Lucie

Florida