The real estate purchasing power of foreigners is restricted by a new law in Florida.
Recently, a controversial law was enacted in Florida that limits the ability to purchase real estate for foreign citizens from seven countries. This measure has surprised the global real estate market in Miami.
The legislation, promoted by Governor Ron DeSantis and approved by the state Senate the first week of May 2023, prohibits the acquisition of real estate properties for most citizens of China, Cuba, Russia, Venezuela, North Korea, Iran, and Syria within 10 miles of military complexes or critical infrastructure, such as airports, ports, wastewater treatment plants, and electric power plants. p>
However, exceptions are established for foreigners from those countries who live in Florida with non-tourist visas or who have obtained asylum in the state. This modification was made after opposition from Chinese Americans who considered the measure discriminatory.
The final version of the diluted legislation, which arrived reached the governor's desk, it did not include a blanket ban on Chinese Americans from owning property statewide, but instead focused on only in the EB-5 immigrant investor program, which allows foreign investors to obtain green cards in exchange for their investment in large real estate developments in Florida and other states. According to experts, the areas of Miami-Dade County, where many people from these seven countries already reside, especially Sunny Isles Beach, known as Little Moscow, Doral and Hialeah, will be the most affected by this law.
Overall, the South Florida real estate market is expected to remain resilient and largely unscathed, according to an attorney, consultant and real estate agent interviewed for this article. It is important to note that the law does not affect foreigners from countries considered "of interest" who rent homes in the region and throughout the state.
Attorney Dennis Eisinger, managing partner of the Eisinger Law firm in Hollywood, points out that this legislation will have It will have a minimal impact within the state, but it will have a significant impact. significant consequences in coastal areas. Furthermore, it warns that the law presents a certain vagueness in its wording and in the way in which it was prepared. Eisinger predicts that the law will likely face challenges. legal lawsuits in the future, but he notes that litigation may take months or even years to affect its implementation.
What are the main mandates of the law?
Starting July 1, foreign citizens from the seven designated countries will only be able to purchase land or residences up to two acres in Florida, as long as they are located outside the 10-mile radius of infrastructure critical or military installations. Additionally, they must register the property with the state Department of Agriculture and Consumer Services and the Department of Economic Opportunities (DEO). Those citizens of these countries who already own real estate in Florida will be able to keep their properties, regardless of their location, but they must register them with the state starting in January 2024. Those who do not register They will face daily fines of $1,000.
For owners from the above nations who inherit condominiums, homes or land after July 1 and are within a 10-mile radius of critical infrastructure, military buildings and agricultural land, queues, they will have three years to sell the properties.
The law will enter It will come into effect from July 1, meaning foreign buyers will not be able to purchase properties near critical infrastructure or military compounds. Those owners or real estate agents who sell land or homes near these places to foreigners affected by the measure will face sanctions and fines. However, foreigners who purchase properties in Florida before July will be able to keep them, regardless of their location.
As for who wins and loses from this law, Jack McCabe, owner of the real estate and economic research firm Jack McCabe Expert Services in Deerfield Beach, says it will affect the economy. to everyone in the Florida real estate market. Urban developers will be prevented from selling to buyers in these seven countries and obtaining capital from them for new construction. On the other hand, local residents and those moving from the northeast will benefit the most, as theyand there will be less competition to acquire properties, which can be advantageous for the local market. McCabe also mentions that those owners with high-value properties and developers who have catered to foreign buyers will be hardest hit. In the case of Miami-Dade communities that have long been marked by the presence of citizens of these seven countries, they are expected to see an increase in the supply of properties and a decrease in prices.< /p>
However, despite the expected negative effects, continued corporate expansions and wealth migration are expected to continue to cushion much of the impacts of this law. High-income professionals from the Northeast and West Coast continue to flock to Florida, boosting home prices.
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