How Much Capital Do You Actually Need to Buy in South Florida?

Buyer closing costs in Miami-Dade typically run 3 to 5% of the purchase price excluding down payment. This includes title insurance paid by the buyer in Miami-Dade, documentary stamp taxes of $1.05 per $100 of purchase price, intangible tax of 0.2% of the mortgage amount, documentary stamp tax on the mortgage of $0.35 per $100, lender fees, attorney fees, and home inspection. In Broward and Palm Beach counties title insurance is paid by the seller reducing buyer closing costs by approximately 0.5% of purchase price.

The Florida nonrecurring intangible tax is $0.002 per dollar of mortgage amount — equivalent to 0.2% of the total loan. On a $700,000 mortgage the intangible tax is $1,400. This is a one-time tax paid at closing and applies to all mortgage-financed purchases in Florida regardless of county.

Title insurance customs vary by county in South Florida. In Miami-Dade County the buyer pays for title insurance — the opposite of most US markets. In Broward and Palm Beach counties the seller pays for title insurance. On a $1 million purchase title insurance can cost $5,000 to $8,000. Knowing your county before calculating closing costs is critical.

Florida documentary stamp taxes apply to both the deed and the mortgage. The deed transfer tax is $1.05 per $100 in Miami-Dade and $0.70 per $100 in Broward and Palm Beach. The mortgage documentary stamp tax is $0.35 per $100 of the mortgage amount in all counties. On a $1 million purchase with an $800,000 mortgage in Miami-Dade: deed stamps $10,500 plus mortgage stamps $2,800 equals $13,300 in documentary stamp taxes alone.

Foreign national buyers in South Florida require a minimum 25% down payment for single-family homes and 35% for condominiums through specialized non-QM portfolio lenders. Miami Real Group recommends 30 to 40% down for better interest rates and stronger offer positioning. Additionally foreign national buyers must show 6 to 12 months of PITI reserves seasoned in a US FDIC-insured bank account for 30 to 60 days before closing.

PITI stands for Principal, Interest, Taxes, and Insurance — the total monthly cost of owning a property. Foreign national lenders require 6 to 12 months of these combined monthly costs to be held in a US FDIC-insured bank account before closing. On a $1 million property with a $700,000 mortgage the monthly PITI might be $7,000 — requiring $42,000 to $84,000 in additional liquid reserves beyond the down payment and closing costs. These funds must be seasoned in the US account for 30 to 60 days — last minute wire transfers from overseas will trigger underwriting rejection.

When a US buyer purchases from a foreign national seller, the buyer is legally responsible for withholding 15% of the gross sale price and remitting it directly to the IRS. Failure to withhold makes the buyer personally liable for the full withholding amount plus penalties. This obligation is handled by the closing agent but the buyer must ensure their title company and attorney are managing it correctly. Miami Real Group coordinates FIRPTA compliance for every transaction involving foreign parties.

Buying in an LLC provides asset protection and estate planning benefits but eliminates homestead exemption eligibility, increases mortgage rates, and adds annual LLC costs of $138.75 for the Florida report fee plus $1,500 to $3,000 in legal setup costs. Buying in personal name qualifies for Florida's homestead exemption saving $500 to $1,000 annually on property taxes and the Save Our Homes 3% annual assessment cap. The right structure depends on your investment intent, tax residency, and estate planning goals. Miami Real Group recommends consulting a qualified Florida real estate attorney before deciding.