Buying in Naples and Cape Coral: the full guide

Financing

Most buyers here are purchasing a second home or a rental while living abroad, so the usual route is a foreign national loan with a larger down payment: see how those work. The conforming loan limit is $832,750 in both counties. Many Naples houses are above it and need jumbo financing if you are a resident borrower.

Be exact about use when you apply. A home you occupy for part of the year and keep under your own control is a second home. A house handed to a rental manager for most of the year is an investment property, with different loan terms. Under Fannie Mae's rules for resident borrowers, short-term rental income is counted at only 50%, and only on a one-unit investment property that is legally permitted for short lets.

Cape Coral: check the utilities before the view

Cape Coral was laid out as a grid of canals and plots, and the city is still extending water, sewer and irrigation lines area by area. When the lines arrive, owners are assessed for them. For the North 1 West area the city publishes a line-extension charge of $26,617 for a standard 10,000 square foot plot and capital facility charges of $6,750, and connection on your own land costs a further $2,000 to $2,500. Developed properties must connect within 180 days of being notified.

A house in an area not yet reached is on a well and septic tank today and faces that bill later. A house in a completed area may have the assessment paid off or still being paid in instalments. Ask which, in writing, and have your closing agent confirm what transfers to you.

Flood, elevation and rebuilding

This coast took the full force of Hurricane Ian in 2022. The lasting effect for buyers is the 50% rule. Lee County defines substantial damage as damage whose repair would cost 50% or more of the structure's market value, and applies the same test to improvements. Past that line the whole building has to comply with current flood regulations, including elevation to one foot above the base flood elevation.

A low, older house in a flood zone can look like a bargain and turn into a rebuild. Ask for the elevation certificate, the flood zone, the insurance history and the permit record, and get flood and wind quotes before your inspection period ends. A lender will require the cover in a high-risk zone.

Letting

• Cape Coral. Every rental is registered annually, at $350 for a short-term property, defined as lets of six months or less. The city sets a minimum stay for short-term rentals, so confirm the current figure with the city clerk.
• City of Naples. Rental terms of 30 days or longer, except that a property may be let for less than 30 days three times a year. Most condominiums fall under the same rule or a stricter one.
• Unincorporated Collier County. Registration of short-term vacation rentals is required, after obtaining the state licence, and the registration number must appear in advertising.

Short stays are taxed at 11% in Collier County and 11.5% in Lee County. A non-resident owner's rental income is taxed by the United States at 30% of the gross amount unless you elect to be taxed on net income and file a return each year.

Getting there

Southwest Florida International at Fort Myers lists one European destination, Frankfurt, flown by Discover Airlines. Other European buyers generally connect through a US hub or fly to Tampa, Orlando or Miami and drive.

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