One benefit for local municipalities in Florida, Arizona and other states where foreign investors have swooped in to capture real estate is the increased property taxes.
Usually, primary resident homes are eligible for several homestead exemptions (or reductions in property taxes) including a relatively large discount on taxes for older residents. However, if foreigners buy real estate, they may be ineligible to apply for those exemptions. But the lower US property taxes, compared with other countries, is still a deal.
A side question I have is: "Do the rules for foreign ownership specifically exclude foreign residents from using normal and age related homestead exemptions, some of which may result in a 67% reduction of property taxes?" It all depends - if the rules are not clear, and it's the only property the foreigner owns in the US, would they still be eligible to claim the homestead exemption? How would they prove if they lived there >6 months otherwise to claim residence?
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