How is the real estate business in Miami?
Why do so many investors set their sights on Miami? There is only one answer: there are plenty of reasons. This has become one of the cities in the United States with the greatest potential, especially from the real estate point of view. This is because it offers a wide range of offerings, competitive prices and tax advantages for real estate investors, in addition to being the site of major developments and financial centers. That is why it is considered one of the cities in the world that offer freedom, security and confidence when it comes to investing in the real estate business.
But it should also be noted that Miami is an attractive city from the point of view of its climate, its coastal landscapes, its tourist activity and its cultural mix. And those are also major reasons why the real estate business is thriving and has such good prospects in this city.
According to Miami real estate experts, real estate purchases will quadruple between 2020 and 2021. Likewise, prices rose 10% in the same period, which represents a much higher increase than the 1% or 3% that real estate prices in this city usually have.
But the real estate business in Miami has many characteristics that you should also be aware of, especially if you are considering investing there. If you want to know what they are, this content will be very useful for you. Just keep reading…
Easy access to consulting services
If you are thinking of making a real estate investment in Miami and you do not know how this market works, it is best to look for an ally who can guide you through each of the steps you must follow to achieve your goal successfully. Fortunately, investors in Miami have at their disposal a large number of real estate agents, or realtors, who can effectively advise them on the entire process of buying, selling or managing real estate.
Also in this market you have the option of becoming a passive investor, placing your capital in real estate developments that are managed by companies specialized in the sector.
The right place for foreign investment
Miami is considered the paradise of safe and stable capital. For this reason, a large number of foreign investors are attracted by the opportunities offered by this destination for the real estate business.
Some of the attractions that foreign investors see in the real estate sector in Miami are the low taxes that exist for those who buy or sell real estate and that the state of Florida creates organizations and does everything possible to guide those investors who want to participate in this market, in any of the cities of the state.
Thanks to this support and the existing incentives for investment in this sector, it is an ideal destination for large corporations that develop both housing and commercial complexes.
A profitable investment
One of the first attractions that an investor looks for in any real estate business opportunity is that his investment will increase in value over time and steadily. And that is precisely what you can get in the Miami real estate market. According to data provided by the U.S. real estate sector, real estate in this city increases in value year after year. There are even years such as 2021 in which prices recorded an increase of 28.1%.
In addition, local and foreign investors have the same opportunities to access financing options with great advantages. For example, banks may ask for only 20% or 30% down for the approval of a mortgage loan, whose average rates may range from 4.5% to 7.5%.
On the other hand, investors also have the assurance that this is a very dynamic market for the sale of real estate, so they know that they can recover their investment at any time. According to Miami real estate data released in December 2021, real estate sales in Miami-Dade County posted a 14.8% increase over the previous year.
A market that protects the owner
If there is one tangible guarantee for those who decide to invest in Miami real estate, it is that there is an inexhaustible market for rental properties. According to official data, 70% of the population in this city lives in rented properties, therefore, finding a tenant for your property in Miami will be very easy. But in addition, this city has a great tourist and economic activity that contributes to the demand for rental properties.
At the same time, this real estate market has a series of regulations that favor the owner and protect his investment. The first thing to note is that there is no law regulating rent control, nor are there any ceilings for security deposits. On the other hand, a landlord may order the eviction of a tenant who is 3 days late in paying rent, or may also give a 7-day notice to move if the tenant has accumulated several violations.
After reading this content, it will be clearer to you why Miami is definitely a good destination for real estate investment. So if you need more information and advice to buy or sell a property in this market, don’t forget that at Century Asset Management you have at your disposal a team of professionals with more than 30 years of experience, ready to offer you the best real estate investment options in South Florida.