The right time to invest in the business of real estate in Miami
The situation in Miami real estate has changed dramatically over the past two years. Confidence has returned to prevail and this is demonstrated in the strong housing demand there, especially condominiums.
The real estate market in South Florida, particularly in Miami, continues to grow and is favored by the interest that the city arouses on foreigns. After three consecutive years of sales and appreciation of the properties, the real estate market started and finalizes 2015 with the right foot.
The increase in the real estate market in Florida is the result of several factors, most of which can be attributed to the large development of the area. As a result, the market today provides an inventory with lower prices than those offered in 2008, creating great opportunities in the medium and long term, especially for secondary or vacation homes.
If your are thinking to invest in a property in this locality, there are certain factors to consider. Earning from investment opportunities in Real Estate in Miami is very complex, so you have to take into account the following considerations:
– The relationship between risk and reward.
– The quality of the investment and the specific location.
– Legal and mortgage problems: bankruptcy proceedings allow the purchase of apartments, land, buildings and mortgages with big discounts moment.
– Investment financing and financial requirements of start-ups.
– Specific quality of the property: a structural, legal and financial situation of the sellers, the quality of tenants, rental opportunities, insurance and many other aspects.
– Duration of investment (2, 5, 10 or 20 years).
– Realistic projections of investment return.
– Personal use, investment reasons.
Miami is on track to a real estate boom, but it is very different this time from that experienced boom before the crisis in 2008, this time, both customers and banks have learned their lesson. Buyers put 50 to 60% of the value of the property in cash and banks only give foreign financing 50% of the value of the property. According to experts, 80% of buyers in this market of luxury properties are mostly foreigners from Brazil, Mexico, Venezuela, Argentina, France and Italy.
Also on the part of Sunny Isles there are being constructed super-luxury buildings like the Chateau Beach of 84 residences that broke ground this month on 6 Art Basel advantage. The apartments are being sold at $1.200 per square foot. This building belongs to the Chateau Group of Argentina which is also built in the area of Biscayne in front of the American Airlines Arena.
Miami has also considerably reduced its housing stock and new units on the market are sold very quickly and in many cases the offers even exceed the price set by the unit owner. So this is the right time to invest in the business of real estate in Miami.
Most property owners have seen some kind of appreciation and sometimes have recovered the net value lost when the market experienced its nosedive marking the beginning of the crisis. The price of housing has generally returned to what it was in 2002.
The real estate consulting firm Knight Frank Londoner, Miami makes one of the five cities that has grown in real estate values in the world so far this year along with Jakarta, Dubai, Nairobi and London.
During the International Congress of Real Estate Miami, held recently, Teresa King Kinney, president of the Association of Realtors in Miami, pointed out that the city has benefited particularly of the positive contribution of foreign buyers and this has led real estate to a speedy recovery in 2011 generating a record of properties for sale.
Inaki Negrete president of Vulcan Investment Partners, an investment fund with foreign capital in its majority, however, believes that the opportunity that was generated as a result of the housing crisis of 2008 to buy apartments and luxury homes at a very low price is over and now the business to investors and speculators focuses on inventory, still extant, who suffered property foreclosure.
Miami will always be an investment center for Latinos, it’s geographically well located, has good weather and nonperforming many countries in Latin America and Europe. The investment of this investment fund is secured with land and bricks.
Miami has been left very few grounds overlooking the water and that’s what looking abroad mainly comes looking for luxury. As for the local market average of a family home has risen by 5% in value this year and a condominium has risen 28% since not seek home abroad unless in the case of Vulcan do it for investment. In view of this, it is considering building 83 new buildings in the Miami area that would shed 12,600 units on the market but probably say the experts, achieve only half built.
“Miami benefits from several factors,” explains Gerrity, one is the flow of billions of dollars in foreign capital entering the city. The second is the value that this city offers shelter to capital flight.”