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How‌ ‌the‌ ‌real‌ ‌estate‌ ‌world‌ ‌will‌ ‌look‌ ‌after‌ ‌the‌ ‌pandemic‌ ‌

post-pandemic real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

In the last couple of months, we have experienced a lot of adjustments and it was about time to think what the pandemic is going to leave behind when it’s over. Is it possible that the experience of being that much at home will change how people feel about their houses? Will home buyers seek different and new property features in the future? It’s the most possible scenery for the post-pandemic real estate world. 

 

Changed homebuyers preferences

 

Consumer real estate preferences will definitely change if we think about more homebuyers searching for home-office space or private outdoor spaces. Also, there’s a chance that people will want to escape the city and look for properties in rural areas. Another fun fact is that a lot of people are adopting new pets these days, for sure in search of companionship, According to the Houston Agent Magazine, homebuyers after the pandemic will prefer:

 

  • Properties in the suburbs
  • Walkable downtowns
  • Space for a personal gym
  • Pet-friendly features

 

Reconfigured commercial real estate spaces

 

But if the residential real estate preferences will change, think about the industrial real estate ones. As commercial and industrial spaces are in need of physical reconfiguration, this kind of property will change the most. The pandemic is changing the relationship between a building and its visitors, whether they be providers, clients, or employees. What could we expect?

 

  • Coworking spaces with different amenities and distribution
  • Automated entries
  • Intelligent buildings
  • Package lockers

 

Real estate market trends

 

Besides the changes in the types of properties and the features that will be requested in the future, we’ll be able to observe also diversities in buyer and seller patterns or behaviors. For example:

 

  • Prices will drop down
  • Stiff competition will still be present in the entry-level market
  • More foreign buyers in the US
  • Second homes in remote areas for those who can afford it
  • The luxury market will thrive

 

But home buyer’s preferences are not the only thing about to change in the real estate market. Realtors’ work will show modifications as well. Now, most of the agents are focusing on branding, education, and training, so they will be prepared for the next phase. For sure, they will not be the same they were previous to the pandemic. Will virtual open houses and virtual closings continue to exist after the virus? We think it’s probably that we will make great use of this new variety of tools, even when they will not be strictly necessary. Virtual reality will continue to save the time of commuting and providing an easier solution for busy calendars, for example, for both realtors and buyers.

 

55% of sellers have stopped their offering but they are only delaying it for a couple of months. Only 8% dropped out of the market, according to a NAR survey. This tells us, even if we don’t know if real estate activity will start recovering by early summer or if we’ll feel the impact of the pandemic for the rest of the year, we do know the situation is eventually going to retrieve. As an investor, how are you preparing for the next phase?

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Tools and Technology for realtors during the coronavirus Pandemic

realtors during the coronavirus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No one can tell us what will happen in the coming weeks. But what we do know is that the new market is just that, a new market that presents challenges and opportunities to adapt. How can you prepare as realtors during the coronavirus pandemic? What tools does technology provide you to get through this moment in the best possible way?

 

The state of real estate during the pandemic

 

In a national report, it is stated that both commercial and residential real estate services are considered essential. Likewise, the construction of family and multi-family homes is designated as an Essential Infrastructure Business. This means that, at least for now, the business of the realtor (except in those states that do not follow the federal guide) will not cease.

 

While the market may be a little skeptical or conservative, there are always those investors who jump into new opportunities, and this is no exception. Low-interest rates have prompted many to wonder whether this time of crisis is not also one of opportunity, like so many others. This is, undoubtedly, an adaptation stage for realtors.

 

It is not new that with the advancement of the coronavirus, most companies (if they can) have opted for remote work. Everything has become virtual: schools, businesses, and public spaces. Nothing that we knew continues to work the same way and, then, it is necessary to return to the fundamental foundations of the real estate business but, this time, rethinking it in a virtual plane. At QKapital we provide tools for the client to change their financial plan or to calculate a possible mortgage loan completely online, with our mortgage calculator. We also make video calls by Zoom and Whatsapp. And, in this opportunity, we made a series of tips for realtors during the coronavirus pandemic, so that, as a team, we can continue to keep our business afloat.

 

How can realtors continue to be effective from home?

 

  • Find the balance between taking care of kids (who now don’t go to school and demand attention) and remote work. Many employers are showing a lot of flexibility, but when you are self-employed, this is a luxury that we cannot afford.
  • Use remote access solutions with the corresponding security needed if confidential information is handled. For example, storing information on Google Drive. Provide virtual tours through Facebook Live, Instagram Live or Zoom.
  • Keep the communication fluid. Without personal contact, communication is even more important than before. Did you know that a minute of waiting on the phone is actually perceived as a longer time by the other person? It happens the same with every other channel of communication. You need to pay more attention than ever to respond quickly and clearly.
  • Anticipate emergency situations and be updated on new solutions and tools. For example, realtors today have contracts that provide more time to close a sale agreement, especially due to the COVID-19 situation. Evaluate all possible situations and what tools we can count on in the worst case.
  • Renegotiate profit margins. Just as the government lowered interest rates, something more tempting for the investor may also be the drop in the realtor’s commission rates.

 

The challenge today is to find creative ways to connect with people. Many of them are socially isolated and human contact has become essential. Beyond the previous tips, our responsibility today is to help the community and stay hyper-communicated on social media.

 

Other than the desire to close sales, it is important to take advantage of this moment to position yourself as a referent and build trust. In the long term, you will also see this reflected in a return on sales.

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Industry experts confident about housing market prospects despite the coronavirus outbreak

low-interest rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The outbreak of the coronavirus pandemic has certainly proved a challenge for the global economy. Our everyday life has been forced to make temporary changes, as we all take part in a worldwide effort to halt the spread of the virus and resume market conditions to normality as soon as possible. But even though a cloud of uncertainty is hovering around the world right now, this could be a good chance to reevaluate your investment options and consider in which way this crisis could represent an unexpected opportunity for you. Experts in the housing market are confident that given the recent measures issued by the Federal Reserve of the US, there is a break in the clouds for real estate investors. Yes, even in the midst of volatility and uncertainty. But how is this possible?

A shelter from the crisis for the real estate market

Alongside other moves to shield the country’s economy from the effects of the pandemic, the Federal Reserve has cut interest rates to record lows, seeking to boost the flow of credit during the upcoming weeks of strain. Immediately after the first emergency measures were announced, mortgage applications jumped while the sales of homes started showing a steady rise. This is why experts are foreseeing that the housing and mortgage industries will not suffer as much as other sectors of the economy and that the market will remain relatively stable through the outbreak.

But how exactly can you benefit from the current situation? 

 

  • If you are a homeowner looking to refinance your mortgage, this has suddenly become a unique opportunity to get a substantial improvement in your mortgage rates.
  • For those interested in buying, with the extraordinary low-interest rates and with more people expected to stay in a rental property for longer after the crisis, the return on your investment can be significant, especially once the economy starts bouncing back.  

Prospects of recovery for a vigorous industry

The recent attempts to prop up the US economy via emergency measures are been compared to those efforts made during the 2008 financial crisis, which were effective in bolstering the economy during and after the recession and helped fuel the longest streak of economic growth in US history. In a recent statement, the Federal Reserve has assured that the low-interest rates will remain until the country’s economy has recovered from the unexpected downslide provoked by the outbreak.

So, with industry experts forecasting a relatively clear sky for the housing market even in this context, the crisis could represent an opportunity to seize if you are interested in investing in real estate. As we have seen in previous articles, this kind of investment has been proved to be one of the most reliable ways to guarantee you will get a profit from your money. And even more so, in times where the real estate market has shown to be more sheltered than others from the uncertainties aroused by the advance of the virus.

Why real estate investment could be the best option right now

Making the right decision in periods of uncertainty is one of the most difficult challenges we face during our lives. And while it is a fact that the full consequences of the current coronavirus outbreak in the US and the global economy cannot be determined at this point, experts agree that, since this unexpected turmoil has caught the housing market in a robust shape and the interest rate cut has quickly shown positive effects in the industry, there are good reasons to expect that the recovery will come fast enough and that the succeeding rebound may be substantial.

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Why you should Refinance your mortgage with Q-Kapital

Refinance your mortgage!

You should always look for ways to lower your interest rates. Refinance with Q-Kapital today

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Refinancing a mortgage means paying off an existing loan and replacing it with a new one. There are many reasons why homeowners refinance: to obtain a lower interest rate; to shorten the term of their mortgage; to convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vice versa; to tap into home equity to raise funds to deal with a financial emergency, finance a large purchase, or consolidate debt. Since refinancing can cost between 2% and 5% of a loan’s principal and—as with an original mortgage—requires an appraisal, title search, and application fees, it’s important for a homeowner to determine whether refinancing is a wise financial decision.

1. Refinancing to Secure a Lower Interest Rate

One of the best reasons to refinance is to lower the interest rate on your existing loan. Historically, the rule of thumb is that refinancing is a good idea if you can reduce your interest rate by at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance.

Reducing your interest rate not only helps you save money, but it also increases the rate at which you build equity in your home, and it can decrease the size of your monthly payment. For example, a 30-year fixed-rate mortgage with an interest rate of 5.5% on a $100,000 home has a principal and interest payment of $568. That same loan at 4.1% reduces your payment to $483.

2. Refinancing to Shorten the Loan’s Term

When interest rates fall, homeowners sometimes have the opportunity to refinance an existing loan for another loan that, without much change in the monthly payment, has a significantly shorter term. For a 30-year fixed-rate mortgage on a $100,000 home, refinancing from 9% to 5.5% can cut the term in half to 15 years with only a slight change in the monthly payment from $804.62 to $817.08. However, if your’e already at 5.5% for 30 years ($568), getting, a 3.5% mortgage for 15 years would raise your payment to $715. So do the math and see what works.

3. Refinancing to Convert to an Adjustable-Rate or Fixed-Rate Mortgage

While ARMs often start out offering lower rates than fixed-rate mortgages, periodic adjustments can result in rate increases that are higher than the rate available through a fixed-rate mortgage.2 When this occurs, converting to a fixed-rate mortgage results in a lower interest rate and eliminates concern over future interest rate hikes.

Conversely, converting from a fixed-rate loan to an ARM—which often has a lower monthly payment than a fixed-term mortgage—can be a sound financial strategy if interest rates are falling, especially for homeowners who do not play to stay in their homes for more than a few years. These homeowners can reduce their loan’s interest rate and monthly payment, but they will not have to worry about how higher rates go 30 years in the future.

4. Refinancing to Tap Equity or Consolidate Debt

While the previously mentioned reasons to refinance are all financially sound, mortgage refinancing can be a slippery slope to never-ending debt. Homeowners often access the equity in their homes to cover major expenses, such as the costs of home remodeling or a child’s college education. These homeowners may justify the refinancing by the fact that remodeling adds value to the home or that the interest rate on the mortgage loan is less than the rate on money borrowed from another source.

Another justification is that the interest on mortgages is tax deductible.3 While these arguments may be true, increasing the number of years that you owe on your mortgage is rarely a smart financial decision nor is spending a dollar on interest to get a 30-cent tax deduction.

 Q-Kapital offers interest rates as low as 3.5%

Rate & Term Refinance

A rate and term refinance allows you to lower your rate, change your loan program (e.g., 5 year ARM to a 30 year fixed) or both. If you would like to take advantage of lower rates and a different loan program this type of refinance loan is a good option.

Cash-Out Refinance

A cash-out refi allows you to take advantage of current market rates and keep one mortgage loan.  If your home is worth more than you owe on your existing mortgage, you may be able to pull out equity and secure a lower interest rate. The tradeoff? A larger loan amount and a prolonged loan amortization. As a general rule of thumb, you may want to consider a cash-out refinance if you need more than $50,000. In order to take advantage of the best rates, you will not want to exceed a 60 percent loan-to-value ratio (what your home is worth versus what you owe) and have at least a 740 credit score.

Cash-out refinancing is also something to consider if you’re paying cash for a home but need the money back right away. The benefit of paying cash for your home eliminates the stress of meeting the contract deadlines as well as the process of obtaining financing for your purchase.

Call us today for more information! New opportunities come through working with Q Kapital

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Investing in real estate with no money: Is it possible?

real estate with no money

When we talk about investing in the real estate market, we automatically think of big amounts of money that are hard to get for most people. What if we tell you that these kinds of investments are possible even if you don’t have all the money that is required for it? The answer is easy: YES, it’s possible to do it! In this article, we will show you the best options to make it happen. 

 

Private Money Lenders and Hard Money Lenders

Private Money Lenders are individuals or a pool of individuals that loan their own money without middlemen, usually for real estate investments. These transactions are fast and efficient and can cost between six and 12 percent of interest on the money borrowed. 

In a similar path, Hard Money Lenders might be a fund of investors that typically offer short-term loans secured by real estate investments. The terms are usually between 12 months and five years and they might charge up to 18 percent of interests. 

The mentioned ones are the most popular choices when financing real estate deals because these loans are not given by banks. Additionally, these loans have their own guidelines, which include higher fees and higher interest rates. 

 

Wholesaling 

This option doesn’t require large amounts of money nor a high credit score. It consists of finding a home for an interested buyer at a higher price than the value agreed with the seller, and keep the difference as a profit.  

 

Equity partnership

Partnerships are a very common option for real estate investments. It’s about finding different people interested in the investment. Each one of them contributes in a different way or with different amounts of money. Keep in mind that aspects such as goals, risks, roles, and returns should be discussed and clarify before creating a partnership.  

 

Home equity

This alternative consists of rewrite the first mortgage and do a cash-out refinance or keep the first loan and add a home equity line of credit. It is a viable option considering how property values are going up in recent months. 

 

Option to buy

This method allows an investor to obtain a property without initially taking its legal ownership. In this case, the investor signs a legal “option to buy” from the owner at a specific price for the future. That agreement ensures the purchasing of the property at a later date and for the specified price. In the meantime, the investor rents the property on a long-term basis. 

 

Seller financing 

An option to traditional loans where an investor buys a property directly from the owner/seller without a bank’s mediation. Both sides sign a written contract where they agree to the terms: interest rate, payment schedule, and consequences of default. 

 

House hacking

In this strategy, an investor earns income by renting their primary residence. For those in single-family homes, they can rent a spare bedroom. For those with more than one property, renting at least one of them is the best option. This allows investors to have a cash flow. 

 

Government loans

These are the most well-known sources of funding for a real estate investment and usually, they imply good deals. It’s worth mentioning that these loans can take a long time to receive approval, which makes them less attractive than other options. 

 

Microloans

These loans are offered by individuals (a single lender or many people), each of whom is expected to contribute to a portion of the total amount of money that is required for the investment. 

 

As you can see, there are plenty of options when it comes to finding financing for a real estate investment. It is possible to do it if you don’t have the needed amount to start and even if you don’t have a good credit score, many choices don’t require it. Investing in real estate with no money is possible. You just have to know which is the best finance opportunity for you. 

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How to choose where to invest

real estate market

When investing in real estate, some people prefer to do it in a market they know, usually close to where they live, on local properties. But some others take the risk to find new places where the profits could be greater. They don’t limit themselves to buy in just one area. Instead, they study different regions looking for the one that might offer a tempting housing market, better property prices, and positive demographics to support a growing real estate market. 

The first thing to do when investigating which real estate market to invest in is to review overall property trends. To do so, we have gathered here some advice that will guide you through the previous research to invest in a foreign market.

 

Check out the taxes and demography

When searching for a place to make a long-distance investment, you should look at countries, states and cities without income tax or with low sales taxes, and even cities with tax incentives to real estate investors. That’s a way to reduce your fixed costs.  

Another thing to have in mind is the area’s demography. You can invest in a metropolis or an area an hour away from a big city. Make sure the city has population and labor growth. To do so, you can use census information about population, economic and employment growth, as well as check on information such as household income and amount of renters versus the number of owners. This way you can divide the different areas according to their target, which will help you decide where to invest and in which type of property according to your capital and the conditions of the place. 

 

Work with local real estate agents

Once you have chosen a city, the best thing you can do is work with a local real estate agent because they understand that particular market better than anyone. For example, property values ​​may vary from one block to the other, which might cost you a lot. These agents have a strong sense of the local economy and will keep you updated on any activity or changes that may affect housing prices, and they can also manage the property and find tenants for you, two very important details if you are investing from a long distance. 

 

Review the real estate market trends

Some trends are local, and as an investor, you need to know them. One of these trends might be the rise in apartment rental buildings instead of condominium buildings because millennials prefer to rent. But if you want to invest in a residential area, perhaps a condominium or a small family house will be a better choice. 

There is also the trend of short-term vacation rentals, thanks to many new apps and platforms that allow owners to rent their properties per day. In this case, you should review the tourism in the area and the touristic seasons to make sure the place will be rented. 

 

Decide on how much rental income you will need 

As an investor, you need to make sure the future rental income can support the price you will pay for a property. That income has to be enough to pay the debt for the property, its maintenance and cover its taxes. As a general rule, the property’s price should be about a hundred times the rent cost. 

 

Now you have a general outlook of the important things you need to check before investing in another location, you will be are able to specify in which city is best for you to invest. We assure you that the results are much more favorable when you make investments like these. 

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Be part of the future Miami

construction industry

Miami’s construction industry keeps growing by leaps and bounds. As the city goes taller, the new towers are expected to be more modern and superior than ever, with high standard services and luxury designs. 

We know best that an investment in real estate is one of the top ways to keep your money safe and guarantee a secure profit from it. We have reviewed in previous articles the high opportunities and earnings and the low risks that come with these types of investments, so this time we’ll bring you a list of new projects that are expected to be constructed in Miami this 2020, and in which we know it is worth to invest:

 

1) Okan Tower

This 70-floor mixed-use building will be the tallest skyscraper in Miami. It combines a hotel operated by Hilton Hotels & Resorts, four floors for office usage and a residential area with 236 condo-hotel units, 149 condominium residences, and four luxurious penthouses. Its glamorous location directly on Biscayne Boulevard offers stunning views of the bay and the city skyline. 

 

2) Aston Martin Residences

The construction has already started for the first Real Estate project in Miami of the British firm Aston Martin. This A-World class residential building will be 66 stories tall on 300 Biscayne Boulevard Way, with 391 condo units. It will also hold a gym, spa, two movie theatres, a beauty salon, a virtual golf course, a barbershop, an art gallery and a pool on the 55th floor. 

 

3) 830 Brickell

830 Brickell is not just expected to be the second tallest office building in Miami, but the most modern one. Situated on the heart of Miami’s financial center, it will rise with 57 stories totally dedicated to offices. 

 

4) Missoni Baia 

Living in front of the Bay has never been so elegant. Missoni Baia is a 57 stories tower with 200 feet of frontage on Biscayne Bay and 649 feet above sea level. The building is planned with 249 elite residences, all of them with sophisticated designs and exclusive amenities, which include the largest spas in the city. 

 

5) Una Residences

These condominiums are located at the heart of the city, in South Brickell. The futuristic and unique design of 46 stories features modern waterfront condos with floor to ceiling windows, giving the best views of the Biscayne Bay and the Rickenbacker causeway. It will also hold elegant amenities like gym, spa and private boat slips. 

 

6) Natiivo

Natiivo: a 50 stories tower that mixes a hotel and a condo-hotel, will break ground in early 2020. Located in Downtown Miami, it will offer a new model of home-sharing rent thanks to a partnership with Airbnb, which allows residents to rent their condos whenever they want. With a great design, modern technology, an exceptional service, the security of a hotel and professional hosts, this building is an outstanding opportunity. 

 

7) Society Biscayne

Society Biscayne includes 646 apartments with a highly modern design. Due to its location in a great neighborhood, it will be easily connected to any part of the city. The amenities include a lobby market and café, a pool with Bay views, a deck, a performance stage, a modern gym, a coworking lab area, and a dog park. 

 

8) Legacy Miami Worldcenter

This mixed-use project of 50 stories is set in the Miami Worldcenter. It includes 255 hotel rooms, along with 278 condo-hotel units. With a partnership with Airbnb, there there are no restrictions for renting. The investors can either live in their units or rent them for a short or long term period, rent per day or assigned the space for the hotel to rent it. 

 

9) Luma Miami Worldcenter

The Luma Miami Worldcenter will be built with 434 luxurious apartments in 49 stories of pure elegance. This colossal tower will have 503 feet above the sea level when finished.

 

10) Downtown 5th

Downtown 5th consists of a pair of twin towers that will rise 53 stories and 495 feet each, with 1,042 apartments and 1,049 parking spaces. The ground floor will hold the lobby and 12,506 square feet of commercial space. 

 

11) Virgin Hotel Brickell

This 40 stories building in Brickell will have nearly 250 hotel rooms and 15 stories of furnished residential units with access to the hotel’s common spaces and amenities. The building is planned to open in 2023 and will have a spa, communal workspace, a bar and social club, a beer garden with live music, space for food outlets and 15,000 square feet of meeting and event space. 

 

12) Block 45

Block 45 will feature twin towers with 36 stories, 600 apartments, 645 parking spaces and 23,000 square feet of ground-floor retail on three streets.  What’s more, 60% of the apartments are thought to be affordable units for workforce housing.

 

13) 2000 Biscayne

2000 Biscayne is a 393-unit apartment project of 36 stories with 25 studios, 175 one-bedrooms, 181 two-bedrooms, 12 three-bedrooms and eight floors of parking space.

 

14) Yotelpad

The construction is on the way for the Yotelpad building, a 453 unit tower with a mix of condo and hotel of 31 stories. The residential area will have 231 apartments above the hotel, with share amenities and exclusive areas for owners. There are no rental restrictions for investors.

 

15) Modera Biscayne Bay

Modera Biscayne Bay is already in construction. It will have 28 stories of sophisticated mixed-use apartments, 296 units from one to three bedrooms and 11,000 square feet of retail space. Community amenities include a deck, rooftop pool, fitness club, barbecue, clubhouse, lounge, conference room, and coffee bar. 

 

16) Grand Station

The Grand Station includes 300 residential apartments, 5,000 square feet for retail stores and amenities like gym, pool, spa, rooftop deck and community workroom, everything distributed in 31 stories. The apartments will be a combination of studios, one- and two-bedrooms. 

 

17) CitizenM Brickell

CitizenM Brickell will be a hotel with great rates, big-city locations and amazing design, but no parking space. The building, with 21 stories, 252 rooms and located in the city center, is planned to have affordable prices for the guests. 

 

18) AC Hotel By Marriott and Element By Westin Hotel Brickell

This will be one of the first dual-branded hotels in Miami, and it will be comprised of 264 hotel rooms, 156 from the Marriott and 108 for the Westin, along with 23,000 square feet of retail space in the 1st and 2nd floors. 

 

19) Smart Brickell

Smart Brickell will consist of three towers of 25 stories, with two of them expecting to be rising in 2020. It is designed with the Smart Living Philosophy, where every aspect is made to make the most of it. It will also have a hotel, electric parking stations, bars and restaurants, a gym and a rooftop lounge.  

 

That was Miami’s construction industry scenery. Now that you have a better idea of the great projects to come, we hope it will be easier to decide which choice can be better for your investments. There is no need to be a big investor to be part of the future of Miami, and we are here to guide you through the process and make sure you get the best from it.

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Miami, more economic by square foot than some Latin American countries

investing in miami

As we have seen in our previous article, investing in real estate can be the safest choice for sheltering your capital. Properties not only avoid devaluation but also go through a process of appreciation with time. On top of that, if you invest in a real estate market that’s solid, like Miami, you’ll be safe from economic downfalls back home. Besides, if you turn your property into a rental, you can count on an extra income in a strong currency that will never let you down.

 

For sure, none of the things we have mentioned are new to you. But what if we tell you that there’s even more? The pricing of a square foot in Miami could be lower than in some Latin American countries. The difference lies in the interest rate. If you buy with a mortgage loan back home, we are talking of at least a 12% to 15% interest. Instead, if you get a mortgage loan in Florida, the interest rate could be as low as 5%. This means if you rent the property you can get an income high enough to pay the loan and, at the same time, get a monthly profit.

 

What else is it good about investing in Miami?

 

Miami’s real estate market will always thrive, being the seventh-largest in the US. After LA, NY, and Washington, Miami has the fourth-best value in the housing market in the country. On top of that, during the last quarter, appreciation rates in the area have been between 0.7% and 0.8%. If this trend continues the same, we can forecast 3% for the whole of 2020. But let see some specific numbers:

 

  • Unemployment rate below 4%.
  • More than 70% of the population rents.
  • There are no income taxes or low property taxes.
  • Miami is among the top 10% for real estate appreciation in the US.
  • The average list price per square foot in the city is $420.

 

A hot place for real estate investment

 

Leaving the numbers behind, the qualities of Miami that make the city a hot place for real estate investment are a lot. Take a look at some of them:

 

  • Miami is attractive to immigrants, so it’s fertile ground for closing deals when it comes to international business.
  • The subtropical weather makes Miami a tourist destination of choice. That gives us a massive tourist market, creating opportunities for investment not only in properties for renting but also in commercial real estate, for example in gastronomy or hotels.
  • Miami is on the water, so the skyline is amazing from any point. Whether you invest in an apartment on a high floor, or you’re building a whole tower, the landscape will be a strength.
  • ⅔ of Miami residents are not owners, they rent. If you invest in properties for rent, you won’t struggle to find renters.
  • As the business activity in Miami never sleeps, the job market is always growing and creating new opportunities.
  • The students’ market is big, as we are talking about a city with more than 40 universities and colleges.

 

Not all deals will be solid investments, but if you’re keen to invest in real estate in 2020, Miami will be one of your best options.

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How to consistently build wealth through real estate

build wealth through real estate

 

If you have experienced the economic and real estate crisis a decade ago, then this article may impact you. But the truth is that today, the market is recovered and, even if you are a beginner, you can build wealth through real estate.

Stop gambling

 

When you make an investment, in most cases you have personal expectations that don’t differ that much from gambling. You are waiting for an asset to appreciate, or for a business to improve or grow. But if your presumptions are not based on real data and statistics you’re just throwing away your money and wishing to have good luck. 

 

Real estate will provide you an opportunity of investment that’s safe and conscious. If you buy a property that you know it’s going to generate more income than it costs owning, after paying all the expenses and collecting rent, you’ll be left with positive cash flow. Taxes, insurance, mortgage loan, maintenance costs and fees, everything will be covered with the rent that you’ll get from the tenant and you’ll start to see profits as soon as you begin.

 

Stop investing in assets which you’ll be waiting to increase its value. Go with the option that’s safer: a property for renting. If you’re lucky and the future real estate market is benevolent, you’ll also have the option to resell and make an extra difference.

 

Appreciation and tax benefits

 

As we have said before, you can always resell. And we have said “if you’re lucky” but the real thing is that everyone has been lucky in this aspect. Real estate will always appreciate in the long-term. Even when prices do fluctuate, in the end, the result will always be higher than when you’ve purchased the property. So it’s always a matter of waiting for the right moment. 

 

On top of appreciation, you’ll also access some tax benefits. You should consult a tax advisor, but we can tell you you can deduct 1/27.5 of your property value against the income you’ve got with the rental. This is because the government considers a property weathering.

 

In the end, you’ll be investing in a property that will generate a constant income and positive cash flow, will for sure see an appreciation in the long-term and will also protect your income against taxes. What could be better?

 

Really good financing options

 

When investing in any kind of business, we can guarantee you will never get terms of financing as good as when you invest in real estate. If you get a mortgage loan, you’ll have interest rates that are currently below 5% and down payments that for a citizen can be less than 20% and for a foreign around 30%. Your mortgage loan will be amortized in a period of 30 years. There are no such conditions for another kind of loan, for any other type of investment.

 

If you buy with a mortgage loan, you can go into a cycle: Buy, Rent, Refinance and Buy another property. When you refinance you’re getting the possibility of recovering your capital to invest in something else. The only thing you have to make sure is that your properties are producing more income than costs. Your cash flow should stay always positive.

 

Now that we have gone over its benefits, you are ready to build wealth through real estate. What are you waiting for?

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Why investing in real estate

investing in real estate

Investing in real estate for the first time could be seen as a risky bet, we know it. The last economic crisis might make you rethink it. But do not fear! Like any investment, it has its risks, but it also has a great truth behind: vast fortunes are being amassed through real estate in a steady, safe and simple way. One of the best characteristics of it is that there is no need to be a big investor to do it. 

To do so it is important to have the know-how of real estate, which is not a small thing if we consider that it is not as easy as buying low and selling high. So we have created a sort of guide to help you appreciate why real estate is a consistent option to build wealth more than other kinds of assets. Whether you have a big amount of money to start investing or you start from zero, here we will give you a little help with these expert tips for investing in real estate, that will grant you benefits sooner than later. 

 

1) Get an income from the beginning 

While one way of making a good deal is buying something, wait until its value is increased and then sell for a profit, an even better idea for the start could be buying something and secure a steady income. A wise investment is not based on hoping for a value to escalate but in purchase a property knowing that it will generate a greater income than what it cost to buy it. 

The easiest way to do it is by buying a property that you can rent. With the money you will earn periodically after all the expenses are paid (such as a mortgage, taxes, insurance, maintenance, etc.), the difference goes right to your pocket. Nowadays, it is possible to make more profits thanks to the rise of temporary rental platforms, since those short-period rents are usually much higher than the longer-term ones.

 

2) Obtain the best financing terms

Real estate has incredible terms of financing, perhaps better than any other kind of loan. The interest rates are remarkably low, down payments are around 20% or even less and mortgage loans are amortized over periods of 30 years. 

You can either pay the mortgage loan with the money you receive from your tenant and keep the difference (in which case your tenant is paying off the loan for you) or buy a property, improve its value and then recover the capital by 100% or more by refinancing. These loans result in an easy option to grow your wealth passively and steady. 

 

3) Add value by improving the property

At the moment of purchasing a property, you can check the ones that allow you to improve their condition. This means you can pay below market value for a property that needs to be fixed or one that needs upgrades. The key here is to do a little investigation to find the properties with weaknesses and then add what they lack to increase its value. 

 

4) Learn about the market and find assistance 

Real estate, like any other market, has pitfalls. So you will have to learn as much as you can about the market in general and in particular in the areas you want to invest in. Information is everywhere! Articles, books, videos, seminars, talk to brokers and contractors, view open houses; everything helps. Once you find an exciting deal, you will need some assistance to answer the questions you will have in the heat of the deal. To answer them, find a real estate mentor, someone specialized in this kind of investment, and then go for it!

As we have seen, investing in real estate could really change your financial scenery in the short-term. Contact us if you want to take advantage of our experience in this market.

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