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.