Even with a fluctuating economy and always at a disadvantage with the US currency, Latin Americans continue to invest in properties in Miami. Among the foreigners who buy in the city, we can say that there are 15% Argentines, 11% Venezuelans, 9% Colombians and 8% Brazilians. Mexicans and Peruvians complete the landscape. The real estate market in Miami is promising and therefore attracts investors from all over the world and especially from Latin America. Mortgage loans for foreigners are everywhere.
How and why do foreigners invest in Miami?
Investing an average of US$340,000 in a property, foreigners buy in Miami because they know that the profitability of a transaction there ends up being between 3% and 6%, according to the Miami Association of Realtors. In most cases, investments are made to protect people’s capital. Given the fluctuating economic situation of Latin American countries, even with some of them going through a political crisis, foreigners opt for this safer option: investing in Miami feels safer than in their own countries. With an initial percentage of the final value plus a mortgage loan, they will be able to access a property that will allow them to safeguard the original investment, achieve savings and bet on a better future.
The types of investments that foreigners make in properties in Miami vary according to their purpose. 80% of foreigners invest in luxury residential assets. The rest is divided between rental homes, offices or franchises. With Miami being a multicultural city, with incredible beaches, the best nightlife and ultimately becoming the center of many technology companies and commercial ventures, the range of investment options is wide.
How and why do foreigners invest in Miami?
Generally, many foreigners invest in cash. But if liquidity does not help and they need to request mortgage loans for foreigners, they should take into account that financial entities analyze the following variables of loans for foreigners to define interest and terms:
- Nationality
- Type of property being purchased
- source of income
- Liquidity Source
Mortgage loan rates for foreigners are usually low, ranging between 4.5% and 5%. The minimum requirements are not too high. Let’s take a look below:
- Visa, based on your nationality (at least a valid tourist visa), and a copy of your passport.
- In the case of condominiums or townhouses, between 30% and 35% of the value of the property is usually requested as a down payment.
- Proof of income and liquidity (for example, movements in bank accounts, reference letters, salary receipts, etc.)
What option is more convenient when applying for mortgage loans for foreigners?
When applying for mortgage loans for foreigners, there are two main options:
- The first is related to bank mortgage loans, which with lower interest rates are likely to be obtained. The disadvantage in this case is that the banks offer less flexibility to customize the credits according to the conditions or objectives of the investor.
- On the other hand, there are mortgage loans for foreigners from private investors. This second option is very common, it offers a range of options for each special need. They are operations that are mostly closed in less than 7 days, without bureaucracy involved. This type of loan is very useful, since the real estate market in Miami usually moves very fast, the investor must act quickly so as not to miss the opportunity.
Miami, a magnet for foreigners
Being totally multicultural Miami, we can say that it is a cosmopolitan city, and this is evident in almost all aspects: art, gastronomy, music and the events that take place every day in the place. That is one of the reasons foreigners are drawn to Miami. Also, there are regular tourists who are tired of paying high rents in the area for every holiday or vacation. So, they decide to invest in new constructions or properties already built thinking about the long term, dreaming of an ideal vacation. Miami will continue to be the first destination chosen by foreigners seeking a better quality of life or a safer place for their business investments.
