How to take advantage of your investment in Miami?
Florida’s largest city is Miami, not its capital Tallahassee. The famous capital of the sun is known for its paradisiacal beaches, prices for all tastes, its vibrant cosmopolitan and cultural life, its pleasant and benign climate all year round (thanks, in part, to the currents of the Caribbean Sea that do not allow to have winters as harsh as in other parts of the country) and its multiculturalism.
Since the fifties, Miami has been one of the favorite places for Latin Americans to invest and keep their capital safe from the feared devaluations, more frequent than desired, in Latin America. Whether you’re thinking about keeping your savings in a safe place, increasing your capital, diversifying your investments, or renting in dollars, the city has properties for everyone.
In any case there are three characteristics that are indispensable to evaluate whether it is worth buying a property or not:
1. Ease of leasing – depends on both the site and the characteristics of the construction itself.
2. Profitability per square meter: it is the amount that is earned for each square meter, that is, how much money the total space of the property generates. It is calculated by dividing the total rental price by the total square meters of the property.
3. Surplus value: the great advantage of the city is the constant surplus value generated by its properties. Any property in the city, regardless of the sector, is valued on average 10%, of course there are neighborhoods better ranked than others, but always the amount always tends to rise.
Once these considerations have been evaluated, there are three other tricks to get more juice out of your investment, but these depend directly on your investor profile, that is, the main objective to make the purchase:
1. Buy below the market price: one of the areas most affected by the 2008 crisis was Florida. The reasons for the collapse are widely known. And, likewise in the opposite direction, it was the best time to buy any property. Prices have never been so low, and now that they have recovered to the pre-crisis level they have produced a gain of more than 70% of the original value.
While it is true that it is not easy to locate these areas, but where there is a bubble, there are several factors to consider such as the area, the age of the real estate and accessibility.
2. Better condominiums than houses: it is widely known the lower value of the former, compared to the latter. They are also cheaper over time, the cost of maintenance and repairs are much lower.
3. Better areas: As in the vast majority of decisions in life, it depends largely on the location. Miami has over a hundred neighborhoods and they can be very different from each other. The tourist areas are very different from the residential ones and not to mention the commercial ones. There are no areas better than others, but it does change in terms of the purpose of the investment:
to. If you are looking for the best areas to rent: they are Lauderdale, Fort Lauderdale, Lauderhill, Hallandale, Hollywood and North West Miami. The advantages are: more affordable than other areas, the return on investment higher (can be up to 8%) and the associated costs (maintenance, taxes, etc.) are lower than in other sites
b. Valuation: Hallandale, Hallandale Beach, Hollywood, North Miami Beach, North Miami, Homestead, Sunrise, Fort Lauderdale, Tamarac and Pompano Beach are the places to invest if you are looking for properties that generate more capital gain over the next five to ten years. Moreover, it is known that the value has not yet touched its ceiling.
c. Safe investment: the neighborhoods with the most stable value are Sunny Isles, Aventura, Hollywood, Fort Lauderdale, Coral Gables, Coconut grove, Brickell, Down Town Miami, Miami Beach, Miami Shores, Biscayne Park, El Portal. While it is true that prices are not as competitive, the variations are much smaller than elsewhere.
Whatever the goal of your purchase, Miami is a safe investment. Not only for the possibility of renting in dollars, attractive in any Latin American region, but for all the options offered by the city and adaptable for all budgets.
In PFS Realty Group given our real estate activity we are focused on advising those people and families who are interested in making investments of this type in Miami, Orlando and South Florida, we have been working for more than twenty (20) years and for this, twenty (20) years that give us a specialty in what we do, If you want to explore real estate investment opportunities, we can schedule a meeting, face-to-face or virtual, to expand this information. Write to us at info@pfsrealty.kinsta.cloud and also visit our www.pfsblog.kinsta.cloud website to learn more about us.
