More and more foreign investors, especially Latin Americans, decide to acquire properties in Florida. Not only for the ease of access to this real estate investment, but also for the advantages it offers. For example:
- Low property taxes.
- Exemption from rental taxes.
- Strong tourist influx throughout the year, which reduces the vacancy in the rent.
- Possibility of having a permanent holiday home.
- Access to modern and well located properties, which offer high rental income.
- Good prospects for the valuation and capital gain of real estate.
Now, beyond these advantages, what should you take into account to make a smart investment?
What to Consider Before Buying Property in Florida
Thinking about investing in the South Florida real estate market? Before buying real estate, keep in mind these 5 aspects, which will help you make a good choice:
Valuation of real estate
According to recent reports from the BBC (2022), the price of homes in cities such as Miami have had a sharp increase in the last year. This is impacting both property sales and rental rates.
In the state of Florida, the cost of rents is not regulated by law. So, landlords have greater freedom to increase the price of rent. In addition, real estate values scale rapidly due to high demand and low supply.
Legal Requirements for Acquiring Property in Florida
When investing in property in Florida, you must verify that you meet the legal requirements for the purchase of real estate by foreigners. Some of them are:
- Have a passport and visa for the United States, duly updated.
- Have proof of income and endorsement from a certified accountant.
- Submit your last two bank statements, credit history reports, and utility vouchers in your name.
- Be able to deliver in cash, depending on the case, between 20 and 30% of the total value of the property as an advance.
Profitability over time of properties in Florida
By buying property in Florida, you can project better profitability in the short, medium and long term. The local real estate sector allows you to access high value properties, well located and with excellent amenities, at a convenient price.
Every year, thousands of people move to this state for work, due to its high level of business activity. Additionally, cities such as Miami represent one of the main tourist destinations internationally. Hence, a high demand, combined with the quality of real estate projects, make this investment highly profitable.
Strategic location
Many properties in Florida are located near large shopping and business centers. Others are located near the main beaches of the state, such as those in Miami. Therefore, by acquiring a property with a strategic position, you can increase your profitability and surplus value.
Moreover, the climate in Florida is mild and pleasant throughout the year. Thanks to this, the area receives a permanent influx of visitors in the four seasons, which keeps the demand for rentals constant.
High demand
Maybe you didn’t know, but two-thirds of the city’s residents are renters. This high income rate is mainly due to two factors:
- A constant influx of people who work in jobs of the tourist season.
- Low availability of housing in relation to housing needs.
For these reasons, there is a constant demand for property in Florida. Thus, you can raise the rental price and ensure a permanent rental of the property throughout the year. It has different modalities to choose from, such as renting the entire apartment to a single tenant or renting per room.
While South Florida, in general, offers you excellent investment opportunities, the city of Miami leads the way. These are the attractions it offers to investors:
- High tourist reception permanently.
- Large number of business centers.
- Presence of international brands.
- Important urban infrastructure next to a privileged natural environment.
- Cultural, commercial and tourist activities throughout the year.
- Possibility of accessing a special mortgage regime for foreigners.
Acquiring property in Florida is an excellent decision to build a real estate investment estate. Keep in mind this alternative both for rent, and to have a second home.
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