In recent years, family offices in Latin America have shown a growing interest in investing in international real estate , specifically in real estate markets such as Miami, Orlando and South Florida. But what exactly are family offices and why do they prefer these real estate investments?

In this article, we’ll explore these questions and discuss the advantages of investing in real estate in these attractive regions.

What are they and why do they decide to invest in real estate?

Family offices are private companies that manage the finances and investments of wealthy families. These offices offer comprehensive financial advisory, estate planning, investing, and asset management services. Its main goal is to preserve and grow the family wealth in the long term.

Key features of family offices:

  • Personalized focus on the needs and goals of a single family.
  • Management of various asset classes (stocks, bonds, real estate, etc.).
  • Tax planning and wealth structuring.
  • Legal and compliance services.
  • Advising on philanthropy and philanthropic activities.

Preparing the new generations in family offices

Family offices prefer to invest in real estate

Gustavo Gálvez, CEO of PFS Realty, participated as a panelist at the Family Office & Investors Summit 2024, an event held in Mexico City at the beginning of May, in which the arrival of new generations to family offices and the importance of the professionalization and preparation of those who will take the reins and investment mechanisms in the coming years were discussed.

In his speech, Gustavo Gálvez pointed out that “family offices continue to evolve in the world, Latin America is no exception. However, it is precisely the changing global conditions that require the members of the entity to be more prepared in areas ranging from financial knowledge to technology, as a way of preparing to preserve the legacy.”

Family offices have found real estate an attractive option to diversify their investment portfolios and generate stable returns, and that is why they are increasingly interested in investing in Miami, Orlando and other South Florida cities.

Some of the most prominent advantages of investing in real estate are the following:

Investing in Real Estate: Steady Income Stream

Real estate can generate a recurring income stream through rentals, which generate returns in dollars, providing a predictable and stable source of economic resources.

Long-term value appreciation

Historically, the value of real estate has tended to appreciate over time, which can translate into significant capital gains for investors.

Portfolio diversification

By adding real estate to their portfolios, family offices can diversify their investments and reduce the overall risk of their portfolio.

Tax benefits

In many countries, there are tax incentives and deductions related to real estate, which can result in greater tax efficiency.

Why invest in Miami, Orlando and South Florida?

These regions of Florida have become prime destinations to invest in real estate for several key reasons:

Economic and Population Growth

These areas have seen significant economic and population growth in recent years, which has boosted the demand for residential and commercial properties.

Climate & Lifestyle

The warm climate and coastal lifestyle of these regions make them attractive places to live and visit, which in turn increases property values. Miami is known as the “Capital of the Americas,” attracting residents and visitors from all over the Americas.

Investing in real estate: political and economic stability

The United States, and Florida in particular, is considered a politically stable jurisdiction with a strong legal system, providing security for foreign investors.

Accessibility for Latin American investors

The geographic and cultural proximity to Latin America, as well as the presence of established Latino communities, make it easy for family offices in the region to invest in these regions. According to U.S. Census data, 27.1% of Florida’s population is Hispanic or Latino.

Do you want to invest in real estate? We’ll advise you

At PFS Realty we understand the needs and objectives of family offices in Latin America. Our team of real estate investment experts is ready to guide you through the process of investing in real estate in Miami, Orlando, and South Florida. Contact us today to explore investment opportunities and start diversifying your portfolio wisely.