Miami has become a major real estate investment destination. Its privileged geographical position, its tropical climate and the quality of life it offers its residents are just some of the reasons that convince those who want to move to the sunniest state in the country. Now, if the dilemma is what type of house to buy, here we explain the advantages of condos in Miami.
A condominium or condo, as it is also known, is a property made up of dwelling units or apartments. These share common areas such as a lobby, a gym, a park, sports courts or a swimming pool. From luxury homes in Miami to more family-friendly areas, these residential complexes are a good option when buying homes for sale in Miami.
- See also: How to make rentals in Miami work?
5 Reasons Why You Should Invest in Miami Condos
1. Price
Typically, the value of the property is less than that of a single-family home. As of December 2020, the median price of homes for sale in Miami was $952,729, while that of a condo was $527,548 (Miami Herald, 2021). This means that homes are approximately 1.75 times more expensive than condos.
2. Maintenance and other expenses
One of the advantages of living in a residential complex is that the management takes care of the maintenance. We’re talking about the grounds, the pool, the elevators, or any other necessary repairs. Of course, these jobs are included in the monthly fee paid to the Homeowners Association. Sometimes this payment also includes water, sewer, hot water, and trash.
Miami Condos: 3. Insurance
In Miami condos, homeowners only need to purchase home insurance to protect their interior. The Association is responsible for covering the rest of the structure of the complex. According to Acentria Insurance, insuring a median-priced single-family home in Miami built after 2001 would cost approximately $10,064 per year. While a condominium policy starts at US$1,411 (Miami Herald, 2021).
4. Amenities
As we already mentioned, condominiums in Miami have outdoor and recreational areas. Thanks to the privileged climate of this city, most of them have at least one swimming pool. In addition to this, there are picnic areas, barbecues and even fitness centers. Some even feature trails to the beach or a pier.
5. The Offer
The condo market in Miami is much broader than that of single homes. For example, at the end of 2020 there were 3,659 homes in Miami for sale, compared to 12,898 condos (Miami Herald, 2021). This means that buyers have many options to choose from, without suffering from rising prices or competition when it comes to bidding.
What It Means to Own Condos in Miami
We already mentioned what the advantages are when choosing a condo. But what should you consider when buying one?
The administration fee
This depends on the number of amenities the property has. That’s why you should know its value before making a decision, as it’s a monthly expense that will come directly from your bank account.
Miami Condominiums: Regulations
Condominiums in Miami have a Homeowners Association that defines a series of rules for coexistence and the use of common areas. This information is essential to know if that community is compatible with your lifestyle. Many complexes have rules like no noise after 10 p.m., no pets, or no exterior décor.
Property Taxes
These are calculated for each dwelling unit in the complex. This means that each homeowner pays a percentage according to the size of the home, its condition, and the average sales price in the area. This usually includes the value that corresponds to you of the common areas.
Forms of Financing
To buy condos in Miami, you can access mortgage loans offered by banks or the government. As part of the loan study, these institutions analyze the association’s finances to determine its viability. Usually, the down payment can be between 3% and 10% of the total value of the property. And this also depends on whether it is a first or a second home.
If it’s a second home, you can earn a return on investment by renting it out during the times of the year you’re not using it. Either way, buying a condo instead of staying in an Airbnb in Miami is a better financial decision in the long run.
References
De Martino, R. (2021, February 1). Want a single-family home? Five reasons Miami buyers should consider a condo. Miami Herald. https://www.miamiherald.com/news/business/real-estate-news/article248845724.html#storylink=cpy
Smith, L. (2018, August 20) What to Know About Buying a Condo. Smart Asset. https://smartasset.com/mortgage/what-to-know-about-buying-a-condo
Woodman, C. (n.d.) What Are Property Taxes on Condominiums? Zachs. https://finance.zacks.com/property-taxes-condominiums-10459.html
