In countries like Colombia, Venezuela or Mexico, when a person says in a conversation that he has a house in Miami, the first thing that comes to mind are words like “luxury”, “pleasure”, “wealth”. We tend to think prejudicedly that real estate in South Florida is, more than anything, a luxury, in the same way that a yacht or private jet is.
However, what many Latin Americans ignore is that buying a house or apartment in South Florida is, in addition to a luxury and a pleasure, an excellent investment alternative. That is why the idea is that the time comes when someone mentions the property they have in Miami, the people who listen to them think: “this is a person who knows how to manage his capital intelligently.” Fortunately, more and more people in our countries have “changed the chip” and have internalized the advantages of investing in the real estate market in South Florida, such as the peace of mind of having your money in a strong currency such as the dollar, the appreciation of real estate in a dynamic market and with many buyers, and the possibility of renting the property obtaining returns of 7% and 8% each year.
Florida’s real estate market is one of the most dynamic in the United States, and that dynamism is due in large part to the flow of foreign capital, especially from Latin America. According to a study conducted in 2017 by the National Association of Realtors, of every ten residential properties that foreigners buy in the United States, two of them are made in the state of Florida. In addition, 36% of residential real estate acquisitions in Florida are made by Latin Americans. The proximity to their countries of origin, the presence of family and friends, job and education opportunities, the climate and the proximity to fabulous beaches; are some of the factors that, according to the NAR, make it so attractive for the Latino community to own a property in Florida. Among the state, the southern zone is preferred by Latin American investors. Specifically, Miami-Dade County and Broward County.
Therefore, in this article we also want to present a small catalog of which are the best areas to invest in housing in South Florida, so that you can choose the option that best suits your budget, which at the same time allows you to obtain the best income rates in case you put it to rent.
Best Areas to Buy a Home in South Florida
Fort Lauderdale
This city located in Broward County has become in recent years an attractive investment pole. Its buoyant economy, its beautiful and wide beaches, and the recent removal of a series of legal obstacles that hindered the achievement of large urban projects within its perimeter, has led to Fort Lauderdale being installed with great force on the radar of real estate investors.
For those who are thinking of buying for rent, Fort Lauderdale is an excellent option to consider. The median home price in this city is $318,000, which is comparatively lower than other areas in the south of the city. Florida as South Beach or Bal Harbour, while the average lease fee is one of the highest in Florida ($1,937)
According to experts, this is also the best time to buy as home prices are forecast to rise in Fort Lauderdale in the coming years. This is partly because employment rates are growing at a very fast level in the city which has caused more and more people to be interested in establishing their place of residence in this city.
Sunrise
Millions of tourists visit South Florida every year for the sole purpose – or at least being the main reason for the trip – to shop. And among the fans of shopping the favorite place without a doubt Sawgrass Mill Mall, a shopping center located within the perimeter of Sunrise that annually receives more than 26 million people.
This large influx of people, added to the hotel undersupply in the area, have made it a very attractive option to buy a house in this area to rent it for days. Prices are relatively low ($117,000 on average), occupancy rates remain high year-round, and renting a two-bedroom home for a week can be around $770.
Doral
Its levels of economic growth, low unemployment rates and the thriving Latino community that inhabits it, make Doral one of the most attractive cities for potential investors. Although their prices are comparatively higher than in areas such as Weston and Sunrise, rental prices are around almost $ 2,000. In addition, according to the forecasts of experts, it is estimated that housing prices will have strong increases in the coming years. Hence, for valuation purposes, this is an excellent time to contemplate Doral as an investment option.
