Miami real estate – if anyone had asked me three years ago about investing, I would have said “are you crazy?” Last year, however, stock levels fell to their lowest level since the peak of the housing boom and this has had the effect of jump-starting Miami back to life.
That’s real estate for you – you never know when the boom starts or when it will end. It is what happens in between that is the exciting part. Now everyone is looking for a piece of the action.
It was only back in 2010 that everyone was writing off Miami and the state of Florida – however now, thanks to lack of supply and a surge in investment from abroad, life in this famous city is good again for property investors.
Prices are still climbing back towards their true value, yet still 50% from their peak and rental demand remains strong for long-term lets – so we can safely say that Miami is one of the best locations to invest in property and profit in the US.
Miami is my favourite property market in America, it’s a place where you can live the Florida high life in the sun and enjoy non-stop nightlife for a lot less than it would cost for a plain old ordinary property back at home. It also puts cash back in your pocket.
Think Miami, think a cut price paradise fit for the wealthiest and with prices this low and rents high, we are in the cash-flow capital of Florida.
Yes Florida’s hottest city is back in fashion again and it should come as no surprise that single-family home prices in Greater Miami rose 11.2 per cent year-on-year to January from a year earlier. This was even higher than the Florida property bounce of 9.7% in the same period.
Miami Beach properties in Kendall added a further 1% of growth in January alone, proving that the appetite still exists even for property where you can park a yacht or just sit back and enjoy the views we normally only get to see on all the US TV shows.
This is all good news for property investors and there are signs that interest from South American investors may increase further this year.
As Latin American countries benefit from rising incomes and living standards, they naturally head to cities like Miami to invest where property now seems good value.
Cash rich investors from Brazil are also happy to make large down payments on property – sometimes as much as 80% to secure their own piece of Miami according to recent reports on Reuters.
This means that we are unlikely to see a repeat of conditions in 2006 where the majority of investments required only a 10% deposit in Miami. The best real estate in Miami may soon become harder to find as more foreign investors move in with big cash deposits and do battle to secure the best property.
With political instability likely to be a feature in countries like Venezuela we could soon see a new influx of investors looking for a safe haven to invest their wealth.
Investors from Venezuela already make up a sizable proportion of investors in Miami property already and they are likely to do so again this year – if the transition of their power in their country fails to run smoothly.
Deals on the best luxury property will become harder to find, making investing off-plan in Miami or tenanted properties in downtown Miami the best options in 2013.
What are your views on the real estate turnaround in Miami and Florida? Please leave your comments below: