There are various reasons why investing in real estate instead of equities, cash equivalents, and fixed income makes a better investment decision. Real estate investment offers a predictable cash flow and makes a perfect retirement plan since it’s a self-sustaining asset. Besides, this asset class is tax-deductible, hence, can lower your general taxes.
However, investors can’t reap all of these benefits if they neglect an important factor when it comes to real estate investing; location.
According to Jamie Brown, a renowned US real estate broker, “while the condition and price of a rental property can change over time, location will always be constant. Hence, it determines the desirability of any property you buy, thus influencing its price.”
This is why Miami comes to mind. Tommy Black, a Miami realtor says, “Miami is such a great hub for real estate investing so much so that the covid-19 pandemic has nothing on it. Since July 2020, the Miami residential market has gotten back on its feet, unlike many other locations.”
So in 7 points, we’ll extensively explain to you why Miami real estate investing is the best place to invest in, in 2021
See reasons below:
1. Real Estate is Profitable in Miami
The real estate business in Miami holds a good record for appreciating compared to other cities in the USA.
Thus making Miami one of the foremost regarding real estate appreciation in the US.
Some of these neighborhoods with potentials for strong returns in Miami include Wynwood where units are purchased at cheap prices but leased at higher rates thereby generating profits for investors. Moreover, since more condominiums are erupting in the town, there are greater investment opportunities for new investors.
Edge water is another profitable area for investing in Miami real estate. Though it’s a developing area, it’s garnering attention and growth for various reasons including its nearness to Design District, Park West, and the colorful Wynwood neighborhood.
2. Most Miami Residents are not Homeowners
According to Insurify, there are more renters than homeowners in Miami amounting to 68.7% (286,864) of the populace. Relocation, affordability, shortage in housing, friendly tax rate, and debt are a huge part of this reason.
“Single-family homes are in increasing demand and sales for such property continue to increase giving investors more reasons to consider Miami for rental housing investment,” says, Regina Blinks, owner of Miami’s luxury hotel, Fantasy.
3. Perfect Location
Real estate investment experts instruct that investors pay attention to locations with huge prospects for demand in the future. However, for Miami, the future is now.
“Tax purposes aside, Miami is the ideal location for a quality life. Soothing all-year-round weather, sandy shores, and incredible coastlines are some of the reasons why tech moguls, CEOs, and wealthy business owners from New York City (another USA city with international investment) China, and Turkey are buying houses in Miami to relax from their demanding careers in recent years,” Miami real estate broker, James White says.
Moreover, even the average-earning working-class population seeks working opportunities in this location for the same reason.
But that’s not all, let’s tell you the best part of this city to invest in to maximize your potential return;
Little Haiti has great potential for demand in the future due to its cultural diversity. It has witnessed an influx of new residents for the same reason.
Many investors love Downtown Miami, as it’s an economic hub in Florida. Plus, it houses captivating destinations such as Bayside Market and Bayfront Park.
4. Homeowners Enjoys Many Advantages in Miami
Rental property owners are always on the lookout for states with friendly landlord laws. In Miami, this dream is a reality as Florida landlords hold the power to evict a troublesome tenant within few days without the stringent and unfriendly eviction process in other states.
Furthermore, Miami enjoys a lower property tax rate serving as bait for rental property investors. There’s also the absence of rent control and the limit on the security deposit.
5. Miami is a Hub for Tourists
Asides that high-income earners settle in Miami for its quality of life, tourists troop into this Florida city for many reasons.
“Miami is the perfect spot for a picturesque vacation, ” says April Dan, a property manager. This makes the city a hub for tourists seeking to have a home-away-from-home vacation, ” she adds.
Moreover, the Greater Miami Convention and Visitors Bureau evidenced this fact by their report of 16.5 million tourists visitation to Miami in 2018 overnight. With this reality, smart investors are acquiring and building more rental properties for tourists to live in during their visitations.
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6. Growing Population
“How much demand for houses do you think would be in a city with a population density of 13,286 people per square mile?” Asks Sopiko Fueguel a broker of a miami real estate company.
“There’s even going to be greater demand for rental properties in Miami as the Miami-Fort Lauderdale-West Palm Beach region might reach a population of about 7 million in only four years to come,” she adds.
So for a city with the perfect location, tax incentives, and population boom, Miami is undoubtedly one that promises high profitability for its investors.
7. It’s not Bowing to The Pandemic Effect
“The covid-19 pandemic paused a lot of things but it didn’t prevent multimillionaires from investing in Miami real estate,” said Jaden Hope, author of Investment Made Easy.
It was reported in August 2020 that Jennifer Lopez and Alex Rodriguez acquired a $40 million property in Star Island. More so, Pharell Williams bought one sealed at $30 million in Coral Gables while Lionel Messi acquired the least for $5 million in Porsche Tower on Sunny Isle.
This implies that no matter the turnout of events in the future, Miami will continue to be a promising place for property investors.
Having realized the several reasons you should invest in Miami real estate, we recommend that you approach a Miami real estate company to get a realtor who can source for the best property tailored to your requirement.
Read next: Venturing into Real Estate Made Easy
A realtor who is under the aegis of the National Association of Realtors (NAR) is familiar with the ideal real estate pricing and will help you purchase your property at the right rate especially because they work with a code of ethics that favors clients. Hence, this tip will help prevent losses when transacting.
Help You Make The Right Choice
Using a realtor to find the Miami real estate to invest in will save you time. Irrespective of the number of properties that may abound in any area in Miami, a good realtor will help you slim down your options putting your requirement and financial standing into consideration.
So by choosing Miami and hiring a competent realtor from a real estate company in the region, you’d be few steps away from living the retirement life of your dream or enjoying a stable cash flow.