Appreciation of Real Estate:
In just ten years, Miami residential rental real estate has seen a cumulative appreciation of more than 100%, ranking it among the top 10% of cities in America. Over the past 10 years, Miami’s real estate appreciation rate has been consistently, above average.
Florida has no individual income tax, plus no state income tax for sole proprietorships, LLCs, and S corporations. For real estate investors, Florida also has 427 Opportunity Zones that offer tax savings if money is put into urban, rural, and low-income communities.
Demand in Housing:
ROIs rarely disappoint. This is in part due to the high demand for housing. This demand is fueled by a population that prefers to rent. This creates a great opportunity for rental housing investors. 70% of Miami’s residents rent The city’s housing supply is low, which results in high home sale prices. This creates more demand for rental housing because it’s more affordable than buying a house. And that’s why many investors are buying single-family homes and then renovating them into many rentable units.
Miami is one of the few places that offer landlords and real estate investors more freedom than most other states. For example:
- Miami doesn’t have any laws on rent control.
- It doesn’t put a cap on security deposits.
- Landlords can initiate an eviction if a tenant is at least three days late on rent.
- Repeated infractions on the lease agreement allow for a 7-day unconditional move-out notice.
Number one state of re-locating:
Miami had a record-breaking 15.86 million unique visitors. Many people relocate to Miami for work. Why? Well, Miami is not only Florida’s biggest urban economy, but it also has America’s 12th largest GDP (by metropolitan areas). Thanks to its thriving tourism industry, growing economy, and strong rental market, Miami’s unemployment rate sits at 1.4%. Which is below the national average. Analysts forecast a rise of almost 11% in the Florida population by 2023 when the Sunshine State will be home to 23.3 million people.
As a result of the housing shortage, Miami rent has risen by around 27% and will likely keep rising in 2022. Since many people moving to South Florida are coming from cities where rent is already high, the rent increase isn’t likely to steer them away from making the move.
Fun fact: The average rent in Manhattan for a 700-square-foot apartment is around $4,000, while the average rent in Miami for an 800-square-foot apartment is about $1,900! Even if new Florida residents don’t prefer to rent with the higher costs, the current inventory levels can’t support the number of people moving there. Because of this, many people have no choice but to rent until more homes are available on the market.
Statistics show that foreign-born citizens constitute more than half of Miami’s population. This means that the city is very immigrant-friendly. And this is one of the reasons why Miami remains attractive to foreign investors. There are many reasons why foreign investors are taking so much interest in Miami’s real estate industry. For example:
- Some consider real estate investing in a safe and promising market.
- Others – mostly expats – are looking for a fresh start or to live the American dream.
- Others opt to buy condos that act as vacation properties or homes.
Migration and expansion of financial services leaders in Miami-Dade have grown consistently over the past 6 to 7 years, Some of the hedge funds, private equity firms, and other financial services companies that now call Miami-Dade home include Universa Investments, Boston Private, I Squared Capital, Appaloosa Management, Everest Capital, Trivest, and HIG Capital. Miami’s advantages as a global gateway drive its robust banking community, with more than 60 international banks including Barclays, Banesco, BBVA, Bank of America Merrill Lynch, JPMorgan Chase, Northern Trust, Banco Santander, and Israel’s IDB Bank. The majority of those banks have financial programs for foreign investors.
The Strategy of Mayor Suarez for Miami City: Capital of Capital
- Low taxes.
- Incentives to relocate big companies: multiple hedge funds and companies like Citadel – Miami’s reputation is no longer only a city for fun, but has become an epicenter for Business and commerce.
- Substantial growth as a hub for South America and has turned into the best city in the USA