How often have you heard of the benefits of investing in Miami real estate and wondered how these could apply to you?
More so, you may need answers on the 2023 trend for real estate in Miami as a blueprint for whether to launch or hold back your investment in your city.
Consider this a comprehensive guide on what to expect, when to, and how to navigate it.
What Are The Benefits Of Real Estate In Miami?
The Value Increase
The number one thing to do business for in any country is, of course, for profit. Except you are investing in a Non-Profit organization, you want to ensure that your investment will yield money.
The first step is to earn profit and not losses, and you will be glad to discover that in the past half a decade (five years), meaning from 2018 – 2023, the Miami real estate market has not suffered any plummet or loss.
So, all those with a property in the area have not lost a penny. Finally, the minor level of profit annually has been 3% – 4% per annum.
As modest as these projections are, they mean that other than earning your money back, you can expect some appreciation annually.
The excellent reputation of the market and potentialities
The Miami real estate market is the eighth largest in the United States of America and the 2nd largest in Southern America. More so, it is the tenth most popular city in the USA for real estate investments.
Other than the impressive ROI, people continue to flock to the city and improve its economy, which will, in turn, positively impact the value of the real estate.
High level of renters
According to Florida.Realestate, at least 69% of the residents of Miami rent their properties.
Quite interesting right? With a population of about 470,000 people in March 2023 and an estimated 180,000 households, you will see that it is a buoyant location for real estate in the country.
You are sure to make your money back because these renters will continue to pay rent, not to talk about the consistent rise in entrants and migrants who continually come into the area.
The high level of renters shows the area’s viability for real estate investments. If your plan is to buy and rent out to members of the public, then this is a massive green light!
Lower supply of housing compared to the demand
In Miami, the demand for housing far outweighs the supply available. Basic economic principles state that where demand is higher than supply, value/price increases.
This has been a classical manifestation of the Miami real estate market. As the demands are higher, the prices of the properties accentuate.
Such that as soon as developers complete units, they are almost immediately rented out to the populace. This is another major positive pointer for investment in the Miami real estate market.
A good place for landlords
The numerous roadblocks placed before landowners in many parts of the USA have become so notorious that they sometimes deter people from wanting to buy properties for rentals or commercial purposes.
Miami is an exception to that rule. For example, there is no cap on security deposits in Miami; also, you can initiate an eviction process against an erring tenant if they are 3 days late on a payment (contrary to seven days in other parts of the USA).
Also, if your tenant breaches the lease agreement, you can give them a seven days notice to quit the premises. Essentially, Miami will stress lesser than many other countries as a landlord.
On an ending note
You can gather from the above that the Miami property market is not business as usual.
It is an environment that favors the landlord and investor; there are constant entrants for real estate and tourism purposes, lovely tourist spots, and high employment rates. The market is not likely to plummet soon.