As a residential architect and realtor in Miami, let me give you 5 reasons why it is a good time to invest in Miami in residential property and update it:
Strong demand and limited supply. Miami is a popular tourist destination with a growing population. This has created a strong demand for residential property, which is outpacing the supply of new homes. And we are not building enough new homes since the land here is limited by the sea on one side and the Everglades on the other. This is a recipe for rising prices, which makes Miami a good place to invest in real estate.
Appreciation potential. Miami's real estate market has a long history of appreciation. Over the past 10 years, the median home price in Miami has increased by over 50%. This trend is expected to continue, making Miami a good place to invest for the long term.
Rental income potential. Miami is a popular tourist destination, which means there is a high demand for rental properties. This can provide investors with a steady stream of income, even if they do not live in Miami themselves.
Tax benefits. Florida does not have a state income tax, which can save investors money on their taxes. Additionally, Miami offers several other tax breaks for real estate investors, such as homestead exemptions and property tax caps. The property tax caps are 3% for properties owned by homeowners and 10% for investment properties.
Upside potential. Miami is a city that is constantly growing and evolving. It’s an international city with people from all over the world living here. Spanish is so commonly spoken that it attracts investors constantly from Latin America. Many Latin Americans feel comfortable here and have 2nd homes. There are many new projects underway, which could further boost the value of real estate in the city. It’s becoming a place that is attractive to tech companies.
To determine where to buy a single-family house to do this, you need to understand
zoning. There is some additional information on this here. However, if you don't feel
confident that you can select a property for the optimum conditions to do this, call me
and I can help you find the right property as a licensed Realtor.
These opportunities for upside potential make Miami a good place to invest in for the
future.
Why Miami is a safe place to invest
Of course, there are also some risks associated with investing in real estate. However, the factors listed above make Miami a relatively safe bet for investors. If you are looking for a place to invest in real estate, Miami is a good place to start.
Here are some additional tips for investing in Miami real estate:
● Do your research. Before you invest, it is important to do your research and
understand the local market. This includes understanding the demand for real
estate, the supply of new homes, and the potential for appreciation by remodeling or
building an addition or an accessory dwelling unit (ADU).
● Consider the location. The location of your investment is important. Choose a
location that is in demand and that has the potential for future growth. At this point,
Wynwood, Allapattah, North Miami, and Homestead are great areas where we
expect much appreciation in the future. Coconut Grove and Coral Gables are two
stable neighborhoods with beautiful homes and increasing prices. Also, consider
whether the property is in a flood zone. Read more about why this is
important here.
● Inspect the property carefully. Before you buy, it is important to inspect the property
carefully. This includes checking the condition of the property, the neighborhood,
and the surrounding area. Read my article about those things that are not covered
in a typical home inspection here.
● In Miami we have many houses that are very old that will need renovating.
Renovating is one of the easy ways to add value to an investment property.
Properties that are renovated bring much more profit at a sale than those that are
not.
● Hire a qualified real estate agent. Better yet, hire a realtor who is also an architect.
As both a residential architect and a Realtor, I can tell you whether a property can
be easily expanded or renovated. I can tell you whether it is in a flood zone. I can tell
you whether it has water and sewer available and many other things that a regular
Realtor knows very little about.
So, if you are considering buying property in Miami, call me Maria Luisa Castellanos, principal of United Architects, Inc., a Miami architectural firm, on my cell at 304-439-7898 or email me at MLC@UnitedArchs.com.