Miami’s billing as one of the most popular travel destinations in the US is well justified. One need not analyze too deep to find out the reasons behind this epithet.
The sandy beaches, the great food, diverse culture of people inhabiting the place, and perfect weather contribute to making Miami a great travel hub. This beautiful beach city also boasts of a robust real estate industry that gives healthy returns to the people who invest in it.
In this regard, it would help to remember that location is of utmost importance in ensuring the property’s profitability in real estate investment. And with properties in Miami, Florid there the chances of doing wrong are slim indeed.
Why Invest In The Miami Real Estate Market?
The very first thing that makes the real estate market of Miami stand out is the time-tested consistency it boasts of. This consistency is something few markets have. The appreciation rate for properties in Miami has consistently been above average for the past decade or so.
As per reports by real estate websites, the value of Miami property has appreciated by 4% during the last five years.
Overview Of The Appreciation Of Real Estate In South Florida
Miami’s housing industry deserves special attention, being the second largest in the southeastern US and the 8th largest across the US’s length and breadth.
Now take into account that properties in the city have cumulatively appreciated by 22.64%, which ranks it amongst the top 30% of the US cities. It also means that your investment grows at about 2% at an average with each passing year.
Real estate websites expect this growth to double to around 3.7% in the coming few years, making Miami real estate an excellent property investor option.
Another figure you want to consider is that 2018 witnessed property values shoot up by 7.56% in Miami. This figure exceeds 82.79% of all towns and cities in the United States.
The following households in Miami are known for their high appreciation rates:
- Buena Vista
- Bayshore Area
- Biscayne Blvd / NE 25th St
- S Miami Ave / SW 1st St
- Midtown Area
- NW 2nd Ave / NW 24th St
- SE 2nd Ave / SE 1st St
- E Flagler St / NE 2nd Ave
- N Miami Ave / NW 36th St
- NW 7th Ave / NW 17th St
What Makes The Miami Real Estate Market Such A Great Choice For Investment?
Many reasons serve to position Miami as your first choice for real estate investment. The main such reasons are as follows:
Most Miami Residents Prefer Rental Housing Accommodation
Some studies reveal that a whopping 70% of Miami residents prefer to live in rented houses or apartments. This trend is mostly because many of the population are employed in seasonal or temporary jobs and search for rented housing units.
What can be very helpful in research is Home Search by Manhattan Miami Real Estate. Tools like these serve to reduce the time spent on the exercise. Coming to numbers, tourism alone employs 145,000 people in Miami.
Added to this scenario is the low number of houses available in the region, making buying property incredibly expensive. In contrast, renting is a cheaper short-term accommodation solution to most city inhabitants’ housing woes.
It also serves to make single-family houses especially attractive for owners. They usually buy such property and then renovate them into multiple habitable units available for rent.
Impressive ROI For Real Estate Investors And Landlords
As with all kinds of property investments, your potential ROI or Return On Investment is the first thing you need to consider.
Assessing the ROI first is only natural as you want your investment to be profitable and thrive. Thanks to the massive housing demand, ROIs in Miami are impressive and alluring. The need for rental properties is extensive.
Most of the resident population shows a remarkable inclination for such a real estate arrangement. This preference for rented properties makes landlords and housing property owners perfectly placed to generate a stable source of significant income
Miami Has Real Estate Investor Friendly Laws And Regulations
Miami is known for its laws, regulations, and customs that make life easy for landlords and real estate investors. It offers plenty of freedom to such investors through applicable rules in critical aspects of conducting a real estate business. Some such facts are:
- Rent is unregulated
- The upper limit of security deposits is undefined
- Even a late payment of rent for three days may legally result in starting eviction proceedings. In most other US cities, this period is usually at least a week
- If the tenant violates the lease agreement all too often, they are liable to be served a 7-day unconditional eviction notice.
Booming Tourism Industry
The booming tourism industry is another excellent reason for real estate investors to flock to Miami for investment opportunities. Miami plays host to millions of tourists throughout the year. It attracted 15.86 million unique visitors in the year 2017. This tourist population is estimated to have spent $25.97 billion directly at the same time.
This fact translates to more significant income opportunities for owners of vacation houses, real estate investors, and landlords from the great tourist influx.
There Is A Strong Demand For Jobs
Miami is a hot destination for tourists visiting for leisure and for a large number of job seekers. These job seekers come to Miami in search of their daily livelihood. Miami is, in fact, the largest urban economy of Florida.
Among all metropolitan areas in the US, it has the 12th largest GDP in the US.
The bustling tourism industry, the great real estate market, and the booming economy all contribute to high employment rates in the city, with the unemployment rate standing at the below national average of 3.9%.
To conclude this article, it would be safe to say that Miami is a genuinely worthwhile real estate investment destination. The figures bear proof of its strong credentials in the sphere, and you want to invest in it.
But as with all kinds of investments, there is no substitute for scrutinizing every aspect of the investment exercise. Particularly you want to know how the assets fit into your long-term financial and professional goals.
This guide is hopefully helpful and lets you start your investment journey with the perfect step. Keep on reading additional material on Miami’s real estate properties’ suitability with your financial goals for detailed insights!