Why Miami

Why Miami

Why you should invest in Real Estate in Miami

Why Miami

This buyer’s guide has the objective of providing basic guiding information on a range of important issues that foreign investors might be interested before acquiring Real Estate in the United States – specifically in Miami and Southeast Florida. This guide is not intended to replace legal or accounting advice. Therefore, we make no guarantee, warranty or representation about the information provided in our website. Anyone interested in purchasing real estate in the United States should seek the advice of qualified professionals.

Florida today 

Shortly after the crisis of 2008, the combination of a weak dollar and low property prices attracted many buyers to Florida that took advantage of the opportunity to buy at low prices. And they were right!

Today, the scenario has changed due to a stronger US dollar and to an increase in real estate prices. However at a slower pace, there is still room for investing at reasonable prices in real estate as the market continues a steady growth. Interest rates and inflation remain low in the United States, which is an incentive to borrowing for purchasing properties and business investment.

During the period 1993 through 2017, a total of 428 condominium buildings were developed in South Florida, comprising almost 75,000 units.

During the period 2011 through 2018 from Fort Lauderdale to Key Biscayne 20,000 units were built. As of 2018 data, 83% of these units have been already sold.

• During the last South Florida construction boom, nearly 49,000 new condo units were created –and 100% sold- in the region’s seven largest coastal condo markets of Greater Downtown Miami, South Beach, Sunny Isles Beach, Hollywood / Hallandale Beach, Downtown Fort Lauderdale and the Beach, Boca Raton / Deerfield Beach, and Downtown West Palm Beach. Early on in this cycle that began in 2011, the weak U.S. dollar coupled with discounted prices worked to attract foreign investors and bulk buyers that purchased a number of the unsold units.

This newest South Florida condo boom is based on a new financial strategy for preconstruction condos where buyers agree to make a scheduled series of payments – ranging from 25 percent to 50 percent of the contracted purchase price. Buyers who fail to meet the required deposits are in jeopardy of losing their funds. This new payment model has been commonplace in Latin America and contrasts with the last South Florida condo boom where developers typically collected deposits of no more than 20 percent at the beginning of the contract period. Back then, buyers were not required to come up with additional funds until the date of closing. Many industry watchers pointed out to the former 20% down payment preconstruction deposit structure as a factor in the widespread speculation that propelled the South Florida condo market toward its ultimate crash that began in 2007.

As a matter of fact, the biggest change came from the lesson learnt with the 2008’s bubble burst. Today developers fund their projects mainly with buyers’ and investors money, rather than relying on bankers and lenders. The formula is very simple: if enough units are sold, the project goes ahead. Otherwise, the developers give buyers their money back – that’s the healthiest strategy! Obviously we are talking about prestigious developers like Pegasus partners.

Why invest in Miami and South Florida?

• Modernity and comfort. Miami is the fastest growing city in the United States. New buildings construction are everywhere with luxurious residential towers, hotels and shopping centers, which has turned South Florida into an international destination for luxury and sophistication like never before.
• Climate. The pleasant tropical climate with its beaches and tranquility of its cities, make South Florida and Miami the most important tourist destination in the United States, either for Americans and Canadians as well as for many people from around the world for work, investing, vacation, living or enjoying retirement.
• Nightlife and culture. The intense Miami’s nightlife is well known, and during the last years, a growing cultural offer has turned the Miami-Dade and Broward counties into cultural attractions with new spaces for music, exhibitions and the Arts.
• Consumption’s paradise. The large number of shopping malls, shops and first class restaurants, as well as discount stores, make Miami and South Florida a paradise for all tastes and budgets.
• Security and stability. Foreigners have the security of investing in a stable country and where the laws are enforced to protect everybody. The US laws also protect private property and, unlike many other countries; when tenants stop paying their rents, quick evictions are simple and fast. People can safely walk the streets because of low crime rates as well as well-trained and effective police forces, who efficiently enforce the laws – especially against criminals.
• Business environment. The business environment in Miami and South Florida is optimal for two reasons: the continuous growth of local population and international tourism that brought along a greater domestic trade in all areas. The international trade ranks Miami –and has been doing so for many years- as the most important gate of trade with the Caribbean and Latin America. To date, 15 Fortune 500 companies have their headquarters in Florida and 1,400 multinational corporations use Miami as a platform for doing business with Latin America, including Exxon, AIG, Microsoft, Visa, Wal-Mart, among others.

Miami is the nation’s #1 for technology new start-ups – followed by Austin Texas and California.

Miami is the nation’s #2 fastest growing U.S. metro area for job growth.

The State of Florida is the nation’s #2 best state for business –according to U.S. corporate executives.

The State of Florida is the nation’s #4 on the business tax climate index.

• Funding and financing. In the State of Florida access to long term mortgage and low interest rates loans are relatively easy to obtain. Contact us.
• Profitability. Investing in real estate in South Florida and Miami is still profitable without risk of a new bubble burst, especially when buying pre-construction condominiums. Contact us
• Occupancy rate. Hotel and residential occupancy rate in Florida – and specially in Miami – is one of the highest in the country, only surpassed by New York City, because of the continuous growth in tourism and the relocation of large companies from other states because of Florida lower taxes and costs.

From Fort Lauderdale to Key Biscayne, 2017 occupancy rate was 96.65%!!

• International demand. Miami and South Florida have benefited by a growing real estate demand from international buyers. While most buyers have always been – and still are – from Latin America, the United States and Canada, more and more foreigners from many countries like Russia, China, UK, Germany, India, Japan, Australia, South Korea, Italy, Portugal and Spain, etc, are increasingly purchasing real estate in Miami and South Florida.

For the last nine years in a row, Florida State has been the nation’s #1 top destination for international buyers.

• Panama Canal expansion. The Panama Canal expansion –which doubled the canal capacity- started operations on June 2016. With this expansion, more and larger vessels started docking in the Port of Miami making this port the nation’s largest port in the East Coast.
• Cruise ships terminal expansion. Miami became the world’s largest cruise ship terminal.

In 2017 the Port of Miami set the world record with 5.3 million cruise passengers. Port Everglades and Port Canaveral –both in Florida- follow the Port of Miami in the world ranking.

• Tourism from Asia. Miami is being benefited by a huge marketing campaign to attract tourists and investors from Asia by the thousands.
• Americas-Asia Trade Center & International Financial Center. A 4.6 million square foot (427,300 square meter) mixed-use mega project is coming soon to Wynwood, Midtown Miami. The project has been designed to facilitate the trade among Asia, the United States, Latin America and the Caribbean. It will include showrooms, office spaces, retail stores, restaurants, parks, gardens and a 400-room hotel.
• Hiperloop One – the Miami-Orlando ultra-fast train. Hiperloop One will connect Miami and Orlando in 25 minutes ride along a 257-mile route – with stops in Fort Lauderdale and West Palm Beach. Many of the millions of visitors that fly directly to Orlando, in the future some might be able to make a stop in Miami in their way to or from Orlando, and probably spend some days in the city.
• Public transportation system. Although Miami is known for being a city where the automobile is the main transportation, the city has several excellent public transportation including the Trolley -a free bus service whose units are a replica of the old trolleybuses from the last century. Other public transportations are the Metrobus, the Metrorail and the Metromover. You can ride by public transportation from Miami International Airport and move across the city from north to south and from east to west. For complete information on public transportation in Miami http://www.miamidade.gov/transit/

Facts about Miami and the State of Florida

For many years now, Miami and South and Central Florida, have had the highest growth across the United States, and even – in many aspects – greater than New York City.

As of 2017, Florida State accounted 20.6 million inhabitants. The vast majority is of non-Latin American origin. Latino Americans equal non-Hispanic Americans in Miami-Dade County only.

Florida State is the second-fastest population growing state in the United States. By 2040 is expected to reach 26 million inhabitants.

 Out of the nation’s 15 top fastest growing cities, 8 of these cities are located in the State of Florida.

As a matter of fact, many buyers of luxury properties in Miami and South Florida are  Americans who seek retirement – or simply vacationing in a warm and safe place with all the comfort they are accustomed. As a result, luxury properties market in Miami and adjacent areas have always remained stable.

Miami -and South Florida- is also a preferred destination for foreign investors around the world for the very same reasons foreign investors account for about the 80% of new developments sales in Miami. As a matter of fact, buying a property in the United States is less complicated and safer than in most parts of the world.

During the last decades, South Florida and especially Miami-Dade and Broward counties, became cosmopolitan where people of many nationalities coexist: Canadians, Brazilians, Argentines, French, Filipinos, Chinese, Russians, Germans, Italians, among many others. The cities’ infrastructure, skyscrapers and buildings of all kinds have grown exponentially making Florida – and especially Miami – the most modern and fastest growing state in the nation.

Additionally to the residential and commercial developments, Miami-Dade created a new cultural attractions as the South Miami-Dade Cultural Arts Center, the brand new Perez Miami Art Museum, the Adrienne Arsht Center, Miami Science Museum in the Museum Park, the AmericanAirlines Arena, the MDC Museum of Art & Design, the ArtWalk Wynwood – an event created to showcase the art galleries in the Wynwood Art District, and the Olympia Theater, among others. Click here to see Miami cultural offers http://www.miamidda.com/places_arts-culture.asp

The SMART (Strategic Miami Area Rapid Transit) Plan

Improving transit and mobility for Miami-Dade County is a priority to improve the life quality of the almost 3 million residents.

The Miami-Dade County Mayor Carlos Gimenez and the Board of County Commissioners are working hard on the SMART Plan – an acronym for ‘Strategic Miami Area Rapid Transit’ to expand mass transit throughout Miami County. The plan was adopted by the Metropolitan Planning Organization with the goal of addressing congestion by providing alternate routes for commuters.

The plan defines six corridors: a Beach Corridor, East-West Corridor, Kendall Corridor, North Corridor, Northeast Corridor and the South Dade Transitway; and a Funding for the project is underway.

The SMART Plan in detail:

• The Beach Corridor is a proposed light rail or Metromover extension that would connect Miami Beach to the mainland along the MacArthur Causeway. The line would extend into South Beach from the Miami Beach side, and into the Midtown area and Design District on the mainland side.
• The East-West Corridor would be placed along the Dolphin Expressway, with the rail system connecting downtown Miami to our western suburbs.
• The Kendall Corridor rail system would operate from the Metrorail Dadeland North Station and run west down Kendall Drive to SW 162nd Avenue.
• The system’s North Corridor would extend the existing Metrorail at Dr. Martin Luther King, Jr. Metrorail station and run along NW 27th Avenue to NW 215th Street.
• The Northeast Corridor would run commuter trains from downtown Miami to Aventura, utilizing existing Florida East Coast Railway tracks.
• The South Dade Transitway Corridor component would convert the existing bus way along U.S. 1 in South Dade into an upgrade rail system.

The goal of these corridors is to connect to the areas currently not covered by the existing Metrorail lines through a much more affordable and rapid-to-construct light-rail or at-grade system. The plan will include a Bus Express Road Transit (BERT) network that will also link the SMART corridors with existing Metrorail routes.

Pegasus Luxury Realty offers the best deals and opportunities in residential and commercial real estate in Miami and Southeast Florida. Contact us and find out our advantages and why our worldwide clients choose our firm over other real estate brokers. We have a selected inventory of residential properties: condos, condominiums, apartments, preconstruction, new construction, new developments, luxury realty, luxury penthouses, luxury condos and apartments, and commercial real estate.

Disclaimer: The information provided in our website is for basic general guidance only and DOES NOT constitute legal advice or intends to replace the advice of an attorney or a certified public accountant. We believe the data displayed in our site and its sources to be reliable; however, Pegasus Luxury Realty makes no warranty, guarantee or representation about it. Any interested party must seek appropriate professional advice.