Miami’s real estate always attracted foreign buyers. Beautiful beaches and great weather make Miami one of the most attractive places to purchase real estate. According to the surveys, more than 70% of all purchases by international buyers are in cash. As a result, most of the condos under construction in Miami are selling at prices above the average value.
In 2014, the National Association of Realtors researched to find out the figures for international homes sales. The national study focused on properties purchased by clients living in a different country and also new immigrants. The research revealed that four states accounted for 55% of all international purchases which are California, Arizona, Florida and Texas. Not surprisingly, Florida was the leading destination for foreign buyers taking up 23% of all purchases. As one would expect, Miami was the area of choice for the clients.
Why international buyers choose to buy property in Miami?
There are various reasons why foreigners decide to buy property in Miami. The top reason is that compared to other cities in the world, real estate in Miami is reasonably priced. Although locals may argue that the international buyers inflate prices, they are still fair in comparison with other popular destinations. Another reason that attracts customers is the fantastic weather in Miami. Wealthy Europeans look to Miami when they want to get away from the cold winter in their homeland.
Property buyers are always looking for a haven for their investments. The US real estate is mature and relatively secure. That means that buyers in Miami feel safe knowing that their investment is reliable, and there are minimal chances of a market crash. They have a choice of investing in cheaper places around the world, but political inconsistency and insecurity are significant concerns.
There is something about Miami that brings out the best in people. Whether it is the beautiful sandy beaches or the perception that it is a holiday destination, most people have a good feeling about Miami. The stunning houses and luxurious condos make it a place to have fun and live a care-free lifestyle.
Property buyers from around the world find it easy to buy a property in Miami. As long as you have a ton of cash, you do not have to follow lengthy property acquisition procedures. Contact a local realtor, identify a house, and buy the property with money!
How do international buyers make use of their homes?
According to the National Association of Realtors, about 42% of the foreign buyers choose to settle in the US and live in their new homes. The rest of the buyers use the houses for vacation or rental purposes. Such property owners have a home elsewhere and consider their Miami homes an investment.
A further analysis of the purchasing trends reveals that almost 50% of the buyers prefer single family homes located in suburban areas. The other half prefers condos situated in the center of the city or resort locations.
Who buys properties in Miami?
There is no doubt that Miami is one of the most cosmopolitan cities in the world. Almost every country, culture, and race can claim representation in Miami. Due to its location, Miami has a large population of people from Latin America. The most prominent immigrant group is made up of Cubans.
According to a recent survey conducted by the Miami Association of Realtors, foreign buyers snapped up an astonishing 10,600 properties in Miami in 2015. The homes were worth about $6.1 Billion. Venezuela, Brazil, Colombia, and Argentina accounted for 62% of all international purchases in Miami. We noticed that while local buyers paid and an average of $258,000 per property, the foreign buyers spent an average of $590,000 per unit.
Venezuelans are the top property buyers in Miami. A study done over a five-year period reveals that in 2011, they were buying power came up to 15% of all the foreign purchases in the area. By 2015, Venezuelans were still the leading group of buyers representing 13% of all the international buyers.
Brazilians are known to have an extraordinary liking for Miami. Over the past five years, they have consistently accounted for an average of 12% of all international purchases in Miami.
Argentine nationals are not the most prominent in Miami, but they know where to put their money. Over the past five years, they have been quietly buying properties in Miami and accounted for just over 10% of the purchases.
Colombians are the new kids on the block when it comes to the purchase of real estate in Miami. They have gradually increased their stake and now boast of 10% of foreign property buyers in Miami.
While Canadians were some of the most noticeable buyers five years ago, their interest in the Miami real estate market is dwindling. However, they are still buying houses with 7% of the international buyers being from Canada.
Mexicans have a cultural bond with Miami residents. Although they are not the most prominent property buyers, their influence is essential to the city. Mexicans have consistently accounted for 5% of the international property buyers in Miami.
Other notable players in the Miami real estate industry include the French and Italians that share about 4% of the international buyers each.
Based on the past trends and future projections, Miami will continue being a magnet for international customers that wish to invest in the United States.