Since the last census in 2010, Miami’s population has grown by an impressive 19.73 percent. Today, Florida’s second-largest city has over 478,250 inhabitants.
There are many reasons that so many people love to call Miami home, and why you should, too. Few cities in all of America have a hotter property market.
In today’s post, we look at nine of the top reasons many of the people who move into Florida every year prefer to buy real estate in Miami.
The Numbers Tell It All
Miami is currently America’s second-ranked city when it comes to economic growth. It’s no wonder that more than 1,000 multinationals have set up homes in the city. Besides, the city leads all American destinations when it comes to start-ups.
Miami’s commitment to education is also unquestionable. It’s no wonder, then, that the city is ranked fourth in the country in terms of schools. The population is also relatively young, with the average age of its inhabitants only slightly above 38.
Miami Has a Competitive Tax Environment
When you compare Miami with most other major metropolitan areas in America and worldwide, you’ll find that the city’s tax structure is more favorable. Miami residents pay zero percent income tax.
But it’s not just the residents who enjoy the low tax environment. Companies do so too. Sales and property taxes are incredibly low too.
Generally, Florida has a competitive corporate tax level of 5.5 percent. Businesses pay no inventory or unitary tax. They also enjoy many sales tax exemptions.
Miami’s Has an Attractive Rental Market
For well over five years, real estate in Florida has constantly grown, with rental demand increasing from year to year. At the moment, the vast majority of Miami residents are tenants, which means you can expect a comfortable rental return if you invest in rental property.
But that’s not all. Miami is considered to be one of the cities that are most landlord-friendly in all of America’s sunshine state. The city allows landlords a lot more freedom than they may be able to get in other states.
For instance, Miami has no laws that pertain to rent control. Moreover, authorities don’t put a cap on security deposits.
When it comes to evictions, you can initiate one if a tenant is three days late on rent. In most states, you cannot evict a tenant for late-rent payment before it’s been at least seven days. If a tenant repeatedly violates the lease agreement, you can issue a one-week unconditional move-out notice.
Prime Property Is Still Affordable
For those interested in prime real estate, Greater Miami offers extremely attractive prospects. It’s no wonder high-net-worth individuals from California and other states have recently been relocating in large numbers to Miami.
The city offers ultra-luxury property that you can buy for yourself or rent out at much lower prices than you’d find in New York, Los Angeles, and other locations. Here, with just one or two million dollars, you can find stunning Miami Shores apartments or villas with exquisite views over the city.
But even buyers without a large amount of money to invest will have no trouble finding properties with surfaces double or more than they could find elsewhere for a similar amount.
The City Has a Booming Tourism Industry
Another reason real estate investors love Miami is because the city is a top travel destination for people from the world over. In 2018 alone, the city received over 23 million foreign visitors who contributed a staggering $18 billion to the local economy.
No doubt, a massive chunk of that income went to rental investors.
The City Has a Robust Job Market
Besides leisure, a leading reason people relocate to Miami is to benefit from the city’s strong job market. As we pointed out initially, Miami’s economic growth is among the strongest in the entire country. The city is also Florida’s biggest urban economy and has one of the largest GDPs in the United States.
Thanks to the countless multinationals in the city, finding a job is no trouble. Besides, a thriving tourist industry and a solid rental market mean jobs are plenty in the city. It’s no wonder that Miami’s unemployment rate has consistently sat below the national average for years.
There’s a Large Retiree Population
As a result of the world-renown Florida weather and vibrancy, Miami is a popular destination for retirees looking to spend their golden years in the most comfortable possible surroundings.
This is great news for real estate investors looking for rental income. First, it means that you’ll have no problem finding tenants for your houses. And since housing value fluctuations hardly ever affect most retirees, you’ll have few complaints from your tenants whenever rent goes up.
Most retirees don’t move house frequently, which means you can expect a consistent source of rental income.
The City Has Gorgeous White Sandy Beaches
Perhaps the leading reason most people know Miami is because of its world-famous beaches. A large percentage of the tourists who flock to the city do so to enjoy these beaches. Many of these visitors even opt to stay in the city solely to enjoy the beautiful scenery.
Thus, once you invest in property in Miami, you can be guaranteed that you’ll have people looking to stay there.
Miami Has a Thriving International Market
Most of Miami’s residents are foreign-born. That goes to show how immigrant-friendly the city is. Few cities in the US are more appealing to foreign investors.
But why do foreign investors take so much interest in buying real estate in Miami? Well, the market is both safe and full of promise.
Some international investors are expats seeking a fresh start in the US. Others are people looking for vacation properties or houses.
Tips for Buying a Miami Property
Now that you’ve seen all the things that make Miami such a great destination to buy a home in, it’s likely you can’t wait to do so. Before doing so, however, it’s essential that you learn a few things to get yourself ready.
Here are three actionable tips to make sure that you get everything right.
Understand Your Target Market
A common mistake real estate buyers make is to think they’re going to succeed because the market they’ve brought property in is a strong one. The reality is you need considerable knowledge, analysis, and experience to be a successful real estate investor.
Before you invest in a home in Miami, take the time to know all there is to know about the specific neighborhood you’re investing in. If you’re going to rent out the property, who is your target tenant?
Will you rent out the property to students, working-class families, or retirees? Are you looking for short-term or long-term tenants?
Consider the Location
Miami is a vast city, so you need to know where exactly in the city you want to buy a home. The goal is to purchase the property in a location as close to your target renters as possible.
If you’d like to let the property to tourists, a beach-side home is ideal. A property near a college is perfect if you’d like students to be your tenants. A working-class tenant, on the other hand, would prefer a home where they can easily commute to work.
Gather Enough Capital
Miami may be a buyer’s market at the moment, but that doesn’t necessarily mean that properties come cheap. Zero-down mortgage plans are hardly available. That means you’ll need to put down a down payment to stand a better chance of getting a desirable piece of property.
Besides having a downpayment, you may need to set aside some money for repairs, particularly if you’re on the hunt for bargain-priced homes. Such revamps necessary if you’re to attract quality tenants as quickly as possible.
Set aside some money as a vacancy allowance. Your property may not have tenants during the first few months. A vacancy allowance caters to mortgage repayments and other expenses before a tenant moves into the home.
Now’s the Time To Invest in a Miami Home
If you’ve been looking to invest in Florida, buying a Miami home should definitely be among your considerations, click here to find out more. With its near-perfect climate, diverse cultures, and gorgeous scenery, it’s no wonder the city has become one of America’s most popular travel destinations. It’s no wonder real estate investors are scrambling for a piece of the city.
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