Here are five reasons to invest in real estate in Miami:
The tourism industry is always busy and will never disappear
Miami never runs out of renters. There are tourists in Miami all year round, so tourists are always looking for a room to stay. Airbnb can get a high rent margin even for short-term rentals.
High margin in the rents
Because Miami always has tourists throughout the year, spending-minded-tourists are always looking for rooms to stay. Airbnb also gives you a high margin on rent.
The renter ratio is way higher than the owner ratio
Florida real estate has been growing constantly over the last eight years and has very high rental demand. Seven out of ten residents are residents and only three owners. This allows for comfortable rental revenues in luxury properties and is generally more profitable than in many major cities.
Law in favor of landlord
Miami is also considered ‘landlord-friendly’ thanks to laws that protect owners against tenants that dodge rent. There is also no annual cap on rent increases.
Affordable luxury real estate market
Prime real estate is still affordable in Greater Miami, with very attractive prospects. HNWI (high-net-worth-individuals, those with at least one million dollars in liquidity) in the northern USA and California are relocating en masse to Miami and other cities in South Florida. They are buying ultra-luxury properties, for themselves or to rent out, at half or a third of the price in their home state.
Here, two million dollars will buy you a stunning villa or a large high-end apartment with views over Miami, something that would be laughable in New York or Los Angeles.
For buyers and investors with lower means, Miami is synonymous with surfaces double or triple that found elsewhere for a similar budget.