5 Reasons Why You Should Invest in Property in Miami

Miami’s population is close to half a million people, but this beach city’s housing market is much greater. Considering Southeast Florida at large, we’re looking at over five million people. The Miami real estate market is the second largest in the Southeastern region and the seventh largest in the country.  This shows a lot of potential for growth all the time, especially for its prime location and year-round vacation weather. You don’t want to miss out on this goldmine of opportunity, so check out these five reasons why you should check out property in Florida and invest in Miami.

Excellent Appreciation Rates

NeighborhoodScout’s data shows Miami’s appreciation rate has been above average for ten years.  It ranks in the top 30% nationwide, with a cumulative real estate appreciation rate at 22.64%. Annually, this breaks down to 2.06% on average per house.  This is promising especially compared to the nationwide housing market. Additionally, fDi Intelligence ranked Miami #9 in the American Cities of the Future. Miami scored #2 in terms of business friendliness, #3 in FDI strategy, and #10 in infrastructure. Miami is the largest urban economy in Florida, and it has the 12th largest GDP in the U.S. The World Cities Study Group classified Miami as an alpha city based on the level of business activity, human capital, and cultural activity. Any city that’s good for business is indicating growth in the short and long term, which is guaranteed to bring in new residents to conduct business.  The tourist and beach culture combined with strong business activity shows two reasons to expect the growth to stay consistent.

High Demand For Rental Properties

According to Forbes, “demand for homes — especially single-family homes — has been consistently on the rise in Florida. Yet despite the demand, it doesn’t necessarily convert to more homebuyers. Instead, even though Florida boasts fairly low housing prices statewide, many people are still opting to rent instead of buy. As a result, rental rates are skyrocketing.”  

This is great for thinking long-term and investing in rental properties that will increase in value due to the consistent rise in demand. Look at vacation homes and places that would be perfect to use for AirBnB revenue.  You can also turn larger homes into smaller units and rent them out individually.

Healthy International Market

Miami has a very diverse population, with many immigrants becoming citizens and residing here.  In other cases, foreign buyers and investors put their money into the market while staying overseas.  There are different reasons why someone overseas would keep their eyes on Miami property, such as seeing them as safe investments, using them as vacation homes, or a safe place to go if their home countries are experiencing turmoil (consider Venezuela and the Venezuelan-American population in Miami.  What this means for you is a high return on investment due to the high demand not just domestically, but globally.

Miami Is Landlord Friendly

Regardless of what you intend to do with your property, be assured that Florida gives its landlords an easy time.  There is no rent control here (hooray!). Security deposits aren’t capped, and you can start eviction is the rent is three days late. Damage to the property requires a seven-day conditional quit notice, while repeated lease violations allow for a seven-day unconditional notice. You can be sure that the state and city ordinances will work in your favor when you have trouble with tenants, which is always reassuring for property investments.  

The Beach (Of Course!)

Of course, the first image that comes to your mind when you hear “Miami” is warm beaches and palm trees. The tropical climate keeps it bright and warm year round, besides the occasional storms that subside quickly.  The population increases about 2% a year and it’s the fifth fastest growing region in the U.S. It also has other advantages compared to cities like San Francisco, which is limited in development space and has more regulations on building heights. It’s also more affordable for renters and buyers compared to the southern California beach areas that have similar attractions.  

Miami has experienced a spurt in high rise construction in downtown, giving it the third highest skyline in the U.S, but other areas limit it so that high rises don’t block the view of the water. However, that hasn’t prevented the Miami real estate market from becoming the sixth densest housing market in the U.S overall.  In addition to the rapid increase in residence, the booming tourist market is not going to slow down anytime soon. As mentioned before, rental properties are a smart choice because of their flexibility. Consider students, tourists, sub-leasing, and duplexes and you’re virtually guaranteed to increase your ROI quickly.