It is no secret that even today in 2024, Real Estate remains one of the best ways to diversity your investment portfolio.
There are many places you can invest in Real Estate, but these are the reasons why we believe Miami is one of the hottest places to be in 2024!
Miami is a Global Phenomenon!
Miami attracts buyers from all over the globe!
It is true that the main attraction to the city has been around it’s beautiful lifestyle, beaches, and nightlife, but new things have started to take place. Miami has now brought the attention of the soccer world with the additional of Lionel Messi to Inter Miami, as well the opening of the new F1 track, making it one of the few cities to host a multitude of pro sports all in one place: soccer, Formula 1, Polo World Cup, ATP Masters 100 Miami Open, NHL, NBA, and the NFL.
This combined with the attraction brought by Art Basel, the Ultra Music Festival and the Miami Fashion week, as well as other events… Miami has reached a new height bringing all kinds of people to want to live and invest in the city.
In the latest issue of The Economist about the World’s Top Ten Thriving Cities, Miami ranked #1, followed by Singapore as #2. The report takes into account the last 3 years’ Population Growth, GDP growth, office vacancies and housing prices.
2nd US Financial Center & Silicon Valley 2.0
Another factor leading to great interest in the Miami market is its new status as a growing Tech and Finance Hub, which has brought Miami to become the 2nd most important financial center in the US.
Office rents have climbed to $51.70/sqft in Q1 2023, from around $46/sqft in Q1 2022, this is majorly thanks to companies like Goldman Sachs, Blackstone, Microsoft, Citadel and others moving their headquarters to the area.
In addition, thanks to its strong bond to Latin America as well as 5.5% corporate tax rate (if you have an LLC or S corp you don’t need to pay any corporate tax) , Miami keeps attracting small businesses. This helped the city become the No.2 Emerging Tech Hub in the US by Forbes.
Low Taxes Leading to Great savings!
Ever since the Pandemic hit, we have seen huge demand for people to move to states which provide more friendly tax savings. Florida having no local and state income tax has attracted many individuals moving from regions with high tax rates, offering major savings for those earning salaries over six-figures especially. Some reports revealed that individuals moving for New York to Miami can save up to $200,000 a year in taxes and cost of living.
The same goes very similarly for individuals moving from San Francisco.
This is incredible value for high income earners that are now investing in the Miami real estate market.
Although there is not state income tax, one might think that property tax might be too high, but not to worry, property taxes in Florida are relatively low compared to similar states.
Rents have now reached an All Time High.
Thank to all recent migration, demand for rental property in the city has reached al time high thus leading to a 12% increase in Rents between July 2022 and 2023.
Although prices have increased, Investors can be confident that demand is high, especially considering that 70% of Miami’s rental properties are renter-occupied.
Once we add to the variables, the fact that the city is a major hotspot for tourists all over the globe, short-term rentals can hope to average $250 in daily rate for their Airbnbs!
This brings Miami to be within the top 10 most expensive cities in the USA for short-term rental units. Prices for luxury condos have also increased to $948/sqft by the end of 2023.
Infrastructure
Miami’s great growth has indeed brought for a need for fast development of solid infrastructure, and we are happy to say Miami has been moving fast to keep pace with the growth.
Miami’s airport is now the second busiest for international passengers.
Miami’s airport offers the highest number of flights to Latin American and the Carabbians.
The Port of Miami instead is second leading cruise port in the USA, also being an extremely important gateway for cargo ships.
Another great feature offered by the city is its rail transportation, offering very comfortable and quick ways of moving around the city as well as great transportation to Orlando, Fort Lauderdale or Palm Beach.
In the field of healthcare the city is not lacking, Miami’s Baptist is one of the highest performing hospital systems in the whole country. Miami Beach’s Sinai Medical Center is ranked among the top 5% hospitals in the US. In terms of Pediatric services, Miami Children Hospital also offers top rated services.
Schools
Miami offers top rated schools and Universities, such as the University of Miami which has also produced Nobel Prize winners. Florida State University is also rising higher in the rankings to #4 best public universities, especially for fields like law, medicine and international business.
Miami Ranks as Happiest and Most Healthy City in the US
The annual Mindbody and Wellness index ranks Miami as the happiest and most healthy city in the US. This city has everything, the beach life, the best nightlife in the country, art, fashion, business, all in a place that looks and feels like a heaven with fantastic beaches, abundance of green spaces, and plenty of outdoor activities, and not to mention the quality of the food Miami has to offer! One cannot be wrong saying the city is one of the best foodie cities in the whole country, including a variety of world-renowned restaurants such as Zuma, Hutong, Novikov, Cipriani, and more!
The shopping landscape is also second to none in the US, it is not just limited to name brands or niche boutiques but rather traverses the entire landscape of international favorites to couture darlings, and even the edgy, eccentric label.
For the occasional traveler they can also enjoy some of the best hotel, resorts and private clubs in the world!
Why You Should Invest in Miami
In a dynamic city like Miami the opportunities for investing are constantly evolving! There are opportunities for everyone, whether you are a seasoned investor or just beginning to test the waters with something small, we can find you a property for any budget, from small residential or multifamily deals, to luxurious condos in the newest skyscrapers… and here is the best part…some of the new constructions are pre approved for Airbnb short term rentals, making them an incredibly interesting investment opportunity!
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