Miami Real Estate Market Update

Miami is an ideal choice for an investor who wishes to get into rental real estate. Indeed, this city which still has the name Magic City is one of the most popular real estate investments in Florida. Its market is attracting more and more investors. Miami real estate presents a varied property typology. From the villa in Miami to the luxury condominium (swimming pool, gym, valet parking, etc.) or even the studio, we are witnessing a rush to the country of Uncle Sam, because real estate investment is very promising in the American market.

Only, it would be necessary to know well the subtleties of the market of this large agglomeration of the State of Florida. What is the interest in a real estate investment in Miami? What are the types of goods in this city? The most popular neighborhoods? The price trend? State of real estate in Miami in 2022.


Why invest in Miami real estate?

The Miami market is very dynamic. There is a strong rental demand. In addition, purchase prices are relatively low compared to rental prices. Miami, once built on speculation, is now a city on the rise, with real jobs and big, well-established companies. The economic stakes, combined with the determination of local authorities, make it an agglomeration with a stable and fruitful situation.

Anyone can access property in the United States and more specifically in Miami. A business creation visa is not required to make an investment there. Just open a bank account. One can also create an American company that allows a shell of legal protection for the investors. In addition, tax deductions are important for real estate companies. It should also be noted that there is no double taxation in France on income taxed in the United States.

In addition, Florida benefits from a very advantageous tax system, because the State of Florida does not collect income taxes, only the federal State collects taxes.

Therefore, we are witnessing a rush to the country of Uncle Sam because the American market is very promising. Miami is one of the most popular cities for real estate investors.

A booming market

 The real estate market in Miami is doing very well. It is a young and very active city. Tourists and business people come and go there all year round. New neighborhoods are springing up, which guarantees the continuous growth of the city. The unemployment rate continues to fall thanks to significant job creation in the private sector.

Miami also offers significant investment opportunities, which attracts many investors. This inevitably boosts the real estate market, high-end among others. The euro/dollar exchange is another significant advantage of Miami and American cities in general.

Two types of property stand out in particular for profitability oscillating between 6 and 7% per year on average. Everything then depends on the buyer’s affinities with the property and the management method.

  • An apartment in Miami in a modern building, with lots of luxurious common areas, has a high acquisition price and charges. Rents are proportionally high. Rental is between $1,500 and $2000 per month for a T2, between $2000 and $3000 per month for a T3, and from $3600 per month for T4 and more.
  • An apartment in a small Art Deco building typical of Miami Beach has a low price and low charges. The rent is also cheaper but can be compensated by the seasonal rental (by checking if it is authorized in the sector).

A high rate of return

Rental demand is very strong in Miami. Compared to rental prices, purchase prices are low. It is a stable city and very profitable to investors.

The acquisition of a condo (apartment) is strongly a solution, and it is possible to manage it yourself. These investments make it possible to achieve very attractive rates of revenue. Investments there are highly profitable, as the purchase of a property can yield profit rates above 8%.

In Coral Springs Fl, high return investments are based on purchases with short, medium, and long-term rental returns. These are condos, townhomes (detached houses), or single-family homes (individual houses). It should be noted that the authorizations for a vacation rental in Florida are in restricted areas. The real estate experts also offer a rental management service that allows the client not to take care of the property and to derive greater profits from it.

More than favorable taxation

The taxation in Miami is very favorable for a profitable investment. It is good to know that there is no wealth tax. The fees are around 1 to 2% for any real estate acquisition in this magnificent coastal city of the United States.

The American authorities have also implemented the correct taxation there. Thus, in the event of a capital gain, the investor will only have to pay 15% tax on the capital gain after one year of ownership of the property. In addition, various expenses are deductible from income (travel, hotel, etc.).

Numerous tax advantages on real estate capital gains and American property income make investing in the USA advantageous, compared to the French market: amortization over a period of 27.5 years, among other things…

Investments in the United States for the French are subject to the tax conditions signed between France and the United States which stipulate that tax credit in France offsets the taxation levied on American soil. This completely eliminates double taxation.

The possibility of asset diversification

The current economic situation in Europe and in France encourages investors to diversify the orientation of their assets. Investing in the United States is one of the easy-to-access solutions, which promises to benefit from a strongly recovering economy, a higher rental ratio, and a certain capital gain. Moreover, the acquisition of US dollar currency remains a stable and sustainable strategy.

Therefore, Miami is a destination of choice for anyone who wishes to make investments in real estate and earn a huge profit.