How to Spot Miami Condo Investments [INFOGRAPHIC]
When you’re looking into Miami investment condos, make sure to do your homework. Researching thoroughly about condos for sale in Miami will mean the difference in a long term gain or a middling money pit.
There are few essential points to keep in mind when scanning through the vast landscape of condo investment opportunities. Keep these in mind at all times:
1.Is the condo in a good neighborhood or location?
2. Does the price take into account long-term capital gains, what about taxes?
3.Are there local job market opportunities.
4. Does the market support a yield high enough to cover the mortgage rates?
5. Does the current state of inventory support the price you are buying at?
6. Does residential rent control cap your potential return?
It’s no secret that the Miami real estate industry is as hot as the South Florida sun. Just beware of the cloudy areas mentioned above. That’s where good old fashioned due diligence and research and seeking the services of businesses which focus on trends involved with condos for sale in Miami.
Condos for Sale in Miami, the Old and the New
In the past, Miami enjoyed a unique reputation. In the early 1980s (think the Miami Vice television show) people flocked to Miami for the fun in the sun, beachgoer lifestyle or for that type of vacation. And it’s always been know as one of the places in the United States that attract the ‘Snowbirds’, or retirees that want to escape bad weather they have been used to for half a year.
Today, it’s considered one of the top international cities in the world, competing with cities with established international reputations like New York, Tokyo, London, Paris, Geneva, Hong Kong, San Francisco and the like.
Miami has always been known as a hub for its impressive culture and arts communities. Now, it’s fashion scene is exploding, high-end shopping, dining and nightclub districts are beginning to attract those folks that enjoy a cosmopolitan, multinational, multicultural and true international flare.
Miami and South Florida, a True International Community
Since Miami is a growing international commerce and banking center, Miami is home to the Brickell neighborhood, which is known as the ‘Manhattan of the SouthS’, and has the second most international banks, outside of Manhattan.
South American companies are flocking to Miami and South Florida, turning Miami into a city known for a high concentration of international headquarters. Because of the political and societal unrest in their countries, they are finding it nicer to do commerce and live in a city where they don’t have to worry about those issues.
Which leads us back to what you should do when searching for condos for sale in Miami. When thinking of Miami condos investments, because people and business owners from South America, Europe and China are competing with American folks, competition for real estate (especially condos) is intense.
Some of the areas which demand far exceed supply with Miami investment condos include Key Biscayne, Miami Beach, Downtown Miami and Midtown Miami, Coconut Grove, Coral Gables, and Brickell. And make sure to research based on your family situation.
If you have children, for example, some of these neighborhoods are well known for their fine schools. Whereas if you’re looking for a singles lifestyle, some areas are more well known for amenities geared towards that lifestyle.
What Else to Focus One When Researching Miami Condo Investments
Also keep in mind, when looking into condos for sale in Miami, think outside the box, because others are. Existing condos are in high demand in the real estate market, but so are pre-construction condos. Ideally, these are investments which will yield a profit from the get-go. However, keep the points in mind mentioned above in case the market turns south. It is a more common issue even for the most astute of condo investors.
And a pre-construction condo is just like it sounds, you’re buying it before it’s built. The advantage? The price you agree to pay for the condo is set in stone. So if by the time it’s ready condo prices go up, you’ve saved money before moving in.
And in some areas of Miami and South Florida, demand for pre-construction condos is greater than existing condos.