Miami Condo Investments Flying High for Many Reasons
Miami condo investments are undergoing an incredible surge attributable to a number of different key economic drivers. The Great Recession and chaotic collapse of Lehman Brothers are now long gone in the rearview mirrors of condo buyers. It’s a new world. And the Miami condo market is showing unprecedented signs of growth and demand. Through today’s post we’ll examine some of the core factors leading to the incredible rebound of Miami real estate.
Back in the year 2008, there was an unbelievable 40 months supply of condos available on the open market. That’s over three years of supply…yikes! A healthy market is generally viewed as having a 6 to 9 month supply of available inventory – and that’s where we are today. Miami condo investments are being fueled, first and foremost, by an insatiable appetite for Miami waterfront real estate. In 2011, the average price-per-square-foot for Miami Beach real estate was $769. Now it’s 18.2% higher at $909 PSF. This all seems quite logical considering Miami is world-renowned for being located on the stunning aquamarine waters of the Atlantic Ocean and Biscayne Bay. If you are going to live in Miami, might as well live on the water, if you have the resources.
Miami Condo Investments Fueled by Foreign Cash Influx
Miami condo investments have been given a huge boost by the pipeline of international cash flowing in. Outside of possibly New York City, there isn’t another US city that could possibly rival our international appeal. One can easily see this by taking a casual stroll down Lincoln Road at any time day or night. If you walk from West Avenue to Collins with open ears, it wouldn’t be unusual to hear conversations spoken in several different languages. Afterall, Miami is known as the capital of Latin America. From what I hear, virtually every well-to-do family throughout the region sees Miami real estate as a glamorous safe haven for their money. All of the violence, currency problems and uncertainty of Venezuela make Miami condo investments incredibly desirable; I have heard this time and time again from Venezuelans (along with crazy stories of kidnappings within their country).
Lack of State and City Taxes
Another highly appealing factor fueling Miami condo investments is the lack of city and state taxes here. After living in Los Angeles and New York City, I can certainly appreciate this fact. I like to rub this in with my friends a bit when I tell them that Miami and that state of Florida basically pay us (technically save us) an extra 10% of our income to enjoy the incredible beaches, culture and healthy lifestyle. Thank you Florida, and thank you to Disney and the Indian Tribes within the State – they provide tremendous tax revenue to the State, which in turn alleviates the financial burdens on our citizens.
Highly Desirable Lifestyle Conditions
Miami has made tremendous progress in advancing as a world favorite for social activities and culture. With the opening of countless world-class restaurants to the incredible stages of Art Basel, the Food and Wine Festival and the Miami Beach Polo World Cup, Miami is now a mecca for affluence. Miami is the only American city outside of New York in the top ten of Knight Frank’s 2014 global-cities index, which ranks cities by their attractiveness to the ultra-wealthy. All in all, Miami condo investments have never been stronger due to incredible resurgence of Miami as an international playground for the rich, famous and cool people of the world.