How to invest in property in Miami and not die trying

The settlements have been just for shopping. After nearly three years of assessment of value, it is not easy to find bargains in the real estate market in South Florida. Although the opportunities provided there.

According to the Miami Association of Realtors, an association that brings together 31,000 estate agents in January 2014la number of homes sold rose 9.8 percent from January 2013; condominiums while the increase was 12.9 per cent, from 1,124 to 1,269 sales in January this year.

This is just a sample of what has been happening in recent years. According to the association, 26 months makes prices rise paralas come in households, and 31 months for condos.

While the real state market in Miami continues to strengthen, the stock is also rising. Begins to be more balance between buyers and sellers. The average sale price of condominiums in the last year spent 155,000 to $ 186,000. The price of promediode ventapasó 290,378 to $ 361,000 in the same period.

“Prices will continue to maintain an upward trend in 2014 although the large number of committed projects (pre-construction) is a push in the supply side that should mitigate the growth of prices. It can be an interesting place to invest given the favorable market outlook year, “FelixLopez, president of Saggio Realty.

Something went back to normal on the streets of Miami. Are cranes and engine noise at work, showing billboards luxurious skyscrapers or modern communities with gardens, homes and businesses. A strength since 2009 and for a couple of years, had completely disappeared.

The inventory of condos for sale rose 20.1 percent in the last year. Of 2,790 units sold in January 2013, he spent twelve months to 3,352. This is thanks to the thousands of preconstruction condos that are turning to the market, plus the fact that prices have already reached more than enough for owners to see who has recovered its value, and consider that a good time to level sell.

“We’re seeing a very strong market because more than 50 percent of purchases are made in cash and this eliminates much risk that the market may fall in the future, unlike the times pre-crisis where most purchases were made with funding, “said Lopez.

A similar view sheds Carlos Rosso, Chairman of the Division of Condominiums Related Group. “After the crisis, not only changed the market but also how to invest and perception. Buyers are stronger, “he says.

The developer is selling more and more departments preconstruction or “well”. In this new phase of the housing market, more cash and deposits. “Something interesting is happening is that while we are building at a slower pace than before, if sold before a department with a 20 percent deposit, it is now up to 80 percent of the unit pays before we end the building, “exemplifies.

The real estate market is growing steadily and promising future. Since the 2009 crisis today, Miami has picked up and development is seen in all areas. From general construction, installation of good restaurants, hotels and cultural growth. For example, with the arrival of Art Basel and the museum opened Perez Art Museum, there is a before and after. “Miami has matured a lot as a city and has become more sophisticated,” sums Rosso, adding that “the value per m2 around U $ S 4,000 / 4,500, depending on the area. Thus a cheap compared to other cities like Sao Paulo or Buenos Aires, or even within the U.S. such as New York or Chicago “city.

From Fortune International, its founder Edgardo De Fortuna note that pre-construction sales are dominating the market. The buyer tends to go for the newest, most technologically and creative product.

“Demand for Miami come from all over the world, including the United States, which is again very strong. Prices are now above what we had before the crisis, in most markets Sub Miami (Beach, Aventura, Doral). In Fortune have a large variety of projects such as Nine Mary Brickell, SLS, 1 Hotel & Residences and Jade Signature “Fortune says.

Set a value per square meter is a difficult task. While TheRelated being offered in the market buildings as BrickellHeights, or Paradise Bay with panoramic views of Biscayne Bay (here acquired his apartment celebrities like Manu Ginobili or David Guetta), with a cost of $ 5,000 meter, Fortune International offers Jade Signature on SunnyIsles sand, with values ​​of $ 14,000 and further underground, which disparapor any possible average heaven.

The same applies to existing buildings. In BALHARBOUR, and St Regis resorts have units of $ S15.000 square meter, CanyonRanch in Miami Beach to U $ S 10,000; Akoya or U $ S 7,000. “Take an average price can be arbitrary. Depends on location, in case you are on the beach if facing the front or the sea, whether or not allow the temporary rent, or what state the building is, “said Marlis Smith, realtor working on selling used and preconstruction with a large portfolio of Argentine clients. And it shows in standard units listed buildings on the beach at U $ S 3,000 meter, as Seacost BurleighHouse or about 100 square meters and overlooking the front or partial sea view. “You can also get cheaper units away from the sea, even overlooking the bay or channel” he says.

For Smith, the most convenient shopping areas are north of SunnyIsles. “Hallandale and Hollywood have units on the beach, at lower values ​​SunnyIsles. It is an area that is renewed and where they are building large and complex as Costa Margaritaville Hollywood “he says.

ElíasPerchik, CEO of Miami Shooting ensures that property values ​​especially on the beach, and have already exceeded by much the prices before the crisis. “As land is scarce in first line and that is the main attribute of the crisis suba.Antes one could buy apartments notch brand for $ 11,000 meter, then the crisis was the same product in 5000 and now requested from the preconstruction 14000.Indudablemente brings a building with an innovative concept but that is not always the best deal, today there are 25 thousand units that are preparing to go to market, “he explains. To Perchik, there are many more possibilities of doing business in used units, and lists potential areas like Bay Harbour, oSingerIsland (Palm Beach).

Jorge Arvelo, president of Arvelo Accouting & Consulting Group, advises foreign clients who purchase properties in the U.S., before buying take into account certain potential costs as a lien on the property (indicates that the Government puts a clause in the Registry where the property has back taxes); While taxes (varies by area and by type of structure); taxes in the county or city where the property is located; and find out if the previous owner has debt on their maintenance fees, because you have to pay the full debt to do the transaction.

“There are several figures jurídicasa consider and depends on many variables. We always ask the purpose, those involved (if they are family, friends, etc..) If they expect to sell, rent, or live alone parainversión future. In addition it is important to clarify whether the entity wishing to create their own pay tax to the government commitments or if the owners will be responsible. The answers to these questions determine the entity to be created to buy an apartment. The LLC (LimitedLiability Corporation, for its acronym in English) are popular for being simple in their creation and are not expensive, but consider that the members of the entity are required to file taxes. This is where you can change a decision to create an LLC or a regular corporation, “says Arvelo.

As said, sometimes happens that evaluates each case individually and faces the fact that customers come with another investor information provided them, but does not necessarily apply to them because each case is different.

According to the legal concept that is purchased, then the taxes paid to generate an income or a gain on the sale.

“If you rent, made ​​money and created an LLC, will be taken of the individual tax rate, which varies whether married, single, with dependents, etc.. I could say that risk will be less than 12 percent unless the income is received material, which can upload your percentage. However, if you create a corporation will pay between 33 to 35 percent of profit (deducting expenses) but the owners do not pay taxes, “he explains.

In connection with the sale, again there is a difference when selling the company or a natural person. “Normally companies are entities based in the United States and is therefore retention is less or none. But when is a nonresident alien financial institutions retain a good amount, which is nearly 20 percent, “says Arvelo.

Miami ranks second property sales in the United States and holds the third place as the most populous Dowtown. The main foreign investors today are from Brazil, Venezuela and Argentina. They were the “rich Latin American” as they say, who helped resurrect the market.And Miami quickly returned to be strong and powerful as it was. Or even more.

Preconstruction Options

Brickell Heights: A condo in Brickell, comprising two towers designed by David Rockwell, with more than 690 residential units, office space, restaurants honored, recreational spaces for adults and children and art spaces. Still to sell some units in the first tower. It costs about U $ S 5,000 m2.

Paradise Bay: Two towers, 55 floors and 345 residences from 1 to 4 bedrooms, all with panoramic views of Biscayne Bay. Designed by award winning architectural firm Arquitectonica.Entre the amenities include swimming pools, cabanas, gym, spa, jacuzzi, party room, private cinema, tennis courts, and valet parking and security. It costs about U $ S 5,000 m2.

Hyde Beach: Is the playaquepuedealquilarsepordía undepartamentosobre. When will the owner has all the resort’s facilities and amenities (concierge, housekeeping, roomservice … etc) And then, the administration deals with your income and mantenimiento.Su cost around U $ S 6,000 m2.

Nine at Mary Brickell: Residential towers, 30 units available per floor and will be sold in the form of one, two or three bedrooms, with a size of 70-195 square meters. M2 Value: U $ S4.500

Jade Signature: In SunnyIsles, has the design studio Herzog & de Meuron Sea views, spacious terraces. Access to the resort, jacuzzi, swimming pools. Jade Signature offers luxurious amenities for all ages. The spa and terrace offer unique water even for a traditional spa facilities, including a Turkish bath, tropical showers stimulants, massage tables beachfront yoga platform surrounded by a Zen garden m2 Value: U $ S 13,000 .

What you should know:

The buyer pays no commission real estate. This will be charged only to the seller, and is 6 percent.

The script, called closing, has expenses that ranges between 1 and 2 percent of the value of the transaction.

When the property is rented, the owner remains responsible for paying the expense.

Every property has a property tax, which is around about 2 percent of the tax value (which is sometimes less than the actual value).

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