To buy an apartment in Miami is only in one case – you have documents (green card, or US passport), you are going to move here permanently, you know the area and the house where you want to buy an apartment, and you know that you will not sell this apartment long.
Buy an apartment in Miami – myths about the profitability of the acquisition
Myth 1. Prices for apartments in Miami are growing
Apartment prices are rising and falling. For each apartment, in each house there is information in the MLS database. There is an actual price for which similar offers were sold – real deals. Now, in 2016, prices are higher than in 2009-2011 by about 60%.
In connection with the crisis of currencies in the main countries-consumers of real estate in Miami (Argentina, Brazil, Russia, Ukraine, Kazakhstan, Canada), the demand tends to zero, and the set of proposals, on the contrary, has increased dramatically – foreigners withdraw money.
Here is an example of how much an apartment has grown in price in 10 years, they can’t sell it now and are lowering the price
Myth 2. Quatira can be profitable to pass and receive high rental income
An apartment worth about $ 1 million (line 1), with annual rent, without furniture, is rented for $ 3,500–4,000 (check MLS).
- Maintenance of this apartment (Maintenance) – about $ 1000 per month;
- The tax will be about $ 10 thousand per year, which is $ 800 per month;
- Payment for services of a realtor to make 1 month rent, that is $ 300 per month;
- The cost of such an apartment, about $ 2100 per month;
Your profit from renting an apartment for $ 1M will be $ 1,400 – $ 1,700 per month or up to $ 20,000 per year = 2% per annum. Most likely, the profit will be lower by 20-40%.
The following calculation does not include:
- the cost of cosmetic and other repairs;
- idle time (an apartment for $ 3500 per month, as a rule, on the market for more than 3 months, so that will be your pottery);
- mega popular thing – Special Assessment – this is when something constantly needs to be repaired in the house, and a couple of tens of thousands of dollars are collected from the owners)))) An example of this is Jade in Sunny Isles, where in the new house (5-7 years old to him ) it is necessary to alter the facade to the full height.
Statistics of requests for renting an apartment in Miami shows that customers are ready to rent 2-bedroom apartments (2 bedrooms) for 3-4 months, with a budget of no more than $ 2,500 – $ 2,800 per month.
Myth 3. Apartment maintenance is inexpensive
Apartment maintenance consists of several articles:
- Maintenance of this apartment (Maintenance) – $ 400 – $ 2000 per month;
- tax – about 1.5 – 2% of the appraised value of the apartment;
- minor and cosmetic repairs in the apartment;
- special assessment (more);
Maintenance of an apartment worth $ 300 thousand, costs about $ 1,200 per month, and renting $ 2,400.
Apartment maintenance costing $ 1M costs about $ 2,000 per month, and renting is $ 3,500;
Myth 4. We will go to rest every year, and our own apartment will be cheaper than renting
Do you have a green card? not ? but then there is an apartment in Miami. You still need to get a visa . An apartment in the United States is a minus rather than a plus when obtaining a visa in the United States. Having an apartment is one of the hallmarks to constantly immigrate to the USA. Over the years in the US, I have seen enough “tourists” who were given an apartment in Miami, and then forgot to give a visa .
To sell an apartment in the USA remotely is very difficult. The market suddenly, according to your realtor , began to fall sharply, no one buys anything, and an urgent 40% discount must be made. This is a normal standard story.
The main advantage of renting an apartment is that you can come to a new place. Having an apartment in the United States, you will have to travel to the same place. Many of my friends regretted that they bought an apartment in Miami because of this. There are many wonderful months, except for Miami, where you can go – and they are much cheaper.
Myth 5. Property in the United States is protected.
If you have a property in the United States – an apartment in Miami, then there is already something to select
Myth 6. The apartment is easy to sell.
- The apartment is not easy to sell, especially when there is a crisis in all developing countries, and oil is low.
- Miami, unfortunately, the non-American market – real estate was bought by foreigners, and now they don’t buy.