Foreign Buyers and Buyers with Cash are Changing Miamis Downtown Real Estate Market: There are key factors leading to a price surge in our Downtown market: 1. Cash is always king and changes any market segment. 2. Foreign buyers (not race and ethnicity) are buying in cash because the dollar is still a weaker currency in comparison to many of the world currencies. When a buyer exchanges her/his currency to US dollars and is able to get a property to what amounts to a 20%-40% Return on Capital, buying in the US makes sense. 3. Miami because of its fair winter climate, proximity to Latin and South America and is viewed as a “world class city”, these factors make Miami one of the top cities for purchasing second homes for foreign and cash buyers. 4. Miami also in comparison to other major US cities is still less expensive per sq ft. 5. Miami is now seeing a surge in Downtown because of concerted efforts to turn it into a destination and living/work area. This is unique because most major cities already have an urban plan with a developed downtown. 6. Owning real estate in the US is still seen as a safe investment to global clients. 7. Lastly, there is always going to be a direct impact on rental prices when the acquisition cost increases for investors and when supply is low. - The Go to Realty Team of Miami and Miami Beaches - ph. 305.318.8400 | Certified in Distressed Properties, Property Management, Trained in Sports and Entertainment Real Estate, working with International Buyers and Referral Services for International Buyers.
Posted on: Thu, 24 Jul 2014 13:03:48 +0000
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