Why are so many foreign investors investing in real estate in South Florida? Here are some of the main reasons:
1. The South Florida real estate market is highly profitable for investors. Rents in Miami are at an all-time high. In its April National Rent Report, Zumper revealed that Miami had the 8th highest median rent among major cities in the United States. Miami had a median rent of $1,900 for a one-bedroom apartment in the month of April, which moved it ahead of Chicago in the rankings. Higher rents translate into additional income for landlords and investors.
2. Miami properties that are for sale are still relatively affordable compared to other parts of the country. And with so many flexible investment options like pre-construction arrangements, foreign investors have been encouraged to continue investing in the Southern Florida real estate market.
3. A weak exchange rate also persuades foreign investors to purchase properties in South Florida. Due to the weak U.S. dollar, a foreign investor can sometimes buy more property in South Florida than he can in his home country at the same price. Foreign investors often get more value from investing in South Florida than they would at home.
4. Florida property ownership laws favor a foreign investor. There are few, if any, restrictions that are placed on an international buyer who purchases property in Southern Florida. A foreign investor enjoys, to a great extent, the same right a U.S. citizen has to own property. What is more, the EB-5 program gives an international buyer the opportunity to gain permanent residency in the United States upon investing a minimum of $1,000,000. Foreign investors who desire to live permanently in the United States often take advantage of this program.
5. Purchasing property in South Florida gives a person the chance to own some of the most luxurious and exclusive property in the world. Miami and Miami Beach are exotic locations that have an awesome climate. It is the dream of many people to own property in South Florida, and foreign investors certainly do not want to be excluded.
The above points demonstrate why the Southern Florida real estate market is experiencing an influx of foreign investors. Investing in a property in South Florida gives you the ability to join a league of savvy investors with exquisite tastes.