Miami, known as “The Magic City”, is where the world’s richest choose to invest in real estate. Based on the volume of transactions over US$10 million per annum, Miami ranks as the fifth most important property market; only London, New York, Los Angeles and Hong Kong place higher.
Last year in the Magic City, around 146 luxury residences sold for $10 million plus, and there were 23 recorded real-estate deals at $25 million. Ultra-high-net-worth individuals (UHNWIs) have been very active—including Kenneth C. Griffin, a billionaire hedge-fund manager who purchased two glamorous homes for more than $150 million combined.
Miami is much more than a tourist destination with its beautiful beaches and bayfronts; a sunny, warm climate; and a vibrant culture that reflects Florida’s laid-back lifestyle with a metropolitan sense of excitement, although this backdrop has certainly contributed to the strong rental appetite. Known as a luxury holiday destination to a steady tribe of tourists, it is also home to expatriates, young professionals and entrepreneurs. Such a varied surge of incomers has driven the demand for quality rental units in the city’s desirable residential areas. Investors have seen their rental investment properties provide excellent yields throughout the past year. Figures produced by Zillow show that in Miami Beach, the median rent is $1,200 higher than the national median.
The real-estate sector has always capitalised on those elements that make Miami feel like a prize offering, and this has been reflected in the volume and variety of investment opportunities and big-name developers stealing slices of the Miami property pie. Rarely a day passes without a big-time developer making headlines for acquiring a site, transacting on a building for redevelopment or launching a state-of-the-art luxury residential scheme in a prime location.
So, who are some of these major real-estate players, and what are the biggest benefits of owning condos, apartments and beachfront villas in Miami Beach?
Tax benefits
Unlike most other US states, Florida has no state income tax, which offers financial benefits to property owners. Investing in Miami Beach real estate also brings other tax advantages, including deducting mortgage and property taxes from federal income taxes. For those who want to commit to long-term investment plans, these tax benefits can substantially boost overall real-estate investment portfolios.
Capital appreciation
The city’s limited amount of available prime beachfront property guarantees that demand will always exceed the supply of superior investment real estate. Miami Beach has seen real-estate prices increase substantially over the last decade as it has become an international jet-setters’ destination, attracting a new breed of resident and their wealth. Experts predict that property values will continue to rise with substantial capital gains over time.
Liquidity
Property owners in Miami Beach find selling their real estate comparatively easy and quick, providing an attractive liquid asset. Interest in this popular global city from local and international buyers is continuous. Unlike other investments that may take time to convert into cash, well-located properties in a popular destination can be relatively easy to sell. Miami Beach property owners manage their investments effortlessly and flexibly.
Lifestyle
Miami offers a rare blend of superb lifestyles and wealth opportunities. The city boasts exciting nightlife, fine dining and cultural events throughout the year, as well as a healthy way of life with the beach and sunshine on tap. Property owners can enjoy the city’s diverse offerings while maximising their potential investment returns.
Entry for UK citizens retiring to the US
For those seeking to retire to the United States from the United Kingdom without the benefit of a Green Card (Permanent Resident Card) or marriage to a US resident, there is another route: applying via the EB-5 Immigrant Investor Program. This requires a minimum investment of US$500,000 in a US enterprise. It is not a retirement visa per se, but a popular route for many retirees.
The popularity of Miami Beach and its dynamic real-estate market full of opportunities is ideal not only for experienced investors but also for newbies looking for safe, attractive havens and avenues to join a thriving coastal community of real-estate investors.
Source: International Banker