Nothing can shake the expanding housing markets in South Florida — not even the pandemic.
Miami-Dade county now records a 111th consecutive month of rising home prices. Coupled with favorable interest rates (cheap cash) and overall positive sentiment, new homeowners are taking the opportunity to get a mortgage and invest in the booming Miami housing market.
The demand for Miami’s real estate is going through the roof. New homeowners have just triggered what realtors call a “seller's market.” It’s the time when the available real estate can’t match the request of new buyers, subsequently raising the prices of available units.
Miami’s median home prices average $450k, marking a 21% price increase from last year. If you’ve bought a property in 2020, you may probably already sell it for a profit. Miami’s housing market is nothing short of staggering.
Disclaimer: This is not investment advice. Please, read this story as nothing more than opinion-based financial entertainment.
Living in personally-owned property may not be the wisest investment
- You can’t move easily
- Liquidating assets into cash can take months
- Repairs, property taxes, and HOA fees eat up at your savings
What to do instead?
- Buy a rental property
- Collect rent at a profit
- Rent your living space
- Sell your property once the price is right
- Or continue collecting rent
Don’t let a single property become your anchor
Instead of living in your property and paying the mortgage, let your assets work in your favor. Soon, you may have enough money to buy two or even three rentals. Miami has the perfect breeding ground for this kind of business.
The Magic City is still affordable compared to New York and Los Angeles, and the property prices are on the rise. Follow a basic rule of business — buy for less and sell for more.
Here are 3 great areas in Miami where you can find great deals for your next investment property.
1. North Miami
North Miami offers some great properties anywhere north of Biscayne Park and below Golden Glades. If you’re looking to buy a rental condo in this area, you can do so for less than $200k, and still expect a standard price growth year over year.
Condominiums are good reasonable investments for first-time owners, as they’re generally easier to maintain. The average rent price should well cover the expenses. Take the Homeowners Association fees (HOA) into account when crunching numbers, as they can sometimes be as high as the mortgage itself. Homeowners Association takes care of cleaning services, pool maintenance, doorkeepers, and other amenities.
2. Coconut Grove, Miami
The Groove is one of the most balanced Miami’s neighborhoods. Some of the most expensive postcodes are located right here in southern parts of the city. The streets and other amenities are well developed, and many residents feel like they’re on vacation. Property in Coconut Grove can come with more than a single purpose, as homeowners could use it as a vacation spot for their families.
Besides all the developed areas, the Groove still has great potential and pockets of soon-to-be gentrified streets where you can get a bang for your buck.
3. Overtown close to Miami Dade College
Overtown is another great neighborhood for real estate investment. Overtown has historically been overlooked.
The neighborhood may be the next neighborhood in Miami to receive a total makeover. Property Prices and taxes have yet to skyrocket to match other neighborhoods of its magnitude, and this gives a stellar opportunity to new investors. Overtown is more affordable compared to Coconut Grove and North Miami.
The area is up-and-coming and attractive for medical students and young professionals.
Why Many Property investors eye Miami this year
- Buying property in Miami has been a good investment for the past 111 months in a row.
- You can buy a condo for a fraction of the price of that in New York or Los Angeles.
- Miami has been a good place to invest your money, especially if you’re looking for something that will grow over time.
- The market is going up so fast. It might be hard to find a place before prices go up even more.
- The historically low interest rates have opened doors for new investors to enter the housing market.