Beyond a project of life, luxury real estate allows entrepreneurs to live their passions
It is a constant on every continent, the wealthy, HNWI and UHNWI, are mostly entrepreneurs. As part of the management of their assets, they give each year an increasingly important place to luxury real estate. In this way, they will establish their main residence in one of the best-rated cities on the international scene, which will allow them, in addition to an added value over time, to stay in touch with other entrepreneurs working in the same sector on a daily basis. Beyond their primary residence, these buyers will again act as entrepreneurs when selecting their second homes. They transform as much as possible these goods into sources of income, via their rental for residential properties and via their exploitation for more entrepreneurial projects (vineyards, hotels, hunts, stud farms, etc.)
For these entrepreneurs, especially the younger ones, real estate is not static. Their investments are part of a global entrepreneurial project, one that has allowed them to make a fortune.
Acquire a prestige property as you acquire a business
For wealthy people, investing in luxury real estate should no longer be experienced as synonymous with a financial burden. In an ever more digital world, arbitrations must be quick, even to shake the established order.
According to the site entrepreneur.com, just over 10% of American billionaires have pulled their income from real estate, some arguing that this is the best way to create real wealth while maintaining some financial independence. And even if real estate is primarily based on stone, new technologies have changed the rules of the game by accelerating and facilitating access to investment, especially abroad.
The need for global support
The art of living is a myriad of elements constituting a material heritage and especially intangible obvious and yet elusive. For HNWI and UHNWI, luxury real estate is only one aspect of this lifestyle that includes many others to allow them to live a unique experience in everyday life.
Beyond luxury real estate, wealthy families have a vision overall about the organization of their daily lives. After having acquired their main residence in an international city of reference, they will build a portfolio of second homes fulfilling practical, emotional and financial aspects. Most entrepreneurs will then combine passion and entrepreneurship by investing in "passionate properties" such as hotels, stud farms, golf courses or vineyards. Investments in many other areas of passion such as theart, the yachtingsailing and collector cars will enable them to combine the art of living and entrepreneurship.
As every year, BARNES 'goal is to anticipate the market to help its clients seize the best opportunities. So today we offer you our 10 predictions for 2018 regarding the real estate market in Miami.
1 & #8211; Buyers from the Northeast of the United States will dominate the market
In the Miami real estate market, foreign investors are becoming increasingly rare. But this is offset by a new influx of buyers from the North East of the United States. Indeed, we receive many requests from New Yorkers looking for a second home under the sun of Miami, or even people seeking to relocate.
2 & #8211; The return of the Europeans
With a record value of the euro reaching $ 1.20 for the first time since 2014, Europeans are acquiring a very strong purchasing power in the United States. And the best way to secure a dollar investment is real estate!
3 & #8211; Bitcoin transactions
While the Bitcoin craze is still on its way, investors who have successfully bet on cryptocurrency are looking for ways to diversify their portfolios. Foreign investors sitting on mountains of volatile capital that they would like to "solidify in stone" could well turn the Miami real estate market into a paradise for their crypto-currencies. Indeed, the first real estate transaction in Bitcoin has been carried out in Miami and opportunities to buy Bitcoin are increasing.
4 & #8211; The housing market will remain stable, while the high-end will slow down
The Miami home market works in a totally different way than condos. In recent years, we have seen a steady rise in transactions in the home market. However, the market for high-end homes is declining as supply increases. This implies that buyers are no longer paying a high price for properties that are not perfect and that do not justify such a high square feet price. L & #8217; location and size no longer does it all!
5 & #8211; Neighborhoods continue to see their attractiveness grow
Neighborhoods such as Edgewater, North Beach or Downtown will continue to grow in value thanks to major commercial projects and new infrastructure that continues to grow.
6 & #8211; New neighborhoods to watch
Buyers will turn to new geographic areas that are still affordable and therefore offer attractive real estate opportunities. We think in particular of South Miami, the Roads or some areas of the Upper East Side.
7 & #8211; The Tax Reform will increase the number of transactions
After the Tax Reform reducing the income tax from 35% to 21%, many individuals will have new funds to invest. And many of them will choose real estate!
8 & #8211; Commercial real estate will peak
Commercial real estate and the so-called "Triple Net" or "NNN" opportunities will see their demand increase, while their interest rates stagnate. There are now many investment opportunities with leases ranging from 10 to 25 years whose net profitability (ranging from 5 to 10%) are guaranteed by the tenant's parent company.
9 & #8211; The boutique buildings continue their seduction business
Real estate developers will focus on buildings of smaller sizes than before. No more 60-storey buildings and 300 apartments, instead of more private and exclusive residences, often thought by the best architects in the world. These buildings are called "Boutique Buildings" with a small number of apartments.
10 & #8211; The big internet companies will bet on real estate
Ebay, Google or Facebook will all bet on the real estate market, through acquisitions and investments. The real estate market offers opportunities that are not denied.
BONUS: The economy and the real estate market will work well
The creation of employment peaks, the unemployment rate is at its lowest for 17 years, wages take off and companies invest at full speed, while corporate taxes fall dramatically. The political uncertainty will not slow down the global economy, which is starting again at full speed, leading to the real estate market.
Fasten your belts, 2018 promises to be a prosperous year!
The BARNES Miami team Introducing you today at 4350 Sabal Palm Rd, a rare property located in one of Miami's most exclusive neighborhoods.
Bay Point, welcome to paradise!
Buying a house in Bay Point is like settling in an oasis in the heart of the city. Only a few blocks from the glamorous Design District, this private and supervised community offers its residents an exclusive and safe lifestyle, surrounded by lush greenery. A few minutes from the Midtown Mall, vibrant Wynwood, Downtown and beaches, but also from renowned private schools (The Cushman School, Miami Contry Day, The French American School of Miami & #8230;)
4350 Sabal Palm Rd, Miami FL 33137
This vast Florida house of almost 500 m² is located on a large corner lot of almost 1500 m². It has recently been totally renovated, with quality finishes in 5 bedrooms and 5 bathrooms. The house also has a large office and a room that can be used as a gym or second living space, as well as a floor reserved for guests with a separate entrance. The large kitchen opens onto a patio overlooking an outdoor kitchen. The property also includes a large pool, and an outdoor lounge. the lush vegetation really makes this property a nice place.
Florida and Miami are destinations that are no longer present. Who does not know the bright sun all year long on sandy beaches that stretch to infinity at the feet of ultra-modern buildings and luxurious villas?
But Miami is more than just a cliché and a tropical holiday destination. The city offers a bubbling cultural life and an impressive diversity. The neighborhoods live under the same blue sky, but are not alike. There is something for everyone, for varied budgets, and for different lifestyles.
Invest in Florida for Still Affordable Prices for Real Estate
During the subprime crisis of 2008, Miami had been one of the cities in which prices had fallen the most. But it is also in Miami that the real estate is distributed more quickly. The reason for this craze? The appeal of investors around the world for this unique city on the international map, in the heart of the Americas, with considerable prospects, and a growing economy. Confidence has pushed up prices, but today it is estimated that the city has not said its last word and that the prices it offers are well below other global cities acclaimed internationally. So investing in Florida means enjoying a dynamic environment, but also build on a promising development generating medium-long-term capital gains.
An advantageous tax system
The state of Florida and Miami Dade County do not levy income tax on its residents. They must pay the federal income tax (that of the United States). This removes 2 levels of taxes and thus alleviates the taxation of those with significant taxable income. Most other US states do not have this tax and so residents have 3 tax levels (city - state - country).
This explains the attraction for Florida from entrepreneurs in New York, California, for example. In rental investment, under certain conditions, the rental income can be amortized during the period of ownership of the property through a depreciation mechanism.
In the event of a capital gain on the resale of real estate, the tax rate is around 15%, which remains much less important than in many European countries for example. As for acquisition costs, they are reduced, ranging between 1.5 and 2.5 % of the purchase price.
Some countries, such as France, have signed a tax treaty which avoids double taxation, under certain conditions.
Florida and Miami offer a particularly interesting tax climatebut it is always essential to consult your accountant and tax specialist before acquiring a property, to check what applies to each person's personal situation, and to better structure your investments from the start of the project. The heritage and estate aspect is, for example, another factor to be taken into account. The Barnes office in Miami is there to direct you to professionals you can consult.
Invest in Florida for a Strategic Location
For the past ten years, Miami has been speeding up the opening of airlines, making its airport an unmatched hub in the Americas, and a gateway to the Americas for countries around the world. The airport offers many direct flights daily to major North American cities (including Canada), to Latin American and Caribbean capitals, and to Europe. Recently, lines have been opened to the Middle East (Qatar) and Tel Aviv. Even Japan is in project within two years!
Just 30 minutes from Miami, Fort Lauderdale also has a growing international airport, including a choice of "low cost" companies including Europe (Norwegian Airways has a direct line Miami-Paris). Logically, this service to the two airports, makes Greater Miami a very suitable place as a starting point, for the development of international business.
A promising economic development
Miami's ability to attract entrepreneurs and investors from around the world and its unique position on the international scene encourage the city and its economic actors to diversify the development axes.
Beyond tourism, a major historical winner of the business sectors, Dade County relies on diversity: import-export of course, financial center (the second United States after NY), but also aeronautical maintenance (Miami became a major center on the continent), life sciences, health and biotech, the luxury and design sector, new technologies ... there is not a day without an announcement confirming the energy of Miami and its desire to win a new place in the business sun.
Beyond its geographical position, one of the assets of the city is a young population and a multicultural environment and multilingual in a period when globalization is the key word of business. "Last but not least" in the essentials of sustained economic development: the favorable legal and social climate for entrepreneurs. The Mayor of Miami Dade's ambitions are clearly displayed: Miami is becoming, before the middle of this century, one of the 4 largest economic centers of the United States turned to international, joining NY, Los Angeles, Houston & #8230 ; and one of the big business centers of the world, like New York, London, Hong Kong or Singapore!