5 good reasons to invest in Miami

1 & #8211; A dream destination

Miami is a destination that no longer presents. Who does not know its shining sun all year long on sandy beaches that stretch indefinitely 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. Neighborhoods live under the same blue sky, but are not alike. There is something for everyone, for varied budgets, and varied lifestyles. If you want to know more about the neighborhood that best fits your project, it's here!

2 & #8211; Still affordable real estate prices

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 remain well below other global cities acclaimed internationally. So buying in Miami is enjoying a dynamic environment, but also rely on a promising development generator of capital gains in the medium-long term.

3 & #8211; 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 residents are taxable at 3 levels (city - state - country).

This explains the attractiveness for Florida of entrepreneurs from New York and 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. Regarding the acquisition costs, they are reduced between 1.5 and 2.5 % of the purchase price.
Some countries, like France, have signed a tax treaty with the United States. This allows, under certain conditions, to avoid double taxation.

Florida and Miami offer a particularly interesting fiscal climate, but it is always essential to consult your accountant and tax specialist before acquiring a property, to check what applies to everyone's personal situation and to better structure your investments. from the beginning 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.

4 & #8211; A strategic geographical situation

For the last ten years, Miami has been speeding up the opening of airlines, making its airport an unmatched hub of the Americas, but also a gateway to the Americas for countries around the world. Recently, lines have been opened to the Middle East (Qatar), Tel Aviv, even Japan is planned in 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.

5 & #8211; A promising economic development

Miami's ability to attract entrepreneurs and investors from around the world and its unique position on the international scene today 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 of the United States after New York), but also aeronautical maintenance (Miami en has become a major center on the continent), life sciences, health and biotech, luxury and design sector, new technologies ... there is not a day without an announcement confirms the desire of Miami to win a new place in the sun of business.

Beyond its geographical position, one of the city's assets is a young population and a multi-cultural and multilingual environment sought after in a period when globalization is the key word of business. "Last but not least" in the essentials of sustained economic development, the legal and social climate is largely favorable to 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 major business centers of the world, like New York, London, Hong Kong or Singapore!


10 Predictions for 2018

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!

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