Investment in North America? Four tips to buy a property in Miami
Apart from being a highly touristic city, 'Magic City' has become an excellent investment alternative to take care of money given the high rate of inflation.
Inflation levels in Chile have been an issue for many investors. Given the high degree of uncertainty, there are those who seek solutions to secure money in foreign currencies.
One of the markets that points out as a safe investment is the acquisition of real estate in Florida, United States, specifically in Miami. Acceptable levels of profitability, excellent capital gains in recent years and less risk are the letters of introduction of this great city as an alternative.
In fact, all the predictions indicate that in 2023 the numbers will continue to rise, although not at the rate of the last two years.
According to Carlos Balart, CEO of MIAM Real Estate, he gave some essential tips that will help invest in properties in 'Magic City', and earn money from rentals.
Proximity to the sea
The most desired by tenants of this type are properties with sea views, central areas and with a lot of life, such as Brickell, Midtown, Miami Beach.
It's important to consider whether a Florida property is relatively close to the beach, has access to a canal, or is within walking distance of other attractions. In addition, you have to check if it has any type of restriction for short-term leases.
Properties in the Orlando area also work very well, especially houses and townhouses.
Age of the building
Florida State law requires buildings to pass certain certifications at 40 and 50 years of age.
In order to comply with the city's requirements and the new standards, repairs and improvements to the building need to be made, which has a fairly high cost that is prorated among all departments.
Cost of Common Expenses
Common expenses are quite high. The average cost is one dollar per square foot. This for an apartment of 90 meters, is something like a thousand dollars. Common expenses have gone up over the last year as insurance has gone up, and these are paid through common expenses.
In Florida, the common expense is not paid by the tenant, but by the owner. It is a fact to take into account, since you can come across apartments that seem to have a very good price, and that are rented at a high value, but from that rent you have to deduct the common expenses.
Consider financing the purchase with a mortgage
The interest rates are quite convenient. Here the rate is in dollars, not in UF, so it is not adjusted for inflation, and you pay exactly the same dividend every month.
Loans can be borrowed for up to 30 years, and there are no penalties for amortizing or prepaying the loan. The foot for a foreigner goes from 25%.
Be careful, they are not going to deny you a credit because of your age. You can even ask for a 30-year term, no matter how old you are.