Between its thriving economy, recognised quality of life, exceptional tax benefits and a luxury market that is still affordable, Miami is one of the most favourable destinations when it comes to real estate investment this autumn 2020. We take a look at this extraordinary market with the BARNES Miami.
1 Miami in figures
- 2nd ranked US city in terms of economic growth
- 1,000 multinationals
- Leading US destination for start-ups
- 4th ranked US city in terms of schools
- 38.2 - average age of its inhabitants
2 A more than lenient tax regime
- 0%: personal income tax in Miami (vs 2.9 to 3.6% in New York)
- 0% : personal income tax in Florida (vs 4 to 8.9% in the state of New York)
- 0% : corporation tax in Miami (vs 8.85% in New York)
- 0% : corporation tax in Florida (vs 7.10% in the state of New York)
3 A particularly attractive rental market
Real estate has been constantly growing in Florida for the last 8 years, with very high rental demand. 7 out of 10 inhabitants are tenants, for only 3 owners. This allows for comfortable rental returns on luxury properties and more generally higher returns than in many major cities.
Miami is also considered ‘landlord friendly’ thanks to laws that protect owners against tenants that dodge rent. There is also no annual cap on rent increases.
4 An affordable luxury property market
Prime real estate is still affordable in Greater Miami, with very attractive prospects. HNWI (high-net-worth-individuals, those with at least one million dollars in liquidity) in the northern USA and California are relocating en masse to Miami and other cities in south Florida. They are buying ultra luxury properties, for themselves or to rent out, at half or a third of the price in their home state.
Here, two million dollars will buy you a stunning villa or a large high-end apartment with views over Miami, something that would be laughable in New York or Los Angeles.
For buyers and investors with lower means, Miami is synonymous with surfaces double or triple that found elsewhere for a similar budget.
5 A buyers’ market
The Miami property market is currently favourable to buyers, who can take advantage of the global economic situation to enjoy advantageous conditions: in the new sector particularly, it is possible to buy with a down payment of $50,000, compared to 20% of the total amount previously. For some new developments coming to the end of their marketing phase, it is possible to negotiate a parking space as extra or no charges for two years. But the market remains solid: in terms of prices, some properties go for up to 10% below the asking price, with the average trend in the range of 2 to 3%.
6 A magnet for tech investors
The French Tech Miami label was awarded to Miami by the Mission French Tech in 2020. French Tech is an international label with over 48 French Tech communities around the world, 6 of which are in the USA.
These communities play a dual role:
- Helping develop French start-ups in the host country
- Promoting France among foreign investors.
In 2020, Miami was ranked the leading US city for entrepreneurship. Particularly in the tech sector: over 4.5 billion dollars have been raised over the last three years in Miami and Fort Lauderdale. (source lafrenchtech.com)
7 An education system favourable to French families
Miami Dade County offers a French/American bilingual curriculum in reputed public schools, from kindergarten to 12th grade (age 17-18). Kids can therefore pass an American high school diploma (in private or public schools), a classic International Baccalaureate, or a French Baccalaureate. And the cherry on the cheesecake? French families are viewed well in schools in Florida for the good level of their children’s education.
BARNES Miami has created a ‘Relocation’ department to advise and guide new arrivals in terms of the formalities to complete, notably for immigration and education procedure.
8 A recognised quality of life
Miami has one specificity: it is the only city to act as a dual gateway to North America and Latin America. Other than its climate, its Art Deco architecture, its beautiful white sandy beaches and its innate taste for partying, its strategic geographic location gives it a cultural mix that is unique worldwide. And 100% SoBARNES, naturally.
As payroll costs are lower than in other States and life generally less expensive, Florida attracts thousands of new talents and entrepreneurs from across the US every year.
Jennifer Lopez, David Beckham and I...
Keep it on the down-low, but here’s a list of celebrities who bought a property in Miami during the pandemic:
- Jennifer Lopez and Alex Rodriguez – $40 million in Star Island
- Pharell Williams – $30 million in Coral Gables
- Gianluca Vacchi – $24,5 million in Miami Beach
- David Beckham – $20 million in Downtown Miami
- Timbaland – $7,95 million in Coral Gables
- Paul Pogba – $6 millions in Downtown Miami
- Lionel Messi – $5 million in Porsche Tower on Sunny Isle
Want to learn more, or even join them in the Florida sunshine? Contact BARNES Miami
Tel. : +1 305 361 22 33 / [email protected]
Photo © Jovannig Adobe Stock
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